Norton Finance / Number of UK Homeowners Set to Fall

 

A recent report in the Guardian newspaper claimed that the UK mortgage market is ‘hardwired’ to undermine the population as a nation of homeowners. Despite a short-term boost to the housing market, research shows that by the end of the current decade only a third of young people will own and reside in their own homes. The 25-34 age bracket are the demographic who traditionally would be saving up for a deposit on their first home, yet the unavailability of mortgages coupled with increased rates and an unstable housing market has led to more and more people opting out of home ownership. The study, performed by the Intermediary Mortgage Lenders Association, or IMLA, says that this would place figures at just over half what they were back in 1993.

New government initiatives are beginning to ease funding constraints, but the availability of low deposit mortgages continues to be a problem. Chancellor George Osborne is set to add a couple of ‘sweeteners’ to the housing market in the form of the Bank of England’s funding for lending programme and his own help to buy scheme, yet economic studies suggest that these will certainly not work over the long-term, and perhaps not have much effect in the short term either. The future of the UK housing market remains uncertain, with more and more young couples and families being quite simply priced out of the game.

Norton LoansOlder homeowners are also affected by the fluctuating economy, with many considering taking out a re-mortgage or secured loan to pay for home improvements or holidays or to consolidate debt finding it difficult to source competitive rates. Companies such as Norton Finance offer a service which includes comparing rates of hundreds of re-mortgages on behalf of the customer in order to ensure that each individual is able to take advantage of the reasonably priced deals available. By utilising the services of Norton Loans, UK homeowners are able to release some or all of the equity in their homes to fund whatever they require whilst remaining assured that they are not paying over the odds.

A quick guide from Norton Finance to taking out a personal loan

A personal loan, as the name suggests, can be used for any personal expenses, whether its home improvements, a new car, or a holiday. Here, Norton Finance explains what’s involved in taking out this type of loan.

For personal loans, you can typically apply for anything up to £15,000, although there are some lenders who may be willing to offer £25,000 as the maximum amount. The repayment period will vary from one lender to another, but can range from between six months to seven years. However, if you only need to borrow money for just six months, then Norton Loans recommends that you opt for an overdraft or a credit card instead, as personal loans can be more beneficial for those who wish to pay back the amount over the course of a year or more.

Norton Loans

Building societies, banks and loan companies can all provide personal loans, but will differ in terms of the interest rates they offer. Try not to be too tempted by a low interest rate – make sure to take other factors, such as early repayment charges and the length of the repayment period into account as well. Most personal loans come with a fixed, as opposed to a variable, rate of interest. This means that you will always know exactly how much you have to repay every month, and you don’t need to worry about your monthly payment rising unexpectedly at any point during the repayment period. According to Norton Finance, most lenders will require you to set up a direct debit for your payments.

Virtually every lender will carry out a credit check before deciding whether or not to offer you a loan; this will tell them how much of a risk you present, based on your past history of keeping up payments. Although Norton Loans say that a poor credit record does not automatically mean that you will be refused a personal loan, it may make it more difficult, and you may end up paying a higher rate of interest, than another person with a good credit record. Additionally, those who work on short term contracts, or who are self-employed might find it more of a challenge to get a loan.

Personal loans are rarely, if ever secured; this means that if you find that you are unable to repay the amount owed, the lender has no right to repossess your house. This is one of the reasons for the relatively high interest rate associated with personal loans – the lender is taking a bigger risk than they would if they offered a secured loan.