Are you looking to consolidate your debt?

The start of the year is a time when many people decide to try and sort out their finances, and this is because they want to look forward to the rest of the year without the burden of financial constraints hanging around their necks. By sorting through their finances households are able to cut back on their outgoings, leaving them with more disposable income for other things. Reducing outgoings has become especially important given the increases in living costs and VAT, which are set to put further strain on the finances of many households across the UK.

Many of those that will be facing further pressure on their finances are people that already have a number of outstanding debts such as unsecured loans, credit cards, and store finance. These repayments can be crippling at the best of times due to the high rates of interest that are often charged on them, but with the added pressure of the VAT hike and cost of living it could tip some people over the edge financially.

This is why it may be worth considering consolidation if you do have a number of outstanding debts that you are repaying, especially if they are high interest debts, which credit cards and store finance often are. A low rate consolidation loan could enable you to repay all of these higher interest debts, and then benefit from just one lower interest debt instead.

Whilst this will not reduce the amount that you owe what it can do is reduce the amount that you pay out each month. By finding a consolidation loan with a lower interest rate, taking it out over a longer period, and borrowing just enough to pay off your exiting debts rather than borrowing extra, you could dramatically reduce the amount that you owe each month, which means that you could effectively have more disposable income.

It is important to look around for the best deal on a consolidation loan. A number of lenders have been reducing the rates on their loans of between £5000 and £15,000, so this could be a good time to take advantage of lower rates. Consolidation will also provide you with increased convenience, as it means that you will only have one repayment and one creditor to deal with rather than dealing with a range of different payments, saving you both time and money.

Tags: interest, financial constraints, debt consolidation, finance, VAT hike

Food price inflation highest in UK

According to recently released figures food price inflation in the UK is higher than any other destination in Europe. The figures show that in the UK food price inflation is around four times higher than in the rest of Europe, and at the same time supermarkets have been enjoying record profits. Read more

Tags: liberal democrats, food prices, Organisation for Economic Co-operation and Development, Vince Cable, United Kingdom, rest, record, food inflation

Energy prices in UK have risen twice as fast as EU

According to a recently released report the cost of energy usage in the UK has increased twice as fast as in the EU. The figures were released by the Organisation for Economic Co-operation and Development. Read more

Tags: organisation, rest of the world, retail association, rest, energy usage, energy prices, development, free market

Stamp duty takes its toll on first time buyers

Rocketing house prices mean that hardly any properties in the south of England are selling for less than the stamp duty threshold.

A new survey from Halifax found that in 2007, the average first-time buyer paid stamp duty in 99 per cent of local authorities in the south-east, south-west, London and East Anglia.

That figure was just 42 per cent in the rest of England and Wales.

A buyer becomes liable for stamp duty at a rate of one per cent of the sale price – payable on top of all the other costs – when the property bought costs more than £125,000.

And not only are the numbers having to pay stamp duty rising, but the sums actually paid are much higher than in the past too.

The average first-time buyer paid £1,751 in 2007, compared to just £960 in 2002.

Moreover, in 19 per cent of local authorities in the south, 19 per cent of first-time buyers were actually having to pay the higher rate of stamp duty – three per cent, which applies to purchases worth over £250,000.

Halifax’s chief economist Martin Ellis warned that the stamp duty system is making buying a home less and less affordable.

He said: “We call on all political parties to raise the stamp duty thresholds to compensate for house price inflation over the past decade and to commit to index the thresholds for house price inflation in the future.”

Tags: East Anglia, Herald Sun, higher rate, rest, stamp duty thresholds, property, first time buyers

Women managing property ‘alongside lives’

Women in the UK are increasingly turning to property investment and continue to manage their portfolios alongside their careers and the rest of their lives.

That’s according to research carried out by Bradford & Bingley, which revealed that 76 per cent of female property investors also have separate jobs.

What’s more, the study showed that 42 per cent of respondents handle much of the renovation work needed on properties themselves, with 26 per cent saying they plan to buy more properties in the next year.

“Women are taking control by buying and renovating properties and are being hugely successful at it,” said actress and property investor Fiona Fullerton.

“Many women have a strong business sense and when combined with an innate ability to multitask and a key eye for design, it can often create a winning formula.”

Despite this, of the 90 per cent who have dealt with tradespeople, 48 per cent believe they are offered quotes that are higher simply because of their sex.

The report also revealed that 47 per cent of women investors view property as a replacement for a pension, and ten per cent made £50,000 or more when selling properties on.

Tags: buy more, renovating, Bradford, Women managing property, eye, rest, Canada, multitask

Brits emotionally detached from their homes

The majority of British homeowners are not living in their dream home and remain emotionally detached from their property.

Research by Alliance & Leicester shows that just 2.3 million UK adults have found their dream property, while the rest are simply making do.

Mortgage holders were asked, on a scale of one to ten, how emotionally attached they were to their homes, with the average rating being just 5.83.

This means that most Brits see their current home as a halfway house and most would rather live somewhere else.

Alliance & Leicester suggests that this may be down to the fact that many people are so desperate to get onto the property ladder that they will accept anything.

The firm also points to an increasing number of new-build flats that lack character and are primarily seen as an investment by young buyers.

“It seems people are happy to move into a property that isn’t their ideal, in order to move up the property ladder and reap the benefit of rising house prices,” said Stephen Leonard, director of mortgages at Alliance & Leicester.

“More and more people seem to be looking for property on the basis of an investment, rather than buying their dream home.”

The research also found that location is the most important factor when choosing a home, followed by price.

Tags: house prices, first time buyer, rest, property, Mortgage loan, Stephen Leonard

Mortgage lending down

Mortgage lending fell in April of this year but is still markedly higher than the same period in 2006.

Figures from the Council of Mortgage Lenders (CML) show that borrowing fell to £28.8 billion in the month.

That is down nine per cent on the £31.7 billion which was borrowed in March but remains 18 per cent higher than figures from April 2006.

It is also the highest ever figure recorded for April but CML officials say that the market is levelling out.

“Lending is still strong, but it does seem to be stabilising in 2007 following its major growth in 2006,” said Michael Coogan, director general at the CML.

“With higher interest rates now beginning to have an impact, the modest slowing in activity that we have been expecting over the rest of the year looks set to materialise.

“Even so, we continue to expect lending in 2007 to be around four to five per cent higher than in 2006,” he added.

Tags: figure, modest slowing, month, borrowing, rest, materialise, economics, April

Life Insurance and your Home Mortgage

When a loved one dies, it is upsetting to everyone involved – friends and family members. But what could be more upsetting to the spouse or children is the financial strain some deaths can leave behind. If the family home is mortgaged and the main income-generator passes on, how will the rest of the family survive and pay the mortgage? Practical financial problems are something a family in that situation just don’t need – and that is where life insurance comes in. Read more

Tags: In essence, home mortgage, life insurance, upsetting, mortgage lender, coverage, rest, partner