50% of income going on mortgage
July 5, 2007 by admin
Filed under News, News-Mortgages
Some Londoners are spending as much as 50 per cent of their take-home income on their mortgages.
New figures from Woolwich highlight the precarious situation that many homeowners find themselves in and things could get worse with the Bank of England widely expected to announce a 0.25 per cent interest rate rise today (July 5th).
The average first-time buyer in the UK is said to be forking out 32.4 per cent of their take-home income on mortgage payments as property prices boom and people become evermore desperate to get onto the housing ladder.
The figures are a concern for many industry figures and Andy Gray, head of mortgages at the Woolwich, said further rate rises are likely to have a massive impact on the housing market.
“We fully expect the average age of first-time buyers to go up until people are well into their 30s,” he revealed.
“For those lucky enough to be on the ladder, the data suggests that in certain areas of London they are already stretched. The last thing any of them need is a further increase in base rates.”
First-time buyers, many of whom are understandably desperate to get onto the property ladder, are advised to carefully calculate their finances before taking out a mortgage to ensure that they are financially prepared for any future rate rises or changes to their circumstances.
The death of DIY?
May 10, 2007 by admin
Filed under News, News-Insurance
The Great British love affair with DIY may be coming to an end as people become more concerned about making a claim on their home insurance.
Research by Woolwich Mortgages shows that more and more people are turning their backs on DIY and opting to get professionals in to do the job instead.
Nearly half of those questioned said that they do not enjoy DIY, with 37 per cent avoiding the work in case they get it wrong and have to claim the money back from their insurer.
A further 40 per cent say that they simply do not have the time, while 22 per cent see DIY as a chore that takes up valuable leisure time.
“It seems that the phrase ‘time is money’ applies to the UK’s new DFYers (done for you-ers),” said Andy Gray, head of mortgages at Woolwich. “People think their own time is precious and with the added concern that they are not going to do a good job, people are increasingly turning to experts to get the job done.
“Home improvements can make a tangible difference to the value of peoples homes, but a bad standard of work can drag the price down.”
Some tasks are considered to be more worthy of hiring a professional than most, with 65 per cent saying that electrical work should be left to a qualified individual.
Plumbing is also avoided by 63 per cent, building an extension by 59 per cent and installing a new kitchen and bathroom by 58 per cent.
Interestingly, 35 per cent of people think that painting and decorating should be done by a professional, while 38 per cent think the same about erecting a shed.
