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Tue 18th Dec, 2007
Posted in Bad Credit, Consumer Credit, Personal loans, Homeowner Loans, Banking, UK Finance, interest rates, Consumer debt, Financial news, Borrowing, Personal debt, Secured loans, Bank charges, Debt management, Overdrafts at 12:14 pm by admin
If you have been charged for going over your overdraft limit then you may be interested to hear that the Office of Fair Trading and banks are in the middle of a test case to decide once and for all if bank charges are fair and legal or not.
Until the test case has gone through the courts, district courts and county court judges have been told that they should halt any cases involving the charges for the time being and wait until the courts make a final judgement on the matter. That will probably be some time next year.
Despite this some courts are still going ahead with claims. So if you are thinking of taking your bank to court over the charges you may still have a chance of having the case heard despite the call for a temporary halt.
There are a number of judges allowing the cases to be heard. For example one judge has allowed a case to go forward after a claimant argued that the bank had procrastinated for months on returning the charges to him. In other cases the judge is allowing cases to go forward unless the bank asks for a stay. If the bank does not call for a stay and fails to turn up for the case the judge is automatically awarding the money to the claimants.
So there is a chance that you could still be able to win a case before the test case has gone fully through the courts. This will come as great news to those whose level of debt has soared due to the charges. Some people have been forced to take out secured loans in order to clear the mounting charges, with many of those high interest loans offered by the banks themselves.
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Thu 6th Dec, 2007
Posted in Consumer Credit, UK Finance, interest rates, mortgages, Remortgaging, Consumer debt, Homeowners, House buying, Spending, Property, Financial news, Housing news, Borrowing, Personal debt, Secured loans, Bankruptcy, Debt management, Missed payments, House repossession at 3:55 pm by admin
Many people are looking at the increase in repossessions in 2007, and considering renovation over relocation. They are choosing to apply for secured loans to renovate and upgrade their home, instead of moving. This may have the desired effect of reducing the national inflation rate.
The government has been working to reduce the inflation rate, hiking interest rates five times in the last year, and promising at least one more interest rate hike within the next six months. This has many homeowners scrambling to make payments on mortgages. Many people have seen their monthly payments increase one or two hundred pounds, even though they have paid down their mortgages.
The Council of Mortgage Lenders reports that repossessions increased by 30 per cent in the first half of 2006, highlighting to first time buyers the potential pitfalls of taking on too large a home loan. Unofficial figures show that they also increased dramatically in the first quarter of 2007.
The cost of moving, upgrading a new home, and a mortgage, is making it impossible for many homeowners’ to move, despite the inflated price of their current home. Many are opting for a second mortgage, or a secured loan, and renovating, hoping that the equity in their property will hold long enough that it will become affordable to move up into a nicer home, or a better neighbourhood.
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Posted in Consumer Credit, Banking, UK Finance, interest rates, mortgages, Remortgaging, Homeowners, Financial products, Property, Financial news, Housing news, Borrowing, Debt management at 3:52 pm by admin
Five interest rate rises in a row have really hit us hard and many of us are now left struggling to find the right mortgage.
There are a number of options available to us however so finding the right mortgage is very important. The fixed rate mortgage could avoid the risk further rate rises in the future but lenders are also aware of this and increasingly fixed rate home loans come with shorter and shorter renegotiations periods as well as increasing renegotiation charges. So whilst getting out a fixed rate mortgage is always an option worth considering it may not necessarily be your best one.
There is no avoiding the fact that as interest rates continue to go up our repayments will increase with them. So what are we supposed to do to protect ourselves from getting out of our depth and falling into financial difficulties?
Some lenders have introduced a new option that while slightly unorthodox could be worth some serious consideration. Lenders are allowing borrowers to split their mortgage into two and have half on a fixed term basis and the other half of the loan on a tracker basis. This takes out some of the risk for the borrower but will mean taking extra time in searching to find a lender who is willing to make the deal with you.
The arrangement fee could be higher than with a non-split mortgage and the time in finding the mortgage could take twice as long, however you are splitting the risks involved and if you don’t like to take chances with your money than this could be the option for you.
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Tue 4th Dec, 2007
Posted in Consumer Credit, UK Finance, interest rates, mortgages, Remortgaging, Homeowners, House buying, Financial products, Property, Financial news, Housing news, Borrowing, Debt management at 1:07 pm by admin
The month of July saw more than £1bn worth of mortgages per day taken out. This was a result of homeowners rushing to find better deals on their home loans.
The rush to change mortgage deals was being fuelled by a large number of people being concerned that the cost of borrowing was going to rise even more this year after five consecutive rate rises.
The increase in mortgage shifting all happens despite rising rates and predictions of a slowdown in the property market.
Figures out from the Council of Mortgage Lenders and the British Bankers Association both show strong mortgage figures for the month of July, with the British Bankers Association reporting that net mortgage lending rose by £5.7bn.
The strong growth in mortgage lending highlights the popularity of home ownership in Britain. However building society figures were not so rosy as they showed mortgage lending had decreased.
However a warning must be sounded and as mortgage payments increase, household finances will increasingly feel the strain. Regardless of the high interest rates and whether or not they will increase further, borrowers need to consider all their monthly expenses to make certain that they do not end up over stretching themselves.
So if you are considering taking out a mortgage go and check your finances first. Add up all your monthly bills and if you still feel you can afford a home loan only then approach a lender otherwise you might find yourself in deep trouble in a few months time.
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Posted in Consumer Credit, Personal loans, Homeowner Loans, UK Finance, mortgages, Remortgaging, Student debt, Financial products, Spending, Property, Borrowing, Equity release, Secured loans, Rental property, Home Improvements at 1:01 pm by admin
It is amazing how many parents invest tens of thousands of pounds into their student’s education without ever thinking about their living arrangements. In fact, many students are left to scramble for whatever they can afford, and decorate with left over pieces and junk.
Our environments play a vital role in our emotional wellbeing. Most parents know this. The concept of borrowing a secured loan, or a mortgage, to redo a teen’s room, a den for entertaining, or the basement, makes common sense. But, parents rarely see the importance of treating a dorm with the same respect and concern.
Students need a place to unwind and relax, but it must also be an individual statement that lets them continue to grow emotionally, amid the confliction and confusion of a dorm, or student housing.
Student housing décor goes far beyond picking a wall colour and a couch. Many parents are shocked to realise that student housing often lacks a respectable bathroom. Adding a pure water dispenser, a new toilet seat, and fixing the window coverings can be expensive, but they are vital to a student’s well being.
A secured loan is the best way to do this. It frees enough money to do the job right, in the least amount of time. And, it can be paid back quickly, without high fees and penalties, depending on whether the property was leased for one year or longer.
A property that is leased for more than one year offers the parents some leveraging. They may be allowed to upgrade the bathroom, add a heating unit, and improve elements which would be the landlord’s responsibility if the housing was a permanent residence.
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