Rising Household Debt Poses Risk To UK Economy.

Rising household debt, combined with stagnant wages, poses a major threat to the UK economy, according to the Organisation for Economic Co-operation and Development (OECD).

The OECD warned that personal loans such as credit cards presented a much greater risk of default compared to mortgages and said that worsening economic conditions could make repayments unaffordable for many borrowers.

The Paris based think tank said it expected UK growth to be the lowest of the G7 economies and that this will constrain wage growth, putting more pressure on already strained household finances.

It called for tougher affordability checks to be introduced to stop banks from lending to customers who might struggle with repayments, to prevent the banks from running into trouble should they be faced with a higher default rate.

The UK’s unsecured debt on credit cards, store cards, personal loans and car finance deals reached £200 billion this year, the same level it was at just before the 2008 financial crisis.

We can help.

If you’re one of those people struggling with unmanageable store card debt, there are options, however.At Get Help With Debt, we can write off thousands of pounds in debt and help you to manage the remainder, so it’s affordable for you.

Go online to our website and take our free online assessment, then book your free, no obligation consultation with one of our debt advisors to find out how we can help you.

Once you’ve met with your advisor we can present you with a range of bespoke solutions and you can make an informed decision about what approach is best for you. After that we do all the hard work, handling all third party communications for you, so you don’t have to deal with your lender anymore.So, go to www.gethelpwithdebt.co.uk and start the process of becoming debt free.

Mistakes first time homebuyers should avoid.

Buying your first home can be a complicated process with a lot of steps to take, several interested parties involved, including the seller, estate agents and solicitors, to deal with and a lot of money involved.

With so much going on, it’s easy to make mistakes that can cost time and money. At Aria, we want to make buying a house as straightforward as we possibly can for our clients, so here is our guide to mistakes first time buyers should avoid.

Not checking your credit rating.

Having the cleanest possible credit report will make it much easier for you to get approved for a mortgage loan and will affect how much money you will be able to borrow, so it’s important that you make sure you access your credit report and take any steps needed to get it ready for a mortgage application. You can read our guide to improving your credit report here.

Not doing enough research.

There’s a lot of information you’ll need to know and understand when you’re buying a house. When it comes to applying for a mortgage there are a lot of questions you need to answer. What mortgage products are available? What deposit do I need? How much can I afford to repay every month? But it doesn’t end there. Make sure you have researched the house buying process and look into the property itself. How old is it? Does it need any work? What is the housing demand like in the area?

Not getting pre-approved for a mortgage.

It‘s not uncommon for prospective buyers to start looking at properties in a particular price range only to discover later that they won’t be able to borrow a big enough mortgage. This can set the whole process back while you reassess your budget and start looking all over again. To avoid this it’s a good idea to contact you chosen lender and ask for a ‘mortgage in principle’. This is a statement from a bank to say that would lend you a certain amount of money and will help you to clarify your budget.

Not getting a survey done.

Sometimes buyers will avoid getting a proper inspection done on a property they plan to buy. Sometimes they want to avoid the expense, other buyers fall in love with a particular property and rush to finish the deal. It is important to get a survey done, however. While the house may look superficially like it’s in good condition, a survey will reveal any hidden damage, like rotting floors, a leaking roof, or rising damp, which could affect the value of the property or cost you more to have fixed.

Underestimating total costs.

We’ve already talked about mortgage costs, but there are many other expenses you might have to cover when you’re buying a house and when you’re living in it. When buying, you’ll need to cover solicitors’ fees, survey costs, mortgage processing fees, and possibly Stamp Duty. Once you’re in the house you’ll have to pay for building insurance, council tax, utility bills, TV
licence and any maintenance costs, which you might not be paying in rented accommodation. Before buying it’s important to work out exactly how much you can afford to pay in living costs and budget accordingly.

Once you’ve checked your credit rating, worked out your budget and spoken to your bank, you’re ready to find your perfect home. Contact Aria Residential online at www.ariaresidential.co.uk
or visit us in one of our branches on the Lisburn Road in Belfast or in Templepatrick and find out how we can help you get your perfect home.