Balance transfer nation moves £11.9bn in six months by Finance News Bulletin
- Home
- »Balance transfer nation moves £11.9bn in six months
Published: 30/10/06
Some £119 billion will be transferred between credit cards over the next six months alone, claims market research from assets OneAlmost six million credit card holders will each move an standard £2,601 between zero per cent and low interest balance move credit cards claimed the study"Around 57 per cent of credit cards offer zero per cent interest on balance move, but people switching balances to these cards require to choose carefully because the length of interest free periods varies radically," said Justin Basini of Capital One
"For example, almost four out of ten of these cards have zero per cent interest balance move deals that last for six months or less, which may not be long enough for some people"Only 43 per cent of balance move users clear their balance in six months or less, with an average of ten monthsAlmost 25 million credit card users will move £1,000 or less, two million are bearing in mind transferring between £1,000 and £2,000 and 678,000 will move between £2,000 and £5,000
MoneyExpert incomplete is authorised and regulated by the Financial Services Authority (FSA register No 301654) The Financial Services Authority does not regulate some forms of mortgage contract, credit cards, personal loans, present accounts and
Visit original article:Related Articles:
Buyers forced to wait for mortgages, study shows - Published:14/12/07
Millions of buyers in the UK are facing unnecessary delays on mortgage offers, according to new investigateSome 14 million borrowers will face needless stress due to the problem, while a further 255,000 will lose cash, the GMAC-RFC study showsJeff Knight, director of marketing at GMAC-RFC, said: "trade a house is one of the most exciting things you can do, however this excitement has often been offset by a huge amount of needless stress and uncertainty involved in the process, whilst the mortgage offer has been waited for, which can take up to a monthMr Knight continues that new skill which allows borrowers to receive online mortgage offers will reduce the stress and possible extra cost which are caused by delays"This removes the stress and hassle, and frees up time for everyone concerned in this process," he concludedGMAC-RFC was formed in the UK in 1998 and now claims to be the UK's 10th largest mortgage lendernowadays's Most Popular Results Mortgage Enquiry Form Need Life Insurance ------ Mortgages - Information Mortgages - Home ------ Financial armed forces - HomeNone of the information on this website is intended to promote any exact mortgage product or provide mortgage recommendation Mortgagescouk is a non-regulated trading name of monetary Services Net Ltd[Terms & Conditions]more sites:car insurance| home.
Read More: Buyers Forced To Wait For Mortgages, Study Shows >>Negative equity stalks buyers - Published:17/10/07
The bleak spectre of negative equity - where homeowners' mortgages outweigh the value of their possessions - is rearing its unattractive head again as thousands of borrowers take out new, bigger loansreimbursement: Amy Hayward and Michael Shorter borrowed more than the value of their home, but its value is up by 15 per cent since last yearThis is Money has been named Financial Website of the Year in recognition of its campaigning coverage >> ReadIn part, the tendency is being driven by leading lenders luring unparalleled buyers with offers of loans worth anything from 100 to 125% of the price of a houseEarlier this month, Abbey launched a mortgage meant at unparalleled buyers where it would lend the full value of the possessions at a rate of 699%Rivals Alliance & Leicester, Northern Rock and Coventry structure Society already offer such deals Some lenders, such as A&L, present a mix of debt in the form of a mortgage and a personal loan that can take the total owed up to 125 per cent of a property's valueIn other language, a first-time buyer purchasing a property for the standard of £152,000 could borrow as much as £190,000 Until they paid off some of the mortgage, or unless the property's worth went up, buyers would be in negative equityYorkshire Building civilization, the latest big lender to enter the fray, is expected to proclaim a 100 per cent-plus mortgage deal this weekFor some borrowers, the risk of borrowing to buy a home with no deposit has salaried off (see report, left) But with economists virtually common in predicting both a rise in interest rates and a hold up in house prices, the risks have never been higherEven the Council of Mortgage Lenders, which represents the interests of banks and building societies rather than their clientele, has warned that interest rate payments for unparalleled buyers are at a 15-year highBut cash-strapped first-timers are not the only homeowners in negative evenhandedness Older borrowers with hefty credit card and other luxurious debts are being targeted by lenders offering to roll all the money owing into one giant loan worth anything up to 125% of the price of their possessionsJulia Dallimore of one such lender, image Financial, says that in many luggage borrowers benefit from an overall reduction in the price of their interest payments'We are not encouraging borrowers to spend more or borrow more,' she says 'By the occasion they have come to us, the money has already been spent We simply make the debt easier to afford'Picture monetary, one of dozens of companies advertising loans of up to 125% of property principles, says it will not lend where borrowers' total repayments go beyond 45% of their take-home payIts borrowers are not characteristically in arrears when they apply, says Dallimore They are middle-class earners whose spending behavior have left them with debts that now 'spasm their style'Negative equity was a feared and reviled feature of the Nineties housing crash when at one tip 1,500 properties were being repossessed every weekDallimore admits that nowadays, negative equity appears to be viewed differently 'People have become more comfortable with money owing,' she says 'Also, this is a different scenario as the negative evenhandedness has arisen through money that has been spent rather than through a fall in the value of homes'The rising popularity of interestonly mortgages, where borrowers repair debt but do not make any capital repayments, does not help homeowners to construct up equity in their propertiesAccording to the monetary Services Authority, six per cent of people speak they are struggling to meet interest payments That number, based on research undertaken last day, is expected to have grown as tax have risenBeautician Amy Hayward and boyfriend Michael Shorter consider they got on the property steps just in timeAmy says had they not taken a gamble in February 2006, when they on loan 105% of the asking price of their one-bedroom, finish of terrace house in Kidlington, Oxfordshire, they would have missed their possibility to become homeowners at all'We talked about it a lot,' says Amy, 23 'Ideally, we would have loved to have had a deposit We consideration of borrowing from our parents, but then we thought, ''Let's see if we can do it ourselves'''Amy and Michael, 28, a mechanic, took out a Coventry structure Society deal where a mortgage of 95% of the property's worth was coupled with a personal loan, taking the total borrowed to five per cent more than the home price'My mum was very cautious - she wanted to be acquainted with if we were absolutely certain,' Amy says 'We were Of course, we would have been devastated if the market had fallen'As it happens, she says, alike houses are now going for about 15% more than they salaried 17 months ago - sums they could not afford to pay nowadays, and as a result they are no longer in unenthusiastic equityThe trouble is that many of these young people put on't remember 1991/2 and the marketplace crash then They've never lived through years of recession, only a 'growing' although on credit) economy The 15% gain will vanish during the night when the crash comesI have just been speaking to a builder about the 1974 house price crash - scary - it went on for ages, a great deal a great deal longer than 1989 - 1994 And now these people are being confident to borrow 125% ScandalousHouse prices always go up A few people are going to ride a few rough waves over then year or two However, a crash is now fantasy You can never go wrong with propertyThere hasn't been any attempt to stabilise home prices or to draw notice to would be buyers just how fine they are cutting things There have only been dissimilar ploys such as fourty year mortgages, interest only and 125 per cent mortgages to allow people to have enough money homes beyond their means It is occasion to cap lending and also the rent of private property When belongings go wrong the taxpayer will end up with the billI suspect that some people forget two obvious points that strike hard in the last recession The first is that, should your house be sold for less than the mortgage, you remain liable for any remaining deficit on the loan The second is that gearing works for you when prices go up but against you when they fall - a 10% drop in possessions prices every one comes from your equity even if the mortgage covered 95% of the house""Its borrowers are not typically in amount overdue when they be relevant, says Dallimore They are middle-class earners whose spending habits have left them with debts that now 'spasm their style'""'Aww what a disgrace',Says it all about living beyond ones means Thay deserve all the unenthusiastic equity they get if they want to spend their futureThis is typical of a top in the praise cycle Banks fall over each other to lend sums of cash that people won't be able to repay This is fine while conditions stay benign, but the difficulty is that economic conditions are deteriorating In the US Bear Stearns have already had to bail out a hedge finance for 32 Billion after these types of loands went sour Once that happens everyone starts to raise interest rates, and you have an economic disaster on your hands Well done Gordon BrownThis is immensely foolhardy on the part of both lenders and borrowers When house prices stagnate or fall and personal circumstances dictate a move, the unenthusiastic equity will really hit homeI assume the mortgage lenders have put adequate events in place to protect themselves from a future wave of 'mis-selling' claimschoose a loan term 12 months (1 day 24 months (2 years) 36 months (3 years) 48 months (4 existence 60 months (5 existence 72 months (6 existence 84 months (7 existence 96 months (8 existence 108 months (9 existence 120 months (10 existencePlease select a type of insurance Life insurance Home and inside Car Breakdown armed forces Health - medical Health - dental Travel Pet - dog favorite - cat GOThinking about investing in property This is Money has the best buy-to-let information and recommendation >>.
Read More: Negative Equity Stalks Buyers >>BBA: UK lending rises but credit card borrowing subdued - Published:21/02/07
The latest figures from the British financier's Association (BBA) reveal a rise in lending for September 2005 but credit card borrowing remains subduedUnsecured lending knowledgeable growth totalling £05 billion which was lower than growth for imposing but in line with the average of the last six monthsLoans and overdrafts rose by £04 billion, which waterfall in with the expected trend, while credit card borrowing rose by £01 billion, showing no significant improvement on recent unsatisfactory credit card spending figuresMortgage lending enjoyed a go up of £5 billion for September, higher than the average of the last six months and surpassing the imposing rise of £44 billionDavid Dooks, BBA director of statistics, said: "With recent months' higher endorsement volumes working their way through to lending, September saw a stronger figure for mortgage lending than of late, maintaining the very steady trend we have seen throughout this year"Credit certificate lending continues to be very subdued, reliable with the current picture of weak consumer spending"MoneyExpert Limited is authorised and regulated by the Financial armed forces power (FSA Registration No 301654) The Financial Services power does not regulate some forms of mortgage agreement, credit cards, personal.
Read More: Bba: Uk Lending Rises But Credit Card Borrowing Subdued >>