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A spokesperson for the Council of Mortgage Lenders, (CML) asserted, “The safety net for homeowners is still too patchy and piecemeal to be effective…

While the idea of a compulsory insurance scheme might seem superficially attractive, it would not deal with the range of uninsurable risks that people face.” 

Clearly, more effective assistance is needed from the government for homeowners facing financial hardships. According to Jackie Bennett, Head of Policy with the council, the government does too little to help property owners when they are faced with serious debt problems. 

The CML also revealed that tenants who rent their dwellings typically receive more help than the owners of property.

For those attempting to manage serious financial difficulties, a home loan could be the solution - even if a mortgage is already secured against the property. A popular lending product known as a “second charge” could be a homeowners’ best alternative; as it is provided with a fixed repayment period.

In any case, homeowners should diligently consider the alternatives available to them, rather than face possible eviction - and not count on the government for any further assistance which does not seem to be immediately forthcoming.

According to Alliance & Leicester, the average cost to homeowners seeking to secure their property against intruders is now at approximately £8,500.

Data from the financial services provider show that 68% of Britons would be willing to spend top dollar on a state-of-the-art security system to protect their homes and businesses.

Senior Personal Loans Manager, Richard Al-Dabbagh offered, “It is only natural we should want to protect our homes…Clearly the best way to do so is to invest in equipment which will either deter or prevent would-be burglars from attempting to break in.”

The Association of British Insurers recently revealed that home insurance premiums are often reduced if a property is well secured, thereby lessening the risk of damages and theft.

The firm also suggested that a low interest rate, secured loan, could be a good means of financing security systems, and are usually found to be a sound investment in personal and property protection.

Gates and floodlights were two improvements suggested by the firm as an effective means of achieving this. Additionally, for a comprehensive list of home security providers, a search on the Internet for “simple home security” will also produce many Web sites offering wireless devices and security companies for easily installed home security products.

A lot of useful links and information was found at: http://www.uk250.co.uk/HomeSecurity. Once you’ve located the right products for securing your property, consider a secured home loan with which to purchase the products or services and you’ll start the New Year off on the right foot in preparedness for any would-be thieves or home invaders.

Finally, remember to contact your property’s insurance provider and inquire as to any reductions in premiums for which you may now be qualified to receive.

Many Britons are temporarily reducing their immediate interest payments on their outstanding credit debt by transferring high-interest cards to low - or no - interest cards. Almost 29% are seeking the no-interest introductory periods for new purchases, in order to allow them to spend further, at no additional cost.

Financial services provider Abbey shows 51% of credit card holders are switching cards to gain access to an introductory, interest-free balance transfer period. 

Managing Director of Santander Cards, (which provides Abbey’s credit facilities), Roger Lovering, stated, “These figures just show the intense competition in the credit card market. With £11 billion at stake, it’s the credit card with the best deal that wins.”

Competition for the lower rates, and the no-rate introductory period, seems to be driving the credit card industry to reduce their over-all rates. But consumers are cautioned to read the fine print when switching cards; and remain mindful of when the introductory period ends - along with what the rate will be at the end of that period. Many Brits could find themselves locked into a higher rate situation than if they had stayed with their original card company. This is especially true for those individuals who continue to charge on their cards – only to find they have higher fees in the end.

The data from Credit Action shows that the average consumer credit debt at the end of August 2007 was at £4,524 per person - including overdrafts and unsecured loans.

Choosing a secured loan borrowed against property could allow Britons to borrow at a lower rate, than what may be attached to a credit card, while at the same time securing a fixed repayment schedule to eventually clear all their debts.

When planning for the Christmas season, the Office of Fair Trading (OFT), suggests there are better alternatives to traditional savings plans than the hampers type of schemes. 

In June, the organisation launched its “Save Xmas” campaign to raise awareness of issues relating to the Farepak collapse. And when the hamper company went under in 2006, many of its customers were left without the products they had saved towards - and with no refund forthcoming.

An OFT spokesperson stated, “For some people the hamper schemes are good because of the fact they come to your door and community. We’re not saying how to save your money, we’re just saying be aware of your options.”

Funds invested carefully throughout the year, some of which may have originated through a homeowner loan, could prove to be a more effective means of financing the festive season.

Britons who wish to save as much as possible for the holiday season could add to an invested fund throughout the year – even to the simple tune of £10 or £20 per month – to find the extra money a welcomed relief by the time the Carolers begin to sing. 

Such forward planning could stave off the harsher reality of high-interest credit card bills in each New Year, thereby placing individuals in a much stronger position financially, to make wiser decisions with their money.

Often, in the process of selling and buying Real Estate, the seller of a property may need to close on a property deal before the buyer has his own property sold.  When a problem with timeliness occurs, there is no need for the new buyer to loose out on the property he wants to purchase. 

According to the Council of Mortgage Lenders, bridged loans can allow an individual to buy a new house before the sale of their old one has finalized. In this way, both transactions can occur and the buyer will be prepared with the funds necessary to purchase the new property.

A spokesperson for the Council of Mortgage Lenders asserted that the name “bridged loan” is derived from the ability to bridge the gap between two secure financial transitions.

“Bridging finance is the main and obvious route where there is a mismatch between the purchase of a property and the sale of the former property,” she explained. However, she also asserted, “It shouldn’t necessarily be seen as a long-term solution to any property-related transaction.”

Secured home loans are an additional means of releasing equity in a property prior to its sale, when additional funding is needed.

In 2005, data published by PriceWaterhouseCoopers showed that 82% of all borrowing was secured, with property used as collateral.

Home improvement do-it-yourselfers (DIYers), are strongly encouraged to take a good measurement of what they are – and are not – qualified to tackle. 

Although home improvements via upgrades and repairs are a good way to reinvest in real property, Andrew Leech, Technical Consultant to the National Home Improvement Council, advises Britons not to undertake substantial renovations without adequate insurance coverage and professional consultation.

Often, claims for structural instability are unlikely to be honoured if the policyholder caused the damage by knocking out a supporting wall or damaging support beams.

This can leave homeowners facing a substantial debt risk as they seek ways of funding repairs to work they have done themselves.

Mr. Leech further advises, “On the other hand, if you get a person in to do it for you, then he [or she] would have to have insurance to cover that sort of thing. So if there was any disaster it wouldn’t touch your household insurance.”

Professional carpenters should be covered by their own insurance, and homeowners should ask to see a current copy of their policy, before allowing the commencement of any structural home improvements.

According to Halifax’s research, the average repair bill following a botched DIY job stands at approximately £484 in the UK. Further, the combined national DIY debt totals approximately £350 million as a result of failed home improvements. 

Clearly, home improvement loans secured against Real Estate to cover the cost of renovations, coupled with proven insurance coverage and professional advice, is the best route to undertake prior to firing up drills and saws to valuable property.

Some mortgage holders have been using credit cards to meet their monthly repayment requirements. Approximately 7% of men and 6% of women have used a credit card to cover a mortgage payment, according to research conducted by homeless charity, Shelter.

Unfortunately, this practice is almost certain to put borrowers further in debt, as credit card interest rates can be 50% higher than typical mortgage rates.

“Desperation is driving them to short-term, high-cost borrowing. Ordinary people are being forced to seek more risky and expensive ways to stave off the threat of eviction,” said Chief Executive, Adam Sampson.

Credit Action emphasizes these short-term, knee-jerk reactions could prove to be far more costly in the long-term; with the average annual interest costs per person being £3,725, in August 2007.

The UK mortgage market is one of the most innovative in the world. Unlike other countries there is no intervention by the state or state funded entities, and borrowing is funded by either mutual organisations (building societies and credit unions) or proprietary lenders - typically banks. Since 1982, when the market was greatly deregulated, there has been substantial innovation and diversification of strategies employed by lenders to attract borrowers. This has led to a wide range of mortgage products available to borrowers.

Individuals currently in desperation are strongly recommended to seek the financial guidance of a mortgage professional to remedy their financial woes. By obtaining any one of several types of home loans available, some of the equity held in property could be released.

Instead of attempting to tackle financial hardships in a piece-meal way, looking at an individual’s finances as a whole, will allow financial problems to be more easily, and less expensively, managed.

Sainsbury’s Bank has asserted that the combined cost of repairing home damages caused over the half-term school holiday could reach £106 million.

Structural parts of homes such as walls, floors, carpets and windows, are the most likely to be damaged by off-school children (and their pets). The risks increase substantially during days of inclement weather when children and their friends spend more time inside the home.

Steve Johnson, head of home insurance stated, “If the weather is poor and they have to spend more time indoors, the chances of your home being damaged in some way by them or their friends increases.”

The cost of damage repairs could be met through a secured home loan, which would release equity from the property.

The Building Societies Association revealed that many households with young children neglect the potential financial return available from their properties; despite the additional funds which may be obtained through a secured home loan. 

However, keeping a home in good repair is a sound decision and protects the homeowner’s investment in the property over-all.