Are Mortgages Becoming Easier?
Acquiring a mortgage is one of life’s cornerstones, but there remains a significant number seemingly shut out because of unsecured personal debt. Since the credit crunch, and the demise of the so-called sub-prime market, it has been difficult for those with unsecured personal debt to get a mortgage approved. This is because lenders typically expect borrowers to have at least a 10% deposit, rising to 15% in some cases, or even 20% for the self-employed.
The problem of debt is widespread. Recently a survey by the Money Advice Service reported that over half of UK adults feel that they were struggling to maintain debt repayments, while Credit Action, a charity, reported that outstanding personal debt stood at an eye-watering £1,425 trillion at the end of June 2013.
The first step to getting a mortgage is to start saving for a house deposit. In order to save, you first need to clear any unsecured debt. This is the first stumbling block for many people, but there are ways to reduce outgoings and begin paying off debt and start saving. An increasing number of people are reaping the benefits of “downsizing”. Living within means makes it possible to clear debts and begin saving for a deposit. Additionally, many in their 20s and 30s are returning to live with parents in order to pay off debts and save for a house deposit. If outgoings are reduced, those with debt problems can get on top of their situation and start thinking longer-term.
If you are in serious debt and can’t see how you will ever be able to get on the housing ladder, there are options available to you. Speak to a specialist debt solution provider and they will be able to guide you to towards a future free of debt. If you think your debt can be solved by making cut-backs and adjusting your lifestyle, then there is good news for you also.
Recently the UK government announced a number of new schemes to help first time buyers onto the housing ladder. The help-to-buy scheme, announced in the budget, allows a mortgage to be secured with just a 5% deposit, as the UK government will effectively underwrite up to 10% on mortgages for new properties.
So the housing market is beginning to move after many years of stagnation. House prices are expected to rise in the next few years. In order to think long-term it is essential that previous problems are dealt with. Dealing with unsecured and personal debt is, therefore, the first step towards buying a house.
In summary:
* Since the credit crunch mortgages have been in short supply;
* Personal and unsecured debt remains at high levels in the UK;
* Personal debt can be a barrier to the mortgage market unless the debtor confronts the problem;
* If you have serious debt problems, contact a professional company for advice;
* UK government backed schemes are helping to open up the mortgage market.
Acquiring a mortgage is one of life’s cornerstones, but there remains a significant number seemingly shut out because of unsecured personal debt. Since the credit crunch, and the demise of the so-called sub-prime market, it has been difficult for those with unsecured personal debt to get a mortgage approved. This is because lenders typically expect borrowers to have at least a 10% deposit, rising to 15% in some cases, or even 20% for the self-employed.
The problem of debt is widespread. Recently a survey by the Money Advice Service reported that over half of UK adults feel that they were struggling to maintain debt repayments, while Credit Action, a charity, reported that outstanding personal debt stood at an eye-watering £1,425 trillion at the end of June 2013.
The first step to getting a mortgage is to start saving for a house deposit. In order to save, you first need to clear any unsecured debt. This is the first stumbling block for many people, but there are ways to reduce outgoings and begin paying off debt and start saving. An increasing number of people are reaping the benefits of “downsizing”. Living within means makes it possible to clear debts and begin saving for a deposit. Additionally, many in their 20s and 30s are returning to live with parents in order to pay off debts and save for a house deposit. If outgoings are reduced, those with debt problems can get on top of their situation and start thinking longer-term.
If you are in serious debt and can’t see how you will ever be able to get on the housing ladder, there are options available to you. Speak to a specialist debt solution provider and they will be able to guide you to towards a future free of debt. If you think your debt can be solved by making cut-backs and adjusting your lifestyle, then there is good news for you also.
Recently the UK government announced a number of new schemes to help first time buyers onto the housing ladder. The help-to-buy scheme, announced in the budget, allows a mortgage to be secured with just a 5% deposit, as the UK government will effectively underwrite up to 10% on mortgages for new properties.
So the housing market is beginning to move after many years of stagnation. House prices are expected to rise in the next few years. In order to think long-term it is essential that previous problems are dealt with. Dealing with unsecured and personal debt is, therefore, the first step towards buying a house.
In summary:
* Since the credit crunch mortgages have been in short supply;
* Personal and unsecured debt remains at high levels in the UK;
* Personal debt can be a barrier to the mortgage market unless the debtor confronts the problem;
* If you have serious debt problems, contact a professional company for advice;
* UK government backed schemes are helping to open up the mortgage market.
Do you recognise the look on this mans face? Being in debt can be one of the most stressful situations to find yourself in. This site is a no nonsense guide on how to get out of debt, detailing all of the different methods, as well as explaining them in order for you to determine which one is best for you.
There are many ways you can get yourself out of the hole and stay out of it. You could find yourself debt free in no time.
If you have any suggestions, questions or would like to share your experiences please see the contact us page.
There are many ways you can get yourself out of the hole and stay out of it. You could find yourself debt free in no time.
If you have any suggestions, questions or would like to share your experiences please see the contact us page.
How to Deal with Priority Debts
Priority debts are debts that are more important than other outgoings. They are classed as a priority as the law allows extreme actions to be taken if a borrower fails to make a repayment. For example, the creditor may:
· Repossess or evict a debtor from their home
· Hire bailiffs to remove a person's belongings from their property
· Cut energy services
· Summon a lender to court - which could result in imprisonment
Therefore, it is essential to pay priority bills before repaying other outstanding amounts. In order to help you take control of your finances, we've came up with a step-by-step guide to help borrowers stay out of the red.
Priority debts usually include:
· Mortgage/rent
· Council tax
· Energy bills
· Tax debt
· Tax credit overpayments
· Child maintenance
· Hire purchase or conditional sale
· Magistrates' court fines
· Benefit overpayments
· Parking penalty charges
· Social fund loans
· TV licence
Contact the Creditor
When struggling to make debt repayments, a borrower should contact a creditor to explain their financial situation. By communicating with the creditor about a financial situation, the debtor could arrange a new payment plan that suits their budget, which will provide them with a little breathing room to pay other debts, whilst ensuring their finances don't spiral out of control.
Create a Budget Sheet
A personal budget sheet will help borrowers identify if they have more money going out instead of in. The sheet will also help a person prioritise the most important debts to the least. The National Debtline offer a superb money sheet that can debtors arrange their finances.
Quick Repayments
It is important borrowers pay as much money as possible towards priority debts, without missing ongoing payments. Should a person be in arrears, they should aim to make as many affordable payments to repay the outstanding amount, which will limit the action taken against them by the creditor.
Creditor Action
It is bound to be a little daunting when a borrower receives an action letter from a creditor. However, before entering panic mode, bear in mind that it's not too late to come to some sort of agreement with the lender. Contact the creditor to see if they are willing to make an alternative repayment plan.
Boost Your Income
Look into every financial avenue available, as every year people often miss out on hundreds of pounds that they're entitled to receive. Look into benefits, tax benefits and universal credit entitlement, as well as other ways to increase your income, such as asking an employer for a pay rise.
Make a Complaint
If you believe you have been treated unfairly by a creditor, you shouldn't be afraid to make a complaint to an ombudsman service. You have the right to complain if you believe the creditor has broken the terms of the conditions and, as a result, the law.
Are you struggling with debt and don't know which way to turn? Don't suffer in silence. Contact a debt adviser today who can provide you with informative advice.
Priority debts are debts that are more important than other outgoings. They are classed as a priority as the law allows extreme actions to be taken if a borrower fails to make a repayment. For example, the creditor may:
· Repossess or evict a debtor from their home
· Hire bailiffs to remove a person's belongings from their property
· Cut energy services
· Summon a lender to court - which could result in imprisonment
Therefore, it is essential to pay priority bills before repaying other outstanding amounts. In order to help you take control of your finances, we've came up with a step-by-step guide to help borrowers stay out of the red.
Priority debts usually include:
· Mortgage/rent
· Council tax
· Energy bills
· Tax debt
· Tax credit overpayments
· Child maintenance
· Hire purchase or conditional sale
· Magistrates' court fines
· Benefit overpayments
· Parking penalty charges
· Social fund loans
· TV licence
Contact the Creditor
When struggling to make debt repayments, a borrower should contact a creditor to explain their financial situation. By communicating with the creditor about a financial situation, the debtor could arrange a new payment plan that suits their budget, which will provide them with a little breathing room to pay other debts, whilst ensuring their finances don't spiral out of control.
Create a Budget Sheet
A personal budget sheet will help borrowers identify if they have more money going out instead of in. The sheet will also help a person prioritise the most important debts to the least. The National Debtline offer a superb money sheet that can debtors arrange their finances.
Quick Repayments
It is important borrowers pay as much money as possible towards priority debts, without missing ongoing payments. Should a person be in arrears, they should aim to make as many affordable payments to repay the outstanding amount, which will limit the action taken against them by the creditor.
Creditor Action
It is bound to be a little daunting when a borrower receives an action letter from a creditor. However, before entering panic mode, bear in mind that it's not too late to come to some sort of agreement with the lender. Contact the creditor to see if they are willing to make an alternative repayment plan.
Boost Your Income
Look into every financial avenue available, as every year people often miss out on hundreds of pounds that they're entitled to receive. Look into benefits, tax benefits and universal credit entitlement, as well as other ways to increase your income, such as asking an employer for a pay rise.
Make a Complaint
If you believe you have been treated unfairly by a creditor, you shouldn't be afraid to make a complaint to an ombudsman service. You have the right to complain if you believe the creditor has broken the terms of the conditions and, as a result, the law.
Are you struggling with debt and don't know which way to turn? Don't suffer in silence. Contact a debt adviser today who can provide you with informative advice.