Housing valuation activity levels increase in May

A recent report has shown that the level of mortgage valuation activity increased for the months of May, reflecting the sixth month in a row where this activity has seen an increase. The data was released by Connells Survey and Valuation, which recently released its Housing Market Activity report.

The report showed that when it came to mortgage valuations the month of April had seen activity remain largely flat. However, this changed in May with the number of mortgage valuations said to have increased by around 22 percent compared to the previous month. Compared to the same period last year, the number of valuations in May increased by 26 percent. This will most likely be taken as another positive sign of some level of recovery in the property market in the UK.

The data showed that one of the reasons behind the increase in activity was a marked increase in interest from first time buyers in the market. In total first time buyers made up 34 percent of all valuation activity according to the report. However, the figure was further boosted by existing homeowners who were looking to move home. There was an increase of around 11 percent on valuations for house movers for May compared to the previous month.

An official from Connells stated: “Housing market activity has resumed its slow and steady upwards trajectory, driven by an upturn at the lower end of the market. Many first-time buyers have been encouraged to enter the market by the uptick in the number of higher LTV products available recently. However, for the average first-time buyer, mortgage finance still presents a formidable challenge. The increasing variety of products is offset against comparatively high rates – alongside overly stringent criteria demanded by lenders.”

Tags: Real estate, number, percent, Business Finance, property market, steady upwards trajectory, homeowners

Property Ombudsman reports on estate agent complaint figures

Estate agents have never been known as one of the best loved professions in the UK, and many people joke about how wary they are of estate agents. However, is seems that many people actually are not huge fans of people in this profession and this has been reflected in recent complaints figures that have been released by the Financial Ombudsman, Christopher Hamer.

According to Hamer the number of complaints that were made last year against estate agents in the UK soared to their highest level since records began two decades ago. The previous peak when it came to complaints about estate agents was seen during the peak of the financial crisis and recession back in 2008, but last year’s levels surpassed even this by a massive 28 percent according to the figures.

There were a number of main reasons why people were complaining and in total there were 1338 official complaints that were made against estate agents last year. These related to matter such as lack of communication from the estate agent, marketing and advertising used by the estate agent, and the way in which estate agents had handled complaints made by consumers. Hamer said that the level of complaints was unacceptable and that people were simply not willing to put up with poor service, bad communication, etc. any longer when they were having to shell out a lot of money in the difficult financial climate.

Hamer said: “People are less ready to be satisfied in times of economic stress to accept less than perfect service, especially when they are spending a lot of money.”

The figures showed that the vast majority of complaints related to lack of communications between the estate agents and the consumer. The highest levels of complaints were made against estate agents in the South East.

Tags: Business Finance, vast majority, advertising, percent, The Property Ombudsman

Many could find mortgage repayments lower than rent

These days renting a property is something that a growing number of people are doing, and this is for a variety of reasons. There are many people that are renting purely because they prefer not to be tied down to a particular area or property. Others want to enjoy the convenience of not having to worry about the upkeep of the property. Some people rent because they cannot afford a mortgage, struggle to get finance, or have damaged credit.

Property website Zoopla has recently released data showing that the monthly cost of renting a property is now higher than the cost of buying a home in a massive 80 percent of the UK. It is claimed that it costs about 10.5 percent more on average to rent a home than to buy one, which is an increase from the 8.7 percent seen in the middle of last year.

In fourteen of the largest towns and cities across Great Britain the cost of renting a home was more than 20 percent higher than the cost of buying one. In Milton Keynes, for example, the monthly rent on a two bedroom flat was £785 whereas the monthly cost of buying a home on an interest only mortgage was 42 percent lower at £554.

It is thought that the reason that there is now such a wide gap between renting and buying in so many places is because the high demand for rental homes has resulted in an increase in rents. At the same time low demand for purchased property had driven down the price. With the addition of the all time low base interest rate this has resulted in a situation where it actually costs less per month to pay a mortgage than to pay rent.

Tags: renting a home, rent, percent, buying, massive 80 percent, Swansea, low demand

Mixed feelings over store cards

When it comes to store cards there is a great deal of bad press, and these cards have earned a very bad reputation over the years, mainly because of the high rates of interest that they charge. Some store cards charge up to 30 percent APR, and this results in many people who make only the minimum repayment on their debt paying a fortune in interest and spending lengthy periods of time trying to clear their debt.

Many people are swayed into taking out a store card because retailers offer them incentives such as on the spot discounts for applying for and being accepted for a store card when they are shopping. This can tempt many people into taking out a card and getting into debt especially when the cards are promoted at times such as Christmas when people are looking for ways to fund their purchases.

However, some industry officials have said that although these cards do receive bad press and are slated for a number of reasons they can actually prove very useful for consumers. They can provide a convenient means of shopping, and like credit cards balanced can be paid off within interest free periods so that no interest is charged on the debt.

One consumer campaign group official said: ‘With APRs of around 30%, store cards are never good value for borrowing. Our investigation into the market found it was too easy to get hold of credit and that too many retailers were offering cards either without telling the customer that they’d be credit checked, or, worse still, without credit checking them at all. That’s not to mention the lack of privacy in reading out your personal details in a busy high street store.’

However, the Finance Leasing Association said: ‘There is no evidence of consumers being unable to manage their spending on cards. Customers are already able to change their mind about taking out a credit card. New EU regulation bought in February this year provides customers with an opportunity to change their mind within 14 days of taking out the card.’

Tags: high street store, campaign group, market, business, consumer campaign group official, free periods

Property prices end 2010 on low

It has been revealed by a major High Street lender that property prices in the UK ended last year on a low, having slid from the start of the year. The price of property in the UK was said to be around 1.6 percent lower at the end of 2010 than at the start of the year. The data was released by the banking giant Halifax, which said that property prices fell by 1.3 percent in December compared to the previous month.

It is thought that property prices have been driven down by a number of factors. One of these is that many homeowners are flocking to sell their homes whereas there is a distinct lack of interest from buyers. This is because many buyers are unable to get the mortgage finance that they need due to continued restrictions in the mortgage market, and many others simply don’t want to make a huge financial commitment in the current financial climate and with the uncertain future with regards to jobs.

A spokesperson from the Halifax said that if homeowners become more reluctant to sell this year the falling property price trend could be halted. He also said that it was unlikely that there would be much change in terms of movement in the property market over the course of this year, and this was because interest rates were unlikely to change.

The Halifax said: “Current signs that homeowners are becoming more reluctant to sell would, if continued, help reverse the imbalance between buyers and sellers. Nonetheless, uncertainty about the economy, weak earnings growth and higher taxes could put some downward pressure on demand.”

Another mortgage expert added: “While there has been an easing down of prices, as supply has come through and demand has weakened, in certain towns and cities, not least the capital, the right type of property is still commanding the right sort of price.”

Tags: mortgage, climate, end, percent, future

Many Brits prefer keeping money at home than in banks

It has been reported that so many Brits are now losing faith in the British banking system that many of them have given up on putting their hard earned cash into banks and prefer, instead, to keep their money in their own homes, in places such as money boxes and safes, in drawers, and even under the mattress.

Since the onset of the global financial crisis the credibility of the banking system has taken a real knock, and many people now find themselves unable to trust banks. The lack of consumer confidence in the banking system is reflected in the number of people keeping money at home, and according to figures a huge number of Brits are collectively keeping around £7 billion around the home, not including the money that they carry in their purses or wallets.

Of the people that took part in the survey around 10 percent said that they preferred having control and possession of their own money rather than giving it over to a bank. However, many have simply decided not to bother putting their cash in banks because of the minimal returns that they receive on their savings, which has plummeted as a result of the rock bottom base rate, which stands at 0.5 percent.

However, one industry expert said: ‘Even though rates are currently low, those wishing to save money should always do so with a bank, building society or credit union which is covered by the FSA, the UK financial regulator. It is vital that savers know their money is protected up to the new limit of £85,000. By contrast, those deciding to keep money at home, whether as savings or for convenience, may not be covered by household insurance in instances such as burglary. Under new rules, if financial institution were to fail most customers will get their money in a few weeks, so there really is no need to stash it at home.’

Tags: rate, percent, bank, minimal returns, Fractional-reserve banking, British banking, Banking, household insurance

Personal loans – strike whilst the iron’s hot

Over recent years the cost of borrowing by way of a personal loan has been spiralling, and even though the base interest rate has been at a record low of 0.5 percent for the past two years personal loan rates have remained high, especially on loans of £5000 or less. However, recent reports have suggested that the cost of borrowing has been falling, which means that consumers may now be able to get a better deal on their borrowing.

However, some industry experts do not believe that the decreases in personal loan interest rates will continue, and that the trend could quickly reverse, with rates going back up again. It is therefore worth considering looking at personal loans now if you think that you may need to take out a loan over the coming months, as you may find that if you strike now you could get a fairly good deal but if you wait around loan rates may start to rise again.

It is especially important for consumers to compare personal loan rates now that the level of interest is said to be coming down, as it increases competition and boosts the chances of being able to get a loan that is competitive and affordable. However, if the base rate increases over the coming months or lenders start to put their rates up again due to the uncertain climate many could find that they have to pay far more for their borrowing.

The internet makes it easier to compare different loans and lenders, and this means that you won’t have to do to any unnecessary hassle in order to weed out the most competitive loans. You can browse and compare loans with ease via the Internet, and you will be able to see at a glance whether the loans available are affordable for you or not.

It is important to act quickly, as many experts think that loan rates will stop falling and could start rising again, which means that you could miss out on a far more competitive rate simply because you decided to wait a couple of months before looking for your personal loan.

The rates are said to have fallen in particular on loans of over £5000, so those considering taking out a larger loan could find that they can make a significant saving on repayments due to lower interest rates by looking for a loan now rather than later.

Tags: base interest rate, percent, trend, unnecessary hassle, finance, whilst, base rate

Lloyds Banking Group retains position in UK mortgage lending market

Figures that have recently been released have shown that banking giant Lloyds Banking Group has managed to retain its position in the UK market when it comes to mortgage lending levels. This comes despite the problems that the mortgage markets have experienced since the onset of the global financial crisis and the recession.

The figures show that Lloyds Banking Group managed to retain a 23 percent share of the gross mortgage market in the UK, despite the fact that the markets have remained subdued. The large market share of the mortgage market that has been taken by the group means that it remains as one of the leading mortgage lenders in the UK.

Lloyds Banking Group has also enjoyed success when it comes to profits, having announced profits of £1.6 billion for the first six months of this year. For the same period a year ago the bank reported losses of £4 billion, which means that the banking group’s fortunes have really turned around, as have those of a number of other banks in the UK. The money that Lloyds Banking Group has set aside to cover bad debt is also said to have fallen, and has gone from £13.4 billion to £6.5 billion.

Despite the profits that Lloyds and other banks have reported industry groups have expressed concern that mortgage lending is still restricted, as banks are still being cautious and many are still demanding high deposit from those looking to take out a mortgage.

Mortgage brokers have a more optimistic view, and many have predicted that they will be doing increased levels of business as the year goes on, as more and more mortgage products become available on the market.

Tags: mortgage, Mortgage loan, percent, Mortgage broker, uk, bank, Lloyds Banking Group

Negative equity forces couples to live together

Charity officials have recently stated that there are many estranged couples that are being forced to live together under the same roof as a result of the property still being in negative equity, which means that they are unable to sell their home and move on as a result of the relationship ending. Read more

Tags: negative equity, finance, Social Issues, partner, charity, percent, Personal life, Homelessness

Rise in burglaries means more protection needed for households

Officials from the insurance industry have spoken out recently about the rise in the level of domestic burglaries during the recession, adding that it has become increasingly important for households to protect themselves from this sort of crime by ensuring that their homes are as secure as they can be. Read more

Tags: burglary rise, insurance sector, crime figures, percent, rise, household theft, recession, whammy

Buyers of new builds in UK paying for rabbit hutches

It has been reported that new build properties in the UK have the smallest rooms in all of Europe, and industry officials have said that consumers who are shelling out huge sums of money for these newer homes are basically paying for rabbit hutches. Read more

Tags: Commission for Architecture and the Built Environment, buyers, Biology, study, small houses, new builds, percent

Banks try to recover by making customers pay

It has been suggested that many banks and building societies in the UK are trying to rebuild their financial portfolios and profits by making customers pay, according to a recent report. Read more

Tags: cost of borrowing, level, borrowing, banks, fixed rate, margin, change, percent

More parents may take their kids on holiday during term time

The high cost of holidays outside of school term time is resulting in many parents threatening to take their kids out of school so that the family can afford to go on holiday. Read more

Tags: school holidays, percent, something, map, holidays, time, family holidays, school

2008 saw 30 percent drop in mortgages

Over the past twelve months mortgage lending has fallen by around 30 percent according to officials from the Council of Mortgage Lenders. This drop in mortgage lending has apparently resulted in lending falling to its lowest levels since 2002. Total mortgage lending last year fell to £256.4 billion, whereas the previous year mortgage lending levels came to £363.7 billion. Read more

Tags: mortgage drop, percent, Credit (finance), percent drop, number, thing, credit crunch, interest

Questions to ask before taking a secured loan

When an individual is taking out a secured loan, there are many questions to ask before taking the loan. Before you take that secured loan out, you should not be afraid to ask the lender questions. Within this article, we are going to tell you some questions that you may want to put on the list to ask the lenders of thatsecured loan. Read more

Tags: mortgage, secured loans, percent, way, good credit, high points, money, Hard money loan