Glitec Loans » equity

OAPs paying debts with cash from equity

Reno — Wed, 07 Jul 2010 20:49:41 +0000

According to recently released figures many OAPs are paying off their debts through the use of cash from their equity. The data comes from Age UK, with officials from the company stating that more than one third of pensioners who have unlocked equity in their homes have used the money in order to pay off some of their debts.

The research was carried out for Age UK by the University of Birmingham. It found that around 35 percent of pensioners who had unlocked money from their homes through equity release had used the money to clear some or all of their other debts, and around 50 percent used the cash from their equity to pay for essential repairs. The research found that 36 percent of those releasing equity from their home had used the money for a holiday.

The research found that those that were releasing equity from their homes could be divided into three distinct groups. One group, which was the group that was financially better off, often used the money to make an early bequest or a large one off purchase. The second group tended to use the money to improve their standard of living. The final group, which the group that was worse off financially, used the money to repay their debts.

The data also found that two thirds of people that were aged over sixty five were people that had no mortgage with low or modest incomes. Many were also struggling when it came to maintaining their homes. Over the past couple of years, with the difficult financial climate and recession to deal with, many more OAPs have had to consider the option of equity release in order to manage financially. Many are also struggling on their current pensions.

OAPs paying debts with cash from equity is a post from: Glitec

Estranged coupled being forced to live together due to negative equity

admin — Mon, 08 Feb 2010 09:12:46 +0000

As most homeowners will know falling into negative equity can bring with it many problems, not least of which is being tied to the home because the value of the property has fallen below the amount that is still owed on it. However, another problem that has been highlighted with regards to negative equity is that in some cases couples that have drifted apart or no longer want to be together are being forced to continue living under the same roof as a result of being in negative equity.

Earlier this month the number of married couples starting divorce proceeding peaked according to recent figures, and officials believe that there will be a rise of 2 percent in divorce numbers in the UK as a result of the strains caused by the recession and the difficult financial climate. However, officials from the homeless charity Shelter have said that the recession and negative equity are forcing couples that do not want to stay together to continue living under the same roof.

In a survey that was carried out by a charity nearly 25 percent of people said that they or someone that they knew had been forced to continue living with a partner because they could not afford to live on their own. The research also showed that 75 percent of those being forced to live together due to negative equity and finances said that the experience was very stressful.

A spokesperson from Shelter stated: “Relationships do break down, which is painful enough, but being forced to carry on living with an ex-partner, even for a short time, adds real pressure to the situation. The fact that one in four of us either have experienced or know someone that has experienced this situation means this may be more widespread a problem than we realised.”

Estranged coupled being forced to live together due to negative equity is a post from: Glitec

Negative equity threatens 1.7 million

admin — Mon, 15 Sep 2008 08:51:08 +0000

According to a recent report around 1.7 million people are facing the threat of negative equity if house prices continue falling at the same rate as they have been for the past few months. Officials from Standard and Poor have predicted that over the next year house prices could fall by a further 17%, and if this happens around 1.7 million homeowners could be left facing negative equity. Negative equity is where the homeowner owes more on the property by way of mortgage than the property is worth.

The figure that has been mentioned in the report equates to around 14% of homeowners, and many of those affected will include people that bought properties recently when prices were still high and those that took out 100% mortgages and have therefore made little impact on their mortgage as yet. Many officials have predicted that house prices could continue to fall even beyond next year, and this means that the situation could continue getting worse for many homeowners.

Officials have said that already there are around 70,000 people in negative equity, and this equates to around 0.6% of homeowners. However, the figure could head towards the two million mark if house prices keep on falling.

One official from Standard and Poor stated: “The downward trend in UK house prices now seems well established, and we expect prices to continue falling in the near term.”

Buy to let borrowers and those that borrowers from sub-prime lenders may also be at increased risk of negative equity according to industry officials. Also, some people have predicted that by 2010 house prices could fall by 20% or more, and this could leave over two million people in negative equity.

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Negative equity threatens 1.7 million is a post from: Glitec

Spreading the cost of your purchases by using your equity

admin — Wed, 16 Apr 2008 05:07:51 +0000

Many people plan to make a large purchase each year, despite the fact that they may not have the funds available upfront to pay for this purchase. In the past this wasn’t too much of a problem, as most of us could enjoy pretty easy access to finance from a range of lenders, and getting finance such as a credit card, loan, or increased overdraft was not a problem for most. However, over recent months this situation has changed, and gaining access to affordable finance has now become extremely difficult. With lenders struggling to get the finance that they need to fund their lending operations consumers have really had to suffer when it comes to availability of and access to credit.

However, whilst the availability of credit may have reduced the need for credit certainly has not, and these days more than ever consumers may be reliant upon credit to enable them to fund certain purchases. This is because rising living costs and high mortgage repayments has left some people with very little in the way of disposable income to use towards the things that they wish to buy.

Although the availability of credit may have been reduced, there are still some loans and finance deals available and some are easier to get than others. For example, if you are a homeowner then you may find it easier to get a secured loan that is secured against your equity than an unsecured loan that is based on just trust and contract. A secured loan offers greater security for the lenders, and is therefore less of a risk in this current turbulent financial climate. This means that the consumer has a greater chance of getting a secured loan, and therefore using your equity may be the most effective way of getting the finance that you need.

When you use your equity in order to get the finance you need you will be able to enjoy a number of valuable benefits. One of these is the greater borrowing power that comes with secured loans compared to unsecured loans, with the amount that you can borrow based upon your equity levels and various other factors. You will find that there are longer repayments periods on offer too with these loans, and this means that you can spread your loan over a longer term and keep your monthly repayments down.

You will find that this type of loan will enable you to release the equity in your home with ease, and you will be able to use the money that is tied up in your property without having to sell up and move on. You can us the money for one of a wide range of purposes, and you can get some very competitive deals on the loans available so you won’t have to pay over the odds on your borrowing with this sort of finance.

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Spreading the cost of your purchases by using your equity is a post from: Glitec

Tap into your home equity

admin — Fri, 11 Apr 2008 07:07:54 +0000

Most homeowners have become increasingly aware of just what a valuable asset their home is over the past few years. Over recent years property prices in the UK have rocketed, and those that have owned their homes for some time have found that the value of the home has shot up compared to when they bought the property, leaving them sitting on a tidy sum of equity that is tied into the home. Equity levels have increased significantly for many homeowners across the UK over recent years, and because of this many have realised that their home could be the ideal asset against which to borrow money for a range of purposes.

You can tap into the equity in your home without having to consider selling up and moving on, because one of the many secured lenders in operation today will allow you to borrow the equity that is tied up in your home without you having to sell your property first. Some firms will allow you to borrow up to the full amount of your equity, and some will allow you to borrow up to a certain percentage of your equity. There are also some lenders that will allow you to borrow over and above the level of equity in your home, although these may be more difficult to find in the current financial climate.

The equity in your home is the market value of your property minus any outstanding mortgage or secured loan balance, and if you have a high level of equity you may find that you are able to borrow a significant amount of money. The amount that you will be able to borrow will depend on your equity levels as well as on various other factors, but you can borrow far more with a secured loan that is secured against the equity in your home than you would be able to with an unsecured loan.

You can unlock the equity in your home and use the proceeds for all sorts of purposes. You could use the money to pay off all of your smaller unsecured debts such as loans, credit cards, store cards, and catalogues, and this could end up saving you a lot of money each month, a lot of interest over the long term, and a lot of hassle when it comes to juggling your finances. Instead of having loads of different debts to cope with you will just have one secured loan.

You may want to use the equity in your home to carry out improvements to your property, and this in turn can add value to your home, which will result in increasing your equity levels again. There are many other popular reasons why people decide to unlock the equity in their homes with a loan, such as paying for a once in a lifetime holiday or a dream wedding.

When you decide to take out a secured loan against the equity in your home you can enjoy longer repayments periods than you would get with a secured loan, and this means that you can spread your loan over a longer period and keep the repayment amounts down. Even those with bad credit stand a decent chance of being able to get a loan if it is secured against the equity in the property.

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Tap into your home equity is a post from: Glitec

Is it time to remortgage?

admin — Thu, 28 Feb 2008 08:23:48 +0000

Having the right mortgage is very important to most of us, as a mortgage is one of the most important, long term financial commitments that we are ever likely to make. Mortgages in the UK are typically taken out over a long period of time, such as twenty five years, and sometimes even longer, and it is inevitable that for many people their needs and circumstances will change over this long period of time.

What may have seemed to be a suitable mortgage when you first took on this financial commitment may not seem so suitable some years down the line. Also if you took out a specialist mortgage, such as a discount mortgage or a fixed rate mortgage, you may find that once the special rate term comes to an end you need to look at an alternative in order to avoid having to revert to the lender’s standard variable rate, which can be high.

This is where UK remortgages can prove invaluable, as it enables you to switch to a more suitable mortgage to suit your changing needs. For example, you may be on a fixed rate mortgage where the fixed term is due to come to an end, but you do not want to pay the lender’s standard variable rate because it is too high. You could therefore look at remortgaging to another mortgage such as a discounted mortgage or even another competitive fixed rate in order to avoid reverting to the lender’s SVR.

Around a year and a half ago many people tried to avoid the up and coming interest rate rises by switching from a variable rate mortgage to a fixed rate mortgage. However, the tables have now turned, and interest rates have already fallen once recently with several further cuts expected over the course of this year. This means that those now on fixed rate deals will not benefit from the rate cuts, and could end up paying way over the odds on monthly repayments if they took their fixed rate mortgage out when the base rate had peaked.

It is thought that in light of the recent predictions over rate cuts many people on fixed rate mortgages could end up remortgaging to a variable rate so that they get to benefit from the rate cuts. Industry experts have suggested that a base rate tracker could be the best option for many, as this benefits from any rate cuts right away.

If you are planning to remortgage you should make sure that you do your research. First of all you need to take into account any charges that may apply and work out whether it is worth remortgaging. For example you may find that you have to pay a fee for closing your existing mortgage off early, and you may also find that you are charged some form of set up fee for taking out the new mortgage.

All of these costs can quickly add up, and you may find that the amount that you have to pay out does no justify switching. However, if the fees and charges involved are low and you can find a suitable alternative UK mortgage you may find that switching helps you to save a fortune both in terms of total interest paid and in terms of your monthly payments.

Is it time to remortgage? is a post from: Glitec