by News Team on May 22nd, 2008
More people are turning to the buy-to-let market if they struggle to sell their property, according to the Royal Institution of Chartered Surveyors (Rics).
Statistics from the organisation show a rise in new landlord instructions for the first three months of 2008 and it is believed this shows that sellers are becoming landlords in the current market conditions.
Rising rental yields and an inability among buyers to secure mortgages have been suggested as contributing factors.
James Scott-Lee, Rics spokesperson, said the letting market is gaining from the loss of the sales sector.
“With rental expectations high, landlords will continue to enjoy this increasingly lucrative market,” he predicted.
Rics’ figures also found that more landlords are holding onto their properties after their tenants’ leases expire.
John Heron, managing director of Paragon Mortgages, recently said that tenants seem to remain in private rented accommodation for longer in the current market conditions.
He predicted high levels of demand for rental properties in the near future, unless something is done to improve the situation for first-time buyers.
Posted in Houses and Mortgages | No Comments »
by News Team on May 22nd, 2008
People looking to take out a mortgage have been advised to get professional advice before taking on the debt.
The Association of Mortgage Intermediaries (AMI) claims that mortgage borrowers will be able to benefit from intermediaries’ ability to identify the most suitable product for their needs.
This advice comes after independent research by NMG found that mortgage borrowers who purchased their loan through an adviser saved an average £962 a year.
AMI director general Chris Cummings said that during times of financial strain it is more important than ever that borrowers make use of solid financial advice.
He said: “Advisers know their clients and use this insight and their knowledge of the market to identify the most suitable and most price competitive products for the client.”
Statistics from the Council of Mortgage Lenders show that in the first three months of 2008, 82.5 per cent of first-time buyers relied on an intermediary to find them the best mortgage deal.
Posted in Houses and Mortgages | No Comments »
by News Team on May 22nd, 2008
Higher salaries are desired during the credit crunch as people on low incomes attempt to clear debt they have accrued, according to an employment expert.
Peter Reilly, director of HR research and consultancy at the Institute for Employment Studies, explained that stretched household budgets mean employees may prefer more money rather than other benefits.
“People who are on low incomes do want the money because they need to pay their debts,” he said, adding that “giving them gimmicks is neither here nor there”.
While this depends on individual circumstances, it is likely that income levels may be prioritised.
Mortgage holders are among the group of people who may prefer to take the cash rather than benefits in order to help their financial situation, said Mr Reilly.
The Jobsite website explains that it is important for employees to give “serious consideration” when they accept a salary package with added benefits.
It warns against the “hidden costs” of benefits such as share options, which may see their value altered with fluctuations in the stock market or interest rate.
Posted in Personal Debt | 1 Comment »
by News Team on May 22nd, 2008
A financial spring clean has been suggested to people who want become debt free or get the best savings deal.
Kevin Mountford, head of savings and current accounts at price comparison website moneysupermarket.com, warned against consumer apathy when it comes to select loans and other financial products.
“This time of year a spring clean of your finances is just as good as a spring cleaning as anything else,” he commented.
Whether people are borrowing or saving money, taking the time to consider what they are getting with their financial products could pay off for consumers.
“I think people really need to make the effort,” said Mr Mountford.
Research by moneysupermarket.com earlier this year suggested failure to switch to more competitive loans, mortgages and other financial products was costing British consumers some £243 billion.
The site’s managing director, Stuart Glendinning, said “considerable savings” can be made if people take the time to seek out the best deal.
Posted in Debt Management | No Comments »
by News Team on May 22nd, 2008
The impact of debt on mental health should be a priority for financial institutions, it has been suggested.
A spokesperson for mental health charity Mind said banks ought to stick to guidelines outlined by the Money Advice Liaison Group, which offers suggestions on how to treat individuals with debt problems who are experiencing mental health issues.
She explained that this code of practice outlines the appropriate treatment in instances such as missed payments where people suffer from anxiety and depression.
Mind research found that two-thirds of respondents in a survey about problem debt blamed mental health problems for their financial situation.
The spokesperson said that many people become overwhelmed when creditors ring them up all the time and they receive letters from a number of debt collectors.
“Some people will find that they just withdraw from it rather than being able to tackle it because they don’t have the support it takes to face everything that is coming through all at once,” she added.
Mind is currently working with the Financial Services Authority to find solutions to this issue, which may include workshops on debt management and other financial advice.
Posted in Personal Debt | No Comments »
by News Team on May 21st, 2008
Teenagers are looking forward to leaving their debt free days behind and taking on credit card debt, according to a new study.
A group of psychologists, economists and industry experts – called the AXA Financial Task Force – concluded that up to 44 per cent of those aged between 15 and 17 will take on credit card debt as an adult.
Nearly a fifth expect to take out a bank loan at the age of 18, while overdrafts are expected to be a reality for 17 per cent.
However, a study by the group found that the majority of teenagers – 70 per cent – do not have the necessary debt management skills, having failed a weeklong budgeting experiment.
Commenting on the findings, Professor Nick Chater said this inability to budget could be why teenagers are already thinking about taking on credit card debt and other forms of credit.
“These things are seen as the norm so that teenagers think they’re only doing what is typical in expecting to get into debt sooner rather than later,” he added.
Earlier this week, the UK Social Investment Forum noted that 65 per cent of 1,000 young people polled said they plan to make a difference in environmental and social issues through making ethical financial choices.
Posted in Debt and Young People | No Comments »
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