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Fri 29th Aug, 2008
Posted in Consumer Credit, Personal loans, Homeowner Loans, UK Finance, Savings, Homeowners, Financial products, Spending, Property, Unsecured loans, Financial news, Housing news, Borrowing, Car finance, Secured loans, Home Improvements at 12:47 pm by admin
Reports of a new study done by the Halifax building society puts paid to the idea that Britain is a nation of spend-now, think-tomorrow shoppers, forever borrowing to fund their lifestyle.
The annual Halifax Home Improvement Survey is part of a series of studies undertaken by the Halifax over the last 17 years. This year’s results show that only 5% of people looking to improve their home are taking out a loan to do it.
This may come as a surprise to lenders and brokers, as Home Improvements is the top reason given for taking out a loan. So are many applicants lying?
People are not obliged to use their borrowings for the purpose stated when taking out a personal loan (unless it is for specific finance, like a house or car), so it’s possible that applicants feel that they will be more likely to get the cash if they sound responsible.
The figures show that more people in the 18-34 age group were likely to take out a loan (12%) than the national average, and regional differences come into play too. Despite being the biggest savers, people in Northern Ireland were more likely to take out a loan than those living in London, who saved the least.
As many as 43% of homeowners questioned believed that their improvements would add at least £5000 to the value of their home, and a further 12% believed that the value added would be from £10,000 to £25,000. Homeowners clearly feel that they are using their savings wisely, a picture contrary to the one painted by much of today’s media.
Tony Wilcox at the Halifax commented: “This research contradicts the buy now pay later culture which is so often thought to be prevalent in the UK. The fact that the vast majority of people have saved in advance of spending is extremely encouraging. Using savings for such improvements means savers are really seeing the benefits of putting money aside.”
However, whether these figures paint an acurate picture of Britain today or just an acurate picture of those using the Halifax is another thing. There is no doubt amongst the lenders and loan brokers of Britain that the home improvement loan is as popular as ever.
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Wed 4th Jun, 2008
Posted in Consumer Credit, Personal loans, Homeowner Loans, UK Finance, mortgages, Consumer debt, Homeowners, House buying, Financial products, Property, Financial news, Housing news, Borrowing, Car finance, Car loans, Secured loans, Debt management at 11:59 am by admin
Almost everywhere you go these days you can hear people obsessing over the same big question, which way are house prices going to go?
It should not come as such a big surprise however that almost everyone is so concerned over this one question. First of all with the massive year on year growth that we have seen for the past decade many people were simply assuming that there was no safer investment than in property. At the same time many people genuinely thought that property investment would be a great cushion for retirement. The events of the past few months have really shaken peoples’ confidence in the property market, and have now got everyone asking if property investment is really the way forward.
So are Britons right to be so nervous about the property market now? Judging by what many experts are saying, the answer would seem to be yes. First of all there was the Nationwide Building Society forecasts that house price inflation was going to fall from a current level of 10% all the way down to 0%. That prediction was on the more optimistic side of the scale with other institutions predicting that in one year’s time the price of the average house would actually be 3% lower than it is today and dropping by another 3% in 2009.
However despite these predictions we are probably far more likely to have a drawn out decline in house prices rather than a crash. The country is no doubt in the grip of the credit crunch, but the type of recession seen in the early 90’s is unlikely, according to experts.
Whilst borrowing in the form of home loans and personal credit has become much harder, employment levels have not yet dipped. This means that would-be house buyers and those looking to finance cars or holidays may have trouble getting the cheap loans on offer a few years ago, credit is still available, unlike 15 years ago.
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Fri 28th Sep, 2007
Posted in Consumer Credit, Personal loans, UK Finance, Credit Card, interest rates, Consumer debt, Financial products, Financial news, Borrowing, Car finance, Car loans, Personal debt, Debt management at 12:13 pm by admin
Recently Barclaycard came out with a new credit card called the Barclaycard Breathe, which is a card that claims to offer a greener solution by offering 50% of Breathe profits to be donated to environmental projects dedicated to reducing carbon emissions around the world. Breathe has also claimed to offer a greener customer experience with no paper statement, environment friendly produced credit cards, and a credit card recycling scheme for the old cards. Breathe customer’s will also benefit from discounts such as £50 off British Gas home insulation and other offers. Despite all these benefits, one has to ask whether using a green card is worth it.
The size of the Barclaycard Breathe contribution to the environmental projects depends on the profit levels that are made by Breathe. This means that the further you are in debt the more Breathe will contribute, as profits will be generate by cardholders who rack up their interest payable as they are unable to make more than the minimum monthly repayments. Those who pay off the entire balance on the credit card every month will find that their contribution will be minimal. Although you will be making a contribution by paying off your debt on time, you will find that you can make an even bigger contribution by falling into debt and sinking into the red zone. This is not the ideal solution to help protect the environment. So before selecting a credit card that sounds good, you will want to research the product and ensure that it will be as good as it claims.
Consumers who are prone to debt on their borrowings are wiser to take out cheap loans to cover their expenses and look at other ways of helping the environment. For example, using a ‘green’ credit card to pay for repairs to an old car is not as environementally friendly as taking out a personal loan to buy a more fuel-effiicent model, and yet once interest rates are accounted for, both can cost the consumer the same amount.
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Fri 22nd Jun, 2007
Posted in Bad Credit, Consumer Credit, Personal loans, UK Finance, Credit Card, interest rates, mortgages, Consumer debt, Homeowners, Spending, Property, Unsecured loans, Financial news, Borrowing, Car finance, Car loans, Personal debt, Store cards, Secured loans, Tenant loans at 2:23 pm by admin
The retail industry has taken major hits according to recent reports. The increases in interest rates has many consumers cutting up their credit cards and using cash instead of high interest rate store cards.
Almost 25 per cent of consumers use shopping to relive stress, according to new research from Retail Trust, with the younger generation - 18 to 24-year-olds - favouring retail therapy as a viable solution to stress.
The report states that men are more likely to carry debt than women. Almost 33% of men owe as much as 20% of their current income in debts such as secured loans and hire purchase car agreements. Older men, over 40 carry the most debt including mortgages.
Considering retail and service industry workers as a demographic group revealed a startling trend. Employees in the retail and service sectors have the highest debts, with eight per cent owing more than 71 per cent their annual income. Most of this is in the form of tenant loans and other unsecured borrowing.
Nigel Rothband, chief executive at Retail Trust, highlights these workers as most in need of financial advice and guidance.
“It is estimated that an astonishing one in five people in Britain work in the retail industry and the survey results reinforce the fact that there are a large number of people in need of help and advice,” he told Retail Bulletin.
The government is instigating initiatives to regain control over debt and educate the publish. However, understanding debt is the first step to creating a viable a solution.
Credit Action reports that personal debt was £1,318 billion at the end of March, 2007, with the annual growth rate recording an increase of 10.5 per cent.
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Thu 7th Jun, 2007
Posted in Consumer Credit, Personal loans, UK Finance, interest rates, Spending, Borrowing, Car ownership, Car finance, Car loans, Secured loans, Missed payments at 12:14 pm by admin
Since the beginning of this year thousands of Britons have purchased new cars and it is predicted that about 400,000 more will buy a car this year, with many of them ending up paying too much by using an expensive car loan.
When it comes to purchasing a car, there are many financing options that are available to a consumer. One of the most popular types of finance is the hire purchase, which is a loan that is secured against the car that is being purchased. Often this type of financing is offered by the car dealership, however consumers need to realise that they do not own the car until the total amount of the loan has been paid off; until then the car is owned by the car dealership and can be repossessed should you miss payments and default on the loan. The other downfall to a hire purchase is the fact that it is expensive. Many car dealerships offer 0% interest on a hire purchase, however these deals often require a deposit of as much as 40 percent of the asking price. The average interest rates on a hire purchase schemes are typically in the double digits, whereas a personal loan can be obtained for less than six percent.
Buyers can take out a personal loan to fund the purchase of a new car from another institute, such as their bank or a lender other than the car dealership. With a lower interest rate buyers can save a significant amount of money in terms of how much interest is paid out. Another benefit of applying for a personal loan when purchasing a new car is the fact that you will have the money in place beforehand, giving you the advantage of being able to bargain with the dealer. There are many other forms of financing; it’s just a matter of finding what is right for you.
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Tue 6th Mar, 2007
Posted in Consumer Credit, Personal loans, UK Finance, interest rates, Financial products, Spending, Unsecured loans, Borrowing, Car ownership, Car finance, Car loans, Secured loans at 10:26 am by admin
A new car can become an expensive purchase if you choose the wrong car loan. Often many people end up choosing finance plans that are offered by car dealerships because they are not aware that they can obtain a loan elsewhere. Financing through a car dealership is not the best choice as they often charge high rates of interest and really only bear in mind the commission that they will be making off of you. Don’t be fooled into believing that a loan through a car dealer is your only option. Look into financing through an independent car loan specialist, as you are more likely to be offered a low interest rate and a repayment plan spread over a period of time that you choose. It is worth searching around for the best loan on the market.
With car loans, there are two types; a specialist car loan and a regular personal loan. A specialist car loan is where the amount of the loan is secured against the car instead of your house. Where as a regular personal loan is unsecured and requires security against the amount borrowed. Typically a specialist car loan offers borrowers a lower interest rate, because the lenders have security for their investment, whereas they have none on an unsecured personal loan.
The repayments on a car loan really depend on the repayment plan that you and the lender decide upon, the length of time you wish to pay back the loan, and also the interest rate on the loan. When you are shopping around for a car loan, ask lenders what type of loan you can qualify for and what loan would be best for you. You want to compare the interest rate, and the benefits that the lenders offer you. By shopping around and comparing various types of car loans, you will be able to find a loan that is right for you and your personal circumstances. By searching for financing through various companies, either online or with a bank, you won’t end up being suckered into financing through a car dealership. Comparing and finding other financing routes will pay off.
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Wed 21st Feb, 2007
Posted in Consumer Credit, UK Finance, interest rates, Savings, Student debt, Homeowners, Spending, Property, Financial news, Borrowing, Car ownership, Car finance, Personal debt at 1:27 pm by admin
The basic cost of living expands far beyond interest rates, council taxes, and increasing utility bills. The cost of living is impacted by life choices and decisions consumers make.
One group of consumers who are hit hardest is divorced and single parents. This consumer group needs to survive without a dual income, but they also need to absorb the cost of the divorce. Norwich Union’s “Cost of Divorce” survey reveals that couples spend £28,000 to divorce, twice that of 2003.
Another cost that has increased dramatically is the cost of driving. The average car now costs £5,539 a year to run, equivalent to £15 a day. This is spurred by an increase in fuel costs. However, it is also increased by consumer’s desire for better automobiles.
Several reports published last year stated that new graduates are discouraged at the cost of living. Many claim that they will not be able to afford to buy a home, or start a family, for at least a decade because of their student loans.
The cost of raising a child from birth to 21 years old is £180,137, or £23.50 per day. The cost of raising a child rose 9 per cent last year alone, according to research from Liverpool Victoria.
Not all increases in the cost of living are necessity based. Britons are now spending more on eating in restaurants, pubs and on takeaway meals than on buying fresh and processed food and drink products to have at home. This has increased their food bills substantially.
The average wedding will now cost £19,595.This is a major blow for the 45 per cent of couples, approximately 117,000, who claim they have no financial planning to pay for their wedding, according to stockbrokers Brewin Dolphin Securities’ research.
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Tue 6th Feb, 2007
Posted in Bad Credit, Consumer Credit, Personal loans, Homeowner Loans, UK Finance, Credit Card, interest rates, Consumer debt, Financial products, Unsecured loans, Borrowing, Car finance, Car loans, Secured loans at 10:28 am by admin
It has become so easy these days to qualify for a loan, even with no credit or bad credit. Most people take out personal loans to pay for various things. Borrowing anywhere from one thousand to thirty thousand pounds, personal loans should be well considered before borrowing.
There are many reasons people take out personal loans. Some borrowers will take out a personal loan to consolidate other more expensive debts on credit cards or bank overdrafts. Others may borrow the money to purchase a new car, or use the money for a wedding. Whatever the reason may be to take out a personal loan, you always want to ensure that you are getting the best APR (Annual Percentage Rate) available by shopping around to various lenders.
Whether you borrow twenty thousand for a new car, fifteen thousand for a wedding, or ten thousand to pay off other debts, you must look at the rates of interest. Typically, the more you borrow, the cheaper the interest rate. If you take out a personal loan for a small amount of money you may end up paying a higher interest. Often if the amount borrowed is well under three thousand, you may want to consider charging your purchase on a credit card with a lower interest rate. You will want to look at all your options, and definitely shop around for the best personal loan rate. Your bank may be your first option, however looking online can be a very wise choice as you will have more lending services available and it will also be easier to compare prices with a click of the button.
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Wed 31st Jan, 2007
Posted in Bad Credit, Consumer Credit, Personal loans, Homeowner Loans, UK Finance, interest rates, Consumer debt, Financial products, Spending, Unsecured loans, Financial news, Borrowing, Car ownership, Car finance, Car loans, Personal debt, Secured loans at 10:09 am by admin
If you have very poor credit, then it may be advisable for you to consider very carefully before you take any extra credit on board. However, if you do need credit, there are a number of lenders that are currently catering to this market. The loans reviewed here are not dependent on home ownership and are available to be used on cars. Accept car credit for example, offer car loans that allow you to buy from any car dealer in the country. They have a loan on offer at 28.7 percent that is a fixed rate. Accept do not advise what the early redemption fee will be but do state that there is likely to be one. There are no other fees associated with the loan. This is the Gold loan.
If you have trouble qualifying for the Gold loan, then Accept also offer a Silver loan that comes in at a more expensive 36.2 percent. This loan offers similar terms to the Gold loan, apart from the higher interest rate that is charged.
An even more expensive option is Auto Credit Finance which offers an online car loan priced at a whopping 38.9 percent. It would not be very advisable to take out a loan at this price but it available with no arrangement fees and an early redemption charge that varies from applicant to applicant.
Finally, there is the Personal Loan Centre which offers an unsecured loan at 48.2 percent. This loan is available to all qualifying applicants with no requirement for security. The Loan is offered by the London Scottish Bank Group and research shows that actual APRs may be as high as 60.8 percent. At this rate you may be better off waiting till you can buy your car outright.
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Tue 16th Jan, 2007
Posted in Consumer Credit, Personal loans, UK Finance, Spending, Financial news, Borrowing, Car ownership, Car finance, Car loans at 12:56 pm by admin
If there is one thing that people love spending money on, it is a new car. It seems that even with all the new products and services that are available to people today, it is still cars that top the wish list of most peoples’ shopping basket. Women are also quickly becoming hooked on the excitement of buying a new car and sellers report that women are now significantly involved in the purchase of 80% of all new car sales in the UK.
However, if you are buying a new car, then there are a lot of factors that you should bear in mind before you sign on the dotted line. First of all, you should know that there are many extra costs involved. Just because a car is advertised at a certain price does not mean that that is the price that you are going to pay. Straight away you may have to add a delivery charge to the price as many car retailers charge for this. Then you will also have to add the cost of all of the extra features that you require. While these are not compulsory, most of us end up being tempted by a few of the extras that car manufacturers offer.
Then there are the related costs of road tax and insurance. While road tax is usually quite inexpensive, you should certainly find out what band a vehicle falls into before you make your purchase. You should also look into the cost of insuring the vehicle. Once you compare how much various cars cost to insure, you may well decide to change your decision on which vehicle offers you the best value for your budget. And don’t forget the financing costs, as very few people pay for their car outright.
Finally, you should always remember that the vast majority of car dealers are still willing to haggle over the price. Even if they say they are not. Car sellers are notorious for posting prices that they hope to achieve, even if they are willing to sell for a significantly lower sum. So shop around, and always try to bargain. You may be surprised how flexible many car prices actually are.
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