Adverse Mortgages UK

Fraud is on the increase as people see their debts rise during the present credit crunch, it has been claimed.

According to BDO Stoy Howard, in the last six months business fraud has jumped by 74 per cent, with staff members taking money from their places of work.

Simon Bevan from the organisation suggested that as times become harder for consumers they are looking for other ways to generate cash, news that might concern those with personal loans.

And he added that unless businesses realise what is going on quickly then the trend will continue throughout the year.

"Commercial organisations of all types and size throughout the UK are failing to get to grips with the fraudulent activity of their staff," he commented.

The financial sector was the worst hit in the first six months of the year, the firm said, as 90 per cent of all cases were seen here.

Last week, the Times found that a growing number of people are relying on payday loans because their money is running out before their salary is handed to them.

 

More land should be made available to ensure that the supply of homes in the UK is maintained, the Town and Country Planning Association (TCPA) has noted.

The organisation responded to research that has been released by the National Housing and Planning Advice Unit (NHPAU), which found that there is an undersupply.

Chief Executive Gideon Amos asserted that major planning should be undertaken so that these problems are not witnessed extensively, news that may concern those with a mortgage.

"It is easy to suggest that families ought to move into empty homes instead of building new ones. However replacement stock can be far more energy efficient and offer a better quality of life," he commented.

He added that while only a little amount of help can be gleaned from homes that are empty, efforts should still be made so that these locations are made "habitable".

The NHPAU stated that over three million fresh homes should be available to buyers by 2020.

 

Kitchens and bathrooms that are modern in appearance can help homes to become more attractive, it has been claimed this week.

The National Landlords Association stated that people buying properties for investment purposes need to ensure that these areas are up to scratch.

Head of communications at the company Simon Gordon claimed that these landlords, who may have purchased a mortgage, should see that the homes stand out from the competition.

Action they can take includes the installation of broadband of digital television or by decorating the property so that it is aesthetically pleasing.

But typically, they should find that changes to the aforementioned areas well serve them well in the future, Mr Gordon noted.

"Modern bathrooms and kitchens are often attractive and many tenants prefer to rent somewhere with wooden flooring," he suggested.

In 2006, 22 per cent of investors remarked that they did not think they had to make any changes to their homes, the Private Landlords Survey said.

 

People are running out of money before they get paid and are turning to loans to fund general living, it has been claimed.

According to a recent survey in the Times, payday loans are being used more frequently because the credit crunch is hitting people hard.

The report found that in the past ten months, the amount of payday loans taken out has risen by 130% because consumers are struggling.

Chris Tapp from Credit Action asserted that it is obvious that this is a problem for people and that these form of loans are growing in popularity.

A fee of £125 is added to each £100 taken from Payday UK, the Fair Investment Company said, while loans come with an average APR of 1,335 per cent.

Debt in Suffolk is beginning to escalate because the cost of everyday life is rising as a result of the present economic conditions, the Citizens' Advice Bureau has noted.

 

A new study has said that many youngsters are taking on debts that they did not really need initially.

Of those polled by Citizens Advice and YouthNet, 68 per cent between 16 and 24 claimed that they have been urged by service providers to agree to loans.

Moreover, 83 per cent said that they have been offered a store card while browsing on the high street, while 77 per cent had gained loans and credit offers in the mail.

And as a result, 47 per cent noted that they have got into debt because of these credit issues, with many feeling worried as well.

In order to stop the trend, 65 per cent argued that it should be harder for them to get their hands on any form of credit.

For people already in financial woe, two-thirds of respondents thought that there should be more support on hand.

Household bills could increase by about 40 per cent this year as service providers look to cover the cost of wholesale charges, bosses at energy companies warned this week.

 

Property prices in the UK might drop by about ten per cent in 2008, an advisor to the government has stated.

The view of Professor Davis Miles is that the assumption is based on how the housing market has been behaving over recent times, reports the Independent.

The drop in prices will not trigger a recession, Professor Miles noted, but negative equity could be witnessed if a 15 per cent drop in real house prices happens.

In total, about a percentage point of the growth rate may be seen if the predicted ten per cent lowering were a reality, he contended, something that may interest those with a mortgage.

Yet the official added that if 1.2 million homes hit negative equity, they would merely be "dipping" into this territory at present.

Earlier this week, the British Bankers' Association stated that mortgage approvals dropped to a record low in May.

 

There are fears in Suffolk as the Citizens' Advice Bureau (CAB) said that personal debt there has hit the £25 million mark.

In total, housing debt alone stood at £503,262, the CAB in Leiston, Saxmundham and District noted, as reported by East Anglian Daily Times.

Manager of the organisation in the area Nick Mayo asserted that as a result of the credit crunch the cost of living is rising and entire economy is in trouble.

He suggested that people take on products such as personal loans but could find life difficult if their incomes are lowered.

"When times are good it is not a problem but when things turn bad you can end up losing your home. It's not just the debts but also real issues with relationships," she commented.

She added that service providers ought to ensure that they adopt a greater degree of responsibility so that people do not get into as much trouble.

Recently Norfolk Debtline claimed that arrears in that part of the world have also spiralled to £16 million.

 

Those in Scotland have debts amounting to about £7,000 on average, it has been claimed this week.

Citizens Advice Scotland noted that debts are getting out of control for some and that more could be done to ensure the problem does not escalate, reports the Edinburgh Evening News.

The organisation noted that with tighter lending criteria, on products such as personal loans, then many of these debt issues could be eradicated.

Kaliani Lyle, chief executive at Citizens Advice Scotland, remarked that a lot of attention is given to matters such as mortgages but the general cost of living is just as damaging.

She told the paper: "But what about the number of people who are thrown into debt simply through trying to buy Christmas presents for their children, or having to pay an electricity bill or repair a cooker?"

And poorer consumers are often charged interest rates that would be financially damaging to even really wealthy people, she added.

In related news, uSwitch.com has this week released a series of hints for those who want to try and beat the impact of the credit crunch.

 

Household bills could be set to rise dramatically in the next few months, officials at energy firms have warned.

Executives at these organisations said that growing charges for global fuel are going to push up their prices in the long run.

One of them, chief executive at Centrica Sam Laidlaw, noted that these providers have to keep their margins at a realistic level and therefore no other alternative is possible, something that could impact on those with loans.

"We need to make a return because we need to invest in new sources of gas for the UK and to invest in replacing power generation," he commented to a House of Commons select committee.

He added that 25 per cent of the existing energy network will have to be replaced with more sustainable means over the next decade.

Representatives from six of the biggest energy firms in Europe including British Gas, EDF and E.ON were present at the meeting.

 

Despite the ongoing credit crunch, many consumers in the UK are still planning on using their credit cards to spend a great deal of cash, it has been claimed.

According to the Sainsbury's Credit Cards, an average of £305.90 will be spent by 25.78 million people this summer via plastic loans, with some looking to spend over £800.

Head of cards at Sainsbury's Finance Donald MacLoed urged consumers to ensure that the incentives for using cards are good enough.

"If you are going to use a credit card in the summer sales, it pays to use one that gives you attractive rewards that are not only easy to collect but also redeem so that you really are earning whilst you spend and getting a little back," he commented.

But 20 per cent of those polled remarked that they will not spend as much as last summer in the sales this year thanks to the impact of the credit crunch.

The chief executive of Moneynet.co.uk recently suggested that credit card debts should be repaid by consumers first.