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Fri 27th Apr, 2007
Posted in Financial news, Homeowners, House buying, Housing news, Property, Rental property, UK Finance, mortgages at 10:56 am by Steve Smith
Many adults are dismissing the idea of owning their own home – despite the growing number of affordable ownership schemes available in the UK. This is a disturbing trend, as potential homeowners are paying ridiculously high rents, far in excess of a mortgage, in some areas of the UK.
Research commissioned by the East Thames Housing Association states that 60 per cent of renters are unaware that schemes have been set up to help them buy a home.
A quarter of UK adults believed that shared ownership was only an option for key workers, whilst one in ten believe the schemes are only available to the unemployed or disabled.
Kate Worley of East Homes, part of the East Thames Group said: “Our survey showed that too few people understood what shared ownership meant.
“Either that or they don’t realise it’s available to a wider selection of people than they might think. If someone has a regular income but can’t afford to buy a home locally with the help of a mortgage, then New Build HomeBuy could be for them,” she added.
New Build HomeBuy refers to the scheme previously known as shared ownership.
The scheme allows tenants to buy part and rent part of a property. The tenant has the opportunity to buy more of the property as they are able to afford it. This can be an affordable alternative to may young families.
While many homeowners are afraid of sharing a home with friends or family, with just cause, the programs like New Build HomeBuy do not share the home with an individual, but with a corporation.
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Posted in Borrowing, Consumer Credit, Debt management, Financial products, Personal loans, Secured loans, UK Finance, Unsecured loans at 10:53 am by Steve Smith
If you are searching for a loan for whatever reason, whether it is for a new car, to consolidate your debts, or for improvement on your home, you will first start your search with banks and other lenders. However, most people do not realise that there are other alternatives to loans. For example, you could borrow from your employer, or use your savings instead.
Borrowing from your employer is a possibility if you work for a large firm, as most large firms have set policies for this. If you ask at the personnel department they will be able to give you more information on obtaining a loan from them. Employers will usually charge a lower rate of interest, however it does mean that you will be tied down to the job until the end of the loan term. If you leave the firm, you will probably have to pay back the loan there and then, which can be difficult if a large sum of the loan is left.
If you have a savings account, you may want to consider dipping into it instead of taking out a loan, so long as you don’t use all of your savings. By using your savings you will be saving yourself a lot of money in interest charges. When you take out a loan you can end up paying back double of what you borrowed.
Before you borrow, ask yourself if the loan is necessary. If it’s for a new car, ask yourself if the new car is necessary. Many people admit getting into debt for something they later wish they hadn’t bought. Borrowing money is expensive, so if you have loan alternatives available to you, you should consider using them if they are a cheaper alternative to a loan.
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Thu 26th Apr, 2007
Posted in Bad Credit, Bankruptcy, Borrowing, Consumer Credit, Consumer debt, Debt management, Financial news, IVAs, Insolvency, Personal debt, Personal loans, UK Finance at 9:28 am by Steve Smith
At one time debt management was limited to cutting up your cards, having your wages garnished, or receiving a slap on the wrist from the bank as they helped the borrower sort out his finances and repay the loan.
Then the UK adopted the IVA and ‘walk away from your debt’ attitude. The problem became so severe that the government had to prevent university graduates from petitioning for bankruptcy after school so they could ‘walk away from their debts.’
The Banks, and the government, are now battling the same problem with consumers who believe the myth that an IVA company will let them walk away from 50%, 80%, and even 95% of their debt – without consequences.
Debt is starting to cause serious social and economic problems in the UK, forcing the financial community into action. Debt is not only damaging people’s ability to build wealth and repay their current loans. It is damaging their health, relationships, and family life.
Debt Help companies like Credit Action have seen unmanageable increases in the number of cases they deal with. Debtmaters receive 11,000 calls a month.
The debt management sector are now taking a pro-active stance against debt.
Debtmatters’ financial solutions expert Michael Shirley states: “We find that even when people are able to admit they have a serious problem and contact us for help, they still may not have discussed their financial situation with their partners.”
It is becoming more difficult for adults to find financial institutions that will help them hide their loan information. The government has added their own debt help lines, and educational websites, but don’t expect a simple ‘tsk tsk’ as they help you get your debt under control enough to hide the problem.
The new method of debt management is to re-educate the borrower, make them more financially savvy, and work to both eliminate their debt and prevent future debt.
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