Essentially Home Loans Weblog

The amount of debt that families across the UK are defaulting on has hit a record high according the figures from the Bank of England.
In the first half of 2007 banks were forced to write off £3.74bn because borrowers are failing to pay back their loans.
This means that everyday households in the UK are defaulting [...]

The UK sub-prime mortgage market is experienced another year of strong growth in 2006, according to research from Datamonitor.  The UK sub-prime mortgage market is expected to reach GBP31.5 billion by 2011, 4.7%, compared to the mainstream market’s rate of 2.6%.
‘Content Although significant opportunity remains in the UK sub-prime mortgage market, growth is slowing in [...]

The FSA has already referred five mortgage brokers to its enforcement division, including firms whose irresponsible practices were identified in the 2005 study but who refused to improve their practices.
The FSA also discovered that half of sub-prime mortgage advisers fail to validate customers’ suitability for a loan and one third of advisers do not assess [...]

Record levels of UK credit card spending, despite recent downturns in early 2007, are forcing many consumers into bankruptcy.  Credit Advice claims that credit cards factor into 97% of the cases they see on a daily basis.
Credit card debt is high, carrying with it an almost unbearable interest rate burden. Some cards now experience as [...]

Anyone trying to make sense of the current economic climate is being pulled in different directions by conflicting reports released by two camps:  estate agents are positive that the housing market will continue to grow and that the economy is strong; economists are worried that interest rates will increase bankruptcy, cooling the market.
The housing market [...]

After the recent base rate rise, it is believed that more than six million homeowners with variable rate mortgages will be stretched by more expensive monthly costs.  The Bank of England has increased the base rate for the fourth time since last August and at 5.5 percent, the base rate is now at its highest [...]

The  increased debt problem in the UK reaching £1,318 billion this month has given birth to a variety of support services for people who are struggling under their debts.
A new website for people who need financial advice launches on May 07. ‘The UK Debt Forum – Discuss Debt’ (www.discussdebt.co.uk) is created for individuals who want [...]

Consumers are closing the gap between what they considered ‘expendable income’ and a debt load that will push them into bankruptcy, according to Alliance Trust’s ten-year study into the nation’s finances.
“Consumers are becoming increasingly stretched in an effort to maintain their existing lifestyle,” Alliance Trust states.
“Debt, in particular, is becoming an ever bigger burden for [...]

The number of Brits receiving performance-related bonuses has doubled within the last 12 months, according to figures released by building society group Birmingham Midshires.  These bonuses have fed the housing market, bolstered the inflation rate, and increased the number of consumers taking on personal loans.
The average amount of each bonuses has decreased from £3,858 to [...]

A report published by the charity behind National Debtline looked at whether free advice services are meeting the high demand for debt management assistance among UK consumers who are facing insolvency.
The study reveals that 50 per cent of debt advice organisations, both charity and non-charity, have experienced an increase in demand for their services in [...]