Apply Now For Your FREE Loan Quote!
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.
Permalink
Tue 4th Dec, 2007
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.
Permalink
Mon 1st Oct, 2007
Posted in Consumer Credit, Personal loans, Homeowner Loans, UK Finance, Remortgaging, Homeowners, Spending, Property, Financial news, Housing news, Borrowing, Equity release, Secured loans, Home Improvements at 1:29 pm by admin
As governments work to improve emissions and environmental waste, municipalities are forcing new home builders to build environmentally-friendly homes. Many municipalities in the UK will soon implement regulations demanding that homeowners must replace old, fuel-wasting, polluting appliances and heating systems with new environmentally friendly systems.
This is a global concern. The Ford auto company recently discontinued their heavy luxury car because they could not feasibly convert it to run on low emission fuels.
The first step to an eco-friendly and healthier home is to replace the duct work and heating system with energy efficient and low emission equipment. This could include replacing electric with solar water heaters, or water heaters that heat water as its needed, and updating the furnace to a new energy-efficient model.
Energy-efficient models should be used in tandem with timers that turn them on when needed, and turn them off to eliminate energy waste.
As homeowners pay more attention to lighting and ventilation in old homes, venting and windows are moved to create balance, instead of being placed at geometrically balanced segments of the wall.
Windows maximize natural light, and incorporate solar heating. Good venting removes contaminants from a room, and reduces the need for air conditioners.
The initial investment is substantial, but the long term benefits are expansive. Many analysts suggest that now is the time to ‘go green’ before the demand spikes and the prices increase. Others say that prices are likely to drop as products become more mainstream.
Even now, a consumer can expect to borrow a £20,000 to £50,000 mortgage or secured loan to completely upgrade their existing home. An underground heating system, which takes heat from the earth could see a homeowner needing a £15,000 home improvement loan to implement. The cost may not be cheap, but big savings can be made on heating and electricity bills.
Permalink
Wed 26th Sep, 2007
Posted in Consumer Credit, Homeowner Loans, UK Finance, mortgages, Homeowners, House buying, First time buyers, Property, Housing news, Borrowing, Secured loans, Home Improvements at 12:10 pm by admin
The housing boom is helping countless UK homeowners build wealth. The increase in house prices, compounded by smart equity building schemes, are helping homeowners walk away with fifty to one hundred thousand pounds in profit.
Building equity does not require a large investment. In many cases, some minor improvements can dramatically improve the value of a property. One of the quickest ways to improve the chances of selling a home at a profit is by adding luxuries. Another way is to have a professional decorate a and furnish a room, and sell the furniture with the home. These are relatively low cost methods of improving your chances of selling a home quickly, and for a nice profit.
A short term secured loan is a cost effective method of adding luxuries. Many homeowners are unable to resist the added comforts like sunken bathtubs, walk in closets, arboretums, or entertainment rooms.
A more practical method of increasing a home’s chances of selling is to add features that will remain when the home sells. Modern front loading washing machines, stylish refrigerators, built in home theatres, modern water heaters, water and air purification filters will all make a home stand out from the rest of the neighbourhood.
The more a home stands out, with products the buyer may keep, will not only increase the speed it takes to sell a home, but it also increases the amount a homeowner can ask for a home.
This is called perception selling. A homeowner may borrow a home improvement loan of twenty thousand. Then buy appliances and electronics and use them to increase the value of the home by thirty thousand.
Many home buyers will not realise that they are being charged an extra ten thousand for the appliances. All they will understand is that they can move into a house pre-fitted with all the luxuries with none of the hassles of choosing and fitting them themselves, so they are getting value for their mortgage money.
Permalink
Thu 13th Sep, 2007
Posted in Consumer Credit, Homeowner Loans, UK Finance, mortgages, Remortgaging, Homeowners, Financial products, Property, Financial news, Borrowing, Equity release, Secured loans, Home Improvements at 12:48 pm by admin
With all the debt management products on the market, the most overlooked is leveraging equity from the home. The practice of releasing equity to manage debts, improve lifestyle, or add equity to property is not new. However, the idea of releasing equity from your home and using the money to build wealth is a recent notion.
In the past, people worked to pay off their mortgage and escape debt. Today, people are releasing that equity, investing it in businesses, property, and stocks, and building wealth.
This wealth is then returned to the investment fund and used to continue building wealth. This is fairly secure, as long as the investor doesn’t become involved in any high-risk ‘get rich quick’ schemes.
Financial companies are becoming familiar with the concept of leveraging the money in your home to build wealth, instead of hoarding it. A cautious person can release the equity in their home, and earn enough money in 10 -15 years to restore the money.
With a good investment strategy, the homeowner will have their home loan repaid before the end of the mortgage term, and give the homeowner thousands in profits.
Playing it safe can be dangerous. Many people will not hesitate to apply for a second mortgage, or a secured loan to help them escape an emergency. People will draw equity from their home when they are ill, lose their job, or have a family crisis. However, they will not withdraw the money to build wealth.
Prevention is a better strategy than waiting until you are in trouble and then trying to dig yourself out of the hole.
Permalink
Fri 3rd Aug, 2007
Posted in Consumer Credit, Personal loans, Homeowner Loans, UK Finance, interest rates, mortgages, Remortgaging, Consumer debt, Inflation, Homeowners, House buying, Financial products, Property, Financial news, Housing news, Borrowing, Secured loans, Debt management, Home Improvements at 1:43 pm by admin
The Royal Institution of Chartered Surveyors revealed in a recent report that the house price inflation has reduced by half in the month of June as the higher interest rates have weakened the homebuyer demand.
According to the report, new buyer enquiries fell at the fastest pace since February 2006, showing that the property market may be slowing. Although the house prices continued to rise in June, the rate of inflation was below the long-term average. June marks the twentieth consecutive month of increasing values in the property market.
The Royal Institution of Chartered Surveyors said that interest rate hikes are starting to weigh heavily on those looking to purchase and has greatly affected first-time buyers. Demand for property has weakened in most UK regions, however Wales, the West Midlands and Scotland are the only exceptions.
The rush of houses coming on to the market ended in June with most sellers listing their properties in May to avoid the expected Home Information Packs. In June the number of houses coming on to the market fell. The ratio of completed sales to stock of available property fell for the third consecutive month as well. The higher interest rates that have been introduced over the past three months have dented surveyor confidence in house prices, with optimism falling to the lowest level since June 2004. The house price inflation has finally started to cool for the first time in several months with the interest rate hikes causing potential homebuyers to think twice before buying a home.
“Right now, canny homeowners will be sitting tight,” says Abbi Rouse of online loan brokers, Interfinancial Limited. “If you have a fixed rate mortgage at a low rate not due to expire just yet you’d be wisest to stay put rather than move and face the higher rates.”
“Secured loans have not seen much change in rates, despite the base rate rises,” continues Rouse. “This makes it a good time to increase home value with extensions or refurbishment, ready for when it becomes affordable to move again.”
Permalink
Thu 5th Jul, 2007
Posted in Consumer Credit, Personal loans, Homeowner Loans, UK Finance, mortgages, Homeowners, Property, Financial news, Housing news, Borrowing, Secured loans, Home Improvements at 3:51 pm by admin
Home renovation plans shared by British homeowners are expected to cost £150 billion to complete, according to research from Halifax Home Insurance. This would include derelict homes that must be renovated and occupied within six months to prevent the state from taking over management, and buy-to-let properties.
A single property renovation averages £14,000. Around 11 million people are planning to take out a loan, according to a study. Many of these people are upgrading their homes instead of moving, to avoid losing their low interest, fixed, mortgage.
Millions of homeowners will use secured loans to renovate, with 25 per cent improving their landscaping. Bathroom and kitchen renovations are the next most popular improvements, according to the Halifax report.
Halifax Home Insurance’s senior manager of underwriting, Vicky Emmott, said: “Whilst well planned and executed home improvements can add significant value to a home, getting it wrong can be a disaster.
“We’d advise anyone planning any major improvements to their home to employ qualified and reputable tradesmen, rather than going it alone.”
As the housing market cools, many homeowners will turn to improving their homes instead of moving. The current trend of investing in a home to supplement retirement is resulting in some very elaborate renovation schemes.
However, there is no way to accurately split out the amount of money that is used by small property investors with only one or two properties from these figures. These people renovate regularly, and account for 8% of the current mortgages.
The number of people who are renovating some of the country’s 1m derelict homes - in an attempt to keep local Councils from taking over management, allowed under new ruling - may also be increasing the numbers.
Permalink
Tue 3rd Jul, 2007
Posted in Consumer Credit, Personal loans, Homeowner Loans, UK Finance, mortgages, Homeowners, House buying, Financial products, Spending, Property, Financial news, Housing news, Borrowing, Equity release, Secured loans, Home Improvements at 11:01 am by admin
There has been a lot of speculation in the media recently regarding the possibility of house price drops across the UK. A new special report by Sharlene Goff of the Financial Times highlights yet another fear for home owners. This new report highlights the fact that after years of warnings, house builders are finally starting to bring in a supply of new homes. However, because the new supply of homes will be concentrated in certain areas and at certain parts of the market, they may have drastic consequences for housing prices in these markets, particularly those who have released equity from their homes through secured homeowner loans.
“Secured loans are a great way for homeowners to build wealth through home improvement,” says Abbi Rouse of online loan brokers, Interfinancial Limited. “However, for households close to their financial limit, a fall in house prices could spell disaster for those looking to sell on at a profit.”
Recent years have seen the biggest housing shortage in the UK since the Second World War. However, with a concerted effort from the building industry and incentives from the government, it looks as if thousands of new houses are finally ready to hit the UK market and relieve some of the chronic issues of under supply. This was supposed to ease the pressures that have been continually pushing up house prices.
However, it has been pointed out by many experts in the housing industry that some of these new developments that will be coming on line over the next year, will cause massive oversupplies of certain types of housing in localised areas. For example, while a particular city as a whole may have an overall shortage of housing, certain suburbs may have a glut of three bedroom semi-detached houses as this is what the developers have concentrated on supplying.
“A homeowner who has taken out a loan to add an extension to their home will be expecting to recoup some or all of the cost when they move,” says Rouse. “Typically these home improvement loans are taken out by those looking to move up the property ladder at some point – homeowners in two or three-bedroom properties.”
What this means is that while house prices in the city as a whole may remain fairly strong, the price of three bedroom semi-detached houses in the local area of oversupply would plummet once they became plentiful. This could be terrible news for homeowners who have chosen to carry out home improvements over moving home. These families may now find their house is worth no more than it was before, making their once cheap loan now an expensive option.
There could become a real fear for home owners in areas that look set to suffer from over supply as it will mean that they run the risk of getting into a negative equity situation. Obviously this will depend on how much they owe on their mortgage and on any other debts that they have secured against their home. However, it does look as if negative equity could return to the UK as a real issue.
Permalink
Wed 20th Jun, 2007
Posted in Consumer Credit, Personal loans, Homeowner Loans, UK Finance, interest rates, mortgages, Remortgaging, Consumer debt, Homeowners, House buying, Financial products, Spending, Property, Financial news, Housing news, Borrowing, Personal debt, Secured loans, Home Improvements, Missed payments, House repossession at 12:22 pm by admin
It is estimated that up to a million homeowners who signed on for cheap mortgage deals two years ago will start to feel the pinch of the interest rate increases as their repayments will soar as much as a third when they remortgage.
Experts claim that around a fifth of mortgage holders who switched to a fixed rate loan in 2005 took out a deal for two or three years which would mean that it is due to expire soon.
“There is definitely a mood of caution in the air,” says Abbi Rouse of online loan brokers, Interfinancial Limited. “We’ve seen a difference in the way that people apply for secured loans in the past year: more home improvements, less holidays and weddings.”
Since 2005 there have been four interest rate increases and although borrowers are able to sign another fixed-rate deal they may find that the current deals are not on such favourable terms as the original home loan. These borrowers could find themselves paying hundreds of pounds more each month on their mortgage repayments once the fixed rate deal expires.
Analysts claim that up to a million homeowners will see their rates dramatically jump over the next year, with many of the increases being too much for many homeowners to afford, especially those who are stretched as it is.
“If you are a homeowner with a rate expiry due any time soon, you should look into remortgaging sooner rather than later,” says Rouse. “There can be redemption fees for ending a mortgage rate early, but if you are holding a high mortgage, the costs of taking on a new rate in a few months could be higher than the penalty if rates rise again. It’s best to check.”
In 2005 the best fixed-rate deals were around 4.5%. Today offers are now at 5.5%, however it is predicted that the interest rates are due to rise again. A homeowner with a £300,000 repayment mortgage over 25 years will see their monthly repayments leap 10% or £174 a month. Those with an interest-only mortgage will see repayments jump 22% from £1,125 per month to £1,375.
“These are high costs for homeowners,” says Rouse. “Especially those who took out personal loans last year thinking it was OK to borrow against their property. It’s still safe to do so, but only if you have the buffer. Borrowing too much can send people spinning into the nightmare of missed payments and bad debt.”
With many households that are already struggling, the increase could possibly push them into arrears, which would mean that they then risk losing their home. Advisers recommend that homeowners who have signed a mortgage deal in 2005 and are now faced with the possibility of larger monthly repayments should budget for this increase and prepare themselves financially for the increase.
Permalink
Tue 19th Jun, 2007
Posted in Consumer Credit, Personal loans, Homeowner Loans, UK Finance, interest rates, Consumer debt, Inflation, Homeowners, House buying, First time buyers, Spending, Property, Financial news, Housing news, Borrowing, Equity release, Personal debt, Secured loans, Home Improvements at 10:14 am by admin
With house prices up just 0.5 percent in May, the property market is slowing. The rise in May is equivalent to just half of April’s rise, which means that the growth over the last three months is just 1.8 percent, the lowest since August 2006. However, despite these figures, the overall growth is still strong with house prices currently £17,000 higher than they were at the same time last year.
With higher interest rates and the threat of more rises to come, the trend of the property market is showing signs of slowing. Economist warn that those who are thinking about stretching themselves by getting a piece of the property market may find that the burden of home loan debt will be a heavy load for a long period of time. With the threat of a hike in the base rate, first-time homebuyers are being told to be cautious when they consider the idea of getting a foot on the property ladder, especially if they are stretching to their limits by doing so.
Britons are finding themselves caught up in debt that they are no longer able to control and the fact that interest rates are rising has put more pressure on those who have a mortgage and a pile of debts. Many homeowners have treated their property as a piggy bank, taking out secured homeowner loans to release cash for holidays and spending sprees. Even those who invested their borrowings in home improvements could feel the pinch as the increase in property value will only be felt when they come to sell.
Despite the recent rises in interest rate the impact of the increase has not had the same impact that was made with previous rate hikes. In 2003/4 interest rates rose from 3.5 percent to 4.75 percent in ten months and the number of homes sold throughout that period of time plummeted from 132,000 a month to 76,000 three months after the last rise. However the recent rises have had a far smaller impact on the property market. This has had economists and the BoE scratching their heads over how they will slow the inflation rate, which still climbs despite the rate rises.
Permalink
« Previous entries ·
