Personal Finance News
Funding a property on unsecured debt is ‘very dangerous’
Posted 2008-05-5
House buyers are being warned about the perils of purchasing a house using unsecured loans and other funds.Peter Beckett, the business development director at iammoving.com, claims that with the housing market in such a delicate state, raising a deposit with credit card and unsecured loans is "very dangerous".Recent research has found that three out of ten first-time buyers are using unsecured funds to buy their first property."The whole housing market is at a turning point, whereby the prices are coming down and first-time buyers are looking for ways to be able to manage to get on the ladder. But it is a very dangerous thing to do it on the back of unsecured debt," he said.Mr Beckett added that unless one feels confident about their job security, such forms of financing are unwise.Research from iammoving.com revealed that 17 per cent of first-time buyers are borrowing money from friends and family to purchase a house....
Read Funding a property on unsecured debt is ‘very dangerous’
-
Delicious -
Digg -
Reddit -
Facebook -
Stumbleupon
Personal bankruptcies increase
Posted 2008-05-5
The Insolvency Service has claimed that personal insolvencies across England and Wales have risen for the first time since 2006.Individual cases for the first quarter of 2008 included 15,651 bankruptcies and 9,614 individual voluntary agreements (IVA), totalling 25,264 and representing a 1.7 per cent increase on the previous quarter.Mike Gerrard, a personal insolvency partner at Grant Thornton expects the number to rise by the end of the year as the effects of the credit crunch are felt by more people."Although some individuals showing up in the latest insolvency figures will have done so because of financial difficulties brought about by the global downturn, it wont be until later this year or early next that we will see the full extent of the credit crunch on UK individuals," he said.Bankruptcy is one way a person can deal with debts they can no longer service and it involves their assets being shared amongst creditors, according to the Insolvency Service....
Read Personal bankruptcies increase
Research shows current account ‘ignorance’
Posted 2008-05-5
More than 25 per cent of people in the UK have only ever had one current account, new research has found.A survey by Moneysupermarket.com has claimed that ignorance and disinterest are costing people dearly when it comes to earning interest on their accounts.Despite heavy advertisements, nearly 75 per cent of respondents knew little about the competitive rates being offered by Halifax, Alliance and Leicester and Abbey.Kevin Mountford, head of savings at Moneysupermarket.com, believes consumers must shop around in order to secure a good deal."Its a shame consumers seem hesitant to change current accounts as most providers make the process as easy as possible. If you could buy the same TV for £210 less somewhere else, you wouldnt think twice, however when it comes to current accounts, it seems consumers are happy to miss out," he said.People in the north of the country were found to change their accounts the least, with 31 per cent saying they have only ever had one account.Moneysupermarket.com is a price comparison site that allows shoppers to evaluate insurance and other products on the market....
Read Research shows current account ‘ignorance’
Brits take advantage of foreign property investments
Posted 2008-05-1
An international property specialist has reported an increase in people looking to remortgage their overseas properties.Since the start of the year Assetz Finance has reported a 40 per cent increase in the number of Brits looking to remortgage their properties in France and Spain.With it becoming increasingly difficult to secure funding in the UK, more residents are looking to take advantage of the European base rate and some attractive deals being offered on the continent.Katy Hepworth, overseas mortgage manager of Assetz Finance, says that while servicing mortgages in Britain is one people are looking to remortgage, it is not the only one."Repaying more expensive UK debts is not the only reason overseas property owners choose to secure mortgages and release equity from their foreign properties. Many borrowers use the funds for projects such as further property purchases and renovation," she said.Assetz is a property specialist, with interests in the UK and around the world....
Read Brits take advantage of foreign property investments
CAG: High likelihood the OFT will find against the banks
Posted 2008-04-30
Following the landmark ruling by the high court, that allows the Office of Fair Trading (OFT) to investigate overdraft charges imposed by banks, the founder of the Consumer Action Group (CAG) believes the body will almost certainly find that they are unfair.Marc Gardner noted that should the office come to this conclusion, there will likely be an appeal which could see the court of appeal overrule or rdefine the high courts decision.He said it was unlikely that the banks themselves will decide to refund customers voluntarily, and predicted a slow process which will probably see many people never being reimbursed."I cannot believe for one moment that the OFT will say to the banks that theyve got to put their hands up, investigate their databases, contact everybody theyve taken money from and refund it. My personal view is that there will be a repayment scheme agreed between the FSA (Financial Services Association) and the banks," Mr Gardner stated.According to estimates from the BBC, banks refunded nearly £748 million to over 378,000 people last year....
Read CAG: High likelihood the OFT will find against the banks
Credit crunch sees fraud increase
Posted 2008-04-30
The UK fraud prevention service has claimed the effects of the credit crunch have contributed to more consumers lying on application forms for loans and credit cards.CIFAS claims there was a ten per cent increase in the number of fraud cases compared to 2007, with 52,286 reported cases.The BBC claims that lies on application forms have risen from 19,239 in the first three months of 2007 to 21,870 this year, representing a 13 per cent interest.Chief executive of CIFAS, Peter Hurst, suggested that the current financial climate is driving people towards this dishonesty."Because people are getting into debt earlier, and because the credit crunch has diminished their access to finance, they are now resorting to fraudulent applications for funds," he said.The most common lie was found to be a failure to disclose a previous address, where the applicant may have a poor credit history.CIFAS comprises 270 members across banking, telecommunications and credit card sectors....
Read Credit crunch sees fraud increase
Pensions ‘most enquired about sector’
Posted 2008-04-29
Pensions are the most commonly enquired about sector for consumers to seek independent advice on, reports an expert.IFA Promotions has said that this may change in the current climate, with more people asking about mortgage problems.David Elms, the chief executive of the organisation, said that its enquiries come from a wide variety of people who are typically "middle-to-top" income levels.Since the pension reforms of so-called A-Day, on April 6th, the number of enquiries in this area has risen."Demand for pension advice rose at A-Day, and remains higher than it was previously. Savings and investments come second, mortgages come third, and then the rest," said Mr Elms.He went on to describe the current mortgage market as "volatile", adding: "It would seem reasonable to assume that mortgage advice is going to be valued more in current conditions".A-Day was when the UK pension rules were changed to allow investors to be a member of a company pension and a private scheme at the same time....
Read Pensions ‘most enquired about sector’
Fool.co.uk: House prices could fall by 20 per cent this year
Posted 2008-04-29
House prices could fall by up to 20 per cent this year, according to financial site Fool.co.uk.David Kuo, head of personal finance at the site, believes that the latest mortgage approval figures from the Bank of England are further proof of the distress the housing market currently finds itself in.Responding to news from Nationwide that it had recorded a sixth consecutive month of falling house prices, Mr Kuo believes the worst is yet to come."The recent mortgage approval figures from the Bank of England are further proof that the property market is in the midst of a severe downturn. ...
Read Fool.co.uk: House prices could fall by 20 per cent this year
Young Brits could be heading for bankruptcy
Posted 2008-04-29
Young people in Britain could be pushing themselves closer to bankruptcy due to overspending, a personal finance expert has warned.New research by Monilink has found that over a quarter of people aged between 16 and 34 years old are in competition with their friends over purchasing the latest gadgets and fashion items.The survey found that 21 per cent of respondents would prefer to spend their money on personal items rather than save it, while 22 per cent admit to having built up too much debt and are now finding the repayments a strain.Cliff DArcy, a personal finance writer, used the term "Bling-itis" to describe this trend."This Bling-itis is edging them towards bankruptcy. Two-thirds of these young people have admitted that they are still trying to clear credit card debts that they built up two years ago," he said.Debt charity Credit Action recently reported that personal debt in the UK grew by £113 million over the last 12 months....
Read Young Brits could be heading for bankruptcy
Credit card fraudsters could use details to take out loans
Posted 2008-04-29
A failure to notice credit card fraud early on could allow criminals to use the victims details and take out loans in their name, an industry expert has warned.Helen Lord, fraud and regulatory compliance director at Experian, recommended consumers check their credit report regularly in a bid to detect fraudulent transactions, as the longer it is left undetected, the more damage it will do to the rating.She urged anybody who suspects they might be a victim of ID theft to contact their bank immediately."If the problem is solved quickly there shouldnt be any lasting damage to your credit report. Failure to act straightaway could allow a thief to take out loans or credit cards in your name," she stated.A recent report by Apacs, the UK money transmission service, found that online credit card fraud increased by 25 per cent over the last year, to £532 million, which was 54.3 per cent of total credit fraud....
Read Credit card fraudsters could use details to take out loans