Inter Financial Weblog

 

Archive for December, 2007

The remortgage rush

Tuesday, December 4th, 2007

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.

Posted in Borrowing, Consumer Credit, Debt management, Financial news, Financial products, Homeowners, House buying, Housing news, interest rates, mortgages, Property, Remortgaging, UK Finance | No Comments »

Dorm Decoration

Tuesday, December 4th, 2007

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.

Posted in Borrowing, Consumer Credit, Equity release, Financial products, Home Improvements, Homeowner Loans, mortgages, Personal loans, Property, Remortgaging, Rental property, Secured loans, Spending, Student debt, UK Finance | No Comments »

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