Dec 20 2007
More than eight in ten consumers say they are "savvy shoppers" who look for sale items, use money off vouchers and surf the internet for bargains, according to a report.
The research by PayPal, also showed that less than half of shoppers in the UK do research before buying a product.
Cristina Hoole, shopping expert at PayPal, said: "Christmas is usually an expensive time for all of us, so it's encouraging to see people get smarter about shopping and use money saving tips. Pre-planning who you are going to buy for and setting a budget are essential elements to ensure that you don't regret it in January!"
Shoppers in Scotland are worse at sticking to their budgets than any other area of the UK, according to the report. Consumers in the south of England were the best at budgeting.
A report by Ernst & Young recently revealed that price cuts in the UK over the Christmas period have been more severe than last year.
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Posted in High street spend
Dec 20 2007
The number of loan applications will increase in January as people try to cope with Christmas debts, according to Equifax.
Equifax says that there could be a problem with people finding it more difficult this year to get credit.
Neil Munroe, external affairs director for Equifax, said: "There's a common trend that people do borrow short-term over Christmas and try to consolidate that in the New Year, so there's always an increase in loan applications and mortgage applications."
He added that the issue is whether people will find it "more difficult to get credit" and at the moment the view is that if their credit score is only marginally acceptable for lenders "they may find it more difficult".
A report by creditaction showed that total personal debt in the UK at the end of October was £1,391 billion, which is £122 billion more than last year.
The research also showed that the average household debt is £55,877.
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Posted in Mortgage lending
Dec 20 2007
Over the last year, £122 million of damage has been caused by toddlers in their parents' homes, according to a new report.
The research, by Halifax Home Insurance, showed that spilling food, drink and paint on floors and carpets was the most common cause of damage.
Martyn Foulds, senior claims manager at Halifax Home Insurance, said: "Toddlers are naturally inquisitive, full of energy and eager to explore the world around them, keeping up with them can be a full time job in itself."
He added that raising children is hard enough without "having to find additional money to replace items that small children have accidentally damaged".
Male toddlers are responsible for 20 per cent more damage than girls, according to the research.
Meanwhile, Cheshire Building Society has advised people to make sure they are adequately covered over the festive period, or risk having their Christmas spoiled.
The building society has warned people to be extra careful with their home security and look out for opportunist burglars.
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Posted in Finance trends and facts
Dec 19 2007
First time buyers will have to save the equivalent of two years' earnings to put down a deposit on a house, according to a report.
The research, by AWD Moneyextra, shows that the average first time buyer mortgage is now being sought at £133,943.
Robin Amlot, senior editor of Moneyextra.com, said: "The sharp rise in property values of those remortgaging may be an indicator of how the credit crunch is extending beyond the traditionally vulnerable sectors of society. At the same time we've also seen an increase of almost a fifth (18.8 per cent) in the average value of secured loans being sought over the last 12 months."
He added that the outlook for the mortgage market next year is "fairly grim" and while interest rates will be significantly lower in 12 months time "we may have an uncomfortable journey getting there".
Research from Halifax recently revealed that the number of first time buyers has dropped to its lowest point since 1980.
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Posted in Mortgage lending
Dec 19 2007
Entering a joint mortgage with somebody you do not know should be avoided, according to Bestinvest.
The independent financial adviser says a joint mortgage will provide people with bigger borrowing power than two applications by separate people.
However it still says the agreements can be risky.
Peter O'Donovan, mortgage manager at Bestinvest, said: "If you don't know the person you are buying with you could find yourself in all sorts of problems. Even if someone has a good credit record and seems on the outset fine, once you get in the house, they could be different."
He added that if you do not know somebody's credit record and you enter into an agreement it is "even worse because you are jointly and solely liable for that mortgage".
Research by Scottish Widow earlier this year showed that joint mortgages are becoming more popular among graduates, who find them an easier way to get onto the property ladder.
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Posted in Mortgage lending
Dec 18 2007
Mortgage lenders "are targeting better qualified people" and lower risk people, as a result of the credit crunch, according to FirstRungNow.com.
Helen Adams, director of the property website, said that products such as graduate mortgages and professional mortgages are "coming to the fore" due to current market conditions.
Ms Adams added that lenders "aren't necessarily put off" by highly qualified people "being credit averse or in debt" as they are confident they will be able to pay the debts off later.
"The lenders take a holistic view about earning versus debts and look at the whole picture, and they won’t lend unless they think that the risk is reasonable to them," she continued.
According to mortgage.co.uk, graduate mortgages normally involve zero deposit, low set up fees, good income multiples, flexible features and a 100 per cent loan.
The website also claims that a number of people use their parents or guardians as guarantors, securing a loan against their own assets until the borrower is earning enough to cover repayments on the whole loan.
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Posted in Mortgage lending
Dec 18 2007
One in three people over 55 are using their pensions to help support their children and grandchildren, according to a report.
The research, by Birmingham Midshires, shows that on average 12 per cent of money spent by parent and grandparents that are over 55 goes towards helping older children and grandchildren.
Jason Robinson, director of savings operations at Birmingham Midshires, said: "These findings suggest that the over-55s are actually using their pensions and savings to provide a financial lifeline to younger family members – at the same time as adjusting to enormous change in their own income and lifestyle."
Pensioners in the north-east are the most generous as five per cent of them take on a part time job to help towards family expenses, compared to one per cent in the rest of the country, according to the report.
Meanwhile, people in the UK lent £26 billion to their friends and family over the last year, according to a report by PayPal.
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Posted in Finance trends and facts
Dec 18 2007
Over a fifth of Brits hide secret debts from their partner, according to new research by Equifax.
The credit agency claims that this can have an adverse effect on their other half's credit rating, reports the Daily Mail.
Approximately 14 per cent of those questioned admitted that their hidden debt was in excess of £5,000.
The report also revealed that a high proportion of people have blamed estranged partners for their debts, while some have even tried to take out new loans for which their partner might be liable.
Neil Munroe, external affairs director at Equifax, told the newspaper that problems could arise if both partners blame each other for financial problems.
"If some partners have both put the same tag on their account – saying, 'My partner is at fault for this' – that is a potential point of conflict," he continued.
Lowland Financial recently stated that couples going through a divorce should co-operate to find a "clean, simple solution" to sorting out their finances.
Graeme Mitchell, the company's financial director, said that couples should make a list of assets and agree on how they should be divided, to keep things amicable.
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Posted in Finance trends and facts
Dec 18 2007
Over half of the country gives cash as a Christmas present, according to new research.
The Post Office findings also revealed that this is the most popular option for the over-55s, with two-thirds opting for this type of gift.
Cash is also the top present choice for ten per cent of 35 to 44-year-olds to give to their parents.
"With Christmas Day just around the corner, many last-minute Christmas shoppers will be looking for a way to send cash quickly to friends and family in the UK and overseas," commented Rob Scott, MoneyGram manager for the Post Office.
Meanwhile, research from Clydesdale Bank revealed that more than 500,000 business men and women will have to work on Christmas day.
People living in the midlands are the worst offenders with almost a quarter of business people missing out on the celebrations.
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Posted in Personal finance - stories of the day
Dec 17 2007
People in debt following the festive season "should be thinking about clearing that debt as quickly as possible", according to AWD Chase de Vere.
A savings manager from the company, Susan Hannums, said that the interest rates on debt will be higher than the annual interest rates on people's savings.
Ms Hannums added that forward planning for the next year would help people work out how much they owed and the quickest way to get out of debt.
"If you can afford to put a little bit aside like, say, for forward planning for Christmas, it doesn't hurt – even if it's just ten, twenty pounds.
"It all helps for next year, and obviously it will stop you from needing to get into debt next year," she continued.
According to research from Credit Action, released in January this year, UK personal debt has exceeded £1.25 trillion.
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Posted in Personal finance - stories of the day
