Retirement can bring about major changes in people's lives. One may associate retirement with freedom from work life and deadlines, annoying bosses and aggravating colleagues, cups of coffee and impossible workloads. However, retirement also means that you have to learn to adjust. You are finally faced with the problems of old age. The feeling of dependence on others begins to arise at this time. You are no longer the breadwinner of the house. Questions of whether you will still be valued by those around you will arise. Are you blessed with a caring family? Or will you end up being taken for granted? Many an insecurity will arise the moment that you take leave of your work life and become a retired person. However, this does not mean that you spend the rest of your days worrying about tomorrow.
One way in which a retired person can make himself feel at home is by buying a home. Yes, you got that right. It may be a little hard to believe that a person who is currently unemployed would be willing to use up his savings on a house. However, this could be a great idea. A house provides a sense of security. If you own a home, at least you know that no matter what, you will always have a place to call your own. Come rain, hail, storm, or family problems, that building of bricks and cement shall protect you from a great deal. The question is, how does a retired person find a suitable mortgage to buy a house?
To start with, you must consider you budget. What kind of savings are stored in your bank? Have you invested in any funds that are about to mature sometime soon? Do you already have a large house which you would like to sell before you make a shift to another place? Would your pension fund be able to help you garner a mortgage? These are only some of the initial questions that you must ask yourself. Having done so, you will need to check out a few mortgage deals and then ask yourself if repayment will be possible.
The next step is to make an in-depth study of the various deals that appeal to you the most. Every mortgage that you consider is bound to have some advantages and some disadvantages as well. Be alert and objective as you decide which loan will best meet your requirements.
74403
Monday, February 4, 2008
New Survey Shows Decrease In House Prices
House prices have continued to fall, a new set of figures has indicated.
In figures released by the Royal Institution of Chartered Surveyors (Rics), 14.6 per cent more respondents reported there was a fall, rather than a rise, in house prices over the course of September - in comparison to the difference of 3.3 per cent recorded in August. Consequently, the institution revealed that the most recent data shows the fastest decline recorded since September 2005, in which 19.4 per cent more chartered surveyors pointed to a fall than a rise.
Meanwhile, 51 per cent more surveyors reported a fall than a rise in the level of new buyer enquiries as the impact of five interest rate rises since August 2006 and stricter mortgage lending criteria was shown to have put strain on consumers' ability to afford loan repayments. In addition, enquiries from such consumers have now fallen for ten consecutive months, the fastest pace witnessed for more than four years. Confidence in prices, on the other hand, have also reached a record bottom - currently at their lowest point for almost two and a half years.
However, Rics also pointed out that the economy "remains fundamentally sound" and demand for homes outweighs supply, which could mean that house prices could rise once more in the future.
Overall, the most pronounced property price falls were seen in Wales, East Anglia and the Midlands, with decreases also seen in Yorkshire, the south of England and the north-west. Conversely, Scotland has seen the strongest growth in house values over the course of last month, news which may be welcomed by those looking to withdraw equity from their homes to use as a means of secured loans in the region.
Jeremy Leaf, spokesperson for Rics, claimed that despite the drop in house values, recent economic conditions are seeing more people struggle to handle their finances. He said: "Although house prices continue to fall, the underlying economy remains strong. A major correction in the market seems unlikely while economic growth is above trend and employment conditions remain buoyant. The combination of rising interest rates, the introduction of home information packs and volatility in the financial markets resulting in tightening of lending criteria has certainly affected the confidence of buyers and sellers".
"As a result, some would-be buyers are turning to the rental market whereas others, conscious that the next move in interest rates is now likely to be down rather than up and market meltdown is highly improbable, are seizing the opportunity to negotiate with more flexible vendors in a less competitive marketplace."
For those already on the property ladder who are concerned about their ability to handle finances, opting for a competitively priced secured loan as a result of withdrawing equity may be a wise move. Earlier this year, research released by GE Money Home Lending revealed that house price inflation has surged by some 1,436 per cent over the last 30 years. However, Gerry Bell, head of mortgage marketing for the firm, asserted that the affordability of property continues to be a major issue for property buyers.
74384
In figures released by the Royal Institution of Chartered Surveyors (Rics), 14.6 per cent more respondents reported there was a fall, rather than a rise, in house prices over the course of September - in comparison to the difference of 3.3 per cent recorded in August. Consequently, the institution revealed that the most recent data shows the fastest decline recorded since September 2005, in which 19.4 per cent more chartered surveyors pointed to a fall than a rise.
Meanwhile, 51 per cent more surveyors reported a fall than a rise in the level of new buyer enquiries as the impact of five interest rate rises since August 2006 and stricter mortgage lending criteria was shown to have put strain on consumers' ability to afford loan repayments. In addition, enquiries from such consumers have now fallen for ten consecutive months, the fastest pace witnessed for more than four years. Confidence in prices, on the other hand, have also reached a record bottom - currently at their lowest point for almost two and a half years.
However, Rics also pointed out that the economy "remains fundamentally sound" and demand for homes outweighs supply, which could mean that house prices could rise once more in the future.
Overall, the most pronounced property price falls were seen in Wales, East Anglia and the Midlands, with decreases also seen in Yorkshire, the south of England and the north-west. Conversely, Scotland has seen the strongest growth in house values over the course of last month, news which may be welcomed by those looking to withdraw equity from their homes to use as a means of secured loans in the region.
Jeremy Leaf, spokesperson for Rics, claimed that despite the drop in house values, recent economic conditions are seeing more people struggle to handle their finances. He said: "Although house prices continue to fall, the underlying economy remains strong. A major correction in the market seems unlikely while economic growth is above trend and employment conditions remain buoyant. The combination of rising interest rates, the introduction of home information packs and volatility in the financial markets resulting in tightening of lending criteria has certainly affected the confidence of buyers and sellers".
"As a result, some would-be buyers are turning to the rental market whereas others, conscious that the next move in interest rates is now likely to be down rather than up and market meltdown is highly improbable, are seizing the opportunity to negotiate with more flexible vendors in a less competitive marketplace."
For those already on the property ladder who are concerned about their ability to handle finances, opting for a competitively priced secured loan as a result of withdrawing equity may be a wise move. Earlier this year, research released by GE Money Home Lending revealed that house price inflation has surged by some 1,436 per cent over the last 30 years. However, Gerry Bell, head of mortgage marketing for the firm, asserted that the affordability of property continues to be a major issue for property buyers.
74384
Welsh Children 'On Track For Education In Money Management'
Schoolchildren in Wales are set to receive guidance on handling their finances from next year, it has been revealed.
The news comes as Jane Hutt, education minister from the Welsh Assembly Government, has announced that money management skills are to be incorporated into the school curriculum from September 2008. With the move being welcomed by the Welsh Consumer Council, it was suggested that young people will be able to foster a more responsible attitude towards managing their finances in life. And as a result, this may well see them develop a greater awareness of borrowing products such as personal loans as they get older.
Commenting on the news, Lindsey Kearton, senior policy officer for the council, said: "The Welsh Consumer Council has been campaigning for several years for a greater emphasis on personal finance education and money management skills in schools. With levels of personal debt increasing and the world of financial services growing ever more complicated, it's important that people have the right knowledge and skills to deal with their money."
Ms Kearton asserted that the announcement could be particularly welcomed in Wales as people in the region have a higher level of personal debt, through personal loans and other types of borrowing. "Wales has above average levels of personal debt compared to Britain as a whole and many consumers feel uncertain when it comes to dealing with their money," she added.
The officer pointed to research carried out by the company revealing that just under a quarter (24 per cent) of people living in Wales are either confused or scared when it comes to dealing with building societies, bank and other monetary institutions. Meanwhile, some 20 per cent of respondents claim that on occasion they have signed up for a financial product without taking the time to make sure that they understand the small print of the terms and conditions.
Findings from the advisory service also show that the majority of Welsh adults (83 per cent) believe that if they were taught how to manage their money while they were still at school, then they would now be in a more confident position to handle their finances. In addition, Ms Kearton pointed out: "Prioritising personal financial education and money management skills in schools will be one of the ways of ensuring that today's children feel more informed about their finances and more confident about managing their money as adults." Consequently, this could see them in a more comfortable position to make loan repayments.
And those who constantly miss demands for payment may well see their credit history is damaged which in turn might impair their access to cheap loans and other forms of competitively-priced credit in the future. However, for those who are confident that in spite of a tarnished file they will be in a position to pay back such borrowing, taking out a bad credit loan could well be an advisable option as a means of getting to grips with their finances. Meanwhile, the launch of a financial support scheme across Britain last month is set to see the most financially-excluded, including those who have taken out bad credit loans, given guidance on handling their money and how to avoid unscrupulous loan lenders.
74366
The news comes as Jane Hutt, education minister from the Welsh Assembly Government, has announced that money management skills are to be incorporated into the school curriculum from September 2008. With the move being welcomed by the Welsh Consumer Council, it was suggested that young people will be able to foster a more responsible attitude towards managing their finances in life. And as a result, this may well see them develop a greater awareness of borrowing products such as personal loans as they get older.
Commenting on the news, Lindsey Kearton, senior policy officer for the council, said: "The Welsh Consumer Council has been campaigning for several years for a greater emphasis on personal finance education and money management skills in schools. With levels of personal debt increasing and the world of financial services growing ever more complicated, it's important that people have the right knowledge and skills to deal with their money."
Ms Kearton asserted that the announcement could be particularly welcomed in Wales as people in the region have a higher level of personal debt, through personal loans and other types of borrowing. "Wales has above average levels of personal debt compared to Britain as a whole and many consumers feel uncertain when it comes to dealing with their money," she added.
The officer pointed to research carried out by the company revealing that just under a quarter (24 per cent) of people living in Wales are either confused or scared when it comes to dealing with building societies, bank and other monetary institutions. Meanwhile, some 20 per cent of respondents claim that on occasion they have signed up for a financial product without taking the time to make sure that they understand the small print of the terms and conditions.
Findings from the advisory service also show that the majority of Welsh adults (83 per cent) believe that if they were taught how to manage their money while they were still at school, then they would now be in a more confident position to handle their finances. In addition, Ms Kearton pointed out: "Prioritising personal financial education and money management skills in schools will be one of the ways of ensuring that today's children feel more informed about their finances and more confident about managing their money as adults." Consequently, this could see them in a more comfortable position to make loan repayments.
And those who constantly miss demands for payment may well see their credit history is damaged which in turn might impair their access to cheap loans and other forms of competitively-priced credit in the future. However, for those who are confident that in spite of a tarnished file they will be in a position to pay back such borrowing, taking out a bad credit loan could well be an advisable option as a means of getting to grips with their finances. Meanwhile, the launch of a financial support scheme across Britain last month is set to see the most financially-excluded, including those who have taken out bad credit loans, given guidance on handling their money and how to avoid unscrupulous loan lenders.
74366
How You Can Learn About Financial Education
When I first started the journey of learning about financial education, the terms in financial education was totally like a foreign language to me. I had heard some of those words before but what does it really mean. Those moments were poignant moments where I realized that I need a lot more to learn in this area of study. Through this journey, I have grown as a learner and raring to learn more in financial education.
My financial education begins with the understanding of personal financial statement. One of the first terms that I had learn in financial statement is Assets and Liabilities. These are significant terms one must learn and understand to accumulate wealth.
Assets in simple terms are sources that produce and increase your income. For example, owning a part time home based business, franchise, your own company and various investment sources that produce and increase your income are assets. Owning a rental property that produces a positive cash flow income can be considered an asset. Liabilities in simple terms are sources that create output and reduce your income. Loans, bad debts and expenditures that create output to your income generated are liabilities. Owning a property that produces negative cash flow can be considered a liability too.
A metaphor that I can use to describe assets and liabilities is the factors involved in determining the growth of a tree. A tree needs sunlight, air and water to grow. With right amount, it will grow and bloom with green leaves. Similarly, assets need income generating sources such as business and real estate investments for the assets to grow and resulting in the individual owning assets to become richer. A growing tree with healthy green leaves looks more appealing. An individual with rich in assets tends to look more confident and happy.
With lack of sunlight, air and water, the tree will not grow much and the individuals with more liabilities will become poorer and poorer. Individuals with more liabilities tend to be unhappy and less confident when they realized that liabilities are mounting.
One way such problems can be eliminated is through financial education, such as understanding a financial statement and playing educational board games such as cashflow 101 and applying the lessons learn in real life. One has to realize that the financial education is continual and the individual must be persistent and consistent in making the effort to increase the assets column than the liabilities column in the financial statement. I heard before that if one has money, invest wisely. If one has time, invest in your education.
With this concept of focusing the increase in assets column, one has great potential to become richer. With dedication to self develop such as reading self development books, networking and learning from others, playing financial educational board games and applying it in real life by starting small like home business, one can slowly develop into better learner in financial education area. If one love learning, the individual will most certainly enjoy and grow well as a person through this learning experience.
74284
My financial education begins with the understanding of personal financial statement. One of the first terms that I had learn in financial statement is Assets and Liabilities. These are significant terms one must learn and understand to accumulate wealth.
Assets in simple terms are sources that produce and increase your income. For example, owning a part time home based business, franchise, your own company and various investment sources that produce and increase your income are assets. Owning a rental property that produces a positive cash flow income can be considered an asset. Liabilities in simple terms are sources that create output and reduce your income. Loans, bad debts and expenditures that create output to your income generated are liabilities. Owning a property that produces negative cash flow can be considered a liability too.
A metaphor that I can use to describe assets and liabilities is the factors involved in determining the growth of a tree. A tree needs sunlight, air and water to grow. With right amount, it will grow and bloom with green leaves. Similarly, assets need income generating sources such as business and real estate investments for the assets to grow and resulting in the individual owning assets to become richer. A growing tree with healthy green leaves looks more appealing. An individual with rich in assets tends to look more confident and happy.
With lack of sunlight, air and water, the tree will not grow much and the individuals with more liabilities will become poorer and poorer. Individuals with more liabilities tend to be unhappy and less confident when they realized that liabilities are mounting.
One way such problems can be eliminated is through financial education, such as understanding a financial statement and playing educational board games such as cashflow 101 and applying the lessons learn in real life. One has to realize that the financial education is continual and the individual must be persistent and consistent in making the effort to increase the assets column than the liabilities column in the financial statement. I heard before that if one has money, invest wisely. If one has time, invest in your education.
With this concept of focusing the increase in assets column, one has great potential to become richer. With dedication to self develop such as reading self development books, networking and learning from others, playing financial educational board games and applying it in real life by starting small like home business, one can slowly develop into better learner in financial education area. If one love learning, the individual will most certainly enjoy and grow well as a person through this learning experience.
74284
Homeowners Face 'Challenging' Financial Situation
Homeowners are coming under increased financial pressure, new figures indicate.
In research released by the Council of Mortgage Lenders (CML), both those making their initial steps on the housing ladder and existing property owners are seeing their mortgage costs account for an ever larger proportion of their expenditure, which may consequently impact upon their ability to service other constraints on their spending - such as tax bills and home loans.
As "affordability has continued to worsen" for consumers, the CML revealed that the typical first-time buyer is currently borrowing at 3.38 times their income - a figure unchanged from July. However, as the proportion of income being put towards interest payments by such people has surged to 20 per cent from the 19.7 per cent recorded three months ago, they could be struggling more to meet loans costs and other demands of payment.
Meanwhile, existing homeowners are shown to be taking out a loan worth 3.03 times their income, with just over a sixth (17.2 per cent) of their annual income going towards repayments. The council also showed that debt servicing burdens are at their worst for both first-time buyers and movers for some 16 and 15 years respectively. And with the CML stating that such affordability pressures could be set to worsen within the coming months, Britons may struggle even more in paying off loans.
Commenting on the study, Michael Coogan, director general for the CML, said: "Affordability clearly remains challenging but there may be some relief for borrowers with expectations of an interest rate cut, perhaps as early as November. We are set to have a very segmented market for some months to come. The sub-prime sector is still facing funding constraints, while mainstream fixed-rate deals have begun to get cheaper."
However, Mr Coogan suggested that those with adverse credit histories, including those who may have taken out bad credit loans, are set for a surge in financial difficulties as mortgages for such consumers become more expensive. He also urged those who are concerned that they will be unable to make a loan payment to get in touch with their credit provider.
"As lenders move to price for the risk they are taking on, mortgages are set to become more expensive for customers who have poorer credit histories. Now is the time for consumers to look to improve their credit status to keep their borrowing costs as low as possible. If you face payment difficulties, please speak to your lender before you miss a payment," he added.
For those concerned that they will be unable to meet mortgage costs, opting for a low-rate loan as a means of consolidating various debts accrued may well be an advisable option.
Earlier this year, James Ketchell, from the Consumer Credit Counselling Service, revealed that evermore people are willing to apply for borrowing, through secured loans for instance, as they have lost the stigma of getting into debt while at university.
74256
In research released by the Council of Mortgage Lenders (CML), both those making their initial steps on the housing ladder and existing property owners are seeing their mortgage costs account for an ever larger proportion of their expenditure, which may consequently impact upon their ability to service other constraints on their spending - such as tax bills and home loans.
As "affordability has continued to worsen" for consumers, the CML revealed that the typical first-time buyer is currently borrowing at 3.38 times their income - a figure unchanged from July. However, as the proportion of income being put towards interest payments by such people has surged to 20 per cent from the 19.7 per cent recorded three months ago, they could be struggling more to meet loans costs and other demands of payment.
Meanwhile, existing homeowners are shown to be taking out a loan worth 3.03 times their income, with just over a sixth (17.2 per cent) of their annual income going towards repayments. The council also showed that debt servicing burdens are at their worst for both first-time buyers and movers for some 16 and 15 years respectively. And with the CML stating that such affordability pressures could be set to worsen within the coming months, Britons may struggle even more in paying off loans.
Commenting on the study, Michael Coogan, director general for the CML, said: "Affordability clearly remains challenging but there may be some relief for borrowers with expectations of an interest rate cut, perhaps as early as November. We are set to have a very segmented market for some months to come. The sub-prime sector is still facing funding constraints, while mainstream fixed-rate deals have begun to get cheaper."
However, Mr Coogan suggested that those with adverse credit histories, including those who may have taken out bad credit loans, are set for a surge in financial difficulties as mortgages for such consumers become more expensive. He also urged those who are concerned that they will be unable to make a loan payment to get in touch with their credit provider.
"As lenders move to price for the risk they are taking on, mortgages are set to become more expensive for customers who have poorer credit histories. Now is the time for consumers to look to improve their credit status to keep their borrowing costs as low as possible. If you face payment difficulties, please speak to your lender before you miss a payment," he added.
For those concerned that they will be unable to meet mortgage costs, opting for a low-rate loan as a means of consolidating various debts accrued may well be an advisable option.
Earlier this year, James Ketchell, from the Consumer Credit Counselling Service, revealed that evermore people are willing to apply for borrowing, through secured loans for instance, as they have lost the stigma of getting into debt while at university.
74256
Faulty Heating Appliances 'Could Cause Financial Difficulties' This Winter
As winter draws in and the nights get colder, consumers may find themselves coming under financial pressure, it has been suggested.
The news comes as research carried out by Abbey reveals that about half of all British adults - some 19.6 million people - are set to use some form of heating appliance apart from central heating, such as electric blankets and gas heaters, to keep warm other the winter. However, as the company warns homeowners to use such devices safely, any damage caused by the items could well put strain on their capacity to manage their money. The news comes as data suggests a total 3.3 million pounds worth of damage, just under 500 pounds per consumer, is caused every year due to additional heating appliances, a figure which may see the costs of repairing property put pressure on people's ability to make homeowner loan and utility bills payments.
However, financial management problems could be even more pronounced for the two million people set to use oil radiators to keep themselves cosy this winter. The cost of repairing the damage caused by such a faulty appliance accounts for some 809 pounds. Meanwhile, 8.1 million are looking to use an electric blanket, which causes damages costing a typical 327 pounds to fix. And electric heaters are used by 6.2 million consumers, however as it results in an average of 416 pounds to repair any harm to homes they cause. Thus such people may also develop difficulties in replacing items and meeting personal loan repayments.
Pointing to government figures, the financial provider also stated that electric blankets alone cause more than 5,000 fires in the home every 12 months - the majority of which are started by blankets more than ten years old. Overall, some 4,500 accidental fires are started in the bedroom each year.
Prasad Shastri, head of insurance marketing for Abbey, said: "It is understandable that additional heating appliances are used during the winter, but it is important that they are checked prior to use to ensure that they are not faulty and that they are used correctly otherwise they could prove to be very dangerous".
"We would always advise that people do not leave the heating appliance unattended or fall asleep with it on. Purchasing a timer switch will ensure that electric heaters are not left on longer than necessary. Always exercise caution if the heater has not been used for a while and if in any doubt, get a qualified person to check that it is not faulty."
As a result, those consumers looking to meet the costs of repairing any damage caused by a heating appliance may wish to consider taking out a home improvement loan. Earlier this year, Andrew Leech, spokesperson from the National Home Improvement Council, stated that carrying out renovations could be an effective way for homeowners to boost the value of a property, with applying for such a homeowner loan one method in which such costs can be met. However, Mr Leech reported that people looking to refurbish their homes or get an extension should ensure that any plans have been granted permission by the local authorities. He added that by getting work - such as loft insulation - carried out, consumers could also "save a considerable amount on [their] heating bill".
74255
The news comes as research carried out by Abbey reveals that about half of all British adults - some 19.6 million people - are set to use some form of heating appliance apart from central heating, such as electric blankets and gas heaters, to keep warm other the winter. However, as the company warns homeowners to use such devices safely, any damage caused by the items could well put strain on their capacity to manage their money. The news comes as data suggests a total 3.3 million pounds worth of damage, just under 500 pounds per consumer, is caused every year due to additional heating appliances, a figure which may see the costs of repairing property put pressure on people's ability to make homeowner loan and utility bills payments.
However, financial management problems could be even more pronounced for the two million people set to use oil radiators to keep themselves cosy this winter. The cost of repairing the damage caused by such a faulty appliance accounts for some 809 pounds. Meanwhile, 8.1 million are looking to use an electric blanket, which causes damages costing a typical 327 pounds to fix. And electric heaters are used by 6.2 million consumers, however as it results in an average of 416 pounds to repair any harm to homes they cause. Thus such people may also develop difficulties in replacing items and meeting personal loan repayments.
Pointing to government figures, the financial provider also stated that electric blankets alone cause more than 5,000 fires in the home every 12 months - the majority of which are started by blankets more than ten years old. Overall, some 4,500 accidental fires are started in the bedroom each year.
Prasad Shastri, head of insurance marketing for Abbey, said: "It is understandable that additional heating appliances are used during the winter, but it is important that they are checked prior to use to ensure that they are not faulty and that they are used correctly otherwise they could prove to be very dangerous".
"We would always advise that people do not leave the heating appliance unattended or fall asleep with it on. Purchasing a timer switch will ensure that electric heaters are not left on longer than necessary. Always exercise caution if the heater has not been used for a while and if in any doubt, get a qualified person to check that it is not faulty."
As a result, those consumers looking to meet the costs of repairing any damage caused by a heating appliance may wish to consider taking out a home improvement loan. Earlier this year, Andrew Leech, spokesperson from the National Home Improvement Council, stated that carrying out renovations could be an effective way for homeowners to boost the value of a property, with applying for such a homeowner loan one method in which such costs can be met. However, Mr Leech reported that people looking to refurbish their homes or get an extension should ensure that any plans have been granted permission by the local authorities. He added that by getting work - such as loft insulation - carried out, consumers could also "save a considerable amount on [their] heating bill".
74255
Brits' Financial Burden Has 'Increased Over Last Decade'
British households are under evermore financial pressure, according to the publication of new figures.
The news comes as research carried out by uSwitch reveals that disposable income is at its lowest level for a decade. According to the price comparison website, taxes and social contributions have increased by 85 and 77 per cent respectively during the last ten years. Meanwhile, during the same time the proportion of net household income within gross income has decreased by five percentage points to 63 per cent. And with such a fall in disposable income, more consumers could be struggling to meet demands on their spending should they have to make unexpected repayment for utility bills or home loans.
According to the price comparison firm, property has been one of the largest strains on household finances over the last ten years, as house prices have risen by some 231 per cent during this time. In addition, rents have surged by 44 per cent since 1997. Overall, housing accounts for a fifth (19 per cent) of household expenditure.
The study also showed that council tax has nearly doubled during the past decade, as it has shown growth of some 92 per cent. Properties coming under band D now attract a levy of 1,321 pounds - up from 688 pounds in 1997. Meanwhile, the five base rate rises carried out by the Bank of England's monetary policy committee since August 2006 pushing up the cost of borrowing on mortgages and loans has been suggested as "compounding" the country's financial problems.
Mike Naylor, personal finance expert at uSwitch, said: "Cool Britannia is now Cost-a-lot Britannia. Our pay cheques may be getting fatter, but the chunk that we have to hand over to pay taxes, bills and other living costs is growing even faster. We are working harder, but we are not getting any wealthier - we are running just to stand still."
Mr Naylor added: "With less spending money than at any time over the last ten years, it's more important than ever to take control of your finances" As a result, he suggested that consumers take the time to shop around for the best deals available, allowing them to free up as much disposable income as possible.
Further research from the price comparison website also revealed that communication costs have risen by 77 per cent - with this increase largely attributed to the uptake of mobile phones and the internet during the last ten years. The cost of running a car has surged by 43 per cent over this time as transport expenses make up some 15 per cent of the average Briton's expenditure.
Overall, Nottingham residents are spending the most on essentials, for example mortgage repayments and utility bills, as such expenses make up some 64.2 per cent of their annual income. On the other hand, those living in inner west London only contribute a third (32.7 per cent) of the money they have coming in to such areas.
However, for people struggling with the rising cost of living taking out a debt consolidation loan could well be advisable, as doing so may mean they are able to pay off various debts quickly, leaving them with more disposable income. Meanwhile, David Kuo, head of personal finance for the Motley Fool, claimed that although debt consolidation loans "can be a welcome lifeline", borrowers should take care to make sure that they do not get themselves back into the red. His comments come after research from the firm showed that three out of five people taking out such a loan go on to borrow more money in the future.
74254
The news comes as research carried out by uSwitch reveals that disposable income is at its lowest level for a decade. According to the price comparison website, taxes and social contributions have increased by 85 and 77 per cent respectively during the last ten years. Meanwhile, during the same time the proportion of net household income within gross income has decreased by five percentage points to 63 per cent. And with such a fall in disposable income, more consumers could be struggling to meet demands on their spending should they have to make unexpected repayment for utility bills or home loans.
According to the price comparison firm, property has been one of the largest strains on household finances over the last ten years, as house prices have risen by some 231 per cent during this time. In addition, rents have surged by 44 per cent since 1997. Overall, housing accounts for a fifth (19 per cent) of household expenditure.
The study also showed that council tax has nearly doubled during the past decade, as it has shown growth of some 92 per cent. Properties coming under band D now attract a levy of 1,321 pounds - up from 688 pounds in 1997. Meanwhile, the five base rate rises carried out by the Bank of England's monetary policy committee since August 2006 pushing up the cost of borrowing on mortgages and loans has been suggested as "compounding" the country's financial problems.
Mike Naylor, personal finance expert at uSwitch, said: "Cool Britannia is now Cost-a-lot Britannia. Our pay cheques may be getting fatter, but the chunk that we have to hand over to pay taxes, bills and other living costs is growing even faster. We are working harder, but we are not getting any wealthier - we are running just to stand still."
Mr Naylor added: "With less spending money than at any time over the last ten years, it's more important than ever to take control of your finances" As a result, he suggested that consumers take the time to shop around for the best deals available, allowing them to free up as much disposable income as possible.
Further research from the price comparison website also revealed that communication costs have risen by 77 per cent - with this increase largely attributed to the uptake of mobile phones and the internet during the last ten years. The cost of running a car has surged by 43 per cent over this time as transport expenses make up some 15 per cent of the average Briton's expenditure.
Overall, Nottingham residents are spending the most on essentials, for example mortgage repayments and utility bills, as such expenses make up some 64.2 per cent of their annual income. On the other hand, those living in inner west London only contribute a third (32.7 per cent) of the money they have coming in to such areas.
However, for people struggling with the rising cost of living taking out a debt consolidation loan could well be advisable, as doing so may mean they are able to pay off various debts quickly, leaving them with more disposable income. Meanwhile, David Kuo, head of personal finance for the Motley Fool, claimed that although debt consolidation loans "can be a welcome lifeline", borrowers should take care to make sure that they do not get themselves back into the red. His comments come after research from the firm showed that three out of five people taking out such a loan go on to borrow more money in the future.
74254
Pension Credits 'Can Help Consumers Pay Off Debts'
Taking full advantage of the pension credit scheme could see older people handle their finances with greater ease, it has been suggested.
According to a spokesperson from Age Concern, claiming the maximum amount of pension credits they are entitled to can make a "massive difference" in retirees' quality of life. And by receiving extra money on a regular basis the representative suggested that such people could find themselves in a much more favourable financial position, which in turn may help them to service demands on their spending such as utility bills, personal loans and care expenses. Meanwhile, the charity spokesperson stated that consumers who are unaware that they have missed out on money could be able to access "back-dated payments" providing them with "tens or hundreds of much-needed extra pounds per week".
She said: "This can help to end the stress of finding it difficult to make ends meet. Claiming benefits helps many pensioners to pay their bills, buy better food, help pay off debts, pay for care, put money aside for emergencies and be able to afford small luxuries that make a big difference."
Although she reported that the introduction of the scheme has helped "lift many pensioners out of poverty", the Age Concern official asserted that there are still millions of older people who are missing out on benefits to which they are entitled. Consequently, it was suggested that more work needs to be done in simplifying the system to make claiming easier, with the creation of an automatic payments process additionally advised. Meanwhile, the provision of more information and help in languages other than English was also recommended.
The news comes as research carried out by the charity reveals that six out of ten older people are discouraged from claiming for their benefits as a result of a complex tax system. In turn the charity claims that this has led to some 2.5 billion pounds going unclaimed. The spokesperson also pointed out that some consumers are embarrassed about making a claim, dislike the fact the scheme is means-tested or may just be unaware they are eligible to receive money.
Even after receiving pension credits, should they be eligible to do so, older people who find that they are struggling to service various demands on their finances may wish to consider opting for a low-rate personal loan for debt consolidation purposes, in which they may be able to pay off numerous debts quickly and so leave them with more disposable income at the end of each month.
Such a product could be welcomed by retirees, as recent figures by Scottish Widows show the average person who has given up work owes some 38,000 pounds on their mortgage. In addition, a third of older people are indicated as being some 5,900 pounds in the red through personal loans, credit cards and other types of "short-term debts". Consequently, Ian Naismith, head of pensions market development for the firm, claimed that those approaching retirement, who still owe money on their mortgage, should consider how they will be able to manage their finances when they go on a reduced income, with a consolidation loan one possible way of providing such help with spending.
74251
According to a spokesperson from Age Concern, claiming the maximum amount of pension credits they are entitled to can make a "massive difference" in retirees' quality of life. And by receiving extra money on a regular basis the representative suggested that such people could find themselves in a much more favourable financial position, which in turn may help them to service demands on their spending such as utility bills, personal loans and care expenses. Meanwhile, the charity spokesperson stated that consumers who are unaware that they have missed out on money could be able to access "back-dated payments" providing them with "tens or hundreds of much-needed extra pounds per week".
She said: "This can help to end the stress of finding it difficult to make ends meet. Claiming benefits helps many pensioners to pay their bills, buy better food, help pay off debts, pay for care, put money aside for emergencies and be able to afford small luxuries that make a big difference."
Although she reported that the introduction of the scheme has helped "lift many pensioners out of poverty", the Age Concern official asserted that there are still millions of older people who are missing out on benefits to which they are entitled. Consequently, it was suggested that more work needs to be done in simplifying the system to make claiming easier, with the creation of an automatic payments process additionally advised. Meanwhile, the provision of more information and help in languages other than English was also recommended.
The news comes as research carried out by the charity reveals that six out of ten older people are discouraged from claiming for their benefits as a result of a complex tax system. In turn the charity claims that this has led to some 2.5 billion pounds going unclaimed. The spokesperson also pointed out that some consumers are embarrassed about making a claim, dislike the fact the scheme is means-tested or may just be unaware they are eligible to receive money.
Even after receiving pension credits, should they be eligible to do so, older people who find that they are struggling to service various demands on their finances may wish to consider opting for a low-rate personal loan for debt consolidation purposes, in which they may be able to pay off numerous debts quickly and so leave them with more disposable income at the end of each month.
Such a product could be welcomed by retirees, as recent figures by Scottish Widows show the average person who has given up work owes some 38,000 pounds on their mortgage. In addition, a third of older people are indicated as being some 5,900 pounds in the red through personal loans, credit cards and other types of "short-term debts". Consequently, Ian Naismith, head of pensions market development for the firm, claimed that those approaching retirement, who still owe money on their mortgage, should consider how they will be able to manage their finances when they go on a reduced income, with a consolidation loan one possible way of providing such help with spending.
74251
Consumers To Receive Improved Financial Guidance Following PBR
More Britons could be on track to receive better guidance in managing their finances, it has been revealed.
In the government's pre-Budget report (PBR) and Comprehensive Spending Review, chancellor Alistair Darling announced that millions of pounds are to be invested into the provision of financially advisory initiatives targeted towards some of the most vulnerable people in the country. With the Financial Inclusion Fund set to receive some 130 million pounds over the course of the next spending year, consumers may be able to adopt a more responsible attitude towards the applying for and paying back of secured loans, credit cards and other avenues of borrowing.
In addition, such moves may also help people develop a greater knowledge of financial products and learn more about the importance of creating a budget. With the government claiming that the announcement builds upon "the good progress achieved so far", the money will support projects such as the Department for Business, Enterprise & Regulatory Reform's fiscal advice schemes and the Department for Work and Pension's Growth Fund.
Meanwhile, the report may also be welcomed by older people who are struggling to keep up with demands for payment on utility bills, home loans and other areas of their spending. From next year, the government is to boost the minimum amount of pension credits to 124 pounds for single retirees. Couples, on the other hand, are to receive 189 pounds.
Speaking ahead of the report, Vince Cable, treasury spokesperson and deputy leader for the Liberal Democrats, asserted that millions of Britons are now beginning to develop difficulties with loans and other types of borrowing, as a result of Gordon Brown "blithely ignoring the growing crisis of personal debt and irresponsible lending". He added that as "the chickens are finally coming home to roost", people are finding that a greater proportion of their income is going towards paying back debt as the economic landscape looks bleak. "Household debt is now 160 per cent of income double the level of a decade ago. The cost of servicing debt is close to the level that caused the recession at the end of the 1980s Lawson boom," Mr Cable asserted.
Such sentiments were also shared by Mark Williams, Liberal Democrat MP for Ceredigion. He pointed to data released by the Welsh Liberal Democrats in June which showed that the country's personal debt, which may have been acquired through the use of loans, overdrafts and plastic cards, stood at 164 per cent as a proportion of income during 2006. With this figure up from the 105 per cent noted in 1997, it was also suggested that this level of personal debt is the highest in the developed world. Meanwhile, Welsh households are currently contributing nine per cent of their disposable income, towards paying back debts.
And although more financial advisory services are on the horizon, those who find that they are still struggling with money may wish to consider using the equity built up within their property as a means of debt consolidation. Last month, Sue Anderson, head of member and external relations for the Council of Mortgage Lenders, suggested that consumers deciding to take out such a form of secured loan are often doing "a logical thing" as they are effectively replacing expensive unsecured debt with low-rate borrowing.
74250
In the government's pre-Budget report (PBR) and Comprehensive Spending Review, chancellor Alistair Darling announced that millions of pounds are to be invested into the provision of financially advisory initiatives targeted towards some of the most vulnerable people in the country. With the Financial Inclusion Fund set to receive some 130 million pounds over the course of the next spending year, consumers may be able to adopt a more responsible attitude towards the applying for and paying back of secured loans, credit cards and other avenues of borrowing.
In addition, such moves may also help people develop a greater knowledge of financial products and learn more about the importance of creating a budget. With the government claiming that the announcement builds upon "the good progress achieved so far", the money will support projects such as the Department for Business, Enterprise & Regulatory Reform's fiscal advice schemes and the Department for Work and Pension's Growth Fund.
Meanwhile, the report may also be welcomed by older people who are struggling to keep up with demands for payment on utility bills, home loans and other areas of their spending. From next year, the government is to boost the minimum amount of pension credits to 124 pounds for single retirees. Couples, on the other hand, are to receive 189 pounds.
Speaking ahead of the report, Vince Cable, treasury spokesperson and deputy leader for the Liberal Democrats, asserted that millions of Britons are now beginning to develop difficulties with loans and other types of borrowing, as a result of Gordon Brown "blithely ignoring the growing crisis of personal debt and irresponsible lending". He added that as "the chickens are finally coming home to roost", people are finding that a greater proportion of their income is going towards paying back debt as the economic landscape looks bleak. "Household debt is now 160 per cent of income double the level of a decade ago. The cost of servicing debt is close to the level that caused the recession at the end of the 1980s Lawson boom," Mr Cable asserted.
Such sentiments were also shared by Mark Williams, Liberal Democrat MP for Ceredigion. He pointed to data released by the Welsh Liberal Democrats in June which showed that the country's personal debt, which may have been acquired through the use of loans, overdrafts and plastic cards, stood at 164 per cent as a proportion of income during 2006. With this figure up from the 105 per cent noted in 1997, it was also suggested that this level of personal debt is the highest in the developed world. Meanwhile, Welsh households are currently contributing nine per cent of their disposable income, towards paying back debts.
And although more financial advisory services are on the horizon, those who find that they are still struggling with money may wish to consider using the equity built up within their property as a means of debt consolidation. Last month, Sue Anderson, head of member and external relations for the Council of Mortgage Lenders, suggested that consumers deciding to take out such a form of secured loan are often doing "a logical thing" as they are effectively replacing expensive unsecured debt with low-rate borrowing.
74250
Rise Recorded In Home And Motor Insurance Costs
Homeowners and motorists alike may be due to come under more difficulty in handling their money, it has been suggested.
The news comes as research carried out by the AA in its latest British Insurance Premium Index has shown a rise in both home and car insurance costs over recent months - an increase partially attributed to the flooding seen across the country during the summer.
According to the firm, the typical home buildings insurance policy surged by some three per cent during the third quarter of 2007 (between July and September) up to 215 pounds 51p. This compares with a decrease of 1.89 per cent recorded during the second quarter of this year, where average cover stood at 209 pounds 23p. Overall, premiums have surged by 3.13 per cent from the same time in 2006 - a rise which could well put pressure on consumers' capacity to make payments on other demands on their finances such as utility bills and loans.
The cost of home contents insurance cover has also witnessed growth over the last quarter, as the typical quote is now valued at 149 pounds 99p - a rise of 2.29 per cent. Meanwhile, a year-on-year rise of 1.64 per cent was posted.
However, drivers too could be set for further hardship in making loan repayments, as they have seen a notable increase in car insurance costs. As over the last 12 months, third party, fire and theft cover has surged by 4.43 per cent. Meanwhile, the average policy has surged by 3.57 per cent during the third quarter to stand at a record 1,042 pounds 41p. This compares to growth of 1.32 per cent to 1,006 pounds 44p over the course of the previous three-month period.
Comprehensive cover also increased during the last quarter, though at a lower rate than third party, fire and theft. Between July and September such insurance was up by 1.35 per cent. During the course of the last year, however, the premium has risen by some 7.96 per cent.
Commenting on the figures, John Close, insurance relations director for the company, said: "The latest rises are in line with expectation. Car insurance premiums have followed an upward trend since the second quarter of 2006. The cost to the industry of personal injury claims and legal costs has been escalating rapidly while accident damage costs has also risen faster than premiums. In addition, recent flood claims have cost insurers an estimated 100 million pounds."
As a result, those worried that rising insurance costs may pressure their ability to meet demands on other areas of their spending may wish to consider applying for a low-rate personal loan. And such a method of borrowing could also be advisable for those considering the purchase of a new car.
Following the launch of the new 57 registration plate last month, Halifax reported that September is often a prime time to apply for a loan so as to buy a new motor vehicle. However, Neil Chandler, head of the financial provider's unsecured personal loans division, advised consumers to take the time to search for the most competitively-priced finance deal available.
74205
The news comes as research carried out by the AA in its latest British Insurance Premium Index has shown a rise in both home and car insurance costs over recent months - an increase partially attributed to the flooding seen across the country during the summer.
According to the firm, the typical home buildings insurance policy surged by some three per cent during the third quarter of 2007 (between July and September) up to 215 pounds 51p. This compares with a decrease of 1.89 per cent recorded during the second quarter of this year, where average cover stood at 209 pounds 23p. Overall, premiums have surged by 3.13 per cent from the same time in 2006 - a rise which could well put pressure on consumers' capacity to make payments on other demands on their finances such as utility bills and loans.
The cost of home contents insurance cover has also witnessed growth over the last quarter, as the typical quote is now valued at 149 pounds 99p - a rise of 2.29 per cent. Meanwhile, a year-on-year rise of 1.64 per cent was posted.
However, drivers too could be set for further hardship in making loan repayments, as they have seen a notable increase in car insurance costs. As over the last 12 months, third party, fire and theft cover has surged by 4.43 per cent. Meanwhile, the average policy has surged by 3.57 per cent during the third quarter to stand at a record 1,042 pounds 41p. This compares to growth of 1.32 per cent to 1,006 pounds 44p over the course of the previous three-month period.
Comprehensive cover also increased during the last quarter, though at a lower rate than third party, fire and theft. Between July and September such insurance was up by 1.35 per cent. During the course of the last year, however, the premium has risen by some 7.96 per cent.
Commenting on the figures, John Close, insurance relations director for the company, said: "The latest rises are in line with expectation. Car insurance premiums have followed an upward trend since the second quarter of 2006. The cost to the industry of personal injury claims and legal costs has been escalating rapidly while accident damage costs has also risen faster than premiums. In addition, recent flood claims have cost insurers an estimated 100 million pounds."
As a result, those worried that rising insurance costs may pressure their ability to meet demands on other areas of their spending may wish to consider applying for a low-rate personal loan. And such a method of borrowing could also be advisable for those considering the purchase of a new car.
Following the launch of the new 57 registration plate last month, Halifax reported that September is often a prime time to apply for a loan so as to buy a new motor vehicle. However, Neil Chandler, head of the financial provider's unsecured personal loans division, advised consumers to take the time to search for the most competitively-priced finance deal available.
74205
Property Prices 'Decrease For First Time in 2007'
House prices have fallen for the first time this year, new figures show.
In research released by Halifax, the typical value of a property decreased by some 0.6 per cent over the course of September, which in turn has seen the annual rate of growth fall to 10.7 per cent for the month - down from the 11.4 per cent recorded during August. As a result, the third quarter of 2007 has witnessed property growth of some 0.9 per cent. This compares to increases of three and 2.3 per cent recorded in the first and second quarters respectively. According to the financial services firm, the average home now costs 198,500 pounds. With such a fall in prices noted, the news could be welcomed by first-time buyers concerned about their ability to make loan repayments upon entering the property sector.
Commenting on the figures, Martin Ellis, chief economist for the financial services firm, said: "September's price fall is consistent with the normal behaviour of the market during a slowdown. A mixed pattern of monthly price rises and falls is a typical feature of a more subdued housing market. The UK economy is in a strong position. Sound market fundamentals, including high levels of employment and a shortage in the number of properties available for sale, will continue to support house prices."
Despite the fall in September house prices, homes in most regions across the country were shown to have risen in value over the course of the third quarter of 2007, with the largest increases noted in the Greater London region and the south-east at 2.3 and 1.8 per cent respectively. On the other hand, Northern Ireland saw a decrease of 3.2 per cent during the same three-month period. However, the region witnessed a year-on-year house prices increase of 47 per cent in the second quarter of this year.
Research from the firm showed that over the last 12 months the number of people in employment has surged by some 132,000 to stand at a record of 29.07 million. Meanwhile, the three-month period leading up until July saw those in work increase by 84,000, compared to the previous three months. Halifax claimed that this, in addition to shortages in new housebuilding and second-hand homes, is set to continue to drive property prices. And with the firm revealing that house prices have "risen strongly" over the last two years, new borrowers have been provided with an "equity cushion", which could prove useful should they want to use their equity to take out a secured loan on their home in the future.
Meanwhile, it was suggested that many homeowners could be set for a rise in financial difficulties within the next few months. As they come off their fixed-rate deals they could witness a rise in mortgage repayments, which in turn could affect their ability to service other demands on their spending, such as utility bills and loans.
The news comes as recent findings by the National Centre for Social Research and the International Longevity Centre show that young homeowners are accruing increasing levels of debt. In 1995, those aged 25 to 34 had a typical mortgage debt of about 50,000 pounds, however this has nearly doubled in the following ten years to stand at 94,000 pounds in 2005, which could impact on money management in other areas such as loans and utility bills. Such consumers are also shown to have an average personal debt of 4,600 pounds owed on credit cards, secured personal loans and other forms of borrowing. As a result, taking out a low-rate loan as a means of consolidation may be an effective way of paying off existing debts quickly.
74159
In research released by Halifax, the typical value of a property decreased by some 0.6 per cent over the course of September, which in turn has seen the annual rate of growth fall to 10.7 per cent for the month - down from the 11.4 per cent recorded during August. As a result, the third quarter of 2007 has witnessed property growth of some 0.9 per cent. This compares to increases of three and 2.3 per cent recorded in the first and second quarters respectively. According to the financial services firm, the average home now costs 198,500 pounds. With such a fall in prices noted, the news could be welcomed by first-time buyers concerned about their ability to make loan repayments upon entering the property sector.
Commenting on the figures, Martin Ellis, chief economist for the financial services firm, said: "September's price fall is consistent with the normal behaviour of the market during a slowdown. A mixed pattern of monthly price rises and falls is a typical feature of a more subdued housing market. The UK economy is in a strong position. Sound market fundamentals, including high levels of employment and a shortage in the number of properties available for sale, will continue to support house prices."
Despite the fall in September house prices, homes in most regions across the country were shown to have risen in value over the course of the third quarter of 2007, with the largest increases noted in the Greater London region and the south-east at 2.3 and 1.8 per cent respectively. On the other hand, Northern Ireland saw a decrease of 3.2 per cent during the same three-month period. However, the region witnessed a year-on-year house prices increase of 47 per cent in the second quarter of this year.
Research from the firm showed that over the last 12 months the number of people in employment has surged by some 132,000 to stand at a record of 29.07 million. Meanwhile, the three-month period leading up until July saw those in work increase by 84,000, compared to the previous three months. Halifax claimed that this, in addition to shortages in new housebuilding and second-hand homes, is set to continue to drive property prices. And with the firm revealing that house prices have "risen strongly" over the last two years, new borrowers have been provided with an "equity cushion", which could prove useful should they want to use their equity to take out a secured loan on their home in the future.
Meanwhile, it was suggested that many homeowners could be set for a rise in financial difficulties within the next few months. As they come off their fixed-rate deals they could witness a rise in mortgage repayments, which in turn could affect their ability to service other demands on their spending, such as utility bills and loans.
The news comes as recent findings by the National Centre for Social Research and the International Longevity Centre show that young homeowners are accruing increasing levels of debt. In 1995, those aged 25 to 34 had a typical mortgage debt of about 50,000 pounds, however this has nearly doubled in the following ten years to stand at 94,000 pounds in 2005, which could impact on money management in other areas such as loans and utility bills. Such consumers are also shown to have an average personal debt of 4,600 pounds owed on credit cards, secured personal loans and other forms of borrowing. As a result, taking out a low-rate loan as a means of consolidation may be an effective way of paying off existing debts quickly.
74159
Property Prices 'Decrease For First Time in 2007'
House prices have fallen for the first time this year, new figures show.
In research released by Halifax, the typical value of a property decreased by some 0.6 per cent over the course of September, which in turn has seen the annual rate of growth fall to 10.7 per cent for the month - down from the 11.4 per cent recorded during August. As a result, the third quarter of 2007 has witnessed property growth of some 0.9 per cent. This compares to increases of three and 2.3 per cent recorded in the first and second quarters respectively. According to the financial services firm, the average home now costs 198,500 pounds. With such a fall in prices noted, the news could be welcomed by first-time buyers concerned about their ability to make loan repayments upon entering the property sector.
Commenting on the figures, Martin Ellis, chief economist for the financial services firm, said: "September's price fall is consistent with the normal behaviour of the market during a slowdown. A mixed pattern of monthly price rises and falls is a typical feature of a more subdued housing market. The UK economy is in a strong position. Sound market fundamentals, including high levels of employment and a shortage in the number of properties available for sale, will continue to support house prices."
Despite the fall in September house prices, homes in most regions across the country were shown to have risen in value over the course of the third quarter of 2007, with the largest increases noted in the Greater London region and the south-east at 2.3 and 1.8 per cent respectively. On the other hand, Northern Ireland saw a decrease of 3.2 per cent during the same three-month period. However, the region witnessed a year-on-year house prices increase of 47 per cent in the second quarter of this year.
Research from the firm showed that over the last 12 months the number of people in employment has surged by some 132,000 to stand at a record of 29.07 million. Meanwhile, the three-month period leading up until July saw those in work increase by 84,000, compared to the previous three months. Halifax claimed that this, in addition to shortages in new housebuilding and second-hand homes, is set to continue to drive property prices. And with the firm revealing that house prices have "risen strongly" over the last two years, new borrowers have been provided with an "equity cushion", which could prove useful should they want to use their equity to take out a secured loan on their home in the future.
Meanwhile, it was suggested that many homeowners could be set for a rise in financial difficulties within the next few months. As they come off their fixed-rate deals they could witness a rise in mortgage repayments, which in turn could affect their ability to service other demands on their spending, such as utility bills and loans.
The news comes as recent findings by the National Centre for Social Research and the International Longevity Centre show that young homeowners are accruing increasing levels of debt. In 1995, those aged 25 to 34 had a typical mortgage debt of about 50,000 pounds, however this has nearly doubled in the following ten years to stand at 94,000 pounds in 2005, which could impact on money management in other areas such as loans and utility bills. Such consumers are also shown to have an average personal debt of 4,600 pounds owed on credit cards, secured personal loans and other forms of borrowing. As a result, taking out a low-rate loan as a means of consolidation may be an effective way of paying off existing debts quickly.
74158
In research released by Halifax, the typical value of a property decreased by some 0.6 per cent over the course of September, which in turn has seen the annual rate of growth fall to 10.7 per cent for the month - down from the 11.4 per cent recorded during August. As a result, the third quarter of 2007 has witnessed property growth of some 0.9 per cent. This compares to increases of three and 2.3 per cent recorded in the first and second quarters respectively. According to the financial services firm, the average home now costs 198,500 pounds. With such a fall in prices noted, the news could be welcomed by first-time buyers concerned about their ability to make loan repayments upon entering the property sector.
Commenting on the figures, Martin Ellis, chief economist for the financial services firm, said: "September's price fall is consistent with the normal behaviour of the market during a slowdown. A mixed pattern of monthly price rises and falls is a typical feature of a more subdued housing market. The UK economy is in a strong position. Sound market fundamentals, including high levels of employment and a shortage in the number of properties available for sale, will continue to support house prices."
Despite the fall in September house prices, homes in most regions across the country were shown to have risen in value over the course of the third quarter of 2007, with the largest increases noted in the Greater London region and the south-east at 2.3 and 1.8 per cent respectively. On the other hand, Northern Ireland saw a decrease of 3.2 per cent during the same three-month period. However, the region witnessed a year-on-year house prices increase of 47 per cent in the second quarter of this year.
Research from the firm showed that over the last 12 months the number of people in employment has surged by some 132,000 to stand at a record of 29.07 million. Meanwhile, the three-month period leading up until July saw those in work increase by 84,000, compared to the previous three months. Halifax claimed that this, in addition to shortages in new housebuilding and second-hand homes, is set to continue to drive property prices. And with the firm revealing that house prices have "risen strongly" over the last two years, new borrowers have been provided with an "equity cushion", which could prove useful should they want to use their equity to take out a secured loan on their home in the future.
Meanwhile, it was suggested that many homeowners could be set for a rise in financial difficulties within the next few months. As they come off their fixed-rate deals they could witness a rise in mortgage repayments, which in turn could affect their ability to service other demands on their spending, such as utility bills and loans.
The news comes as recent findings by the National Centre for Social Research and the International Longevity Centre show that young homeowners are accruing increasing levels of debt. In 1995, those aged 25 to 34 had a typical mortgage debt of about 50,000 pounds, however this has nearly doubled in the following ten years to stand at 94,000 pounds in 2005, which could impact on money management in other areas such as loans and utility bills. Such consumers are also shown to have an average personal debt of 4,600 pounds owed on credit cards, secured personal loans and other forms of borrowing. As a result, taking out a low-rate loan as a means of consolidation may be an effective way of paying off existing debts quickly.
74158
Young People To 'Benefit From Financial Guidance Classes'
Young people are set to receive guidance from industry professionals on how to manage their money, it has been revealed.
The pilot scheme, run by R3 - the Association of Business Recovery Professionals - will see insolvency experts take part in special classes giving 16 to 18-year-olds more information about various financial products such as credit cards and personal loans. And in doing so, it is hoped that students will be able to adopt a more responsible attitude towards loans and other types of borrowing later on in life.
Nick O'Reilly, a partner at accountancy firm Vantis, is set to visit the Beaumont School in St Albans to help support the project. Commenting on the scheme, he said: "In the modern world, financial education is vital. Financial products are becoming increasingly complex, yet the level of knowledge and comprehension remains the same. We have a duty to support our young people to understand the financial world, to help them make the best choices and avoid the pitfalls that so many people are currently falling into."
Mr O'Reilly added that by highlighting "what can happen when personal finances are mismanaged" the scheme could help more people adopt a sensible approach when paying back loans and handling other areas of their finances when they get older. As a result, it was suggested that the provision of such financial education may see consumers avoid the "misery created by overwhelming personal debt" - which could include difficulties in making loan and credit card repayments.
In addition, the pilot scheme is to incorporate a variety of materials, created for specific use in the classroom, which are catered towards helping attendees think more about budgeting and considering the "realistic values" of financial goods and services. Meanwhile, the classes are to consist of students studying GCSE, AS and A-level courses in financial capability, which are run by the ifs School of Finance.
However, this is not the first time it has been suggested that there is a need for greater financial education among consumers. Earlier this year, Julia Dallimore, marketing director for Picture Financial, reported that although most Britons are "comfortable" in terms of managing their money and making loan repayments, there are a number of people who do not understand the terms and conditions of the monetary products that they are taking out.
In turn, Ms Dallimore reported that a greater provision of financial education may see borrowers become more responsible when looking to apply for a loan and regularly take the time to review their economic standing. The director also asserted that those consumers deciding to take out credit should not only be "completely clear" about what they wish to achieve by borrowing but should also ensure that they will always be in a position to meet monthly demands for repayment. Meanwhile, those looking to take out debt consolidation loans, so as to reduce their level of indebtedness and boost how much disposable income they have at the end of the month, were urged to make sure that they opt for a respectable provider.
74142
The pilot scheme, run by R3 - the Association of Business Recovery Professionals - will see insolvency experts take part in special classes giving 16 to 18-year-olds more information about various financial products such as credit cards and personal loans. And in doing so, it is hoped that students will be able to adopt a more responsible attitude towards loans and other types of borrowing later on in life.
Nick O'Reilly, a partner at accountancy firm Vantis, is set to visit the Beaumont School in St Albans to help support the project. Commenting on the scheme, he said: "In the modern world, financial education is vital. Financial products are becoming increasingly complex, yet the level of knowledge and comprehension remains the same. We have a duty to support our young people to understand the financial world, to help them make the best choices and avoid the pitfalls that so many people are currently falling into."
Mr O'Reilly added that by highlighting "what can happen when personal finances are mismanaged" the scheme could help more people adopt a sensible approach when paying back loans and handling other areas of their finances when they get older. As a result, it was suggested that the provision of such financial education may see consumers avoid the "misery created by overwhelming personal debt" - which could include difficulties in making loan and credit card repayments.
In addition, the pilot scheme is to incorporate a variety of materials, created for specific use in the classroom, which are catered towards helping attendees think more about budgeting and considering the "realistic values" of financial goods and services. Meanwhile, the classes are to consist of students studying GCSE, AS and A-level courses in financial capability, which are run by the ifs School of Finance.
However, this is not the first time it has been suggested that there is a need for greater financial education among consumers. Earlier this year, Julia Dallimore, marketing director for Picture Financial, reported that although most Britons are "comfortable" in terms of managing their money and making loan repayments, there are a number of people who do not understand the terms and conditions of the monetary products that they are taking out.
In turn, Ms Dallimore reported that a greater provision of financial education may see borrowers become more responsible when looking to apply for a loan and regularly take the time to review their economic standing. The director also asserted that those consumers deciding to take out credit should not only be "completely clear" about what they wish to achieve by borrowing but should also ensure that they will always be in a position to meet monthly demands for repayment. Meanwhile, those looking to take out debt consolidation loans, so as to reduce their level of indebtedness and boost how much disposable income they have at the end of the month, were urged to make sure that they opt for a respectable provider.
74142
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