Last week, the number of Americans applying for mortgages increased 19.5% when compared to the week prior, according to a report released today by the Mortgage Bankers Association (MBA). The study showed refinance applications rose 8.6 percent, and applications from those seeking to purchase a home increased 15.3 percent.

According to Quicken Loans Chief Economist Bob Walters, consumers are noticing low rates and taking action.

 “Mortgage activity, much like the weather around the country has remained hot.  Low rates are driving consumers into the market, and for good reason.  Folks who refinanced not more than a year ago are now looking at a scenario where it may make sense to again refinance.  The rates out there are simply that good.”

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Banks in Ireland that were planning to start offering negative equity mortgages have been told to hold fire by regulators until a decision has been made with regards to whether these products should be allowed. There are fears amongst officials and regulators that these mortgages will simply push consumers even deeper into debt, sparking a debate as to whether they should be allowed.

Already there are around a quarter of a million homeowners that are currently in negative equity, where they owe more on their mortgage than the property is actually worth. According to figures this could swell to around 350,000 by the end of the year, which means a rising number of homeowners will find themselves tied to their property because of the negative equity.

With the negative equity mortgages that some lenders have been planning to offer homeowners would be able to transfer the negative equity from their existing mortgage onto the new one. However, whilst this could provide convenience for those that want to move to start a family or to take up a new job it could also land many people even deeper into debt.

Regulators are said to have written to twenty one banks so far telling them to hold fire on launching these mortgages until they have decided whether it is wise to allow the mortgages to be made available.

The regulator stated: “We intend to examine the merits of such products further with a view to consumer protection to see whether such products should be available to consumers and if so what restrictions should apply. Such a product may lead to consumers being overexposed or facing future repayment difficulties.”

Irish banks told to hold fire on negative equity mortgages is a post from: Glitec

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Generally, when customers buy or look to buy inexpensive health insurance plan in Virginia, they have a tendency to look for obligations and responsibilities of insurers and what they ought to do. On the other hand, if you look into the recommendations supplied by the Bureau of Insurance plan in Virginia, you will observe that there is numerous stuff that consumers have to do to get maximum advantages of the purchased inexpensive health insurance plan.

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An expert in the financial industry has recently spoken out about personal insolvency in the UK, stating that it is wrong for this course of action to be stigmatised in the way that it often is. Ed Bowsher from Lovemoney.com said that for many people personal insolvency was the only option.

Over the past few years a rising number of consumers have been hit with financial problems as a result of the global financial crisis and the recession, which has led to a restriction in funds and credit as well as many job losses. As a result of this many have had to take on more debt in order to fund even basic living costs in some cases.

However, whilst there are a number of solutions available for those that do have debts that they are struggling to repay some of these solutions – namely personal insolvency – comes with a huge stigma attached. With so much stigma attached to personal insolvency many of those that may have considered looking into this measure may end up being too scared or embarrassed to do so.

Bowsher said that it was wrong of people to stigmatise personal insolvency because for some people it really was the only effective option that was available, but as a result of the stigma consumers were failing to help their own financial situations by opting for personal insolvency.

Since last year the number of personal insolvencies in the UK are said to have increased by around 18 percent, and his indicates that more and more people are realising that this is the best course of action for them. However, officials have warned that personal insolvency is not something that should be entered into lightly as it can have a profound effect on a consumer’s financial future.

Financial expert speaks out against stigmatising personal insolvency is a post from: Glitec

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Over the past few years many small and medium sized businesses in the UK have struggled to get loans and finance from banks, and in the same way as with consumers the availability of loans and credit for businesses dried up following the onset of the global financial crisis. As the banking industry was brought to its knees in the financial meltdown many businesses were forced to look elsewhere for finance or even close their doors for good. 

However, over recent months things have been improving to some degree for the banking and financial sectors, which has seen the availability of finance ease up a little for both consumers and businesses. Despite this ease is credit conditions, however, lending to businesses still remains low, and a recent report has suggested that in order to get finance businesses will not need to demonstrate clear plans for growth and success.

The government has called on lenders to ensure that business loans are made available for businesses that are striving to grow and flourish, stating that they are vital to the future success of the economy, and the government has taken a number of steps to try and increase the availability of loans for businesses. However, following the events of the last few years in the financial sector banks are naturally being very cautious about handing out loans to both businesses and consumers. 

One bank has recently stated that whilst banks are keen to support businesses in the UK they also needed to see some form of commitment to growth and success for the businesses that were looking for finance.

Brian Colquhoun, Yorkshire Bank’s North West regional director, said: “We’re entering another crucial stage of the economic recovery. On the whole, banks are keen to support businesses in what remains a tough environment.   From a Yorkshire Bank perspective, we’re as keen as ever to support trading businesses that have strong management and clear plans for growth. From a customer point of view, management teams are emerging stronger from the experience of the downturn. They’re looking to create lasting relationships with a partner that has the ambition and vision to provide a solution to financing needs. Banks with clear appetite to lend will benefit from this.”

Businesses need to show future plans to get finance is a post from: Glitec

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Being heavily in debt is something that many people are having to cope with, and over the past couple of years, with the recession and the financial crisis taking their toll, many have found themselves getting deeper and deeper into debt. A lot of people that have accrued debt over the years have a range of different debts that they are paying off, such as credit cards, store cards, loans, and overdrafts.

Often these debts can carry very high rates of interest, and this means that consumers can end up paying a fortune for their borrowing over the term of the loans and cards. In addition to this, having a range of different debts to deal with can prove to be difficult and inconvenient because it means having to make repayments to a number of different creditors each month.

Many officials believe that some people that have a range of different debts could benefit from consolidating these debts into one convenient, lower interest loan, and this is something that they can do with a consolidation loan. A number of lenders offer consolidation loans, and depending on the credit rating of the applicant the rate of interest charges can be very reasonable compared to the rates charges on most credit and store cards.

Borrowers can benefit from consolidation in a number of ways. Consolidating a range of higher interest debts into one lower interest loan can really cut the amount of interest that the borrower pays overall, and it can also reduce monthly outgoings as the repayment on the consolidation loan may be lower than the combined repayments on the individual debts. In addition to this borrowers will not have to worry about making different repayments to different creditors, and will only have to deal with one lender.

Consolidation loan could prove beneficial for many in debt is a post from: Glitec

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Consumers in the UK have been warned by a debt management and advice group about getting into debt as a result of the number of credit cards in the UK increasing. Figures have shown that there has been a sharp increase in the number of 0 percent purchase credit cards available, and there are concerns that this could lead to more people getting into debt.

Officials believe that the more relaxed lending criteria by lenders could also contribute to more people getting credit cards and then finding themselves in unmanageable levels of debt. This time last year there were only two credit cards that were offering 0 percent interest of more than ten months on purchases, but this has now increased to eleven such cards.

Whilst eleven may not sound like a huge number it does reflect an increase of around four hundred and fifty percent compared to last year, and with rules relating to lending becoming more relaxed there are concerns that more people could find themselves getting into credit card debt.

Officials believe that competition has returned to the credit card market, and once again lenders are vying for business from consumers, although not to the same level as they were several years ago before the financial meltdown. This could lead to more people applying for these cards, and eventually could lead to greater levels of debt of people are then unable to meet repayments.

However, whilst the debt company was concerned about debt levels officials from the firm also said that these 0 percent interest purchase credit cards could be useful if used properly.

The debt company stated: “If used properly, the 0% purchase deals for extended months is still a viable option for many consumers. However, it is important to stay within your limits and pay off the difference by the final month, otherwise you could be in for an unpleasant surprise in the form of increased interest rates.”

Consumers cautioned about debt as credit card availability increases is a post from: Glitec

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The government has taken steps to try and protect struggling homeowners in the difficult financial climate by bringing in a range of new measures that will prove additional safeguards for those that could otherwise be at risk of losing their homes.

The UK’s financial regulator has decided to make all mortgage advisors personally responsible and accountable through the introduction of new rules and regulations that will apply to companies that deal with consumers that are behind on their mortgage repayments.

The FSA started a review of the mortgage market in the autumn of last year, and has now said that all mortgage sale firms and employees will have to be FSA approved. In addition to providing additional protection for those that are behind with their mortgage repayments the regulator is also looking to increase protection for those that decide to sell and rent back their homes.

Sale and rent back scheme shave become increasingly popular over recent years, with homeowners desperately trying to find a way of being able to stay in their home before they are repossessed due to mortgage arrears. Through these schemes they can sell the home and then rent it back from the company, but there have been many problems including the companies evicting the former homeowners shortly after taking the property from them.

Under new regulations companies that buy homes to rent back to former homeowners will have to give them tenure of at least five years. According to reports these, and other new protective measures, will come into play at the end of June.

An FSA official said: “Sale and rent back is often used by those who want to sell in a hurry to stay in their home, and so it is vital that they are better protected during what is usually a difficult period financially. We also think it is wrong that arrears charges should be taken from customers already in difficult circumstances.”  

Government takes steps to protect struggling homeowners is a post from: Glitec

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Many people are having trouble managing their finances during the economic times of today, and one answer may be credit debt relief. This is usually a way for consumers to lower their overall debt load, and there is actually a credit card bailout that may be available for those who qualify.
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In the ongoing difficult financial climate many people have struggled to get finance, and no matter sort of finance consumers are applying for – be it loans, mortgages, or credit cards – there is a far higher chance of getting rejected for the finance these days than several years ago before the onset of the global financial crisis.

Lenders these days are being far more stringent with regards to who they will lend to, and the credit score of an applicant has become more important that every, as lenders are using credit reports to go through applicants’ past financial history with a fine tooth comb before making a decision on whether to give them the finance that the need.

With credit reports now playing such a big part with regards to the decision that lender making when deciding on loan and mortgage applications those that are considering applying for a loan are being advised to check their own credit before they make any application, as otherwise they could quickly be rejected and this could further damage their credit rating.

These days it is possible for consumers to order a copy of their credit report and score with ease and convenience online, and for just a few pounds. The information from the credit report can prove invaluable in helping consumers to determine whether to make an application for finance or wait until their credit has improved.

One former bank official said: “It has become really important to check your credit report before applying for finance these days, and by doing this borrowers can save themselves the hassle of making an application that is going to end up in the rejection pile. More importantly, however, they can avoid another black footprint on their credit file.”

Consumers urged to check credit before making loan application is a post from: Glitec

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