Burglars’ activity rife during recession

On the back of the recent huge robbery at a London Jewellery store, where £40 million worth of loot was taken, industry officials are now warning consumers to be on their guard. Read more

Tags: GBP, theft, hassle, burglary, Insurance, company, August

Auction cut prices on property

Potential property purchasers that want to take their chances on properties that go up for sale at auction could benefit according to a recent report, which suggests that auctions are cutting the prices of their properties. Auctioneers are being forced to cut the prices on properties going under the hammer due to the housing slump, and many buyers heading for the auctions could enjoy huge savings as a result of this. Read more

Tags: August, Melbourne, property auctions, property, come down, recent report, housing slump

Memo indicated that banks told that bank charges are probably unfair

This year’s High Court test case into bank charges saw round one go to the Office of Fair Trading, with the regulatory body being given permission to assess banks# terms and conditions, including overdraft charges, for fairness. According to the contents of a leaked memo that was sent to senior staff members at RBS and Natwest the OFT has concluded that the charges applied by the UK’s leading banks are indeed unfair. Read more

Tags: year, bill, Office of Fair Trading v Abbey National plc, August, bank charges, rbs, office of fair trading, test case

Chiltern: Men heavier in debt than women

Men trying to get their finances under control are further in debt than their female counterparts.

According to research by Chiltern Debt Management, men have 20 per cent more debt than women and are less able to repay money borrowed each month as a percentage of contractual debt repayments.

Data showed that a woman on an informal debt management plan would take 22 less months to become debt free than a man.

Furthermore, men on these types of plan owe an average of £29,914 to 7.8 creditors while the female equivalent owes £23,946 to around 8.1 creditors.

Joanne Gill of Chiltern commented: “People who use a debt management plan aren’t trying to avoid repaying their debts, or get a large percentage of them written off by creditors, they’re fulfilling their responsibility to pay what they can and communicate with creditors to ensure both parties are being treated fairly.”

Personal debt totalled £1,363 in August this year according to statistics from Credit Action.

Tags: Debt management plan, personal debt, GBP, female equivalent, responsibility, money, Joanne Gill, August

Figures show drop in mortgage lending

There was less mortgage lending last month than in August, according research by the Council of Mortgage Lenders (CML).

Figures revealed a fall of almost 12 per cent in gross mortgage lending in September with the new figure at around £30 billion.

Although a decline is not uncommon for the August to September, this year’s fall is significantly greater than the average of five per cent for the same period.

Michael Coogan, director general at CML, commented: “We have been expecting a slowdown in monthly lending levels in line with interest rate rises.

“In the coming months, we expect to see monthly lending levels dip below their 2006 levels for the first time this year as rate effects are exacerbated by the recent liquidity problems in the mortgage market.”

Despite an annual increase in mortgage lending from September 2006, at 2.5 per cent it is the smallest percentage rise in two years.

The gross lending estimates obtained by CML were taken from its survey of a selection of lenders representative of over 70 per cent of the total mortgage market.

Tags: percentage, August, Michael Coogan, director general, business, Council, cent

Rush on remortgages amidst fear of rate rises

July of this year saw over a billion pounds worth of mortgages being taken out each day with many homeowners deciding to remortgage amidst fears that that interest rates would continue to rise following five interest rate hikes in the space of a year.

The highest in over six years the base rate currently stands at 5.75%, following five rate hikes of 0.25% each since August of last year. Many homeowners have had to cope with rising repayments as their mortgage repayments have soared along with interest rates.

According to figures from the Council of Mortgage Lenders nearly £35 billion was borrowed in the month of July on mortgages, which reflects a 13% rise on the amount that was borrowed in July of last year. According to the CML this increased figures result from the surge of homeowners that have decided to remortgage in order to try and get a better deal on their mortgage in the light of the series of interest rate rises that have taken place – and the threat of further interest rate rises that may yet take place.

A spokesman from the British Bankers Association stated: ‘Longer-term trends in mortgage lending are little changed but July’s strong rise was surprising, given the expected cumulative impact of higher interest rates. The resilience shows the popularity of home ownership and also reflects more remortgaging activity.’

An official from the Building Societies Association stated: ‘As mortgage payments increase, household finances are likely to be squeezed further. Even if interest rates are near their peak, potential borrowers need to think about all their outgoings to make sure they do not overstretch themselves financially.’

Tom Smith
26th September 2007

Tags: increase, british, August, Longer-term trends, surge, remortgages, year, personal finance

Poor home security affects insurance, Halifax says

Insurers at Halifax warned today that poor home security can invalidate claims.

According to statistics released by the insurance provider, claims for unforced burglary tend to rise hugely at this time of year, with a full 50 per cent increase in August 2006 over the figures for January of that year.

Received wisdom that the increase is caused by claimants jetting off on their holidays is also incorrect: 55 per cent of claims are made from those who occupied their home at the time of the robbery.

Open windows and doors due to the warmer weather was cited by the insurer as the main reason behind the break-ins.

Underwriting manager at Halifax Vicky Emmott said: “During the summer, we invariably see claims for unforced burglary increase dramatically, as people leave doors and windows open to keep their homes cool.

“Burglars can be in and out in seconds, so we are advising people to keep valuables out of sight, and avoid leaving doors and windows open when rooms are unoccupied, or when out in the garden.”

Other top tips offered by the insurer looking to boost their security, such as recommending that neighbourhood watch schemes be joined and that safety latches on windows be used.

National Home Security Week begins on August 25th.

Tags: burglars, home insurance, out of sight, January, August, Types of insurance

Hips may be universal by October

The Association of Home Information Pack Providers (Ahipp) is calling on the government to extend the introduction of Home Information Packs (Hips).

Officials at the organisation say that Hips could be applied to homes with three bedrooms or more from September and the rest of the market could follow just one month later.

The government was forced to announce that Hips would only be introduced to the home-selling process for properties with four bedrooms or more from August 1st after concerns about there being too few accredited energy assessors available.

However, Ahipp says that there are plenty of accredited energy assessors available now and even more on their way.

“According to our own research, in addition to the 1,340 accredited assessors, there are a further 1,200 assessors who have applied for accreditation and will be fully accredited by the end of July,” said Paul Broadhead, deputy director general at Ahipp.

“With this in mind, government will easily meet the 2,000 target that it suggests is needed to provide Hips for homes with three bedrooms or more.

“As a result, I see no reason why, in line with its implementation plan, government could not introduce mandatory Hips for three bedroom properties from September, with the rest of the housing stock soon to follow, perhaps as soon as October,” he added.

Mr Broadhead went on to say that he fully expected Hips to be mandatory in the home-selling process for all properties before the end of the year.

Tags: target, month later.The government, August, September, market, energy, information packs, information