Only five% of first-time buyers used 100% plus mortgages
March 4, 2008 by admin
Filed under News, News-Mortgages
Despite being “very good” for first-time buyers, only five percent of them used the 100 per cent plus mortgages to get themselves onto the property ladder, one financial expert has claimed. 
According to Firstrung these 100 per cent plus products were “niche products” which never became as popular as people made out.
Paul Holmes, chief executive officer of Firstrung, said that the media tried “to portray that people went out and had a hundred per cent mortgage on their property … they didn’t. They had a 95 per cent mortgage, and could take a loan up to 30 per cent or £30,000 – whichever was greatest”.
Firstrung said that the majority of first-time buyers who took 100 per cent-plus mortgage product took a 95 per cent mortgage and a ten per cent personal loan.
Mortgage lenders Northern Rock, Alliance & Leicester, Birmingham Midshires and Abbey have all withdrawn from the 100 per cent mortgage market.
These lenders have begun to require borrowers to supply the deposit on a new home themselves.
Consumer fail to shop around for car insurance
October 25, 2007 by admin
Filed under News, News-Insurance
According to a recent survey carried out by Sainsbury’s, many consumers in the UK are failing to take the time to shop around for their car insurance, and in many cases end up paying considerably more than they have to for their vehicle insurance by going with the first quote that the get.
Sainsbury’s officials state that the cost of insuring a vehicle has been rising over the years, but an alarming number of consumers still won’t take the time to compare premiums in order to cut back on the cost of car insurance.
According to the research carried out by Sainsbury’s 20% of drivers in the UK obtained just one quote when they last bought vehicle insurance. It is advisable for consumers to obtain at least three quotes before making a decision on car insurance, as the cost of cover can vary dramatically from one insurance provider to another, and can make a big difference to drivers’ monthly instalments or total premium costs.
There are also a number of other factors that affect the cost of vehicle insurance, and some insurance professionals have been offering advice to consumers on how they can cut the cost of cover. In addition to shopping around for insurance cover, consumers can save money by opting for a smaller engine size and by cutting down on mileage.
For younger drivers the Pass Plus scheme is a good way to cut back on the cost of cover – car insurance for younger drivers has rocketed in price over recent years and can be extremely expensive, even at the more basic levels.
According to officials from Direct Line younger drivers that take the Pass Plus course after passing their initial driving test could benefit from around 35% off the cost of their insurance premiums, which could amount to a substantial sum based on the average premium for a younger make driver of £2000.
Tom Smith
25th October 2007
