Tuesday, 4 August 2009

Top 10 hints for house buyers

posted by debts.org at 23:48

1. Shop around to avoid future

Take your time to look around before arranging a mortgage, and don´t feel as though you are wasting anyone´s time. There are still around 10 potential buyers for every new property on the market and it pays to be cautious and avoid any debt problems later on, when you realise you are paying far too much for your mortgage.

2. The low cost of borrowing

The low cost of borrowing and the devaluation of the pound has been one factor behind the recent improvement in the property market. This has resulted in a lot more foreign investment. Don´t over borrow, even if you think you can afford it at the moment. Buyers can suffer a lot of unnecessary debt problems by biting off more than they can chew so be cautious, however the market is performing.

3. Improvement but not recovery

The housing market may be showing signs of recovery, but complete recovery is some way off. Be cautious when investing in property and always take professional, legal advice before signing on the dotted line. You may suffer debt problems or even need to arrange a debt management plan if you credit card debts or store card debts, so think carefully about your whole financial situation before borrowing more cash.

4. Low sales figures and falling prices

The optimistic viewpoint shared among most estate agents, which is obviously the one they want you to hear, is not shared by everyone. Some consultancies state that low sales figures and falling prices in certain areas of the country paints a more accurate picture of what is happening outside London, so don´t be tempted to borrow more money than you can afford, only to find yourself saddled with debt a few years down the line.

5. Bargains for buyers

Buyers can undoubtedly pick up bargains if they shop around, but getting a mortgage is another matter altogether. Find the best mortgage deal for you before choosing the house you want, avoiding disappointment later. If you are suffering debt problems or would like information about a debt management plan, or have mortgage arrears, you can contact a free debt advisory company in the UK.

6. Can I get a mortgage?

Getting a mortgage is harder now than ever, and you can virtually forget it unless you have between 15 and 20% deposit to put down and a top notch credit rating. If you can find between 20 and 40% deposit, you are in a great position to bag a bargain. Even if you do have a sizeable deposit, don´t overspend, as you will still have to make the repayments and could end up seeking debt advice rather than mortgage advice.

7. Property auctions and house repossessions

If you have some spare cash or perhaps have inherited a sum of money, visit a property auction. Prices at auction for houses is normally about 30% lower than at the estate agents and properties sold at auction are often repossessed houses. Prices are so much lower because banks want a quick sale which could benefit you. But be careful. Don´t snap up what appears to be a bargain but may need thousands spending on it that you don´t have. Irresponsible buying at auction can result in debt, house repossession and even bankruptcy.

8. Economic crisis and property

The economic crisis has hit the property market hard, and new builds have been very badly affected. Investors were the hardest hit who hoped to realise a quick profit on their properties but instead saw a quick loss. Don´t buy off-plan unless you are 100% certain of a quick turn around and a quick profit. Off plan investors have lost millions in the past two years, and are now suffering major debt problems and house repossessions.

9. New homes discount

If you are considering buying a new property, you can get some bargains which have been taken back from investors who could not keep up their mortgage payments. You may be able to find a new build for up to 15% less than the original asking price but, again, don´t be tempted if it is out of your budget. Thousands of debt management plans every year are arranged for people who borrow more than they can afford and end up with credit card debts and store card debts on the top of mortgage debts

10.Shared ownership

Shared ownership schemes are now available from housing associations, which have bought properties from developers, and are offering them to first time buyers. Take your time to look into the terms and conditions of shared ownership before committing yourself, but it might be the perfect way to get your foot on the property ladder.If you are suffering debt problems during the credit crunch, debts.org can help you arrange a debt management plan, an individual voluntary arrangement, bankruptcy or we can help you reclaim unfair bank charges or early mortgage completion fees or mis-sold payment protection insurance in any city in the UK, including Liverpool, Leeds, London, Sheffield, Bristol, Bradford, Hull, Nottingham, Wolverhampton, Sunderland, Eastbourne, St Helens, Crawley, Oldham, Blackburn, Sutton Coldfield, Eastbourne, Northampton, Mansfield, Portsmouth, Reading, Luton, Preston, Milton Keynes, Sunderland, Norwich, Walsall, Swindon, Huddersfield or Stoke on Trent. Call us free on 0844 277 7999 or fill in the online claim form.

Labels: Blackburn, Crawley, Eastbourne, Luton, Mansfield, Northampton, Oldham, Portsmouth, Preston, Reading, St Helens, Sunderland, Sutton Coldfield, Wolverhampton

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Monday, 3 August 2009

Seven ways to deal with mortgage arrears debt

posted by debts.org at 23:59

Debt problems can become serious debt problems within just a few months if you are in arrears with your mortgage. Here are seven ways to reduce the risk of home repossession and give you a debt free future:

1. Pay off arrears quickly

Start to repay your mortgage arrears as quickly as possible as arrears can lead to extra charges, which will increase the amount you owe. If you arrange to pay off mortgage arrears quickly, you will have more money in the long run and you can avoid serious debt problems.

2. Extra mortgage payments to avoid debt problems

If you can make extra mortgage payments, then do so. You can avoid serious debt and serious mortgage debt by paying a bit extra each month to pay off your arrears. Your mortgage lender will probably be in agreement with this, as long as you are making an effort to clear your debts.

3. Include the arrears in the mortgage

You may already have a debt management plan arranged, and you may be facing up to more debt with mortgage arrears. Ask your lender if he can add your mortgage arrears to your total mortgage balance, which will spread the arrears over the period left on your mortgage. This will mean that your monthly payments will increase, but will give you some breathing space. You can get free advice from debt management companies about re-mortgaging, bankruptcy, debt management plans and individual voluntary arrangements.

4. Extend the mortgage to solve debt problems

If you have a repayment mortgage which you have been paying back for a long time, you could ask your lender to extend the term to 25 years again for the remaining amount. This means your monthly payments will reduce but you will be making them for longer, possibly into retirement. Make sure you understand the implications of extending the time of your mortgage before signing anything. This is not an easy way out as the money will still have to be paid back at some stage.

5. Delay mortgage arrears to help solve immediate debt

If you are suffering debt problems, and struggling to pay your mortgage arrears, ask your mortgage lender if you can delay paying arrears for a certain amount of time. Debt problems in the UK are increasing and you should talk to an independent debt advice company if you are struggling to make ends meet.

6. Payment holiday for mortgage debt

If you have an interest only mortgage, you may consider taking a payment holiday if your lender will allow it. This means that if you have an endowment policy which is linked to your mortgage, ask the endowment company if you can stop paying in for a limited period of time.

7. Selling your endowment policy

If your endowment policy has been running for several years, you could use the amount in the policy to pay off your mortgage arrears. You can cash in or sell the policy after taking advice from the mortgage lender and the endowment policy company. Make sure it is worth your while, as, if you cash in your endowment policy early, you could be losing out on a much bigger cash sum when it matures. Thousands of people get into serious debt every year in the UK by cashing in endowment policies early, only to find there are other ways to solve their debt problems.

If you are suffering debt problems and feel there is nowhere to turn, or you want some friendly and professional advice about debt management plans, individual voluntary arrangements or bankruptcy, or if you want to reclaim unfair bank charges in Liverpool, Leeds, Peterborough, Middlesbrough, Lincoln, Grantham, Burnley, Manchester, Poole, Sunderland, Huddersfield, Mansfield, Nottingham, Ipswich, Telford, Milton Keynes, Derby, Northampton, Portsmouth, Luton, Preston, Telford, York, Stockport, Brighton, Hull, Bradford, Wolverhampton, Scunthorpe, Carlisle, Swindon, Stoke or any town or city in the UK,contact debts.org free on 0844 277 7999 or fill in the online claim form.

Labels: Bradford, Brighton, Derby, Hull, Ipswich, Luton, Mansfield, Milton Keynes, Northampton, Nottingham, Portsmouth, Preston, Scunthorpe, Stockport, Telford, Wolverhampton, York

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10 tips to avoid house repossession

posted by debts.org at 23:51

1. Mortgage arrears and serious debt problems

Millions of people in the UK are facing serious debt problems, mortgage arrears and even home repossession. If you ignore the bank statements and the letters from mortgage lenders, your debt problems will get worse. You will find a debt solution if you make the effort to contact a debt advice company. You can get out of debt at little or no cost in the UK today, and there are several options available to you if you are suffering minor or serious debt problems.

2. Check all mortgage paperwork

Take the time to sit down and go through every bit of paperwork you have relating to your mortgage. Read the small print so that you thoroughly understand the terms and conditions and check when you will be in danger of house repossession if your mortgage is in arrears.

3. Address your mortgage arrears

Once you understand the seriousness of your mortgage arrears, you can take steps to get debt advice or debt help in the UK. Don´t bury your head in the sand but make sure you understand the extent of your mortgage debt problem before contacting a debt advice company who will help you and give you free guidance.

4. Monthly mortgage payment debt

Find out how much you are expected to pay monthly, when this is likely to change, whether it has gone up recently and whether it is likely to go up when your mortgage is next reviewed.

5. Be honest with yourself

Be honest with yourself and with your lender to avoid more mortgage arrears and debt problems. Can you continue paying your current monthly payment? Can you afford it over the next few months, and more importantly, if your mortgage increases again, can you manage the payments?

6. Show commitment and willing to your mortgage lender

Check how many payments you have missed. If your mortgage arrears are the result of unemployment, redundancy or a short-term debt problem which may be resolved in a couple of months, contact your mortgage lender and explain this. If you have mortgage arrears and debt problems which are likely to change for the better, offer to pay your missed payments back over
6 months. Take the bull by the horns and contact your lender before he starts to add interest and costs to any mortgage arrears. Any arrangement you make to clear your mortgage debt, you must stick to – so make sure it is achievable before offering to pay off the amount you owe.

7. Mortgage is a priority payment

Understand that paying your mortgage is a priority payment. A mortgage loan is secured against your home, which means if you fail to keep up the mortgage repayments, you could face house repossession. If you are also struggling with credit card debts, store card debts or bank loan debts, pay your mortgage before paying unsecured debts.

8. Work out your total debts and take advice

Work out how much your total debts amount to. Include everything in your calculations including charges, late payment fees, court costs. Pay the arrears back as soon as you possibly can. Consider selling household goods, cashing in an insurance policy, selling a car or caravan, or even taking a part-time job in the evenings to clear your mortgage debt.

9. Going to court for mortgage debts

If your lender is taking you to court, write down your side of the case, to present to the judge on the day of the court case. Put down concrete proposals which are manageable and outline how much you can pay back each month to clear your mortgage arrears. Put your case across clearly to the judge, and there is every chance that your house will not be repossessed.

10. Repayment mortgage debts

If you are struggling to pay back a repayment mortgage, where you will pay back the amount you borrowed plus interest, ask your lender if he can arrange an interest free mortgage for 6 months, which should give you some breathing space. This will make your payments less for that amount of time. Lenders will treat you much more sympathetically if you make a sensible suggestion for repayment, before they start to threaten you with court action or house repossession.

Debts.org helps people to get out of debt, and gives free debt advice, arranges Individual Voluntary Arrangements (IVAs), Debt Management Plans (DMPs) and can even reclaim unfair bank charges or mis-sold payment protection insurance in Liverpool, Luton, Newcastle, Stoke, Colchester, Oldham, Burnley, Manchester, St.Helens, Crawley, Blackburn, Sutton Coldfield, Eastbourne, Portsmouth, Northampton, Brighton, Stockport, Poole, Oxford, Middlesbrough, Bolton, Ipswich, York, Telford, Rotherham, Dewsbury, Huddersfield, Sheffield, Bristol, Hull, Nottingham and every other town and city in the UK. Call our free debts advice helpline on 0844 277 7999 or fill in the online form.

Labels: Bolton, Brighton, Dewsbury, Eastbourne, Huddersfield, Ipswich, Middlesbrough, Northampton, Oxford, Poole, Portsmouth, Rotherham, Stockport, Telford, York

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5 ways to avoid house repossession in a recession

posted by debts.org at 23:30

With the credit crunch snapping at everyone´s ankles, and talk of the recession continuing well into 2010, it is little wonder so many people in the UK are suffering debt problems and seeking debt advice. If you are trying to sell your house to avoid home repossession, you need to make your house as attractive as possible to increase the chances of a quick sale. You may have heard the stories about the smell of fresh coffee brewing or the aroma of bread being baked, helping to create an atmosphere most home buyers are tempted by. Here are five tips to consider when putting your house on the market:

1. Stay neutral to sell quickly

Stick with neutral colours. You may have blood red walls, lime green carpets and swan murals painted on the ceiling, but the best way to present your house is to give it a lick of neutral paint, which will make it look clean and fresh. Good colours to paint the walls include: cream, white with a hint of pink or stone. A straightforward paint job won´t cost you much money, and could make all the difference. Serious debt problems can be avoided if you manage to sell your house quickly.

2. Stay clean to avoid debt problems

You may need to sell your house quickly because of mounting debt problems, bankruptcy or the threat of house repossession. You may have massive credit card debts or serious store card debts and need to release some money. Remember that a clean home is an inviting home, so when you are expecting prospective buyers, keep the house spotless. Put all clutter out of the way and make sure the house is aired and smells fresh.

3. Stay light and bright and avoid house repossession

A bright and light house will feel and look bigger, and impress any potential buyer. Where possible, arrange viewings when the sun is shining through the windows of main rooms such as the lounge. Open all curtains and blinds to allow the light in. Simple measures like this can boost the chances of a quick sale, and can help you to solve your debt problems without seeking specialist advice or arranging a debt management plan.

4. Staying alive to sell your house quickly

Keep plants and flowers looking fresh, alive and healthy before prospective buyers arrive at your house. Cut-flowers will make the house look colourful, bright and fresh. By not presenting your home well, you could end up with the house being repossessed, or minor debt problems could become serious debt problems if you fail to sell your house quickly.

5. Modern and Contemporary

You don´t need to spend a lot of money to make your house look more modern and contemporary. Chic-looking houses sell quicker. Young buyers will be impressed with well-placed finishing touches such as rugs and blinds, which can improve the look of your house. You will be amazed how cheaply you can make massive improvements to the look of your home. If you are suffering debt problems or you are looking or debt advice in London, Manchester, Luton, Portsmouth, Northampton, Preston, Milton Keynes, Newcastle, Sunderland, Swindon, Ipswich, Telford, Bolton, Stockport, Watford, Rotherham, Cambridge, Exeter, York, Derby, Preston, Burnley, Bournemouth, Brighton, Liverpool or anywhere in the UK, and you don´t know which way to turn, debts.org can help you. For free, confidential advice about how you can get out of debt call or free advice line on 0844 277 7999 or fill in the online form.

Labels: Bolton, Cambridge, Derby, Exeter, Ipswich, Milton Keynes, Newcastle, Northampton, Portsmouth, Preston, Rotherham, Stockport, Sunderland, Swindon, Telford, Watford, York

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10 ways to bridge the pension gap

posted by debts.org at 23:26

New personal accounts regulations will come into force in 2012, but what can you do to make the most of your money between now and then? If, like many people in the UK, you are suffering debt problems, you may want to save money where possible for your retirement. Consider the following ten tips.

1. Employer´s pension scheme

Staying with your employer´s pension scheme until 2012 is probably the best option. If the employer´s scheme is better for you than the personal accounts scheme, they won´t have to offer the latter. If you are seeking debt advice or suffering debt problems, or even considering a debt management plan, make sure you fully understand any pension scheme you are paying in to.

2. Employer contributions scheme

If you are just being offered the chance to join an employer-backed scheme, do so, and you will get the advantage of employer contribution or the next 3 years.


3. Start saving now to avoid debt in later lifeOne major cause of debt problems later in life, is that people don´t start to save early enough to enjoy their retirement. Start saving as soon as you can to avoid debt management plans, IVAs or even bankruptcy in later life. What you manage to save between now and 2012 can be put into your personal account in the first year it opens.

4. Don´t delay with saving for retirement You may have other financial commitments right now, such as saving for a house deposit or buying a car, but start saving as soon as you can towards retirement – it comes round a lot quicker than you expect. The last thing you want at retirement age is to worry about debt or to have to seek debt advice in the UK.

5. Consider ISA allowances

One of the best tax-free ways to save for retirement between now and 2012 is to put money into a cash ISA. You can pay up to £3,000 per year into a cash ISA, and the amount you pay in can be used as a contribution into a personal account in 2012, if the total is less than £10,000.

6. A Stakeholder pension scheme to avoid debtYou can start to save in a stakeholder scheme even if there is no employer contribution, and you could begin building a retirement fund before 2012. Although a stakeholder scheme is a good way of saving, you can´t transfer these funds to a personal account in 2012.

7. Charges on savings can cause debt problemsPersonal accounts will offer a low-cost way of saving for your retirement, but excessive charges on accounts can cause debt problems. If you are currently paying high bank charges, you should look at ways to reduce these charges before 2012. Limits apply on maximum charges for stakeholder pension schemes.

8. Personal accounts not for everyoneIf you are going to retire soon after 2012, and you have no other savings, it may be better for you not to contribute to personal accounts, as your savings will replace state benefits that you are eligible for.

9. Tax-free alternatives to avoid debt problems If you are close to retiring, you could put your savings into tax-free products to run alongside your personal account. Cash ISAs, Premium Bonds or Stocks and Shares ISAs could be a good option for you. It is more important than ever these days to start saving for your retirement as early as you can. Debt problems, debt management plans, (DMPs), Individual voluntary arrangements (IVAs) and other debt solutions are more difficult to pay off when you are older and you should aim to be debt-free as soon as possible.

10. Tax relief on pension contributionsRemember that pension contributions receive tax relief at the marginal rate. This means that if you are paying tax at a high rate now, but will be paying less in 2012, your pension contributions now will be more valuable than they will in 2012, as you will get 40% tax relief, which is an incentive to pay the contributions now.

If you are suffering debt problems or you need debt advice from a specialist, regulated debt solution company, and you live anywhere in the UK including London, Birmingham, Wolverhampton, Nottingham, Stoke-on-Trent, Bradford, Hull, Liverpool, Leeds, Manchester, Leicester, Coventry, Newcastle, Slough, Gloucester, Plymouth, Southampton, Derby, Northampton, Portsmouth, Luton, Preston, Sunderland, Norwich, Bournemouth, Southend, Swindon or Huddersfield, contact debts.org on 0844 277 7999 or fill in the online form.

Labels: Bournemouth, Coventry, Derby, Gloucester, Leicester, Luton, Newcastle, Northampton, Norwich, Plymouth, Portsmouth, Preston, Slough, Southampton, Southend, Sunderland

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