bestloans.co.uk Articles

Prospective home loan borrowers have been advised to pay extra special attention to potential deals, in order to stay one step ahead of a rapidly changing industry.

According to a representative from CML, having a thorough understanding of the British housing market as well as the home loan lending industry will prove to be more vital than ever if buyers are to be successful in their endeavours to own a new property.

As the effects of the credit crunch take a tighter grip upon UK home loan providers, an ever-growing number of product propositions are being withdrawn. This is having a somewhat devastating effect on many buyers, especially those individuals whose home purchases were drawing towards the final stages of completion, only to be told that their confirmed funds provider has had a sudden change of heart.

Consumers should stay sharp and realise that the current state of the home loans market is not good. The days in which being approved for a loan whilst having little to no deposit are almost certainly gone and for this reason, we would encourage all new home buyers to seek professional assistance prior to hunting for their loan.

The availability of cheap loans and credit have made a sharp exist from many British lenders product portfolios, which one firm believes has signalled a prime time for consumers to start taking their credit rating more seriously.

According to the UK’s leading loan, mortgage and credit card comparison site, a national tightening of credit criteria should spur a number of British consumers to review their credit profile, and repair any holes that they may come across.

One of the countries main credit reference agencies has reported an almost 50% rise in demand for use of its credit reporting service, where as the site responsible for the report has also witnessed a 400% rise in demand for its own similar partnership service.

In essence, a bad history of credit arising from missed payments and/or CCJ’s can ultimately lead to a higher propensity for rejection. The site has suggested that borrowers should thoroughly check their records, as in many cases, instances of poor credit conduct can be inaccurate. The site has also advised consumers to avoid making many different applications at the same time, as a series of consecutive searches may also have an undesired effect.

Indebted consumers have gone consolidation crazy over the last 3 years suggests a new study.

According to a leading price comparison site, almost 7 million borrowers within the UK have opted to use a debt consolidation loan as a means to control their monthly expenditure.

Expressed in percentage terms, the statistics effectively mean that around 20% of all borrowers are now, or have recently entered into a consolidation loan agreement, with the average debtor rolling in excess of £15,000 worth of accumulated credit into their loan.

A spokesperson for the site commented that the findings, although startling at first, should actually be viewed in a very positive light, as they essentially show that huge numbers of indebted Brits are looking for practical ways to curb their outgoings. Consolidation loans are also one of the best ways for consumers to manage their debts, providing that the deal entered into is of a competitive nature and repayment boundaries are cohered to.

In related news, some of the countries largest debt management providers have reported a surge in the number of people seeking DM and IVA services over the last few months. Experts feel that the limited availability of credit has created a golden era for the financial management industry.

Most detriments to individuals credit profiles could be easily avoided, provided that borrowers inform their creditors of changes in address, as and when they move.

According to a new study, sizeable numbers of people within the UK are damaging their credit records through the act of relocation whilst not informing loan providers as to where they have gone.

Simple payment mistakes such as this account for almost 1 in every 6 issued default, meaning that almost 15% of people could have avoided being slapped with the bad credit brush had they been more organised.

The study also indicates that people in higher education are particularly susceptible to this kind financial downfall, with some 25% of students completely forgetting to inform their loan and credit providers of changes in address, resulting in high numbers of graduates leaving university with a less than perfect credit profile.

One expert commented that failure to inform a credit provider of movements in home address, thus leading to the mismanagement of repayments is a silly mistake to make. One sure-fire way to ensure that you avoid such incidents is to have all of your mail redirected by the post office to your new home for a set period of time. This will then give borrowers the change to sift through their mail, and contact providers systematically to inform them of any move.

A recently introduced national savings scheme could help towards reducing the financial burdens of certain British families.

Some of Britain’s lowest earning households could soon be entitled to additional funding by the government, through the use of a new scheme dubbed the “savings gateway”. The initiative is devised to help families who would have otherwise resorted to borrowing through personal loans and other credit facilities, as a means to make ends meet.

The announcement has been welcomed with open arms by a number of consumer and credit advice institutions, with representatives from said outfits commenting that such a move could not have come any sooner.

It is though that almost 50% of Britain’s lowest earning households have little to no funds in reserve, for use in the event of a financial emergency, with experts citing that the move will almost certainly bridge the gap between financial shortfalls, and may help Britain as a nation to become less dependant on personal loans and credit, when times are tough.