Due to falling house prices, many borrowers with flexible mortgages have been sent letters saying they may have to make lump sum payments to reduce their mortgages. The downturn in the property market has meant that the amount some customers have borrowed now exceeds 90% of the value of their homes. A clause in the [...]
December, 2008
Over half of households in debt
A survey by The Bank of England has revealed that more than 50% of all households now have some sort of unsecured debt. In the UK, total household debt has now reached £1.6 trillion – when mortgages are added to unsecured debts such as overdrafts, credit cards, personal loans and other hire purchase agreements. Respondents [...]
Debt Management OFT Approval
The Debt Managers Standards Association (DEMSA) has finally achieved OFT code approval in November of this year. DEMSA had expected to receive code approval in the summer of 2007, however the greater emphasis on debt management in the market place and the growing importance of IVA plans prompted the OFT to review their Code Approval [...]
Re-mortgages propping up finances
A study by Durham University has found that the lack of available credit from banks and tumbling property prices will plunge many families into debt. Their research found that an increasing number were using the funds gained from re-mortgaging to supplement their day-to-day living costs, rather than using the money for home improvements or to [...]
Bargain-hunters boost property enquiries
A Royal Institute of Chartered Surveyors (RICS) report today showed the number of property inquiries from new-buyers rose to a two-year high last month – suggesting thrifty buyers have been searching for repossessed and forced-sale properties at bargain-basement prices. As more homeowners have fallen into debt and struggled to maintain debt repayments, many have suffered [...]
Government urges lower fuel prices
The government has urged major energy companies to cut the price of fuel for domestic customers. Energy Secretary Ed Miliband has encouraged companies to pass on savings from the falling cost of oil to consumers as soon as possible. As fuel prices have increased, many people have fallen into debt as they have found bills [...]
Chiltern Debt Monitor December 08
The average level of debt owed by a customer on a Chiltern debt management plan is down by over £1000 pounds since the beginning of 2008 and currently stands at its lowest amount since the Chiltern Debt Monitor started in 2007. However people can afford to repay less than they could at the beginning of [...]
The Two Year Mortgage Break
Gordon Brown has announced plans that may help consumers, that are having problems keeping up mortgage repayments, to avoid loosing their homes. People hit by the downturn, that can demonstrate a genuine change in circumstances, may be able to defer part of their mortgage interest for up to two years. The plan is designed to [...]
Busiest Online Shopping Day
I read today that experts predict it is going to be the busiest day of the year for online shopping. Apparently an estimated £320m will be spent today as consumers order gifts following a weekend of research, according to the internet retail trade body IMRG. Many of these transactions will involve going further into debt [...]
The Final Pitstop?
The recession has hit the motor industry hard, so hard that Honda will withdraw from Formula One unless they can find a buyer for the team! So how big is the problem within the motor industry? Well, as I mentioned in a previous article, car sales in Spain for november were virtually down 50% on [...]
