Friday 30 September 2011

Buy to let: rising rents cause problems for tenants


Rents have increased for the third consecutive quarter, according to research by Paragon, the buy to let lender.


Properties for rent in estate agent's window - Buy to let: rising rents cause problems for tenants
But rising rents appear to be causing problems for many tenants. According to new research from the Money Advice Trust, the number of calls it receives about rent arrears has risen by 84pc in recent years.
A spokesman said: "Many first time buyers cannot get a mortgage so demand for rented property have risen. But with landlords pushing up rents this has left some people struggling to meet bills, particularly as this has coincided with a rise in inflation, particularly of food and fuel costs."
According to Paragon, a third of landlords increased rents across their property portfolios in the third quarter of this year – compared with just 29pc in the previous three months. Just over 10pc of landlords said their rental income had increased by between 2pc and 4pc, while 13pc of landlords increased rents by more than 4pc.
Only 4pc of the landlords surveyed for the quarterly report said they had experienced a decrease in their rental income.
However, it is professional landlords rather than small scale buy-to-letters who are pushing through the biggest increases.

FACT 
"At Heart Finance  we search the entire market in order to help you find the best deal you possibly can.
We are committed to offering our customers the highest possible 
standards of service
We recognise that both we and our customers have everything to gain if we look after your best interests and treat you fairly in all aspects of our dealings with you
Only recommend a mortgage or financial services product that we consider suitable for you and that you can afford – Our lenders charge the lowest fees of all - and always the most suitable from the available options



Almost four out of 10 (39pc) professional landlords said their rental income had increased during the last three months, while 75pc of smaller-scale landlords said their rental income remained the same over this period.
Nigel Terrington, chief executive of Paragon, said: "Tenant demand has been growing for a number of years, but in recent months it has accelerated considerably. As the report shows, a third of landlords are benefiting from increases in rental income without making their properties unaffordable for tenants.
"With tenant demand only looking to increase further in the coming months, landlords are likely to continue to experience increases in their rental income, especially given that 49pc of landlords said they expect demand to further increase in the next 12 months.
"It is crucial then, with increases in demand, that investment continues to be made in the private rented sector, ensuring that it remains fit for purpose and continues to provide good quality and affordable housing to millions of tenants."


by the Telegraph

Friday 23 September 2011

OFT (Office of Fair Trading ) probes car insurance market as premiums soar


The Office of Fair Trading today launched an investigation into the motor insurance market, amid suggestions that companies are unfairly ramping up premiums.
Car insurance rates have soared in the last year, in some cases by as much as 40% according to the consumer watchdog. It is concerned that insurers may be abusing their market position, taking advantage of already stretched motorists to boost profits.
CongestionThe OFT is issuing a "call for evidence" as it probes the industry. The role of price comparison sites such as gocompare.com and confused.com in particular will come under the spotlight.
Admiral, which owns confused, saw its shares sold off sharply today as news of the investigation emerged. The stock lost 34p to 1363p.
The move is the latest blow to an insurance sector that already feels under the cosh. Large insurers feel they are operating in an intensely competitive environment that has forced it to keep premiums lower than they should have been for years.
Now, buffeted by rising claims - some of them fraudulent, insurers claim - they have had to put rates up.
They say that last year, for every £100 they took in premiums, they paid out £117 in claims.
The House of Commons select committee on transport is also investigating car insurance.
One insurer said: "The car insurance industry is getting it from all sides."
A spokesman for the AA, which sells cover as an intermediary comparing the prices of a panel of insurers said: "Clearly, in any industry where you see price rises of 40% you are going to expect some form of collusion is going on, but this is not the case with insurance. I'd compare it very much with the household gas price rises we've seen, except where they have put prices up due to the cost to them of wholesale gas, insurance companies have had to put theirs up because claims costs have risen so sharply."
Fact 
Heart Finance is one of the UK’s leading independent finance broker which was founded to search the entire market in order to help you find the best deal you possibly can. We offer a range of  insurance that  are arranged through well established and recognised Insurances and  financial institutions. 
Why should you use Heart Finance Insurance ? 
We are 100% independent and impartial.
With our Quick-Click insurance system you can search our growing panel of insurers quickly and easily.
Your information is stored so you can get new quotes instantly without having to fill everything in all over again. "


The OFT said the call for evidence represented a quick look into the market that may lead to a full inquiry if consumer or competition issues are found. It also has the power to refer the industry to the Financial Services Authority, but the OFT could look for voluntary action from insurance companies to assuage any concerns.
As well as looking at price comparison sites, the OFT will also consider the provision of credit hire replacement vehicles to drivers involved in accidents that are not their fault, additional products sold by insurers and their use of panels of approved repairers.

by Evening Standard 

Thursday 22 September 2011

Tesco to launch 'dramatic' price war in battle to be cheapest supermarket


Tesco is set to launch a 'dramatic' supermarket price war in an attempt to land a blow to its rivals with a move away from one-off discounts in favour of genuinely lower prices across its products, reports have indicated.
A supermarket battle is predicted with Asda, Sainsbury's and Morrisons, while successful budget chains Aldi and Lidl are also in its sights.

Offers: But Tesco's new strategy is to focus on permanently low prices
Offers: But Tesco's new strategy is to focus on permanently low prices
According to retail industry magazine The Grocer, Tesco is to launch a ‘dramatic new offensive’.
It is thought the chain will switch away from specific price promotions to a new policy of guaranteeing permanently low prices across all products.
The retail giant has lost market share in recent months, suffering especially from Asda’s price promise to be 10 per cent cheaper on a basket of groceries.


    The Tesco move would force Asda, which is part of the world’s biggest chain, U.S. firm Wal-Mart, to cut prices or tear up its price promise.
    Industry insiders said Tesco will brief store managers about the new campaign over the next few days. 
    They have been told to cancel any time off booked for this weekend to ensure there are sufficient staff to change shelf prices and dress stores with the price cut banners.
    Tesco: The retail giant may face tough times as consumers cut spending
    Tesco: The retail giant may face tough times as consumers cut spending
    Retail expert Philip Dorgan, of brokers Panmure, said: ‘Market gossip suggests that Tesco is set to launch a significant price offensive next week. It looks like the sector’s big dirty secret is about to reveal itself.’ 
    Seymour Pierce analyst Kate Calvert said: ‘Pricing activity is expected to hot up this weekend. The autumn is traditionally a very competitive time for the food retail sector and the reduction in promotional activity in August seemed to suggest that  the industry was building  up firepower.’ 
    There are suggestions that Tesco will adopt a countdown strategy, where groups of products will be offered at £5, with others at £4, £3, £2 and £1.



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    The ‘big four’ supermarkets have been involved in something of a phoney war on prices in recent years.
    All have promoted a number of eye-catching bargains in a bid to give customers the impression they are helping them survive rising food prices. 
    Despite this, the food giants managed to boost profits and fund an unprecedented expansion drive, opening a huge number of new stores.
    Recent research found many staple foods are up by more than 10 per cent in a year while some, such as beef mince, corn flakes and coffee, have leapt by almost a third.
    Customers are now buying less food than a year ago, while there has been a huge switch to cheap own-label products and budget chains.
    Industry insiders suggest only a major shift in strategy by Tesco will see Britain’s biggest and richest retailer start growing sales again.
    Figures published by retail analysts Kantar last week showed that Tesco’s market share fell by 0.4 percentage points to 30.4 per cent. Kantar suggested Tesco would do everything in its power to avoid falling below 30 per cent.
    Sources at Asda said they were ‘comfortable’ about any new challenge.
    One insider said: ‘As far as we are concerned they can bring it on. We have our price guarantee promise and will still be 10 per cent cheaper.’ 
    A Tesco spokesman said the firm was unable to comment on the speculation.



    by Mail online

    Wednesday 21 September 2011

    Pay day Loan 's high interest rate ?? It's not an automatic red card


    Astronomical rates don't always mean a bad deal. An unarranged overdraft could cost £60 when a Payday Loan through Heart Finance would charge £19.00, for example.

    Blackpool's Charlie Adam scores from the spot - Wonga's interest rate of 4,200pc? It's not an automatic red card



    Pay Day Loans from Company like Wonga, short-term loan business, claimed last week that it was more transparent than the banks, after the Independent Commission on Banking (ICB) said customers were confused by the welter of charges associated with their current accounts.
    Errol Damelin, the founder of the company, said customers could not compare the cost of borrowing money in the short term when the most common way of doing it was through a bank overdraft.
    keeping the example of Wonga, they are forced to display a representative annual percentage rate (APR) for its loans of 4,214pc. (But there are many other Payday Lenders who can be much cheaper still ) However, Mr Damelin said that, because it offered loans limited to 30 days, the APR was not relevant, and the loan was often cheaper than unauthorised bank charges for the same amount.
    "There is a place for an APR, but we don't offer a loan that rolls up for a year so you are comparing an impossible product," he said. "Also, it is not used by the banks so customers cannot compare in a normative way."
    Sir John Vickers' final report for the ICB said one of the reasons for a lack of competition in the banking industry was that many customers were not aware of their banking costs, and did not have ready access to the information required to compare alternative offers.










































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    It warned that there were no effective price comparison services for current accounts. It added that some experts believed companies "design complex tariffs and pricing structures to decrease the ability of consumers to compare prices".
    Mr Damelin said complex overdraft charges and structures meant that the majority of bank customers "never understand what they are going to pay" when they go overdrawn.
    In some cases, despite in this case  Wonga's expensive 4,214pc APR, ( or even lower rates from other lenders) it can be cheaper to take out a short-term loan. For example, if you have an Everyday Current Account with Santander and become overdrawn it can cost you dearly. If you go into your unarranged overdraft and are overdrawn for two days in a row, and two payments come out of your account in that time, it will cost you £60. If you borrowed £100 from Wonga for 15 days to avoid slipping into overdraft, you would be charged £21.11. ( from some other lenders it would be in the region of £19)  If you borrowed that money for two days, it would cost you £7.50.

    Mr Damelin said customers needed to be able to compare the two types of product in order to make a decision, a comment echoed by Sir John's report. The report said price comparison sites did not really work for bank accounts, and consumers did not know whether they could get a better deal elsewhere.
    Mr Damelin said there needed to be more competition in banking in order to meet customers' needs, saying that the Government was not encouraging new entrants into the banking market.
    Wonga's own model is based on a complex algorithm and credit checking process, rather than a human assessment of payslips and address details, as with many payday loan companies. Each loan application is assessed entirely by a computer.
    Wonga, which sponsors Blackpool Football Club, is keen to avoid the sobriquet of "payday loan company", and says its borrowers are not vulnerable customers who struggle to pay back the money that they have been lent. Instead, it describes them as mainly tech-savvy young professionals. Less than a quarter of the company's customers have previously used an equivalent online or short-term loan product before coming to Wonga. Instead, they're coming from the banks and traditional credit products.
    Every single Wonga customer has a bank account, debit card, internet access and a mobile phone. The company's loans of up to £400 are available for one day to a month, and interest is charged at 1pc a day. The vast majority of customers can access other forms of traditional credit, such as loans and credit cards. For many, Wonga is an alternative to a long personal loan that they could not pay back early because of repayment penalties, or an overdraft fee.
    .




     by the Telegraph 

    Saturday 17 September 2011

    Young drivers spend £4,500 to take to the road


    The average cost of getting onto the road for the first time is now £4,459, according to a recent research

    Some insurers refuse to cover people aged less than 25 - Young drivers spend £4,500 to take to the road
    The typical 18-year-old will have to pay an average of £2,294 for insurance
    This is the total cost of driving lessons, road tax, driving tests and insurance, in addition to buying a first car, Co-operative Insurance found.
    According to the research, the typical 18-year-old owns a Vauxhall Corsa worth £1,450 and will have to pay an average of £2,294 for insurance. He or she will also have 20 driving lessons at a cost of £480, sit two driving tests to the tune of £62 each, and will spend £111 on a provisional licence (£50), theory test (£31) and road tax (£30).
    However, despite the high costs of getting on the road, today’s new motorists were buying their first car younger than ever, the Co-op said, with the average person now owning their first set of wheels at just 18 years old, which is four years earlier their parents’ generation.






    While more than three quarters of those aged over 45 bought their first car themselves, the same could not be said for their offspring, with 53pc of those aged 17 to 25 now relying on their parents or relatives to come up with the cash.
    Grant Mitchell, the head of motor insurance at Co-operative Insurance, said: “Our research shows that although today’s young drivers own their first car from an earlier age than their parents’ generation, the cost of actually getting on the road is huge.
    “Of course, not many 18-year-olds have thousands of pounds in savings, so increasingly they are relying on the Bank of Mum and Dad to pay for the initial cost of driving.
    “Unfortunately, the biggest challenge is the cost of car insurance which has risen at a disproportionate rate for young drivers because they are involved in more accidents on the roads.”
    The research also found that the cost of insurance was one of the main reasons why people did not buy a car, with 30pc citing it as the reason they remained without their own set of wheels.
    Fact 
    " Heart Finance is one of the UK’s leading independent finance broker which was founded to search the entire market in order to help you find the best deal you possibly can. We offer a range of  insurance that  are arranged through well established and recognised Insurances and  financial institutions. 
    Why should you use Heart Finance Insurance ? 
    We are 100% independent and impartial.
    With our Quick-Click insurance system you can search our growing panel of insurers quickly and easily.
    Your information is stored so you can get new quotes instantly without having to fill everything in all over again. "




    by the Telegraph

    Saturday 10 September 2011

    Mortgage approvals at 15-month high


    Mortgage approvals hit a 15-month high in August, giving a glimmer of hope to first-time buyers with smaller deposits.

    Monopoly houses on top of pound coins
    Mortgage approvals at 15-month high 
    Data from surveyors group e.Surv showed the highest year-on-year increase since May 2010, with approvals up from 49,239 in July to a seasonally adjusted 49,566 in August.
    More than 10pc of these mortgages went to buyers with a deposit of 15pc or less of the value of their home loan, suggesting that the borrowing situation is improving for first-time buyers as mortgage companies loosen their lending criteria.
    This was backed up by figures showing that price bracket up to £125,000 – typical first timer property – accounted for 24pc of all approved mortgages, the highest since April this year.
    The figures follow the launch of the first 100pc mortgage since the credit crunch, suggesting that lenders are once again competing for borrowers with less money saved. However, Richard Sexton, from e.Surv, warned that the public “should not get carried away” imagining that the problems surrounding mortgage availability had dissipated.
    “A slight loosening in criteria only makes a small dent in the vast backlog of buyers stuck in the rental market,” he said.

    FACT 
    "At Heart Finance  we search the entire market in order to help you find the best deal you possibly can.
    We are committed to offering our customers the highest possible 
    standards of service
    We recognise that both we and our customers have everything to gain if we look after your best interests and treat you fairly in all aspects of our dealings with you
    Only recommend a mortgage or financial services product that we consider suitable for you and that you can afford – Our lenders charge the lowest fees of all - and always the most suitable from the available options 


    David Newnes, director LSL Property Services said that the cheapest mortgage deals “are still only available to those able to muster at least a 30pc deposit”.
    “It is good news that high loan to value lending is increase but it’s rising from a very low level and will have to continue rising for some time before we’re likely to see a sustained revival in the market for first-time buyers,” he said.
    The e.Surv data is published several weeks before the Bank of England’s definitive mortgage approval data, but the typical margin of error most month is 1pc compared to the official data.
    The figures come as LSL, which uses an index of house price indices as well as Land Registry Data, said that that the housing market had seen prices rise further in August, with transactions up 1.5pc and bucking the seasonal trend. The average price of a home increased by 0.3pc during August, but is still down 2.2pc year-on-year. However, London prices rose 1.6pc, which LSL attributes cash buyers pushing up demand.


    by the Telegraph

    Monday 5 September 2011

    I WISH TODAY WAS MY PAYDAY !!!!


    If you are looking to borrow some money to get you to your Pay Day, Heart Finance is your simple answer;
    With ♥ Heart Finance ♥ It has never been easier or faster to get the same day payday loans that you need for that unexpected expense, late bill or for any reason! Our easy online same day payday loan application process can have money in your pocket as soon as today (Usually in less than 2 hours) with absolutely no hassle! No credit check, No documents - just easy and fast!

    EVERYONE IS ACCEPTED !! There are no long drawn out questions and very easy qualification criteria and absolutely no credit checking. The perfect online loan! 

    Borrow between £100 to £1000 in No time !! And don't let that unexpected cost stress you anymore!