Repossessions increase by 15 percent

It has been reported recently that repossession numbers have increased by 15 percent in the UK, with the first quarter of this year reflecting the first quarterly increase since the third quarter of 2009. According to officials repossession figures have been in decline for the past five quarters. However, a range of factors has now seen this figure increase with many officials stating that it is likely to continue increase over the course of this year.

The Council of Mortgage Lenders released these figures, and it is officials from the CML that believe the number of repossessions will continue to soar over the coming year. In the three months to the end of March 9,100 property were taken back by lenders and it is predicted by the CML that this could rise to as many as 40,000 or more over the course of this year. Some people are coping at present simply because of the base interest rate being at its rock bottom low of just 0.5 percent. However, if this increases over the next few months, as many believe it will, more and more people could find their homes being repossessed.

Officials have highlighted a number of factors which are thought to be partly responsible for the increase in repossession numbers. There are concerns that more and more people are struggling with their finances and finding it difficult to meet mortgage repayments because of factors such as frozen wages, increased taxes, government cutbacks, and rocketing living costs.

The Council of Mortgage Lenders stated: ‘Looking ahead, the financial position of many households is likely to be stretched for some while, and some will inevitably find themselves in difficulty. Lenders have a range of options to nurse borrowers through temporary problems, but will clearly need to be mindful of the regulator’s concern that too much forbearance may be as bad as too little.’

Tags: concern, repossessions, while, increase, regulator, officials, rate

UK base interest rate falls to a new low

The base interest rate in the UK has fallen to a new low following the Monetary Policy Committee meeting in March. Following the meeting it was announced that the base interest rate was being cut once again, which was the sixth month in a row. Read more

Tags: widespread glee, bank of england, March, UK base, borrowers, building societies association, Student Loans Company, glee

Interest rates ‘may drop to 4% in 2009′

Although recent predictions suggested that the Bank of England interest rate would remain unchanged, an expert has said that it could drop to four per cent in 2009.

Howard Archer, chief European and UK economist for Global Insight, said that the Bank of England will almost certainly keep interest rates at five per cent this Thursday.

Mr Archer predicted that rates are unlikely to drop before August at the earliest, however he also said that they may drop next year.

“We still believe that interest rates could eventually fall as low as four per cent in 2009, but it will be a gradual process,” he commented.

However, he also said: “The bank will want clear evidence that wage moderation is continuing and that reduced demand is undermining companies’ pricing power.”

In related news, net credit card lending rose by £100 million in April, although this was still below the increase in March, according to the bank.

Tags: Credit card, credit card lending, Pricing, March, credit, Global Insight, bank of england, gradual process

January – the most popular month for taking out loans

January is the most popular month in the year for consumers to take out an unsecured personal loan, claims one financial expert.

Findings from Halifax reveal that, compared with other months, almost double the number of loans are taken out during the first few weeks of the year.

According to Halifax, the percentage of loans taken out for debt consolidation also increases during January.

Neil Chandler, head of Halifax Unsecured Personal Loans, said: “For many people, the start of the year is a time to get personal finances in order – transferring debt from more expensive products such as store cards or other loans.”

The research showed that men are more likely to apply for a debt consolidation loan than women regardless of the time of year.

Consumers aged between 20 and 29 years old are the most likely to take a loan for debt consolidation purposes closely followed by those aged 30-39 years old.

Meanwhile, Halifax is working with Experian in an attempt to re-unite customers with funds held in dormant banking and saving accounts.

At the start of the campaign, in March 2007, 110,000 accounts were identified as being dormant.

Tags: finance, taken out, March, personal finances, Unsecured loan, expensive products, consumers, January

House prices grow again

House prices have continued to grow in the UK, according to new figures from Communities and Local Government (CLG).

The CLG’s house price index highlighted a 1.2 per cent increase in property prices between March and April of this year.

It means that the average buyer can expect to have to take out a mortgage of £209,454, signalling an 11.3 per cent increase within a year.

There were, of course, variations within the countries of the UK, with the average house price in England hitting £216,707.

Property in Northern Ireland is the most expensive, with the average price being £228,208, while Scotland is the cheapest at £115,516.

“The rise in UK prices between March and April can be attributed to increases in average prices for bungalows (1.9 per cent), terraced houses (1.7 per cent), semi-detached dwellings (1.4 per cent), detached properties (0.8 per cent) and flats (0.7 per cent),” a CLG statement said.

Northern Ireland saw the biggest year-on-year house price growth, with properties increasing in value by 54.1 per cent in the last 12 months.

The most expensive place to buy a house remains London, where the average price is £320,191.

Tags: expensive place, Communities, house price, rise, Scottish Government

Summertime brings garden danger

We are being warned to be extra vigilant this summer as thieves look to strike in our gardens.

Halifax Home Insurance says that incidents of garden theft increase dramatically between March and August every year as people begin spending more time outside.

With the clocks set to go forward on Sunday (March 25th), Britain is officially entering summertime and that inevitably means we will begin taking out our patio furniture.

The warning from the insurance firm however, is that we must all take precautions to keep out garden furniture safe and should be covered against theft.

“Homeowners can forget to pay as much attention to security outside the house as they do inside,” said Vicky Emmott, senior manager of underwriting at Halifax Home Insurance.

“With many people realising how much value they can add to their property by improving their gardens, there are now rich pickings for thieves, and now is the time to take steps to avoid becoming the next.”

According to the insurer, the average claim for garden theft is around £400, while those living in Stoke-on-Trent are the most at risk.

Doncaster and Southampton follow closely behind, with Halifax revealing that tools, barbecues, garden furniture and bikes are the most popular items to be taken.

Homeowners are advised to lock all valuable garden items away when they are not in use, while gates should remain locked when you are not sitting in the garden.

Tags: March, Britain, Summertime brings garden, finance, home, Insurance

Are you smoking away your money?

Smokers are being urged to kick the habit as National No Smoking Day lights up the UK on March 14th.

Co-Operative Insurance is calling upon all smokers to give up so that they can improve their health and their financial standing.

The firm claims that a smoker who gets through 20 cigarettes a day could save themselves over £1,800 every year.

That figure doubles if a couple quit smoking together but the financial benefits do not stop there.

It is also possible to severely reduce the premiums on life insurance cover by stopping, as well as premiums on income protection and critical illness insurance.

“Giving up smoking can save people a significant amount as well as hopefully bringing a longer and better quality of life,” commented Fiona Jackson, head of protection at Co-Operative Insurance.

“Someone who is able to give up an addictive habit like smoking can certainly take charge of their own financial destiny and make adequate financial provisions for their future.”

Research shows that smoking is more common among men than women, although the gap is just three per cent.

Smoking is said to cause 30 per cent of all cancer deaths, 17 per cent of heart disease deaths and at least 80 per cent of deaths from bronchitis and emphysema.

Tags: heart disease, March, someone, United Kingdom, Social Issues, financial standing.The firm, financial benefits, year.That figure