For those that thought that ending stamp duty relief at the start of the year would curtail growth in the housing market, you were right. There was a substantial dip in mortgage lending during January. In fact, with only £8.02billion worth of lending, it was at its lowest since March 2001. Although this still sounds like a lot of lending, it is put into perspective when you consider that the average monthly amount lent during 2007 was over £18billion.

The British Bankers’ Association has released these figures, suggesting that the UK economy will endure a slower recovery than was initially forecast. Without putting too fine a point on it, the Bank of England’s Monetary Policy Committee has warned that the UK’s housing market looks set to be “weak” during 2010. This is a depressing thought for those that had been encouraged by the false dawn in the housing market towards the end of 2009. This was caused by the short supply of homes on the market, which forced prospective buyers into bidding over the odds for houses.

Anyone without a perfect credit score and a large deposit will find it incredibly difficult to get a mortgage as banks and building societies are still deeply insecure about the state of the UK economy and the extent of the recovery. This is also having a severe effect on the remortgaging market. Homeowners looking to take out a new mortgage loan in order to take advantage of the reduced rates will find that this end of the market has all but disappeared. The concept is sound; those on a tracker mortgage swap to a fixed when the rates have nowhere to go but up.

This can free up more money each month to meet other expenditures and debt repayments.
In terms of debt, a consolidation loan can be a potential debt solution on the market for some people. The best rates of interest are reserved for those that secure their debt consolidation loan against an asset, usually their home. However, taking out another mortgage to cover the consolidation loan could be difficult as the least amount of remortgage loans in the UK for ten years were granted in January, only 20,252.

With this in mind, the secured debt consolidation loan may not be as achievable a debt solution as it once was. If you are struggling with your unsecured debts, it is definitely worth looking at the other debt solutions options. There are many ways that you can reduce your monthly outgoings to your unsecured debt without securing it against your home. Falling behind on your debt consolidation loan means that your home could be repossessed.

As everyone faces different money troubles and different levels of personal debt, the solution to each individual’s debt problem must be suited to their circumstances. Getting professional, dedicated debt advice is the best way to be sure you’re getting the right deal on the right debt solution. Harrington Brooks are one of the longest standing and most respected debt solutions companies in the UK. Visit www.harringtonbrooks.co.uk and take the fast, free debt test to see what debt solution is right for you.

The UK government has outlined plans for an increase in the age at which people are entitled to a state pension. At present, the retirement age for men is 65 and for women it’s 60 but women will soon find that theirs goes up to 65 too. The current government plans have the state pension age increased to 68 for everyone by 2046.

Britain’s ongoing battle with bad debt is being fought on two fronts and increasing the age at which we become entitled to a state pension could counter both. Firstly, with an aging population, the government’s spending on pensions looks like it will just keep growing. In fact, 4.4% of Britain’s GDP will be spent on state pensions in 2012, growing to 6.2% by 2032. If the plans for increasing retirement age go ahead, this would be reduced to 5.8%. In addition to this, debt on a personal level could potentially be eased by allowing people to work on longer in order to settle things like their mortgages.

However, Age Concern has warned of the potential costs of the proposed increase in retirement age. On a more personal level, people who have already calculated the impact that their state pension will have on their future finances could be caught out and find themselves facing the stress of debt problems instead of the relaxation of retirement. Of course, if you are currently facing the prospect of enforced retirement but want to keep on working to clear off your debt, the report will offer little solace.

A recent study has also suggested that increasing the state pension age to 70 within the same time would cut about £9billion a year off the UK’s deficit. The government would again benefit from a substantial reduction in state spending on pensions and more taxes as people would be working longer. It’s been suggested that the strength of the economy in the post-war years, as the baby boomer generation moved through the workforce, is set to be counterbalanced with longer periods of retirement. Essentially, either taxes will have to be increased to deal with the increased cost of longer state pensions, health and long-term care, or people will have to work longer to pay off their own debt and that of the country as a whole.

It’s not certain what will happen in the future. It does pay to plan for every eventuality though. You may find yourself working longer and using these earnings to pay off your mortgage and settle your debts before you retire. However, your circumstances can change at any time so it’s never too early to start paying off debts. Talk to a specialist debt advisor at Harrington Brooks, one of the longest established financial institutions in the UK, for impartial advice on the best debt solution to your personal debt problem. Visit www.harringtonbrooks.co.uk and take the fast, free debt test.

The most recent figures from the housing market show that prices have actually undergone an unexpected jump of 1.6 per cent for the month of September. The average house price in the UK is currently sitting at £163,500. In real life terms, this means that the average value of a UK home has shot up by about £9,000 since April. But, it’s not time to get carried away yet. Values are still a long way off the high average of £199,612 set in August of 2007.
(more…)