Home Information Packs have been shrouded in controversy since they were first introduced last year, with both supporters of the packs and those opposed to them arguing their side. Those supporting HIPs have stated that these packs contain all of the information necessary to make the sale and purchase of a property smooth, quick, and hassle free. However, those opposed to the packs have said that they cause unnecessary delays, are costly, and are even resulting in fewer properties coming onto the market because some buyers are put off. (more…)
Archive for March, 2008
Are HIPS a waste of time?
Monday, March 31st, 2008
Regions of England and Wales see property prices slump
Monday, March 31st, 2008According to a recent report there have been house price falls in all regions of England and Wales, and officials from the Royal Institute of Chartered Surveyors have stated that in some areas house prices have been falling at their fastest pace since records began in 1978. Amongst the areas suffering the worst declines on record are Yorkshire and the East Midlands, state officials. (more…)
Refinancing mortgage could prove costly to IVA consumers
Monday, March 31st, 2008Many struggling borrowers in the UK have entered into an IVA over recent years, with awareness about this process having been raised through a series of advertisements put out by IVA firms. An IVA, or Individual Voluntary Arrangement, is a legally binding agreement that is known as a softer alternative to bankruptcy. This process is designed to help those with a high level of unsecured debt to benefit from more affordable monthly repayments and to get out of debt more quickly. (more…)
Interest rates on personal loans continue to rise
Saturday, March 29th, 2008Despite the two most recent Bank of England interest rate cuts the interest charged on personal loans in the UK is continuing to rise, leaving many potential borrowers facing huge costs relating to their borrowing, The rates on personal loans have been rising for some time, and as a result of the credit crunch many people now find it difficult to get affordable unsecured personal loans, with banks having to increase their rates to make up for the losses incurred as a result of higher inter-bank lending costs. (more…)
Industry expert predicts 20% fall in house prices over two years
Saturday, March 29th, 2008A financial industry expert, who also worked as an advisor to the government, has predicted that house prices in the UK could plummet by 20% over the next couple of years, providing a gloomy outlook for homeowners. The average property price could plummet from £200,000 to just £160,000 if the predictions of Professor David Miles are correct, and homeowner that have recently purchased properties and paid the current high prices could soon find that their properties are worth far less than they paid for them. (more…)
Crippling mortgage rates for first time buyers with no deposit
Thursday, March 27th, 2008Most first time buyers in the UK have very little to put down by way of deposit on a mortgage, and this is because they have no previous property from which to use equity towards a deposit. In the past this has not proven too much of a problem, as many first time buyers have been able to access 100% mortgages – or even 125% mortgages – which has meant that they could get away with little or no deposit. (more…)
Addition liquidity for banks through injection of cash
Wednesday, March 26th, 2008An injection of cash from the Bank of England has recently increased liquidity for the banking industry, which means that banks and lenders may be able to continue with their loan and mortgage lending without struggling, at least for the short term. Since the global credit crunch came into effect many lenders have found that it has become difficult and extremely expensive to secured funding for their lending on the wholesale money markets, and this has resulted in many lenders having to raise their interest rates and cut back on their lending. (more…)
The Benefits Of Unsecured Loans
Wednesday, March 26th, 2008An unsecured loan is a loan that is based on trust and contract, and unlike a secured loan this type of loan is not secured against any asset. In order to be eligible for an unsecured loan you will usually need to have a good credit rating, as the non-secured nature of the loan makes it too high a risk for most lenders to consider bad credit customers. However, there are some lenders in the UK that offer unsecured loans to those with damaged credit, but at a high price in most cases. (more…)
Can Long Fixed Rate Mortgages Stabilise Mortgage Market?
Tuesday, March 25th, 2008Since he came into office as Chancellor of the Exchequer, Alistair Darling has spoken very highly of long term fixed rate mortgages, and has made it quite clear that he believes that this is the way forward for the UK in order to try and bring stability to the housing and mortgage market, and increase security for homeowners. (more…)
Impressive figures on buy to let mortgages
Tuesday, March 25th, 2008Whilst general mortgage figures and statistics have made for gloomy reading over recent months, it seems that the same level of gloom and despair has not hit the buy to let mortgage market according to recent data. In fact, recently released figures show that the level of outstanding buy to let mortgages has rocketed since 2006, passing through the £1 million barrier. He amount outstanding on buy to let mortgages at the end of 2007 was around 23% higher than 2006. (more…)
Trial shows HIPs not as successful as hoped
Saturday, March 22nd, 2008According to a recent report the Home Information Packs that were introduced by the government last year are not proving nearly as successful as was hoped. These packs are now compulsory for any residential property that is being marketed for sale in England or Wales, with government officials stating that they will make things easier and smoother for purchasers and sellers. (more…)
Advice given to potential home purchasers
Friday, March 21st, 2008A recent report has shown that house movers and first time buyers are confused over whether they should purchase a property now given the predictions over falling house prices and interest rates, with many unsure as to whether they should take the plunge or adopt a wait and see stance. A number of analysts and economists have predicted that interest rates could plummet by the end of the year, and many have predicted that house prices will continue to tumble. (more…)
Loans market still suffering due to credit crunch
Thursday, March 20th, 2008Recent reports have shown that the loans market continues to suffer as a result of the global credit crunch, with rates on personal loans continuing to soar despite base rate cuts, and with the number of sub-prime mortgages available on the market falling rapidly. According to industry officials the number of lenders offering sub-prime mortgages has fallen from 32 to just 20, and consumers looking for personal loans are having to pay out far more in interest rates. (more…)
Many first time buyers facing soaring mortgage rates
Thursday, March 20th, 2008According to recent figures from the Bank of England, many first time buyers are now facing crippling mortgage rates, with many being hit by the highest mortgage rates in over seven years. Data from the central bank suggests that in some cases first time buyers are being hit with interest rates on mortgages that are at the highest since 2000. (more…)
Are you a homeowner on an IVA programme?
Wednesday, March 19th, 2008Awareness over Individual Voluntary Arrangements, or IVAs, has increased over the last couple of years, with a number of firms putting out advertisements relating to this type of debt solution. An IVA is known as a softer alternative to bankruptcy and is designed to help those in high levels of unsecured debt to get out of debt more quickly. (more…)
Darling addresses long term fixed rate mortgages in budget
Tuesday, March 18th, 2008As promised one of the issues that Chancellor of the Exchequer, Alistair Darling, addressed in his first budget recently was the importance of longer term fixed rate mortgages, which he claims will increase stability in the housing and mortgage sector, and will enable homeowners to enjoy increased security and peace of mind as a result of stable interest rates and repayments through most of all of their mortgage term. (more…)
IVA homeowners could face problems
Tuesday, March 18th, 2008Over recent years Individual Voluntary Arrangements, or IVAs, have become increasingly popular with borrowers that have found themselves in unmanageable levels of debt. With an IVA, if agreed, the borrower pays a set amount each month, which is then distributed amongst all creditors on a pro rate basis, and the term of the agreement is usually five years. At the end if the five year period any remaining debt is written off leaving the borrower debt free. (more…)
Should you consider payment protection insurance?
Monday, March 17th, 2008For the last couple of years payment protection insurance, known simply as PPI, has hit the financial headlines on a number of occasions, and this is because of a number of problems that regulators have picked up on with regards the both the sale and the effectiveness of this cover. PPI is a type of cover that is designed to cover your repayments on a loan or other form of finance for a set period of time in the event that you cannot meet the repayments due to sickness, accident, or redundancy. The idea behind PPI is that having your repayments covered for a specified period will enable you to get back on your feet or get another job without the added worry of how to pay your debts. (more…)
No change in interest rates for March
Monday, March 17th, 2008Following the latest Monetary Policy Committee meeting last week the Bank of England has decided to keep interest rates on hold amidst concerns over rising inflation. Although there have been calls for the central bank to cut rates as a result of the flagging economy officials have also had to take into consideration the risks of rising inflation as well as a slowing economy. (more…)
Securing A Loan Against Your Home
Wednesday, March 12th, 2008If you are a homeowner in the UK and you are looking to raise finance for one of a wide range of purposes you may be able to enjoy great value borrowing by securing a loan against your home. Your ability to get a secured loan will depend upon the market value of your property and the amount that is still outstanding on your mortgage. Other loans that may already be secured on your property will also affect your ability to take out a secured loan. (more…)
Does it make sense to consolidate?
Tuesday, March 11th, 2008Consolidation of debts is a term that many of us have become increasingly familiar with over recent years, with many of us turning to consolidation in order to try and eliminate higher interest debts. If you are able to get your hands on a low rate consolidation loan with cheap repayments you could really feel the benefits of consolidation, but this is not necessarily a solution that is right for everyone in debt. (more…)
Options That Can Help Clear Your Debts
Sunday, March 9th, 2008These days, with the level of consumer debt in the UK at record highs, many people find themselves suffering from debt problems, and once these problems start they can quickly spiral out of control. Often, it is people with a number of high interest debts such as credit cards, store cards, and high interest loans, that find themselves experiencing problems when it comes to repayments, and with interest rates still high coupled with food, energy, and petrol costs on the rise, the financial outlook for those in debt can be very bleak. (more…)
Will IVAs become more transparent?
Saturday, March 8th, 2008In the past many consumers had no idea what an IVA was, but awareness has been raised over the past couple of years following a series of glossy advertisements run by a number of debt management agencies. An IVA, or Individual Voluntary Arrangement, is a legally binding agreement between a borrower and his or her creditors with regards to the repayment of debts. The aim of an IVA is to get the borrower out of debt more quickly, increase short term affordability for the borrower, and enable creditors to recoup some of what is owed to them. (more…)
Tips to get onto the property ladder
Wednesday, March 5th, 2008Over recent years the prospect of being able to get onto the property ladder has become a very bleak one for many people, with rising property prices, rising interest rates, and rising living costs all adding to the financial strain experienced by consumers. In addition to this the global credit crunch has resulted in tighter lending conditions, which has made it increasingly difficult for many people to raise the money that they need to get onto the property ladder. (more…)
House builder warns on house prices
Tuesday, March 4th, 2008The CEO of a major housing development company has called for further interest rate cuts, stating that house prices are likely to remain flat for the next eighteen months, and adding that the interest rate cuts are necessary in order to support the market. The Chief Executive of Barratt Developments has forecast a tough year and a half ahead, with buyers and sellers delaying deals due to flat house prices. (more…)
Avoiding risks with an unsecured personal loan
Monday, March 3rd, 2008Finding the right loan these days isn’t always difficult because there are so many different loan products available to suit a wide range of needs and circumstances. However, it is important to bear in mind the importance of choosing the right loan product. It is all too easy to rush into taking out finance without really thinking about whether the loan product is the right one for you, but taking on a loan is an important financial commitment and should be given careful consideration before you make any commitment. (more…)
Buy to let mortgage figures soar
Monday, March 3rd, 2008Despite the gloomy predictions relating to the housing market, and the documented reductions in house price inflation, recent figures have shown that buy to let mortgages had rocketed by the end of last year, increasing by nearly 25% compared to the end of the previous year. (more…)
Loans For Bad Credit Applicants
Sunday, March 2nd, 2008With the high level of consumer debt in the UK, and the rising costs experienced by most households, it is little wonder that an increasing number of us are finding that our credit history and rating has been affected. Having bad credit is nothing unusual these days, but it is, of course, important to try and avoid bad credit, as it can have a profound impact on your financial future. If you have bad credit you could find it increasingly difficult to get finance in the future. However, that said, there are now a number of lenders that are able to specialise in offering finance to those with bad credit. (more…)
Requirements For An Unsecured Loan
Sunday, March 2nd, 2008Unsecured loans are loans that are available from a wide range of lenders, from High Street banks and building societies to Internet only lenders. As the name suggest an unsecured loan is not secured against any asset, and is based only on trust and contract. An unsecured loan is available to both homeowners and non-homeowners, unlike secured loans, which are only available to those that own their own home. In order to get an unsecured loan you need to meet the lender’s eligibility requirements, and therefore you should make sure that you familiarise yourself with the criteria for each individual lender before you make your application. (more…)
Is A Secured Loan The Right Choice?
Sunday, March 2nd, 2008Secured loans are loans that are aimed at homeowners with some level of equity in their homes. Equity is the difference between the market value of your property and the amount that you owe on the property by way of mortgage or other secured loans. Unlike an unsecured loan these loans are secured against the home, and this why you need to be a homeowner in order to be eligible for a secured loan. There are a number of lenders that are able to offer this type of loan, and you need to compare a range of loans from a number of lenders to ensure that you get the best deal possible on your borrowing. (more…)
Sale and rent back scheme still being branded a rip off
Sunday, March 2nd, 2008A fresh attack has recently been launched against some sale and rent back scheme firms by the homeless charity Shelter, with officials claiming that many of these forms fail to live up to their promises and rip off consumers in terms of what they pay for the property. These schemes have become increasingly popular with struggling homeowners who want to stay in their property but cannot afford the mortgage repayments and do not want to risk having the property repossessed and getting thrown out. (more…)
IVA homeowners face soaring interest rates
Saturday, March 1st, 2008Homeowners that have entered into an IVA, or Individual Voluntary Arrangement, could face soaring interest charges on their mortgage as the result of a clause in the agreement that requires them to use the equity in their home to put towards their debts. An IVA is known as a softer alternative to bankruptcy, and those entering into this sort of agreement pay a set amount per month for a period of five years after which the remainder of the debt is written off. (more…)
Are Cheap Mortgages Coming Back on the Market?
Saturday, March 1st, 2008It seems that over the past year or so cheap mortgages have become a thing of the past in the UK, with the series of five interest rate hikes between August 2006 and July 2007 resulting in lenders hiking up their mortgage interest rates and reducing affordability for many potential property purchasers. (more…)