Contrary to the widespread reported Bank of England figures indicating a fall in mortgage approvals of 44% year-on-year, Hometrack says that in reality the fall has been only 3% from this time last year, insisting that total mortgage approval volumes are just 24% down over the same period.

Warning that the gloomy outlook generated over recent weeks could actually affect house prices and seriously impact on the property market in general, Gary Styles, strategy, risk and economics director at Hometrack, said the wide variation of performance by different lenders highlights that the overall situation is not nearly as bleak as some would have us believe.

He added that it was true lenders were struggling to maintain a supply of reasonable mortgages, but the latest figures indicate that banks are still maintaining remortgage lending volumes, and with an estimated 1.4million borrowers looking to refinance or remortgage their fixed rate deals in 2008, Styles believes competition will intensify in this section.

He further commented: “The recent decision of HSBC to match the existing borrower current deals if they remortgage to HSBC, is just one example of this.”

This more positive outlook will no doubt boost the beleaguered lenders of secured loans and homeowner loans, unable to cope with the demand for previously cut-price and fixed-rate deals as interest rates continue to climb month on month, triggered by the soaring cost of the three-month Libor rate – the established rate at which banks lend to each other to provide funding for mortgages and other financial activities.

Also looking for some relief is the insurance sector, particularly the car insurance market, with more than one in four motorists facing rising car insurance premiums and desperately looking around for ways and means of reducing this additional pressure on budgets already stretched to the limit.

As a result the traditional insurance companies themselves are losing customers at a phenomenal rate, with recently published figures from the independent financial comparison website MoneyExpert.com suggesting that up to 30% of drivers switched insurers when their existing premium quotations rose.

A measure of relief for debtors must come from the breaking news that private debt advice companies and appointed charities are to have the power to write off some of an individual’s debt, without the need for the agreement of creditors.

The debt companies will also be empowered to force creditors to accept a repayment schedule for the outstanding money owed, irrespective of gaining the lender’s consent.

Also in the Tribunals, Courts and Enforcement Act passed last year, but which is now being considered by the Ministry of Justice before the relevant clauses can be activated, is the authorisation that operators would have the power to compel creditors to ‘write off a proportion of the debts where a debtor complies with a plan, but cannot repay the full amount in time.’

The new law will empower Justice Secretary Jack Straw to issue licenses to approved debt management plan operators, which in turn will give the operators the power to force creditors to accept the debt management plans they have constructed.

The new compulsory debt management plans will be introduced along with existing forms of insolvency management, including Debt-relief orders (DROs), aimed at wiping out debts below £15,000, without the debtor needing to attend a court hearing, which will come into effect in April of next year.

Also a simplified version of Individual Voluntary Arrangements (IVAs), will be available in October, effectively reducing the power of creditors to refuse to accept a formulated arrangement.

Drivers should take advantage of all discounts that many providers offer, that can significantly reduce the cost of car insurance. Understanding discounts and how they can affect auto insurance premiums can help smart shoppers make better decisions about their coverage and possibly save themselves some money in the process.

Read below to identify possible discounts that could help you save on auto insurance this year. Other than discounts, there may be some other ways for you to save on your insurance premiums. We will go over several discounts that can help with your current situation.

First, there are discounts for Auto Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seatbelts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply. If the principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary meaning that it was not the result of a violation or infraction.

Some insurers will give you a discount for having multiple vehicles. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver’s discount.

Many companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. It makes sense, you have carried insurance with a company for several years, and have not had an accident, your insurance company likes you and wants to reward and keep your business. Some companies honor you with a discount if you had prior limits on your previous policy. They discount you because they understand you are a better risk.

Conversely, if you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer. If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states the age is 21) you could be eligible for a good student discount. If you own a home, including condominium, town home, or mobile home, which is used as a principal residence, a discount could apply. Military personnel either currently active or retired from any branch of the US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.

You could lower the cost of your insurance in other ways.
For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of your vehicle and the premium that the insurer has offered, you may find that it cost as much for the insurance as it does for the vehicle. If the car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.

In addition, keep in mind that the type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid sized sedan. This is also true of vehicles that are on the list of most stolen. There are many ways that policyholders can save on their insurance. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles. The last way to save is to assume more risk. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is the amount of money you have to pay before your insurance company begins paying the rest.

Understanding how discounts affect your insurance rates is important to save you money.

In many areas, such as Christchurch where individuals annually earn only a seventh of the average house prices, the drastic increase in property values now gives homeowners a distinct financial advantage over renters. 

As noted by Professor Steve Wilcox of the University of York, “Not too long ago there was little difference between the costs of buying and renting. But while house prices tripled in the years since 1994, private sector rents only increased in line with earnings.” 

Home owners now have access to home equity loans five times greater than their annual income, while renters are unable to tap into this new source of extra money. 

Further information collected by Hometrack showed house prices freezing in August with potential home equity loans being three times greater than similar loans offered in 1994. 

Homeowners are advised to obtain home equity loans at this peak time before any change in housing values endanger their maximum loan potential.

One factor attributed to the growth comes from the noted affordability of the secured loans being offered. The intensity of this trend is expected to continue as the CML adds that “over the next three months lenders expect demand for prime lending to drive the market.”

The Bank of England published findings showing more Britons obtaining secured loans between the months of June and September last year. There was also “a decline in reported arrears [or debt] on secured lending during the last three months.”

The availability of secured loans remained consistent over the summer, while lenders currently seem to be offering fewer unsecured loans. It is “reassuring” that lenders are expecting a greater availability of secured loans in upcoming months as the Bank of England’s Credit Conditions report shows secured loans becoming more popular.

Secured and unsecured loans differ in the amount of the loan and the length of the repayment period. Often unsecured loans are for lower amounts and tend to have shorter repayment periods, while secured loans are available in greater sums and have more flexible lengths of repayment schedules.

Before putting a house on the market for sale, individuals should consider that loft conversions can add to the value of a dwelling, thereby usually substantiating the redevelopment and the expense involved. 

The loft conversion specialists at Econoloft stated that the renovations now present much more of a “wow factor” for potential buyers than adding a conservatory. 

An Econoloft spokesperson stated, “For the price of moving you can have a loft conversion and you are one rung up the ladder. When you do come to move you have a more expensive property to sell.”

However, either type of addition could be funded through a homeowner loan, and used as reinvestment funds in order realize a greater return, upon the sale of Real Estate property.

Experts like Howard Archer, chief UK and European economist at Global Insight, expects the recent trend to continue and for consumer spending to “soften notably over the coming months.” 

However, the decrease in consumer spending may do more harm than good. Without the support of consumer spending many merchants will produce poor profits. The result, Mr. Archer added, could be indicative of a decline in the national economy. 

“Price promotions and cuts in base prices are widespread across all sectors,” explains Kevin Hawkins, Director General of the BRC. “The Bank of England will also be more inclined to cut interest rates if it sees that retailers are increasingly engaging in substantial discounting.” 

Consumers may be surprised to learn of a more effective method of tackling personal debt than doing without the goods and services they seek. Debt consolidation loans provide a large lump sum which could be used by consumers to pay off multiple lines of credit and merge their borrowing into a single monthly repayment. 

Over the course of the New Year, this could alleviate consumers’ debt and start many people back on the right course of spending, thereby ultimately re-strengthening the economy as a whole.

Unlike most banks, which obtain their funds from customers making deposits into accounts, Northern Rock is dependent mostly on its mortgage business. It raises most of the money which it lends for mortgages by borrowing from banks and other financial institutions. 

But as house prices decrease, homeowners could see lenders less willing to provide high income multiple mortgages or loans for a large percentage of their property’s value. 

For 2008 and 2009 the Capital Economics’ Housing Market Focus anticipates an expected annual decrease of housing value by 3% each year. As prices of homes decrease, the amount homeowners could obtain via home loans is expected to diminish. 

“Up to one-fifth of borrowers might see some reduction in their purchasing power, with knock-on effects on house prices,” commented Roger Bootle, editor of the study by Capital Economics. The same study foresees a variable 5% drop in the base rate of interest which could lower the monthly repayments on a secured home loan. Property owners are encouraged to use the current window of opportunity to obtain a secure home loan before decreasing housing prices reduce loan amounts.

Electrical appliances are always tested and designed to prevent fires at the time of their manufacture. However, over time, safety measures in these devices can become outdated and even the best preventative measures can prove fallible.

Prasad Shastri, head of insurance marketing offered, “It is important that they [electrical appliances] are checked prior to use to ensure that they are not faulty and that they are used correctly otherwise they could prove to be very dangerous.”

In terms of such danger, Abbey puts electric blankets at the top of the list since they are the cause of 5,000 fires each year. Perhaps less frequent, but more of a financial risk, are oil radiators which generate an average of £809 in damages with each fire they cause.

In addition to the danger they pose, some electrical heating devices only serve a small area of the house while other solutions give comfort to the entire family and decrease the over-all cost of electricity. Instant heating elements can often be the culprit of higher electrical bills.

Ofgem, an energy and gas regulation organisation, recommends installing more long-term solutions, such as insulation to reduce dependence on temporary heating devices. Customers who invest in cavity wall insulation find themselves with savings of up to £100 per year, points out Ofgem, and the cost of installation can be easily covered by a homeowner loan. With a small investment, any home cannot only become safer, but save a substantial amount of money over the years.

For those considering a secured home loan, it may be a feasible move to check with local housing prices to see how much property values may have increased. This would give homeowners a fair idea of how much they might expect for their own property’s price to rise.

Experts like Howard Archer, chief UK and European economist at Global Insight notes that “the housing market has been healthy so far this year” and “the economy has seen growth close to 3% over the past couple of years.”

While the rise in Real Estate prices has caused homeowner loans to be in greater amounts than before, the situation is not expected to last much longer. 

“In economic terms, now may well be as good as it gets for some time,” Mr. Archer said, while warning that with the release of the September Incomes Data Services pay survey reporting a decrease in household income, that the chance of the housing market making “a sharp correction” in 2008 is possible.

A spokesperson warned that repayments will often go towards the cheapest parts of the debt, such as balance transfers and interest, while leaving any new borrowing untouched.

“Many credit card providers use low introductory rates to lure people into opening an account,” said Divisional Director Jeremy Wood, “These offers can look very appealing, but when you scratch beneath the surface you discover that credit card holders often don’t receive the full benefit”. 

One recommended way of beating off credit card debt is for consumers to secure a debt consolidation loan. With the benefits of a fixed repayment schedule (and often lower interest rates,) coupled with the added purchasing power, a debt consolidation loan can literally save “hundreds of pounds” according to Loans Manager Steven Baillie. 

The extra funds commonly available within a debt consolidation loan could also work toward paying off the typical festive spending of holiday season shopping. Consumers are therefore encouraged to shop for more than just pretty packages – and put extra effort instead into shopping credit card interest rates vs. available loan consolidation rates.