Index Financial

It is believed that people should still be able to invest in property in spite of the recent credit crunch.
The belief that now is not the time for first-time buyers to invest is not true stated Darren Cook, head of mortgages at Moneyfacts.co.uk.
Mr. Cook also asserted that it will be possible for people to make initial investments on property with support from lenders.
“It’s not all doom and gloom for first-time buyers, it’s just that in the current mortgage market, they are not sure what is going to happen so they are being a bit prudent,” he explained.
Moneyfacts research has shown that since December 2007, 11 mortgage lenders have reduced the maximum loan-to-value on offers for mortgage products.
The experts state that even though fewer loans for 100% of a properties value are available, this shows lenders are being cautious in the wake of the credit crisis, but is not necessarily a closing off of the market.
In fact, as the turbulence of the housing markets begins to settle, home seekers should be able to find some good deals on homes where sale prices have fallen.

Last year the number of joint-home buyers increased from previous figures. The number of couples making first-time home purchases grew from 45% in 2006 to 50% in 2007, reported John Charcol.
The technical manager of the firm’s Web site Charcol.co.uk, Katie Tucker, said that the number of women buying independently has remained at about the same level; while the number of men purchasing alone has dropped to follow the shifting trend.
Ms. Tucker stated: “Buying together is a very sensible choice in terms of affordability. Not only for splitting the mortgage and the bills, but more cuddling up should save you on the heating!” However, as living with a partner is a major decision she also advised renting together before making the leap into purchasing.
Young couples should consider writing an “exit plan” in the event their relationship goes south, before the mortgage has been paid off. Remaining friendly in connection with large purchases could easily protect both parties assets and interests. And at the very least, the “exit plan” should clearly lay out who will pay for what and how much each person will pay- including writing up conditions under which the home would be put back on the market for sale.
Covering a couple’s bases by all accounts will leave much less to chance and worry, and give each person in the relationship more security in knowing what to expect in the event of relationship changes.
It is predicted by the Bank of England that in the first quarter of 2008, the demands for secured loans will rise among British homeowners.

As the frequency of credit card fraud cases continue to increase, they are strangely being viewed as victimless crimes, reports say.
Danny Harrison, a security expert with protection firm CPP, noted that more people are beginning to see credit card fraud as less of a crime because individuals seldom lose financially.
Consumers are warned to be careful with their credit cards and to report missing or lost cards immediately to banks to keep their credit secure.
Levels of credit card fraud are high because those committing it do not feel they are injuring anyone, Mr. Harrison explained. He further offered, “What’s happened is credit card fraud is moving more and more in to becoming what’s viewed as a victimless crime because the fraudster sees that it is the bank that pays and not the individual and in the majority of cases that’s true.”
However, this ‘victimless’ sentiment could not be further from the truth. All monies are tied together in one way or another. Although banks may cover financial losses associated with credit card fraud, eventually the cost of the coverage will be recovered, ultimately coming from consumers, either directly back to the banks by way of higher lending rates or possibly through the insurers of the banks. But rest assured, credit card fraud should be taken very seriously since the practice leads to larger and more sticky crimes against individuals.
Iain Wrenshall, director of Debt Help UK, recommends debt consolidation loans for those struggling to recover from financial troubles.

Mortgage experts John Charcol advised mortgage holders to stay on top of their repayments and to try and pay off their mortgages as soon as possible.
The advantage to paying off mortgages at the same rate, rather than dropping payments to the reduced base rate, gives homeowners the ability to pay off their mortgage early.
“For many people, the mortgage is what dictates when you can retire,” stated Katie Tucker, spokesperson for John Charcol. Adding, “By paying it off even a few years early it can make a difference to your quality of life not only because of age, but because of the money you free up to spend on other things.”
The independent mortgage group found that many first-time home buyers are couples moving in together. For people buying their first home or moving to another, a home loan may give an initial financial boost.
Over-all, paying off debt as early as possible during the current atmosphere of the consumers’ squeeze can only serve to protect individuals from the rising cost of loans and credit.

Many first-time buyers may be relieved to hear that many lenders are still willing to work with borrowers to get them on the housing ladder to homeownership. Although home buyers are likely to face more stringent lending criteria than before, it is “not all doom and gloom”.
The current economic climate may actually benefit first-time buyers, says Moneyfacts.co.uk.
Although larger deposits, or guarantees are often required from a third party, this may serve as a safety net for first-time buyers.
Darren Cook, head of mortgages at Moneyfacts.co.uk, noted that the added steps in the home buying process can protect buyers from over committing themselves on a home purchase.
In addition to the tightened lending practices, first-time home buyers may also find lower prices on in certain areas where home prices have stymied or been driven down in the wake of the housing crisis.
Since December of last year, eleven mortgage providers have put new limits on their maximum loan amounts, according to Moneyfacts.co.uk.
“I think lenders are still supporting first-time buyers, they’re possibly just being a little bit more prudent in how they advance their funds,” Mr. Cook said.

Receiving expensive gifts increases the value of insurance you need to stay protected, which means you may want to re-evaluate your current home insurance coverage.
Direct Line noted that jewellery is an especially popular choice; which Britons may spend nearly £467 million on this year to swoon their loves’ desires.
“Insurance is probably the last thing on most people’s mind when they are showering their loved ones with gifts on Valentine’s Day,” stated Andrew Lowe, Head of Direct Line Home Insurance. Adding, “Having the right cover in place could prevent heartache if the unthinkable happens and that precious item is lost or stolen.”
Direct Line also advised customers to keep their proof of purchase and take photographs of all new items of any real value. This provides evidence of ownership to the insurer, should the item be stolen or lost from home damage. Since jewellery is a popular choice of gifting not only on Valentine’s Day, but also during Christmas season, now is a perfect time to take stock of valuables and make certain they are declared on policies.
In addition, the insurance company also recommends that homeowners review their policies and make sure everything is up to date due to recent damaging and unpredictable weather conditions.

For many, Valentine’s Day is a special opportunity to show someone you care. Research by PayPal shows the average Brit will spend more than £70 on their loved one, with £71.25 being the average.
Over 23 million people in the UK are expected to spend a combined total of £1.6 billion for their heart’s desires. On February 14th nearly 33% of shoppers buy gifts worth between £50 and £99 - a number which rises to 44% among 18 to 24-year-olds.
The survey by PayPal also found that 22% of those who responded were willing to spend between £100 and £249 on Valentine’s Day.
Cristina Hoole, a spokeswoman for PayPal, said, “It would seem that romance is far from dead as almost half of Brits will be splashing out a massive £1.6 billion on their loved ones this week.”
Consumers may find an unexpected source of funds to woo and dazzle their Valentine; according to Thrifty Scot, people holding equity in property may find homeowner loans exactly what Cupid needs to spend a little extra on a heart-throb.

The recent rise of inflation in the UK is hurting more than consumer pockets. A Consumer Barometer from Lloyds TSB Corporate Markets shows the number of consumers expecting interest rates to be higher rather than lower grew by 2% last month.
Trevor Williams, chief economist with Lloyds TSB Corporate Markets, asserted that even an interest rate cut this month may not help boost consumers’ confidence. The financial services provider connects the rise of consumer doubts in January, which was the first increase in six months, with the increasing culture of worry in Britain.Mr. Williams stated, “As far as consumers are concerned, any respite granted in interest rates today will be short-lived. Even so, if we do see a cut this will ease the burden of interest payments and as such will help boost economic activity.”
While the economy is teetering on uncertainty, consumers and credit card holders may find debt consolidation loans useful in taking control of their financial instability. According to uSwitch.com, debt consolidation loans can be a help to consumers struggling with the impact of fewer available funds.

With Paragon Mortgages reporting a 19.4% increase in rents last year, many landlords are confident about the rental market of 2008. The last three months of 2007 saw 8.1% of that overall increase, giving industry members plenty of reason to look forward to the promising financial returns in the new year.
Such data comes as good news for the industry and portends well for 2008, offered David Salisbury, Chairman of the National Landlords Association.
“The chances are that, in the coming months, there will be increasing demand placed on the private-rented sector and well-managed portfolios can only serve to benefit both tenants and landlords alike,” stated Mr. Salisbury.
He also noted research showed more than 25% of landlords predict the industry’s success will expand their portfolios not only in 2008, but for at least five years to come.
Homeownership loans are an excellent advantage to holding equity in property, according to Moneyfacts, which allow property owners to secure loans against a home and give much needed financial stability; especially as compares to spending money month after month on rent.

A price comparison Web site points out that although “not unexpected”, the recent interest rate cuts made by the Bank of England could serve to fuel inflation. Many economists agree that continually cutting interest rates could spur borrowing in an economic platform already stretched to tight limits.
As noted by Fool.co.uk, the recent decrease in the cost of borrowing, down a quarter-point to 5.25%, could worsen the state of Britain’s economy. Amid rising energy costs and all time high oil prices, the Bank of England appears unwilling to acknowledge inflationary concerns, and avoid an outright recession.
“However, consumers should be aware of the damaging effects of inflation even if the Bank of England chooses to ignore it for now. In order to beat rising prices, we need to ensure that any savings we have will guarantee a better return,” commented David Kuo, Head of Personal Finance with the Web resource.
Additionally, while consumers are being faced with growing costs, the Bank of England predicts the demand for secured loans to grow during the first three months of the year.