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Information released by the Alliance Trust has shown that increasing rent costs tend to strain people’s financial standing. Whether young or old, in real terms of over-all inflation and cost of living increases, homeowners face less financial damage.

Unfortunately, for elderly citizens over 75 years of age, an inflation rate of 2.2% is reflected - more than a fifth higher than the general rate of 1.8%.

Housing costs have been identified by Alliance Trust as one of the two main areas of expenses for the elderly – putting an additional strain on those still renting as opposed to those who have purchased their home.

Shona Dobbie, Head of the Alliance Trust Research Centre, warned ‘the flooding in England and the heat wave experienced in Europe had an impact on some food crops and prices may rise further in the coming months.’

But for homeowners who face lower inflation, and with utility costs stabilizing, individuals may have additional equity due to rising house prices. These funds could be released through a secured home loan to meet financial pressures until markets re-stabilize completely.

Managing Director of the Association of Mortgage Intermediaries, Richard Farr asserts that in light of the recent credit crunch, self-certification mortgages may become less available than conventional loans. 

Self Certification Mortgages, informally known as “self-cert” mortgages, are available to employed and self-employed people who have a deposit to buy a home, but may lack the sufficient documentation to prove their income. Self-cert mortgages also provide access to loans for those individuals who might otherwise be rejected for other lending products – due to their inability to substantiate their entire income. 

Lenders will usually lend up to a fixed multiple of the borrower’s annual income as declared on wage slips and other documentation. However, self-cert mortgages have two disadvantages: the interest rates charged are usually higher than for normal mortgages and the loan to value ratio is usually lower. 

“Previously, this was a very competitive market - the market had been growing well,” Mr. Farr explained. “However, the emergence of the credit crunch has contracted the market.” 

Therefore, individuals who would normally look to a self-cert mortgage may need to seek alternatives, such as a secured home loan.

Mr. Farr further observed that self-cert mortgages have historically been a “very small part” of the lending market as a whole.

Until the lending sector settles down from the recent credit lending turbulence, for those with assets in the form of property, a secured home loan could prove to be their best choice - while alternative forms of lending may be less available.

In many cases, debt consolidation loans are looked at more favourably by banks than individual voluntary arrangements (IVAs).

And many Britons seeking to manage their debts are unaware that more often than not, better alternatives to IVAs are available to them.

The Consumer Credit Counselling Service (CCCS) has noted that popular advertising campaigns have made IVAs more successful, but not necessarily to the greatest benefit of the individual seeking debt consolidation.

A spokesperson for CCCS stated, “People who go to an IVA company … very often don’t know that there are alternative options to them and alternative services.” He added that banks are becoming less agreeable to IVAs due to the potentially high costs imposed by the IVA company, which arranges the service.

The spokesperson also asserted that IVAs are suitable in less than 5% of cases, with bankruptcy the best option for about 15% of the hardest hit indebted Britons.

For the remaining four out of five individuals, the spokesperson asserted, “We suggest that people might be better off with other options.”

In many cases, debt consolidation loans could be the best choice; reducing the number and amount of monthly payments, and creating a fixed repayment schedule in which to financially recover.

Datamonitor, a financial industry analyst, foresees an “encouraging future” for secured loans in the UK, despite the recent credit crisis fallout caused by the sub-prime lending chaos in the US. 

The research has shown a growing trend in consumer demand for secured loans in the UK - in the not too distant future - regardless of the continuing crisis in the US, which is expected to last at least through the year 2008. Many analysts in the US concur that little recovery is expected for their lending markets until mid-2009.

Maya Imberg, a financial services analyst stated, “Some lenders will withdraw from the market for a short while before returning, thus affecting the market in the [UK], in the short-term, rather than the long-term.” 

In 2006, the total amount lent to consumers in secured loans was roughly £7.5 billion. And, at an average compound growth of 5% each year, consumer demand is likely to see the amount increase to £10.2 billion by 2011.

Datamonitor’s research also revealed a comparative increase in consumer debt of approximately 41% between the year 2000 and 2004. The over-all consumer debt index is also unlikely to wane from predictions of slight continual increases in the foreseeable future.

According to the latest findings by British Gas, utility bills could be lessened by as much as a third by applying energy efficient home improvements, especially to aging structures. 

Managing Director, Phil Bentley offered, “For every £3 we spend heating our homes, £1 is wasted because of poor insulation”. He further added, “Whilst strict standards on new-build [housing] are needed, most of the energy being consumed is in the ageing homes we live in today.”

The firm’s data shows that less than a quarter (22%) of homes in 2050 will have been built after 2007 – meaning that 78% of homes may not conform to modern energy standards.

Current regulations require new construction to be environmentally sound, but British Gas urges owners of existing, and especially older, Real Estate to consider improving their insulation.

Funds provided through a home loan could meet the financial necessities of updating existing homes and structures and improving efficiency - and may reduce energy bills by as much as a significant one-third.

For Britons looking to keep abreast of climate change, and ensuring their homes and buildings are as energy efficient as possible; window film coverings, awnings, insulation and weather stripping are a few tenable areas to consider upgrading or adding for maximum efficiency.

Centrica, British Gas’ parent company, has been recognised as being among the leading energy firms looking for ways to better manage climate change.

A financial services provider has conducted a survey of over-50s Saga and reports the majority of Brits in the age group are feeling positive over current property prices.

Homeownership is cited as the leading cause of the trend, with the accessibility of secured home loans as the primary contributing factor.

“Baby-boomers have never had it so good, particularly with their finances, thanks to soaring property prices. This study clearly shows that they are also the most relaxed and dispels the view that many have a mid-life crisis when they reach their 50s,” stated Chief Executive, Andrew Goodsell.

Additionally, roughly 70% of individuals over the age of 50 told the researches that they believe there is far more pressure on the younger generation to buy a house – especially as compared to twenty years ago.

With figures from Credit Action showing the proportion of lending secured against property as having increased in the 12 months leading to 2006, home loans clearly remain the primary avenue for boosting finances for many homeowners – and the trend is expected to continue from 2007 through 2008.

Almost 300 million out-dated devices are currently being hoarded in British homes, according to a survey conducted by insurer esure.

Apparently, consumers are holding on to the old electronics for various reasons; one of which is to add to the over-all value of their home contents in their insurance policies. 

Some individuals however, simply can’t let go of the items because of the amount of money initially spent on them. This seems to be the case, even if electronics such as video recorders (VCRs) have already been replaced by DVD players, and so on.

Given the rapidity of technological changes, and how expensive some of the appliances are, such as hi-fis being replaced by iPods and docking stations - it’s easy to see why many consumers are reluctant to throw their old equipment away. The older technology still works - but is considered outdated. Victrolas still play vinyl records and in many cases these items have now gained in value. Only time will tell if old electronics will follow the same path, and many believe it to be unlikely. 

According to esure, the findings of their survey are also indicative of consumers’ willingness to spend on new luxuries - with secured loans a possible means of affording the new technologies.

Nikki Sellers, head of home insurance stated, “Millions of homes are tied to a constant upgrade cycle on account of new and better gadgets appearing almost daily. Unfortunately, we are also stockpiling the items they replace because we can’t bear to throw them away.”

One in three respondents surveyed said they were unwilling to get rid of the antiquated goods due to the amount of money they had spent on them.

The Office of Fair Trading previously observed that securing home loans and other forms of lending offered “a sign of freedom” for young Britons, and could possibly spread the expense of major purchases over a period of time, lessening the strain on available finances.