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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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Thu 10th Jan, 2008
Posted in Consumer Credit, Personal loans, Banking, UK Finance, Credit Card, interest rates, mortgages, Savings, Financial products, Spending, Unsecured loans, Financial news, Borrowing, Secured loans, Bank charges, Debt management, Tenant loans, Overdrafts at 2:03 pm by admin
No matter who you are, when it comes to your personal finances, so much depends on the deals that you get from your bank. With just a few big high street banks out there dominating the market, you should really pay attention to the deals that they are offering you on your financial services.
A new report by the Daily Mail shows that most of the high street banks have some excellent deals out there on some of their products, they also have some really terrible deals that will be offering customers terrible value for money and will not be very good financial choices.
Whether you are looking for a personal loan, paying off your credit cards and looking for a better rate while you do so, or simply like to save a few pounds each month for rainy day, by carefully selecting what you say yes to and what you say no to, you will be able to take the good while avoiding the bad deals that are available from the banks.
For example, while the Abbey is paying 7.25% pre-tax on its fixed rate monthly saver account - an excellent rate in the current market - it reduced the rate that it pays on its instant access Isa at the end of May from 5.6% to 4.55% and 5.25%. This is a huge difference on what you will be paid from the same institution.
Meanwhile, other lenders are focusing their advertising on the great rates they are offering on loans and mortgages, whilst putting the high arrangement fees in the fine print.
It pays to look closely at what your bank is offering and not assume the your own bank offers exactly the same products as the others. It is fine to shop around. It is virtually certain that some of the offers they give you will be great, and some will be terrible, so read them, be a discerning consumer, and choose the options that suit your needs.
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Posted in Consumer Credit, Personal loans, Banking, UK Finance, Credit Card, interest rates, Savings, Financial products, Spending, Unsecured loans, Financial news, Borrowing, Secured loans, Bank charges, Debt management, Tenant loans, Overdrafts at 2:03 pm by admin
No matter who you are, when it comes to your personal finances, so much depends on the deals that you get from your bank. With just a few big high street banks out there dominating the market, you should really pay attention to the deals that they are offering you on your financial services.
A new report by the Daily Mail shows that most of the high street banks have some excellent deals out there on some of their products, they also have some really terrible deals that will be offering customers terrible value for money and will not be very good financial choices.
Whether you are looking for a personal loan, paying off your credit cards and looking for a better rate while you do so, or simply like to save a few pounds each month for rainy day, by carefully selecting what you say yes to and what you say no to, you will be able to take the good while avoiding the bad deals that are available from the banks.
For example, while the Abbey is paying 7.25% pre-tax on its fixed rate monthly saver account - an excellent rate in the current market - it reduced the rate that it pays on its instant access Isa at the end of May from 5.6% to 4.55% and 5.25%. This is a huge difference on what you will be paid from the same institution.
Meanwhile, other lenders are focusing their advertising on the great rates they are offering on loans and mortgages, whilst putting the high arrangement fees in the fine print.
It pays to look closely at what your bank is offering and not assume the your own bank offers exactly the same products as the others. It is fine to shop around. It is virtually certain that some of the offers they give you will be great, and some will be terrible, so read them, be a discerning consumer, and choose the options that suit your needs.
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Thu 4th Oct, 2007
Posted in Consumer Credit, Personal loans, Homeowner Loans, UK Finance, interest rates, Savings, Consumer debt, Financial products, Property, Unsecured loans, Borrowing, Equity release, Personal debt, Secured loans, Debt management, Tenant loans at 11:10 am by admin
No matter what you want to buy, it seems that everything is expensive today. A handbag can cost £5000, a sofa can cost £10,000, but when it comes to borrowing, consumers need to consider the fact that the retail price is not the total price paid for the product.
A £50,000 wedding does not cost £50,000. Instead, it costs the original capital and the accumulated interest. While £50,000 will not buy a dream wedding any more, it does take a major chunk out of a person’s savings or home equity.
The important consideration when making a big purchase is value. Many people buy a £5,000 sofa instead of a £10,000 sofa. The first couch is worthless long before the loan is repaid. The second piece of furniture may not only retain its value, but it may even increase in value depending on the market and the demand.
The next thing to consider is the interest. Many people borrow on unsecured personal loans instead of secured loans. Releasing equity from your home can be a good idea if it saves you money.
Many people believe that finance companies cannot force the sale of a home to repay a debt if the borrower defaults. This is no longer true. In fact, a company can ask a judge to force the sale of a home for a relatively small loan. So, paying the extra interest for an unsecured loan, or a personal loan, is no longer ‘wise borrowing’.
The cost of borrowing has made it impossible to grab the first financial product offered.
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Thu 30th Aug, 2007
Posted in Consumer Credit, Personal loans, Banking, UK Finance, interest rates, Savings, Financial products, Financial news, Borrowing, Secured loans at 1:56 pm by admin
No matter who you are, when it comes to your personal finances, so much depends on the deals that you get from your bank. With just a few big high street banks out there dominating the market, you should really pay attention to the deals that they are offering you on your financial services.
A new report by the Daily Mail shows that most of the high street banks have some excellent deals out there on some of their products, they also have some really terrible deals that will be offering customers terrible value for money and will not be very good financial choices.
Whether you are looking for a personal loan, paying off your credit cards and looking for a better rate while you do so, or simply like to save a few pounds each month for rainy day, by carefully selecting what you say yes to and what you say no to, you will be able to take the good while avoiding the bad deals that are available from the banks.
For example, while the Abbey is paying 7.25% pre-tax on its fixed rate monthly saver account - an excellent rate in the current market - it recently reduced the rate that it pays on its instant access Isa at the end of May from 5.6% to 4.55% and 5.25%. This is a huge difference on what you will be paid from the same institution.
Meanwhile, other lenders are focusing their advertising on the great rates they are offering on loans and mortgages, whilst putting the high arrangement fees in the fine print.
It pays to look closely at what your bank is offering and not assume the your own bank offers exactly the same products as the others. It is fine to shop around. It is virtually certain that some of the offers they give you will be great, and some will be terrible, so read them, be a discerning consumer, and choose the options that suit your needs.
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Thu 26th Jul, 2007
Posted in Consumer Credit, Personal loans, Banking, UK Finance, interest rates, mortgages, Savings, Homeowners, Financial products, Borrowing, Secured loans, Debt management at 12:23 pm by admin
After the latest Bank of England rate rise, many banks seem to be having a savings rate war with some internet savings accounts paying up to 6.3% or 0.55% above the new bank rate. Some banks that have passed on the 0.25% interest rate rise include ICICI Bank UK, Sainsbury’s Bank and Icesave, offering rates as high as 6.3%. Sainsbury’s internet bank has raised its rate to 6.25% from 6% and is free from any conditions and pays all savers the same rate. However savers will have to wait nearly a month for the rate rise to come into effect on August 1. The UK savings account that is offered by Icelandic bank Landsbanki, has raised its rate to 6.2% from 5.95%, however demands a minimum balance of £250. Landsbanki also has a guarantee to be at least 0.25% above the bank rate until October 2009 and will apply the current rate hike on July 13.
With more banks offering competitive interest rates on savings accounts, the news of more interest rate increases in the future may not be such bad news, especially for those who have taken advantage of these accounts that are offering the highest rate of interest on savings accounts. If you are searching for a savings account that will offer you the highest rate, you may try your luck at searching online for internet savings accounts as they are currently offering the highest rates of interest. For many borrowers, overextended with mortgages and secured loans, the news of recent interest rate hikes have come as dreaded news, however for those with savings, the interest rate increases will come as good news.
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Thu 5th Jul, 2007
Posted in Bad Credit, Consumer Credit, Personal loans, Homeowner Loans, UK Finance, mortgages, Savings, Consumer debt, Homeowners, House buying, Financial products, Spending, Property, Financial news, Borrowing, Personal debt, Debt management, Budgeting at 3:10 pm by admin
Current research by Scottish Widows has found that millions of elderly women will be forced to rely on the State pension and other benefits. This is due to the fact that fewer than one in three women are saving money in pension or other investments for the future. Many women, especially those who remain at home to care for their children, do not have the income or the means to set money aside for their retirement fund. This has led many experts to urge companies to take urgent action to encourage women to save for their future, as parenting and caring responsibilities have a huge impact of women’s ability to save. They state that the government and the pension industry must ensure that pensions products are flexible enough to cope with the unpredictable lives of people. If the government and pension industry does not ensure this flexibility women will continue to under-save and pay the price through poverty in retirement.
The survey of 5,000 people performed by Scottish Widows shows that 49 percent of them are seeing aside adequate sums for their old age with 51 percent of those surveyed who face a shortfall. A quarter of those who face a shortfall in retirement have no savings at all. Although there are many who are regaining the confidence in the pensions market, there are not enough who are adequately saving for their retirement. Instead the current climate of borrowing means that women are typically spending more money each month on loan repayments than they are on savings or pensions.
Borrowing in the form of home loans and mortgages can be a way of building wealth through property. However, huge swathes of the population are taking out personal loans for holidays and spending sprees, taking themselves into bad debt for non-essentials.
Almost three quarters of the UK population is not on track for a comfortable retirement. That is why it is extremely important for young people to start focusing on their retirement plans and include a savings or investment scheme into their budget and personal finances to avoid having to live on credit when they reach retirement.
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Mon 25th Jun, 2007
Posted in Consumer Credit, UK Finance, Savings, Inflation, Homeowners, Spending, Borrowing, Budgeting at 1:59 pm by admin
Food is considered to be one of the main driving forces behind the recent rise in the overall inflation that is currently running at 2.5%.
The prices of vegetables have risen along with potatoes by 16.5% over the past year with fresh fish rising by 12.8%, milk by 10.4% and eggs by 14.4%. At this rate people will need to start finding ways to reduce their food bills, especially with the rise in interest rates, which have been affecting households that pay mortgages.
“There has become an expectation amongst British consumers that food should be cheap,” says Abbi Rouse of online loan brokers, Interfinancial Limited. “But this view is being challenged by the current price rises.”
“Many households are now finding themselves borrowing money just to pay normal expenses, so a rethink is needed by many families.”
Some ways to reduce your food bill is by thinking ahead. By planning your meals in advance you will avoid buying unwanted food. If you plan a menu, you can then decide on what items you will need to purchase for the week and create a shopping list.
You should then use this list and stick to buying only what you need. You could also buy in bulk, which can be a cheaper option, especially if you have a large household.
If you life in a flat with one or two flatmates, you could all pitch in together and buy certain items in bulk that you feel you all could use such as rice, pasta, washing powder and cleaning products. However only purchase products that you know you will not throw away or waste.
Often purchasing your fruit and vegetables from roadside markets can be less expensive than buying in the supermarket. Usually at roadside markets you can bargain with the seller, whereas at a supermarket you have to pay the fixed price for the items. You could also save by looking out for special offers as well as reduced items that you could use that day.
“One way the nation wastes their money is in buying out-of-date food that doesn’t get used,” says Rouse. “Those ‘bargain bin’ items need eating the same day and if they are not frozen or used instantly they go in your bin, instead of the supermarket’s.”
“Consumers often assume that buying cheap foods saves them money, but a decent item can often stretch further. An 80p loaf from a proper baker will make great sandwiches, then decent toast, then breadcrumbs or pudding as it goes stale. A 20p plastic loaf goes mouldy after a few days and ends up in the bin.”
There are many ways in which you can cut down the expense of your consumption of food and plenty of fun cook books to help show you how. If you don’t want to buy them, why not get one on loan from your local library?
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Tue 19th Jun, 2007
Posted in Bad Credit, Consumer Credit, Personal loans, UK Finance, Credit Card, interest rates, Savings, Consumer debt, Spending, Financial news, Borrowing, Personal debt, Online shopping, Debt management, Budgeting at 10:29 am by admin
Some habits are hard to break. Shopping is one of the hardest habits to break, especially for those who are ‘bargain hunters’. Unbiased.co.uk claimed that more than 24 million people describe themselves as ‘bargain hunters’ – regardless of their debt levels or the size of their mortgage.
The largest numbers of bargain hunters live in Wales and Scotland, where 55 per cent of people described themselves as bargain hunters compared to 50 percent nationwide. But that more than half of all UK residents consider themselves bargain hunters is possibly an alarming fact.
According to Unbiased.co.uk, 63 per cent of bargain shoppers know their bank balance to the nearest £10 compared with 58 per cent of people countrywide but that isn’t the whole story: evidence shows that many consumers who regularly seek out bargains are actually going into the red just to receive the ‘hit’ of finding something they don’t really need at a bargain price.
Whilst many bargain-conscious consumers are happy to hunt around for designer looky-likey items in Primark, others are keen to find high cost items at knock down prices, frequently seeking out more and more goods on marts like eBay.
This shows that even bargain hunting for the cheapest consumer goods can result in more debt for consumers already bogged down by credit card and personal loan repayments.
“While recent research suggests that Britain’s propensity to save has shown some improvement over the last year, much more remains to be done,” stressed Unbiased.co.uk’s chief executive David Elms.
CreditExpert reports that six million Britons think a personal debt under £15,000 is nothing to worry about. This means that consumers who pay only the minimum payment can pay £4,500 off their debt every year in interest without ever dropping the capital.
This explains why many consumers are financially bound, year after year, even though they are making payments on their loans and credit cards.
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Fri 15th Jun, 2007
Posted in Consumer Credit, Personal loans, Banking, UK Finance, Credit Card, interest rates, Savings, Consumer debt, Spending, Unsecured loans, Financial news, Borrowing, Personal debt, Debt management, Budgeting at 12:51 pm by admin
Chelsea Building Society claims that people from Glasgow and Edinburgh are among the biggest savers in the UK. Glaswegians average £15 000 while Edinburgh averages £30 000.
Despite the fact that the personal debt mountain in the UK shows no sign of leveling off, and now stands at £1.3 trillion, personal finance trends are changing.
New figures from Legal & General state that 60 percent of consumers are starting to save. This is up from 56 per cent a year ago.
However, the level of disposable income has declined 3%. After bills and loan repayments, the average disposable income is down to 58 percent from 61 percent three years ago, in 2004.
However, analysts believe that most households are still in a position to save, once they eliminate unnecessary debt.
Many consumers do not realise how much extra cash they will have in a year if they pay off high interest unsecured loans, like credit cards and store cards. Some consumers could see an extra bonus of five hundred pounds a year.
Unfortunately, many people are trying a Do-It-Yourself debt management program that is frustrating, and in most cases, ineffective.
House prices comprise a significant portion of the personal debt. However, the ability to save is often limited to certain economic groups. Most single parents and the elderly report that they are unable to save any money.
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