Archive for March, 2011

Mortgage difficulties lead to frantic rental sector

Tuesday, March 29th, 2011

For many first time buyers getting onto the property ladder has become increasingly difficult due to a range of factors, including high deposit demands, high asking prices, and restrictions from lenders. This has led to the demand for rented property soaring, with many people trying to get their hands on the same property. This has led to the property rental market becoming more frantic than ever, leading to increased difficulties for those trying to rent a home.

It is claimed that the process of gazumping, which was once very common in the purchased property market, has now shifted to the property rental market, which means that would be tenants have a stressful and difficult time ahead of them when it comes to securing their ideal property. In a bid to try and get their hands on a rental home in the current market potential tenants are frantically trying to outbid one another with regards to the amount of rent they are willing to pay each month.

With rents already rising fast in many parts of the UK, this process is pushing up costs even further for many people that are hoping to rent, and many are losing the properties that they are interested in because they are being outbid by other tenants. Figures have also showed that properties are now taking around fifteen days to be snapped up after being marketed for rent, which is five days faster than they were taking a year ago.

One industry expert said: ‘Lack of mortgage funding and high house prices are locking many people out of buying. The knock-on effect is that rental demand has soared, with prices rising rapidly. In the past it was rare for gazumping to happen in the rental market, but in this sort of environment it is going to occur more.’ 

Tags: Mortgage difficulties, Property ladder, Leasehold estate, property, first time buyer, Gazumping, rental market

Posted in Mortgage News | No Comments »

How to help ease the strain of debt

Monday, March 28th, 2011

For many people the strain of debt and financial problems has really taken its toll on their quality of life, and with soaring living costs, job losses, and frozen or reduced income the situation could get worse for many people. Finances have been overstretched in many households for some time and many industry experts believe that things could get worse for some households over the course of this year with the budget having delivered little by way of immediate good news for those that are struggling to keep their heads above water in terms of their finances.

However, there are ways in which consumers can help to ease the strain by taking control of their finances. There are a number of steps that you can take to try and reduce your monthly outgoings, which means that you will have more disposable income either to deal with living costs or to reduce your debt levels. Some of these measures are outlined below:

-      Switch your services: there are many services that you can switch to try and make reductions in your monthly outgoings, and it is surprising how much you can save collectively simply by switching  handful of services. This includes things such as your energy supplier, your broadband and television provider, your car insurance provider, and your home insurance provider. Whilst you might only save a fiver here and a fiver there it can all quickly add up to a fairly tidy sum over the course of the month.

-      Consolidate your debt: You may find that it is cheaper and more convenient to consolidate your various debts into one with a low rate consolidation loan. You can wrap up debts such as your credit cards, your store cards, any catalogue balances, smaller unsecured loans, and overdrafts in a bid to try and reduce overall interest and cut monthly repayments. You will also benefit from having just one repayment each month by doing this rather than a number of different payments to make to a range of providers.

-      Cut back on your luxuries: Despite the difficult financial climate many of us still have luxuries that we pay for each month. If things are getting really tight consider cutting out these luxuries even if only on a temporary basis. You can do things such as freeze your gym membership if you have the facility, cancel subscriptions, reduce your broadband and television service down to a minimum, and cut back on shopping.

Tags: smaller unsecured loans, handful, credit, home, financial problems, insurance provider, television provider

Posted in Debt News, Featured Articles | No Comments »

Consumers need to take control of their finances

Monday, March 28th, 2011

Over the past few years there have been many people who have found themselves facing a serious financial struggle due to tighter budgets and increased living costs as well as reduced or frozen income. More and more people, particularly those with debt, have found it extremely difficult to keep their heads above water. Many may therefore have been hoping that the Chancellor of the Exchequer, George Osborne, would therefore deliver some good news that would aid them with their financial situations.

There was some good news delivered by the chancellor, which included a cut in fuel tax rather than an increase, a new scheme to help first time buyers get onto the property ladder, and an increase in personal tax allowance. However, one industry expert has said that consumers should not have been relying on the budget to try and get out of financial difficulties, and instead they need to take control of their financial situations themselves.

Kevin Mountford from Moneysupermarket.com said that it was unlikely that people would feel much better in terms of their finances because of the budget. He said that the answer was to take greater control of their own budgets and take steps to try and reduce the financial strain. He added that further strain would be put on finances for many consumers due to government cutbacks and rising living costs as well as possible job losses.

Mountford said: “Apathy in the current climate really can impact consumers’ wallets and by simply putting a few hours aside to review their finances and shopping around for better deals, it is possible to make some serious savings.”

He said that there were some competitive deals around when it came to mortgages, credit cards, services, and even savings, so it was well worth consumers taking the time to shop around.

Tags: scheme, debt, Chancellor, good news, George Osborne, greater control, Consumer

Posted in Debt News | No Comments »

Clearing debt is still more important than saving

Tuesday, March 22nd, 2011

For many people it has been difficult over the past few years to decide whether to put any spare money into savings so that they have cash to emergencies or for luxuries and treats, or whether to use their spare money to pay down their mortgage and clear other debts. Of course, few of us have what can be described as ’spare’ money these days. However, for those of us that have variable rate mortgages the repayment amounts have been much lower over the past couple of years because of the rock bottom interest rates stemming from the all time low base rate of 0.5 percent.

Many homeowners with variable rate mortgage have been delighted that interest rates have remained low for the past two years. This has seen their monthly repayments plummet in some cases, leaving them with far more in the way of disposable income each month. However, there are been mixed reactions in terms of how this spare money has been used each month by those that have saved on their mortgage repayments.

Whilst it is important to have some money in savings in order to fund an emergency of in case of a job loss it is important not to focus solely on saving the money each month. Even though many believe that the interest rates could increase soon it is still worth spending however long is left in terms of lower repayments using the money to pay off some debt. Some people have used the spare cash to reduce the mortgage by overpaying on it. However, for those that have unsecured high interest debts such as credit cards and loans it may be an idea to spend as long as possible paying these off with that money.

The first thing to bear in mind is that if interest rates do rise, as is expected, then monthly repayments will also increase. For some people this could come as a financial shock, and if there are also unsecured debts to cope with this could make things very difficult. Paying off the unsecured debts means that if rates and repayments do increase the financial changes will be easier to cope with.

Also, bear in mind that the current returns on savings are very low, which means that you will save far more by paying off high interest debt than saving money in a low interest account.

Tags: Credit card, shock, unsecured debts, mixed reactions, low

Posted in Debt News, Featured Articles | No Comments »

Complaints about estate agents soar

Tuesday, March 22nd, 2011

It is a standing joke that estate agents in the UK have something of a poor reputation and are amongst the most disliked in terms of profession. However, a recent report has shown that people really do seem to be taking objection to estate agents, with the level of complaints made against this group having soared.

Figures have been released recently by the Property Ombudsman, which have shown just how much the level of complaints against estate agents has soared in the UK. The previous high when it came to estate agent complaints was reached in 2008 when the UK was still in the throes of the financial crisis and recession. However, the level of complaints has now topped this by a massive 28 percent.

According to the Property Ombudsman, Christopher Hamer, the level of complaints has now reached its highest since records began twenty years ago. The number of complaints is said to be 40 percent higher than predictions for the year. He also expressed concern that the rising level of complaints have come despite the lower transaction numbers in the property market, which would means that people are having less to do with estate agents that they have in the past.

Hamer said that complaints were ‘unacceptably high’ with the figure for last year coming in at 1338. Many of these complaints related to lack of communication between the estate agent and the consumers, with others relating to marketing and advertising or the way in which complaints had been handled. The highest number of complaints were made against estate agents in the South East according to the figures.

Hamer said: “People are less ready to be satisfied in times of economic stress to accept less than perfect service, especially when they are spending a lot of money.”

Tags: Business Finance, Money, throes, communication, profession, something, level

Posted in Mortgage News | No Comments »

Figures show 25% rise in homes for sale

Tuesday, March 22nd, 2011

Figures that were released recently have shown that the number of properties that have been put up for sale have increased by 25% compared to last year. According to the report property owners who are selling their homes have become increasingly realistic about how much their homes are actually worth. The report comes from the National Association of Estate Agents.

The NAEA said that part of the reason why the property market had stagnated was because so many sellers were previously being unrealistic about how much their properties were worth and were often putting their homes on the market at unrealistic prices just to see what would happen. The NAEA has said that the new figures show that there has been an increase in confidence and sentiment in the property market.

Figures have shown that the average number of properties that each estate agent had on the books in February was seventy, which was up from an average of fifty six during the same month a year earlier. There was also an increase in the number of properties that were sold to first time buyers according to the figures, which went up slightly from 24% to 25%.

An official from the National Association of Estate Agents stated: “The picture is still very variable across the UK with agents reporting much higher growth in inquiries and stock availability in some regions than others. Undoubtedly, broader economic constraints on spending continue to impact on consumer confidence, especially at a first-time buyer level, and the effect of the public sector cuts has yet to be fully felt. With limited mortgage availability and the concern about a likely rise in interest rates still putting off many of the people who otherwise would be looking to buy, it is important that the Government does everything it can to encourage growth at this crucial stage of the recovery process.”

Tags: government, first time buyers, year, buyer, rise, National, reason

Posted in Mortgage News | No Comments »

Cash squeeze to be felt by many households

Wednesday, March 16th, 2011

It has been claimed recently by a leading debt charity that many households are set to feel the financial squeeze as a result of a range of factors that is affecting affordability for many individuals and households. The warning comes from the Consumer Credit Counselling Service, which has said that middle earning families are likely to be most affected.

Amongst the factors that are thought to come into the equation are rising interest rates, fewer tax credits, and higher tax thresholds. According to the CCCS many vulnerable families would continue to struggle in terms of their finances, and this was especially true of families or households with a lot of children.

Homeowners are said to have a higher level of unsecured debt than those renting a property according the CCCS data. Almost half a million households were assessed as part of the study by the debt charity. The data showed that the typical age of the person seeking help from the charity was now forty two years, and the age of those in the most debt was between fifty and fifty nine years.

The CCCS said that a rise of just 2 percent on the interest rate could result in the average monthly mortgage increasing by £307, which would put additional strain on households.

The charity said: “The picture is undoubtedly bleak and it seems likely that many more families, including better-off ones, will be increasingly prone to over-indebtedness in the months ahead. It is also not a uniform picture across the country: public sector cuts in terms of jobs, spending and benefits will weigh disproportionately on certain groups of people. The incidence of unmanageable debt bears down harder on specific parts of the country, such as London and Yorkshire.”

Tags: higher level, rates, Service, mortgage, percent, middle earning families

Posted in Debt News | No Comments »

Many consumers in debt to energy firms

Monday, March 14th, 2011

As most people are aware the personal debt issue in the UK has spiralled out of control, with many people that have accrued debts such as credit cards, loans, and other forms of personal debt. However, it has recently been revealed that many also owe a lot of money to energy firms, with the soaring costing of energy leaving many unable to afford their bills.

The rising cost of living in general, along with factors such as a cut in income or welfare, job losses, and increasing outgoings, has left many people struggling to keep on top of their bills. Energy prices in particular have soared and with the last couple of winters having been so bitterly cold this has resulted in a rising number of people being unable to pay their bills.

It has been revealed that many people are now in debt to energy firms, with a total of £624 million owed to these firms. It is thought that the average amount owed by households is around £126 each. The data comes from the comparison site uswitch.com. Nearly 40 percent of energy customers said that they owed more to their energy firm now compared to last year. Just 14 percent said that they owed less compared to last year.

One uswitch official said: “Energy debt can be a catch-22. Despite knowing they could reduce their bills by moving to a cheaper energy plan, consumers can see debt as a barrier to switching. However, our research shows that while the average debt is £126, consumers could save up to £458 by switching. So while they may have to pay any outstanding debt to switch, by cutting the cost of their energy they could avoid falling back in to debt in the future.”

 

Tags: catch, cheaper energy plan, lot, energy firms, loans, GBP

Posted in Debt News | No Comments »

How old will you be when you buy your own home?

Thursday, March 3rd, 2011

In years gone by many people bought their first home when they were in their early twenties, and were able to choose from a range of mortgage options such as deposit free mortgages and even 125 percent mortgages to help them get their new home furnished and set up. However, these days things are very different, with the global financial crisis and recession having had a serious impact on the mortgage and financial markets.

For the last few years first time buyers have been facing increasing difficulties in getting onto the property ladder. Over the past decade many first time buyers have been locked out of the market because of the soaring value of property in the UK. House prices rocketed in the years leading up to 2007 leaving many would be buyers unable to afford to purchase a home. However, in 2007 the global financial crisis made its way to the UK and coupled with the recession saw the value of properties start to decrease.

Whilst this may have been seen as good news for potential first time buyers there was also another problem that came at the same time in the form or mortgage restrictions. Over the past few years lenders have got rid of their 100 percent and even their 95 percent mortgages and have been demanding high deposits of 20 percent or more. Being able tom secure an affordable mortgage has also become more difficult for first time buyers despite the fact that the base rate has stood at just 0.5 percent for the past twenty two months.

As a result of all this the average age of the first time has increased to around thirty one at present, which is way higher than it has been in previous years. Furthermore it is claimed that the age of the first time buyer could increase to as high as 44 years because of the difficulties that people are experiencing in raising a deposit. Officials believe that many younger people are finding it very difficult to save in the current climate, and if they wait until they are thirty to start saving it could take up to thirteen years to save just the deposit for a new home.

One official said: “It is unsurprising that the financial crisis has impacted upon people’s savings behaviours, but the concern is that this has created a generation of people who simply do not save and cannot get onto the property ladder. It is clear that people who want to get onto the property ladder are not making the commitment to saving at a young enough age. We know it is not practical for people today to put aside huge amounts of money, but even still it is critically important that saving does not become a lost art.”

Tags: business, lenders, global financial crisis, behaviours, value, mortgage, art

Posted in Featured Articles, Mortgage News | No Comments »

More from Mortgage News category

Ads and sponsors

RSS FEEDS
Get Adobe Flash playerPlugin by wpburn.com wordpress themes