bharatbhasha.com
Free Articles  >>  Business And Finance >>  Page 3905  >> 

Home A Loan





The number of homeowners taking out secured loans is set to slow down over the next five years according to analysts at Datamonitor. Over the past five years, the market for secured loans has increased by over 50%, however predictions indicate that loans secured against property will only increase at a rate of 5.3% a year up to 2009. Last year, 6bn was borrowed by homeowners secured against the value of their property but according to Datamonitor this will rise to 4bn a year by 2009. Datamonitor stated that the slowing demand for loans reflected a public perception of an ongoing "soft landing" for the UK housing market. Maya Imberg of Datamonitor said ¡°The rapid growth rates the secured lending market has enjoyed over the last five years are set to cool".

The slowing in house price inflation that has been experienced over the past few months is seen by analysts to have discouraged homeowners from taking out loans secured against the increased value of their homes. Secured loans are normally seen as a sensible way to borrow for certain expensive items, such as home improvements, due to the higher borrowing limits and cheaper interest rates that are generally charged compared with an unsecured loan.

In the past it has been common to see that while the value of homes has risen, many families have increased their mortgage borrowing to release money tied up in the property, to pay off other debts or make expensive purchases. This mortgage equity withdrawal generated approximately  billion for homeowners between 2001 and 2004. The recent perceptions that a return to the risks of negative equity occurring as a result of buyers needing to obtain increasingly large initial mortgages to purchase property combined with the slowing down in house prices, has caused many to be more cautious in their borrowing.

In July 2005, the total UK personal debt stood at 14 billion and has been spiraling out of control at a rate of every four minutes. The number of bankruptcy applications and home repossessions is also on the increase.

According to mortgage-arrears counselors, White Horse Mortgage Services, the main reasons for people falling behind on their loan repayment include:

* Absorbing: a reduced income such as loss of overtime 26% * Financial mismanagement: 25% * Redundancy and unemployment: 14% * Accident, sickness or injury: 12% * Relationship breakdown: 7% * Over-indebtedness: 5% * Others: 11%

UK website moneynet has evolved its range of services to integrate the societal changes in debt management, by bringing out a price comparison service for debt consolidation loans, as part of its loan awareness campaign. Whilst moneynet offers a comprehensive loans guide, moneyfacts has also taken account of consumer behaviour and concern, with a dedicated loans glossary. In the US, lowermybills provides a loan price comparison service.

Additional resources: <a href="https://http://www.moneynet.co.uk/personal-loan-guide/index.shtml" target="_blank">http://www.moneynet.co.uk/personal-loan-guide/index.shtml</a> <a href="https://http://www.moneynet.co.uk/loans/index.shtml" target="_blank">http://www.moneynet.co.uk/loans/index.shtml</a> <a href="https://http://www.moneyfacts.co.uk/guides/guide_loans.asp" target="_blank">http://www.moneyfacts.co.uk/guides/guide_loans.asp</a>


About Author Rachel Lane :

Rachel drives a Fiat Punto and also writes for the personal finance blog Cashzilla: <a href="http://www.cashzilla.co.uk" target="_blank">http://www.cashzilla.co.uk</a>


Article Source: https://www.bharatbhasha.com
Article Url: https://www.bharatbhasha.com/finance-and-business.php/37468

LD
Other Articles by Rachel Lane

Don t Let Your Personal Loan Become A Personal Moan
Most of us have been in a position at some point when we simply have had insufficient funds to pay for something. This could be car insurance/repairs, course fees, holiday, Christmas presents, electrical items or even the weekly shopping. According to Credit Action, 2.4 million personal loan agreements were recorded in the first quarter of 2005, totalling 13.5 billion. The national debt education charity reported that 30% of the personal loans were for cars, 24% for home improvements and 20%...

The Myth Of The Christmas Loan
If you think Harry Potter was going to be the most imaginative marketing plot this Christmas, think again. Each Christmas, as consumers look at their finances and investigate the different sources of funding to cover their Christmas shopping, loan companies and credit card providers polish up their marketing tactics and customer service skills. No doubt some of you will see an advertisement for a Christmas loan over the next few months. Unfortunately for you, it抯 not provided by a...

How To Stretch Your Student Loan
If you抮e considering going to university, there is a strong chance that you抮e also contemplating taking out a student loan to fund your university expenses. Student loans don抰 have to equate to student debt and if you plan your finances, it is possible to get by without student loans and possibly even profit from them. There are many sites on the internet which provide downloadable student finance guides and online advice on how best to manage your finances. Moneynet offers a comprehensive...

Store Cards Credit Cards And Loans How To Borrow Money Effectively
You don抰 have to have the lifestyle demands of Paris Hilton to need extra money these days. According to Credit Action, the total UK personal debt was 1,122 billion, a growth of about 10.5% over the previous year and in the UK and each adult in the UK has an average of 4.1 credit cards in their wallet. In their most recent report, Credit Action also recorded 2.3 million personal loan agreements in the second quarter of 2005. Interesting, the national money education charity discovered a gap...

Are You Suffering From Payment Protection Overload
Critical illness insurance: Critical illness insurance will cover you in the event of a serious illness such as cancer, coronary artery by-pass surgery, heart attack, kidney failure, major organ transplant, multiple sclerosis and stroke. Additional conditions covered by this insurance can include aorta graft surgery, benign brain tumour, blindness, coma, deafness, heart valve replacement or repair, loss of limbs, loss of speech, motor neurone disease, paralysis/paraplegia, Parkinson抯...

The Debt Test Are You Making Out A Mountain Out Of Your Mortgage
According to the Council of Mortgage Lenders, first-time buyers are the most susceptible group of homeowners to debt, as they are more likely to have higher loan-to-value ratios and commit a higher proportion of their income to mortgage repayments. Despite their susceptibility to debt, there is evidence which indicates that insurance take-up and employee benefits provide recent first-time buyers with a safer foundation than the general population of mortgage borrowers. The Council of Mortgage...

Has Anyone Seen My Twenties
Premature aging is spreading across the UK and is particularly prevalent amongst recent graduates in the UK who, upon leaving university, are plunged straight into fears about the property ladder, pensions and paying off their student debts. These young people graduate at the age of 21, do not pass go and head straight to 35, worrying about their personal finance investments before finding their feet in life. These un-twentysomethings lifestyles can generally categorised within two extremes,...

Inside Insurance Protection Priorities
Protecting your home Although you have no legal obligation to insure your home, your mortgage company will want to protect their investment with buildings insurance. However, it is also worth protecting your own investments, so even after you抳e paid off your mortgage, you should ensure you抮e financially covered. Home contents insurance and personal possessions insurance According to Money Observer, the average home has 44,000 of contents and replacing this without insurance would be...

Why A Little Bit Of Marketing Does You Good Especially At Christmas
My grandpa, who抯 a Quaker, used to disapprove of the fact that I ventured into marketing, but he抯 coming round to my way of thinking, even at the grand age of 92. He is suspicious of marketing (in his mind - a term synonymous with extracting money from a gullible party, for the benefit of corporate greed) and doesn抰 believe in profit, even though profit itself is not a bad thing. I bring this issue up because in case you hadn抰 noticed, it抯 going to be Christmas soon and as usual any...

Don t Worry About Scrooge This Christmas By Shopping Online You ll Save Plenty Of Time And Money
According to a study by BizRate Research, 60% of women were already planning their online buying in September, compared to only 42% of men. Women are also reported to carry the burden of Christmas shopping with 55% taking on the responsibility, compared to only 45% of men. However, as more and more retailers go online, women can exploit the internet by saving themselves time, money and effort. There are many advantages to shopping online: * You have more choice * Prices tend to be lower *...

Click here to see More Articles by Rachel Lane
Publishers / Webmasters
Article ID: 37468
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:


198 Users Online!!
Related Articles:
Latest Articles:
 
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts
Aging


Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of bharatbhasha.com and/or its owners.


Copyright AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Email Marketing In India Provided By AwareIndia







Company IDS