Whilst nobody has a firm idea of when any base rate increase may take place there has been speculation over how quickly and rapidly the rate may rise. Some believe that the rate will be increased this year in order to keep a lid on inflation, whereas others believe that it is more likely to be early of mid-2011 before any rate rises are implemented due to the continued fragile state of the economy.

One industry official has suggested that the base rate could increase surprisingly rapidly over the next couple of years, going as far as to say that the base rate could leap from its rock bottom level of 0.5 percent to as high as 8 percent within the next couple of years.

For homeowners with mortgages this could spell really bad news, as it could mean mortgage rates rising to 11 or 12 percent, which could add hundreds of pounds a month to the average mortgage. With some people still suffering financial problems because of the recent recession and job losses this could have a really negative impact, and could leave many people unable to afford their repayments, which could lead to rising repossession numbers.

With this in mind it may be worth homeowners looking at their options when it comes to their mortgages. Whilst nobody should rush into taking drastic action as a result of the rumours and speculation it is always advisable to have a good idea of the options available so that you can be prepared for when the base rate does start to increase.

For many the choice of a fixed rate mortgage may be a tempting one to protect them from huge increases in interest rates, but before making any changes or committing to any particular mortgage deal it is well worth seeking advice from a professional and experienced independent financial advisor to ensure that you get the best deal.

What will happen with the base rate and mortgage rates? is a post from: Glitec

During the financial crisis many of the country’s major banks had to be bailed out with the use of taxpayers’ money, but despite this recent research has shown that there are only a few banks that will now lend to new customers. The figures were revealed after one financial website carried out an undercover investigation via lenders’ websites, and last month it found that only four lenders were offering loans to new customers.

Around twenty six lenders’ websites were put under scrutiny as part of the investigation, and those carrying out the investigation determined that banks appeared to be lending to only carefully selected customers, and even then they were charging high premiums for the privilege. Interest rates on personal loans were found to be at their highest in ten years, even though the Bank of England base rate stands at just 0.5 percent, which is the lowest in the history of the central bank. The average rate on a loan of £5000 was 12.6 percent, which reflect how huge the margin between bank loan rates and the base rate has become.

An example highlighted by the officials that carried out the investigation was the Barclays site, which read: ‘You could be eligible for a Barclayloan Plus if you’ve held a Barclays current account for more than 12 months, paid at least £1,000 into your account each month, managed your account well and have a good credit history.’

Few banks lending to new customers is a post from: Glitec

However, the concern for friends and family members when it comes to lending money is whether they will ever see it again, as the pressure for a person to repay someone that they are close to is obviously nowhere near as great as if they borrow the money that they need from a lender.

Recent research has shown that one in three Brits would be prepared to lend money to a friend that was in financial need, but many are convinced that they will never see the money again. Around 32 percent of those responding to the survey said that they would give their friends a loan, with the typical loan amount being around £40. However, many of them said that they did not think that they would see their money returned to them.

Around 35 percent of respondents to the survey said that they knew that they would have to keep reminding their friends if they wanted the money to be repaid, and a further 25 percent said that they would be too embarrassed to ask their friends for the money back and would therefore end up writing the debt off.

The survey also showed that 70 percent of those that had lent money to friends had to wait at least two weeks before they got the money back, and 4 percent had ended up waiting for more than a year to be repaid. Another 18 percent said that they would not see their money again. Around 7 percent of respondents said that they had decided that they would never lend money to friends.

A third of Brits will lend to friends is a post from: Glitec

For many homeowners this would put them in financial dire straits, adding hundreds of pounds a month to their mortgages and putting them at risk of losing their homes altogether if they cannot find the extra money to make these higher monthly repayments.

It is now thought that these claims and predictions over the base rate increasing could result in people flocking to fix their interest rate before the base rate does go up, although nobody knows when this will be. Some experts have said that the recent reports and predictions are simply scaremongering, and have warned consumers not to rush into taking measures that may prove unnecessary.

However, others are warning consumers to look into the options available to them, as although the base rate may not go up yet it will go up at some point, and consumers need to have a good idea of what their options are if and when this happens. For those that would struggle to maintain repayments on their mortgages if the cost went up each month this is particularly important.

One financial industry official said: ‘If borrowers know they would struggle if rates started to jump, it is important to look at ways of preventing mortgage payments shooting up.’

Panic could mean many fix their mortgage rates is a post from: Glitec

The property company claims that the number of first time buyers looking to buy their own home this July fell to 22 percent and this compared to 31 percent in July of last year. The research indicated that there were a number of possible reasons for the sharp drop in first time buyers looking to get onto the property ladder over the past twelve months.

Right Move officials also warned that the number of first time buyers was at half the level that was required for a healthy housing market. This will come as a blow for the property market, which has been experiencing real difficulties since the onset of the global credit crisis and has only recently started to experience any degree of recovery.

The availability of mortgages is a major concern for many people, and with banks still being very cautious over mortgage lending many may be concerned that they will not be able to get a mortgage. Another problem is that many would be first time buyers cannot raise the deposit that lenders are demanding, and this could be made even worse by news that the Bank of England may be intervening to have mortgage loans capped thus restricting access even further.

Miles Shipside from Right Move said: “With the number of prospective buyers at the bottom of the chain being half of normal levels, the question sellers further up the chain will be asking is ‘who will be at the bottom of my chain?’”

Mortgage restrictions affect first time buyer numbers is a post from: Glitec

Getting a buy to let mortgage has been difficult for the past couple of years, and although the mortgage market is said to have improved over recent months officials believe that buy to mortgage access will remain restricted for some time to come. Buy to let mortgage lenders are also facing a drop in confidence levels amongst would be landlords.

Research was carried out by LSL Property Services, and in its report said that there are a number of factors that are contributing towards the state of the situation. Officials believe that the bleak conditions in relation to buy to let mortgages could continue until at least 2012.

Increased capital gains tax in the UK has been partly blamed for the situation, as this means greater financial losses for higher rate tax payers. This, in combination with house price falls seen recently, has given rise to speculation that the buy to met mortgage market could continue to experience difficulties.

The survey that was carried out that previously 48 percent of landlords thought that it was a good time to buy due to rising rents and house prices. However, this confidence is said to have been stopped in its tracks because of the situation with capital gains tax and the more recent fall in house prices.

Buy to let mortgage market could remain difficult is a post from: Glitec

Accusations have now been made that some banks and loan companies are acting greedily and selfishly by pestering the families of those that have died and who are already struggling to cope financially with their loved ones gone. Officials from the Consumer Credit Counselling Service have said that the number of calls being received in relation to these incidents has increased.

The CCCS said that it was difficult enough for people to cope with the loss of a loved one, but having to deal with their debts and with persistent lenders made the situation even worse for many. The charity said that this particularly affected those who had lost loved ones who were main income earners or whose incomes had been used to cover repayments on the debts.

Problems often arise because some people fail to realise that if they sign a joint loan agreement they are responsible for the repayments in the event that the joint applicant dies. This is something that applies to mortgage loans, loans, rental agreements, and other forms of finance agreements.

One solicitors firm, Silverman Sherliker, said: “It’s not appropriate for creditors to harass bereaved family members as all inquiries relating to a deceased affairs ought to be directed to the executors or personal representatives, who are often a firm of solicitors.”

The CCCS said: “Bereavement is difficult enough, but finding you have to deal with debt makes it that much harder. This is particularly so for those that have lost a partner or spouse whose income was used to maintain the repayments.”

Grieving families hounded over loans is a post from: Glitec

One of the things you need to check is how much you are able to borrow, and it is advisable to do this before you even start searching for a property, as otherwise you could end up looking at properties that are out of your price range. This will also stand you in good stead if more than one person puts in an offer on the property you want, as the seller will have peace of mind that you can definitely borrow the amount needed.

Another important consideration is the type of mortgage product that you want, such as a fixed rate mortgage, a standard variable rate, a tracker mortgage, or one of the other mortgage products that are available. Many lenders offer a range of different mortgage products, and different ones will suit different needs. However, if you are unsure which is best for you it is always worth seeking financial advice from an independent mortgage advisor.

Your eligibility for a mortgage is another thing that you need to consider, and this includes checking your credit rating, as this may determine whether the lender is likely to take you on. You should check your credit rating as early as possible, and if it is poor it may be worth considering holding off getting a mortgage until you have time to improve it, as the difference in interest, and even the chances of getting a mortgage, can be greatly affected.

Comparing mortgages is vital when it comes to finding the right deal. You can do this yourself using resources such as the Internet, where you will find many lenders and deals. However, getting a mortgage can be a tricky affair, especially for first time buyers, so you may want to consider enlisting the help of an experienced and well connected independent financial advisor. You may have to pay a fee upfront, but can then be sure that the advisor will be working to get the best deal for you rather than one that makes him or her the most commission.

Boosting your chances of getting a mortgage is a post from: Glitec

It has been suggested in the past that the reason behind lower lending levels to businesses was a mixture of lending restrictions on the part of banks and weak demand from businesses, which were said to be wary about taking on finance in the current financial climate. However, one group of industry officials has said that weak demand is not the reason behind the low levels of lending to businesses, and that this is largely down to banks.

The claim was made by members of the Telegraph’s group for owner-managers, who have claimed that amongst banking frontline staff there have been inconsistent lending decisions, more security demands, higher charges on overdraft facilities, and a general lack of knowledge when it comes to business lending.

The owner of an estate agency said: “I almost believe them when they say there is no demand but it probably has a lot to do with the terms they want to lend on.”

Another business official explained how her business loan request was handled, stating: “It all started out well, with ‘can’t see it will be a problem’ kind of statements, which slowly deteriorated to silence; then not bothering to return my calls; to a ‘no’ decision; to treating me like something that had dropped off the end of their shoe. And absolutely no explanation of why or how their position had changed.”

Lending to businesses down due to banks is a post from: Glitec

There is another major downside to paying only the minimum repayment on your credit card balance each month aside from the length of time it will take to make the repayments, and this is the amount of interest that you will pay. The longer your debt drags on the more interest you will be paying to the lender, and by sticking to minimum repayments you will end up paying an astonishing amount of interest on a relatively small debt.

Of course, not everyone can afford to make huge repayments on their credit debt especially in the current climate, and this is where it may be worth considering a balance transfer credit card that offers either 0 percent interest on balance transfers or offers a low rate of interest for the life of the transferred balance. This will make it easier for those with credit card debt to repay their debt without having to pay interest, as these cards offer a generous interest free period or a really low rate of interest until the transferred balance in repaid.

For those that feel that they can pay the transferred debt off within a year or so then a 0 percent balance transfer card may be best, and there are some that now offer interest free period of well over a year. However, for those that need to be very careful with their repayments and believe that they need to have a far longer period within which to repay the transferred debt a life of balance transfer card could be the ideal option.

Why you should repay your credit card debt as soon as possible is a post from: Glitec