While there has been an explosion in Individual Voluntary Arrangements (IVAs) over the last few years, many analysts believe that the cycle may have peaked in the short term. This situation was reflected in the recent fall in share prices in the sector, with warnings that growth would slow from the unrealistic rates of last year.
As we approach the 1st June, the day when Home Information Packs (HIPs) will be introduced, the Conservative Party have failed in a bid to have the project cancelled. They lost a recent Commons vote, where they argued that the packs we too expensive (costing upwards of £300), would delay movement in the housing market and were badly thought out with some areas of information for the HIPs not available as at 1 June.
Over the last 10 years there has been an explosion in the so called “No Fee†compensation cases, and this area of business seems to be growing at an alarming pace. While these arrangements are ideal for the person claiming some form of compensation or financial redress, there are signs that all may not be as it seems.
So how do these advisers actually make their money?
While they have been popular in other areas of the world for some time, it is only over the last few years that “offset mortgages†are becoming more widely available in the UK. As with any new financial product it is taking some time to educate the public about the pros and cons of these mortgages, but there are signs that the message is starting to get through.
What Are Offset Mortgages?
The public sector by a mile!
It has been revealed that public sector workers are receiving massive benefits over private sector workers with regards to national insurance contributions and pension arrangements. This figure has been calculated at some £50,000 over the span of a normal working life and is sure to cause massive resentment in the private sector.
While it is common knowledge that first time buyers are the life blood of the housing market, there are signs that this stream of business may be drying up - with many being priced out of the market completely.
A report today has shown that on average first time buyers are spending more and more of their monthly income on mortgage repayments, with the figure standing at 18.3% of income in March 2007 (the highest since 1992), against only 16% a year ago. While this may not sound like an awfully large rise, imagine if interest rates rise further (as expected), energy costs rise again and the employment market comes under pressure - the results could be catastrophic!
