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Millions of disgruntled homeowners are using secured loans to breath aesthetical new life into their homes, a new report suggests.

One of the UK’s premier insurers has discovered that UK homeowners have spent a whopping £85 Billion remodelling their homes in the last few years. The data is additional to other recent reports relating to home improvements as a form of investment. Accordingly, British residents are more likely to “fall out of love” with their homes due to familiarity than any other nation. As a populous we are less content with our homes, and feel compelled to alter spaces as much as once every two years.

A secondary part of this group is said to focus more on transforming unoccupied space than remodelling existing space. Apparently 1 in 4 of every homeowner has identified and altered (or is intending to alter) dormant space. The main factor fuelling this trend (according to data) stems from a universal need to increase a person’s actual living area. People’s needs are constantly changing (such as new babies ect), and many would prefer to enhance their current home than move to a new, bigger home.

However, the company responsible for the survey has also mentioned that consumers need to consider their home insurance policies when carrying out such changes. Creating new space will affect your existing policy, as you are likely to acquire new possessions. The research reveals that many “home improvers’” overlook insurance and have come unstuck when trying to make a claim, realising the new space isn’t covered.

The study further reveals that the most frequently identified “dormant” spaces in our homes are garages, lofts and out-houses. Britain’s spend an average of £10,000 per project, and are likely to remodel certain aspects of their homes once every 18 months.

The sub prime home loans market has become fiercely competitive over recent years; as a result the company, which started it all is looking to sell after a string of profit warnings.

The Kensington Group has seen its share value drop by more than 60% from a high of £12 (one year ago), to £5.60 after market close on Tuesday. The group has announced that a takeover is its most viable option, and is set to announce a deal with Morgan Stanley over the next few days. The group voiced its intentions to sell a few months ago in response to initial profit warnings, which roused interest from 3 of their primary competitors. However, since the announcement the lender has issued two further warnings, which has doused any potential interest from competitors to buy the group.

Kensington’s second profit warning ushered the resignation of its long-term chairman with a new chairwoman taking his place. An integral part of the group’s strategy has seen the sale of entire loan portfolios causing future profits to reduce considerably. During the month of April, the group agreed the sale of 2 billion pounds worth of home loans to another lender.

Many analysts have speculated that Kensington’s troubles can be rooted to the collapse of the US sub prime market, which saw the fall of their biggest lender (New Century Financial). The group denies such claims stating that its average customer arrears had decreased, however statistics suggest that at least 10% of its customers can still be classed as bad debtors.

People are placing far more faith in the Internet to manage their personal finances than ever before, suggests a new report.

According to the document, the Internet is fast becoming the UK’s premier tool to source, compare and manage all types of finance related matters. Since the advent of the world’s first online bank almost 10 years ago, the number of consumers using E finance facilities has increased by almost 30% year on year.

Popular perception of E banking has also changed over the years. Initially many consumers were reluctant to use the Internet as a means to manage bank accounts due to possible security threats. However, as time has passed so to has the change in attitude towards the net as a whole, and now more people than ever are using online facilities.

Traditionally online banking has been the most popular form of using the net in relation to personal finances, but according to the report the number of people using the net to source loans, mortgages, credit cards and insurance is set to overtake its lead. Over half of all people actively using the net to manage their personal bank accounts are also using the same facilities to manage loans, and credit card spending.

The Internet offers unparalleled convenience for consumers when it comes to tracking, paying and sourcing any type of financially related product or service. Online security has been the biggest deterrent for consumers, but increased public awareness and ever evolving technologies are dosing that fear, which in turn is leading to increased consumer confidence.

With more and more homes connecting to the net, the number of people using online services to manage many aspects of their daily lives (not just finance) can only increase, its simply a matter of time.

Home improvements and DIY have become a massively popular pass time for many people in the UK.

If you like to spend your evenings at home in front of the TV, chances are you’ve stumbled across a programme (or ten) dedicated to the subject. Due to the popularity and subsequently teachings of such shows, many people in the UK are jumping on the DIY bandwagon, with the intention of increasing the value of their homes through quality home improvements.

According to surveyed data collected by a leading finance website, many potential DIY’ers are more than happy to use home loans as a way to fund their newfound hobby. The data has revealed that almost 80% of those surveyed believe that quality home improvements such as an extension or loft conversion are likely to positively affect the value of their homes. In addition, almost 50% of those with a positive attitude towards home improvements would use a home loan (secured loan) as a means to finance the project.

Improving the quality of ones home has also become popular due to the increased costs associated with buying a new one. Over 7 ½ million people are considering some form of home improvements over the coming months, and around 10% of those who have recently completed a project are in the process of planning a second.

However, although many people undertaking such projects do so with the intention of making money, it is also important for people to remember the costs associated to home improvements can be high. If you are considering a spate of improvement on your home (especially larger projects) you must carefully consider the costs to ensure you don’t overstretch yourself financially and become indebted. Always seek professional advice.

The cost of renting a home in the UK is increasing. According to new reports, rental costs have increased un-proportionately in relation to the overall cost of inflation. Sources suggest that due to an exceptionally strong rental market landlords are able to raise the cost of rent for existing tenants at the time of contract renewal. Landlords are also further increasing rent for new tenants and are constantly increasing the scope of their portfolios.

Inflation has increased by around 1.0 percent in the last 3 months, however rental prices have rose by around 6 per cent as a national average. In monetary terms the increase equates to an additional £650 per year on top of existing agreements.

Around 1/3rd of landlords have stated a need to increase rental costs in order to combat increased interest rates, and around 1 in 10 intend to further increase their portfolios in 2007. Just shy of half of all surveyed landlords state they have not reacted in any way to interest rates, but have not ruled out the possibility.

Accordingly, the majority of active BTL investors have not been deterred by increased borrowing rates. This could be due to the fact that many BTL investors do not require substantial borrowings in order to fund new property purchases. Of those surveyed, the majority only require a home loan to fund 50 percent of the purchase, with the remainder funded through a combination of equity and savings.