Britain’s Financial Position Has Strengthened ‘Substantially’
Keywords: Britain’s, financial, position, strengthens, secured, loans, personal, savings, competitive, finance
Britons may be in a better position to make repayments on loans and other forms of borrowing as new figures reveal that household wealth has increased dramatically during the last decade.
In a study released by Halifax, the net capital held by British consumers - after deducting any outstanding debt balances - stood at 6,336 billion pounds as of the end of last year. This is a growth of some 127 per cent from the 2,795 billion pounds recorded at the end of 1996. Overall, the total value of household assets increased by 4,343 billion pounds during the ten-year period to 7,627 billion pounds. Meanwhile, typical earnings and retail prices have surged by 52 and 30 per cent respectively.
And although household debt was shown to have risen from 489 billion pounds to 1,292 billion pounds during the period (growth of some 803 billion pounds), consumers could be more able to service demands for payments on secured loans and other forms of borrowing, as asset growth has more than quadrupled debt levels.
Overall, the drive in household wealth was attributed to the increasing value of property over the past decade as equity in residential homes accounted for a total of 2,702 billion pounds last year - a rise of 244 per cent from figures recorded in 1996. The news comes as net financial assets, which are made up of the value of financial holdings minus the value of outstanding consumer credit loans, surged from the 2,009 billion pounds noted in 1996 to 3,634 billion pounds in 2006.
Meanwhile, total savings in schemes such as bank and building society accounts, pensions and company shares are predicted to surpass the 4,000 billion pounds mark by the end of this year - a figure which is more than triple the amount of the nation’s household debt. The financial services firm also indicated that deposit-based savings make up about a quarter of British households’ total financial wealth.
Commenting on the figures, Martin Ellis, chief economist at Halifax Financial Services, said: “The financial position of households in total has strengthened substantially over the past decade. Whilst much has been said about the rise in debt, it is important to note that the value of households’ assets has risen at a faster pace. Housing has played an important part in increasing wealth, but there has also been a significant rise in the value of investments in financial assets in the last ten years.”
As a result of rising property prices, homeowners could well discover that they have more equity against which they are able to borrow. In August, Sue Anderson, head of member and external relations from the Council of Mortgage Lenders, reported that a rising number of consumers are looking to remortgage property as a means of debt consolidation, in which they are able to replace expensive unsecured debts with a more competitively-priced secured loan. However, Ms Anderson advised that those considering such a form of secured loans should ensure that they are always in a position to make repayments, something which could well be applied to anyone looking to apply for a loan.
Mark Dawson writes for Loan-Arrangers .co.uk where visitors can compare loans online. Then apply for the best rate secured loans and bad credit loans available. Visit our site www.loan-arrangers.co.uk
Previous Articles Highlighter:
How Umbrella Insurance Can Save Your Life (1)
Without it, your personal assets are totally vulnerable in any lawsuit or legal action. Talk to your agent about it and ask how much it costs. Even though multi-million dollar lawsuits are not common, they can happen.
What Is Foreclosure And How Can I Avoid It? (2)
Most lenders have programs available to help you out if you contact them soon enough, but many of these programs are time sensitive and must be triggered before certain cutoff dates arrive.
Shopping Money Saving Tips (3)
To avoid such a situation, we must practice leaving our credit and debit cards at home and bring amount that is just needed for shopping. This can contribute for the fulfillment of this shopping saving tips.
Is The Florida Real Estate Market Over? (4)
However, despite the fact that more people are heading out of Florida than in, there is not anything like Florida flight occurring at this point in time. Second, there have been a record number of home foreclosures in Florida in recent times.
How To Pick The Right Auto Loan (5)
Most dealerships have relationships with numerous lending institutions, so they can arrange car loans even for car buyers with blemished credit histories. To compete with traditional bank loans, many dealerships offer zero percent or very low interest on dealer loans.
How Do I Shop For The Best Mortgage Rates? (6)
Once you know what your credit score is and how your credit report reads in general, you can begin to shop for the best mortgage rates that you can qualify for.
It's Back To The Future For Real Estate (7)
Of course, real estate markets are local, and some localities will fare better than others. Job growth, continued low interest rates, and reduced supply from builders are key factors that contribute to more balanced local real estate markets.
Brits 'Not Thinking Enough' About Finances (8)
It's crucial that we plan for our old age and that our investments are diversified amongst a number of different asset classes - not just property." The information officer reported that the marked house price growth seen in recent years is unlikely to continue, with homeowners also set to face increased borrowing costs which may in turn impact upon their ability to manage other areas of their spending such as secured loans.
Home Staging: Curb Appeal Is What Invites Prospective Buyers Into Your House (9)
Staged homes also sell on average 2 to 3 times faster. There are a lot of things that a seller can do to their house to make it a more desirable house and a lot of those things like organizing, painting and cleaning are what people tend to focus on.
Car Insurance Costs 'Set To Rise Further' (10)
Meanwhile, the cost of comprehensive car insurance has also risen over the last 12 months - up from 441 pounds to 458 pounds - a growth of some four per cent.
Credit Report - The Fast And Legal Way To Fix Yours (11)
Sounds like a scam! yeah that's what I though too but it actually turns out to be legitimate - let me explain. These companies will used what's called a repaid re-scoring service, they are a growing part of the credit industry and most commonly offered to independent credit reporting agencies as a way to improve the terms for their client borrowers.
Discussing Basics Of Forex Markets (12)
Keywords: currency, forex, forex market, forex markets Discussing the basic of foreign exchange or forex markets gives you an essential idea on how to handle mazes found in the particular market.
Bad Credit Student Loan - A Real Trap? (13)
While these companies are for-profit businesses. If you are denied a loan they will work with you to repair your credit. Check out more about Bad Credit Student Loans visit www.american-studentloan.com
How Does Forex Software Work? (14)
Keywords: forex, forex trading, forex trading introduction, forex trading platform, forex software If you are one of those individuals who want to start trading in the foreign exchange market online, you will need to find the right forex software system.
The New Home Builders In Houston Create Functional Art (15)
In reality, they are quickly becoming the ultimate leaders in home building. Perhaps it's nothing more extraordinary than paying attention to every single detail and creating the absolute best with what is in front of them.
How Did I Lose Money On My Bond Investments? (16)
Keywords: bonds If you are new to investing perhaps you are not familiar with bonds. Before you get started, you need to understand some of the risks associated with bond investing.
Advantages And Disadvantages Of Adjustable Rate Mortgages (17)
There are, literally, dozens of varieties of ARM's available to home shoppers, and knowing the good ones from the bad ones should be a home buyer's first concern. In general, an adjustable rate mortgage begins with a set rate of interest for a specific length of time.
Borrowers Advised To 'Scour The Market' When Taking Out A Loan (18)
Such sentiments were echoed by Steven Baillie, head of loans for Sainsbury's Bank, earlier this year. According to the financial expert, the majority of Britons who borrow are looking to use credit as a debt consolidation loan.
Real Estate Opportunities Awaiting In Colorado (19)
The advantage that comes with the package is that they are not only able to stay away from the busy life of the big cities but also they are able to enjoy the spectacular settings of the adjacent areas.
Advice On Saving Money (20)
Start saving money by implementing ideas above now and you will spot the big difference between dining out and at home. To have proof for its effectiveness, try to list all your expenses you have by dining out with your friends, do the same when you've done it at home.
Newer Articles Highlighter:
An Introduction To Forex Trading (1)
In forex trading, some of the most frequently traded currencies are the major currencies such as the EURUSD, USDJPY, USDCHF, and GBPUSD. The spot market is the most vital market since it contains the largest volume.
How Contract Hire Can Save Your Company Money (2)
If the vehicle is being used for personal use then only 50 percent if the VAT payable on the finance element of the rentals may be recovered. The fact that rentals may be offset against taxable profits make it a very popular option for a business.
How To Make Cash Using A Good Forex Trading System (3)
It is also important to be informed and educated about what you are getting yourself into. The market should be approached like any other business. To help maximize the gains in your trading experience through forex trading systems, here are a few simple steps to follow.
Portugal Property, An Investors Dream (4)
Such income is levied at a flat rate of 25 per cent. Only the expenses on repairs and maintenance can be deducted from tax, no subtraction on mortgage interest against rents is endorsed.
Consumers Set To Face Financial 'Shock' (5)
Dennis Reed, director for the internet mortgage broker, reported that the mortgage sector is in a constant state of change. He said: "As lenders look to tighten their terms a person could be labelled a bad credit risk and sub-prime just because of a small financial error in their past.
Bankruptcy Credit Report - Know The Facts (6)
Bankruptcy Credit Report - Get and Review your Credit Report. The three main sources of obtain your Credit Report from are Experian (formally TRW), then Equifax, and Trans Union.
Tampa Real Estate Agents - Saves First Time Buyer's Money & Time (7)
The rate of foreclosures in the Tampa real estate market are and throughout Florida today are illustrative in some instances of the failure to appropriately budget and plan in the first instance when looking for a home.
Mr. Greenspan's Investments (8)
Mr. Greenspan also points out that if Treasury yields rise (today, 30 year Treasuries are yielding less than 5%), risk premiums on other investments, such as stocks and real estate, will increase.
Can I Get A SBA Loan To Help My Business (9)
First, you must be turned down for a loan from a private financial institution in order to be eligible to apply for a SBA loan. Once you have a formal denial from a private lender you are able to apply with the SBA for a loan.
Trading The Forex Market For Newbies: Currency Trading For Beginners (10)
The banks would do the business for the client. As time has gone on, trading volumes have dramatically risen, particularly after free floating of exchange rates. A key commodity, foreign exchange allows enterprises to buy and sell goods with overseas country businesses and services, making a supply and demand component which creates a true market.
Forex Trading Software - What You Absolutely Must Know... (11)
The other hand, some companies offer a forex trading software, which rather than identifying the signals, provide either a template or a chart set up along with training which may or may not be proprietary, that can help the trader improve their style dramatically.
Investment Property Software Boosts Your Profits (12)
Preparing yourself for the commercial market is fast and simple. The forms show you all the information you need to create an attractive package that will impress sellers, lenders and brokers.
How Does Forex Trading Software Help Traders? (13)
You may be a bit apprehensive to use forex trading software due to some concerns about security. Forex Trading software are generally secure applications and you are assured of being protected; however, if you still have doubts about the levels of security, you can take some measures to protect yourself and your investment.
Mortgage Arrears: How To Save Your Home From Foreclosure (14)
Besides, if the bank forecloses your home, it will now have to face the challenge of disposing the property in order to free their capital. Since foreclosing your property will entail more work on he part of the bank than just merely giving you a couple of months grace period, the bank will most likely give you the grace period to pay for your amortization.
Car Insurance Costs 'May Rise' (15)
David Murby, managing director for Experian's insurance service division, said: "For nearly two years, comprehensive motor insurance premiums in the direct market have been higher than in the broker market".
Many People Are 'Financially Complacent' (16)
He pointed out that a number of people are leaning towards other methods of saving for the future, for instance relying on the amount of equity built up in their property as a means of funding their retirement.
New Parents 'Look To Loans To Help Reduce Financial Pressures' (17)
The news comes as research released by MoneyExpert reveals that those parents who have children under the age of 18 are typically some 1,140 pounds in debt in the 12 months following the birth of their first child.
The Dangers Of Incurring Debt To Finance A Lifestyle (18)
Unless you dramatically increase your income, it is impossible to catch up on your bills while continuing to live the life of luxury. Many people build up a large amount of debt simply to buy consumable goods like clothes, food, shoes, and transportation.
Free Credit Report - Stop! You Need To Know This (19)
Using these approaches could backfire and actually lower the score. Try to keep balances low on credit cards and other revolving credit. Paying off debt rather than moving it around.
Where To Find Investment Articles (20)
Keywords: retirement, retirement planning, investment articles, where to find investment articles Investment articles come in all shapes and sizes. Whether you're asking, "What is a 401k plan" and are looking to learn more about early retirement planning or delving deeper into the roth ira limits and 401k providers, there is an article written just for you.
Permalink to Britain’s Financial Position Has Strengthened ‘Substantially’