Not so long ago houseowners could rely on the equity in their existing property, generated by its growing market value, to fund a move to a larger home, but new research from HSBC confirms that this is often no longer an option. The bank suggests that a fall in property prices means that first time [...]
According to figures from the Bank of England, Britons increased their financial stake in their homes by £5.8 billion in the first quarter of 2011 – the smallest injection in a year. The figure was much lower than the £7.1 billion in the October to December period in 2010 – which represented the highest since [...]
The housing market downturn has left up to 3.5 million Britons unable to move, according to research from John Charcol. The mortgage broker estimates that one third of UK households with residential mortgages are stuck in their properties because falling prices have eroded the amount of equity they hold and restricted access to mortgage finance. [...]
For the ninth consecutive month UK homeowners paid back more of their mortgage debt than was borrowed. Before the credit crisis Britons tended to use their homes as banks, withdrawing equity for home improvements and to meet a variety of other expenses, including “champagne moments” such as holidays in exotic locations. Recession Britain tells a [...]
New research from Durham University shows the extent to which some UK homeowners are exposed to the credit crisis because their lifestyles have been funded by withdrawing equity from property. The study, which examined the borrowing patterns of over 8,000 households between 2001 and 2005, revealed that in any year around 40% of homeowners increased [...]
Analysts at Citigroup are predicting that negative equity could afflict three million (one in five) UK households as the property market downturn continues and the economy enters a recession. The forecast is based on a 30% peak to trough fall in house prices and a current negative equity estimate of around 0.5 million. The figure [...]
Homeowning Britons have stopped using their properties as banks, according to figures from the Bank of England. For the first time since 1998, consumers have become more focused on paying off their mortgages rather than remortgaging to fund their lifestyles, or consolidate debts. In the three months to the end of June, the UK’s mortgage [...]
Consumer group, Which?, is warning pensioners that using equity release as a quick-fix for financial pressures in retirement can be dangerous. Equity release schemes can provide a lump sum or regular payments in return for taking out a mortgage on a property, which does not have to be repaid until plan holders die or sell [...]
Standard & Poor’s (S&P) is predicting that one in seven UK homeowners will face negative equity over the coming 12 months. Figures from Halifax and Nationwide in April show a 9% year-on-year decline in UK house prices and the credit rating agency expects a further slide of 17%, over the coming year. Research by CACI [...]
LV= (formerly Liverpool Victoria) has launched a new equity release product. The friendly society’s Flexible Lifetime Mortgage allows homeowners to draw on the equity in their homes, as needs arise. It also provides a 15-year guarantee on the maximum amount that can be withdrawn, which will be honoured regardless of future trends in UK property [...]
Friends Provident is urging homeowners to review their plans for financing retirement, if they have been banking on raising cash from property to provide a nest egg at the end of their working lives. The firm’s head of pensions, Jeremy Ward, warns that if house prices continue to fall, people could find themselves in serious [...]
M&S Money launches 3% cash ISA
M&S Money has launched an Advantage Cash ISA paying 3 per cent, and which allows transfers in from other ISAs. It can be opened with a minimum deposit of £100 lump sum followed by minimum monthly deposits of £25. The 3% rate is variable, but there is no short-term bonus so the return won’t plummet [...]
Google suspends UK Compare Mortgages site
Google has closed its UK mortgage comparison site which it launched in July last year, after it proved to be less popular than expected. Mortgage comparison sites are designed to allow visitors to compare mortgages quickly and easily without having to visit each lender’s individual site. Google was competing with several well-established comparison sites, including [...]
AA launches ‘black-box’ policy for young drivers
The AA is launching an innovative car insurance policy called Drivesafe which could help younger drivers save up to £850 a year. Younger drivers already pay substantially higher premiums than other motorists and these costs are increasing. A new study by Confused.com suggests insurance costs for younger driver have gone up by 5.7 per cent [...]
ATOL scheme updated to protect online bookers
ATOL, a financial protection scheme managed by the Civil Aviation Authority, is being extended to protect up to six million more holidays a year. The scheme ensures that holiday makers do not lose out financially if a travel company collapses, and that they are not stranded abroad. An increase in the number of holidays booked [...]
Home repossessions lowest for four years
The number of UK homes repossessed fell to 36,200 in 2011, significantly below the Council of Mortgage Lenders’ forecast of 40,000, and lower than 2010 when 37,100 homes were repossessed. With interest rates remaining low and lenders adopting a sympathetic attitude to customers in financial difficulty, repossessions fell to their lowest level since 2007. However, [...]
Monthly pay lasting just 17 days
Workers are running out of money just 17 days after receiving their monthly pay, according to new research by the Halifax bank. This means that the average UK worker spends half the month worrying about money. The study, based on the responses of more than 2,000 adults, found that 10 per cent of workers start [...]
Women disadvantaged by auto-enrolment changes
Government proposals to increase the auto-enrolment threshold to £10,000 could put 1.8 million women at risk of missing out on a pension, the TUC has warned. Under the auto-enrolment scheme, which will be phased in from October, private sector employers will automatically enrol workers between the age of 22 years and the state pension age, [...]
Emergency household repairs company Homeserve is taking longer than expected to get back on track after its operations were suspended last October. The company expected customer numbers to fall by 5% this year but it has increased this estimate to 8% and announced the loss of 200 jobs. It estimates that renewal revenue in 2013 [...]
Sale rumoured for Yorkshire and Clydesdale banks
There is growing speculation that National Australia Bank (NAB) may sell Yorkshire Bank and Clydesdale Bank after the Australian parent company announced a strategic review of the two banks’ operations. The Australian economy is performing well and NAB reported strong profits for the final quarter of 2011 but with the UK economy at a virtual [...]
More women experiencing debt difficulties
Women in Debt, which offers female-focused debt advice, has warned that the number of UK women facing serious debt has grown significantly over recent years. The organisation believes that more women will need advice on solving debt problems in the future because they are building up an unsustainable level of indebtedness. Women in Debt’s director, [...]
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