The Bank of England has just released its statistics on lending to individuals for June – the report includes figures on net lending secured on dwellings – which is broken down into house purchases and remortgages.
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The report will be of interest to those SME owners and managers whose lines to credit are similar to those of households and individual consumers. While total net lending to consumers is indeed increasing it is slowing – giving more and more substance to the phrase UK citizens have all now become familiar with – the credit crunch. Further slowdowns in the growth of credit provision can be expected in the coming months as lending institutions remain cautious. A report today released by the Treasury expects the shortage of mortgage finance to persist until at least the end of 2010.Overall lending The total net lending to individuals in June stood at £4b. Mays total was £5.1b representing an increase of 0.3%. The increase between April and May was 0.4%. A slowing trend has been recorded for the past 4 months. When compared to the same period last year it would appear that the growth in lending stood at 7.4% – year on year this is lower than the figures for the past 4 months. The year on year growth for March stood at 8.7%. Housing market also slows – govt may step in In all the increase in net lending secured on dwellings was £3.1 billion, this figure is below the increase in May and the previous six-month average. These figures will come as no surprise to a housing market that is starting to see house prices stop rising and in some circumstances fall as a result of tighter credit lines. The numbers of loans approved for house purchase stood at 36,000, remortgaging at 84,000 and other purposes 45,000. All figures were lower than in May. The government in recognising the housing market crisis has indicated that they may have to give a taxpayer guarantee to billions of pounds of mortgage market bonds.This comes with a report commissioned by the Treasury that has suggested possible options to reviving the housing industry through stimulating the mortgage market. The assessment of the outlook for mortgage finance is due to be published later by Sir James Crosby, the deputy chairman of the City watchdog, the Financial Services Authority. Credit cards The increase in net consumer credit in June was £0.9b which is below that in May and the previous six?month average. Net credit card lending rose by £0.4b also below the increase in May.The annual growth rate of consumer credit slowed by 0.2 percentage points to 6.8%; the three-month annualised growth rate fell by 0.6 percentage points to 5.7%.
Archive for June, 2010
Credit Lending is Down in June
June 22nd, 2010Moody’s: Commercial real estate prices up in April
June 22nd, 2010Moody’s: Commercial real estate prices up in April
Commercial real estate prices rose in April, the first monthly increase since January, according to a report issued Monday by Moody’s Investors Services.
US Bank Business Loans Down $3 Million In Latest Week
June 22nd, 2010US Bank Business Loans Down $3 Million In Latest Week
US Bank Business Loans Down $3 Million In Latest Week
What is the name of a popular finance program?
June 20th, 2010Personal finance software helps you balance your checkbook and manange your finances. What is the name of a popular personal finance program?
Investment Property – Finance It Creatively
June 18th, 2010When the sweetest of deals fall into our laps unannounced, should you pass it up? Definitely not, however, if you are finding low levels of financial resources, you may have to get a little creative in terms of financing. When you are looking to finance your investment property creatively, you have come to the right place. Here you will discover different and creative methods of financing your deals. If you do not want to use these methods, they will definitely get the creative juices flowing, at the very least.
Need a loan? Consider No Doc or Low Doc
These are perfect for those who have little documentation that proves the extent of your income or creditworthiness. Furthermore, it is particularly beneficial to those that work at home. A no doc or low doc loan works exactly as it sounds. Depending on the specific type, you will either be required to present very little documentation or none at all. There is a downside to these particular types of loans however, you will probably only receive the loan for around 80% of the value or purchasing price of the investment property.
A Friend in Need, is a Friend Indeed
Being creative in financial deals, means pulling all of your resources together, this could mean talking to your friends. Your friends may be the answer to all of your financial issues. They could be looking for an investment property, just like you, this could be a great solution for the both of you. You should, however, ensure that your friend is someone you have full trust in and know extremely well. How would it work? Well, both of you would place money to go towards the down payment; therefore, you both would have an investment property. Each of you would also have a hold and say so in both the mortgage and the title.
Family for Life
Family members are often an excellent resource when it comes to financing an investment property. Many people really do not want to go to there family and ask them to give you money. However, you could take a different approach instead of asking them for a gift or a handout consider asking for a loan. Much like a bank, only these are your family members. You should always offer to pay the loan back, within a specific period of time, at a predetermined rate of interest.
Remember this is an investment for them as well, an investment in you. Therefore, you should make the offer of paying back with interest. It is highly likely as a family member, that they will refuse the offer of interest and just want the initial sum paid back, but you should never assume and always make the offer.
Summary:
What should you do when you have run out of financial resources, but you have a sweet deal on the table for investment property? Get creative!
How statistics are used in business areas (accounting, finance, management and marketing?
June 18th, 2010For basic knowledge, such as an intro course to statistics.
Open up the 401(k) black box!
June 18th, 2010Open up the 401(k) black box!
How much do you pay for your 401(k)? You probably can’t answer that, because providers of the employer-sponsored retirement plans aren’t required to tell you in clear language what they’re charging. And now it appears that lawmakers in the Senate don’t want you to know, either. At least not yet.
Commercial Property – Zafiro Apartments – Lima, Peru
June 17th, 2010
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Business Loan Brokerages: Pros and Cons
June 16th, 2010You may be aware of this, but there a number of firms that can actively assist you as you looking for business loan. These firms are commonly known as loan brokerages. They work in a very similar capacity to that of a mortgage brokerage firm but with a specific focus on business loans. However, before engaging a business loan brokerage you should be aware of a few things. Like with any industry, there are a number of unscrupulous firms and individuals that seek to take advantage of people that are not privy to how the industry works. In regards to loan brokerages, you should be wary of any firm that requires substantial upfront fees before assisting you with obtaining a business loan. However, some of the fees presented by a loan brokerage can be reasonable. For instance, fees for business plan development and credit reports should be reasonable while several thousand dollar retainers for simply taking on a project are not. When working with a business loan brokerage you should always perform your own due diligence. Does this firm have references? Are they are member of the Better Business Bureau? What is their success rate?
Once you find a firm that you want to work with when looking for business loan then it is time to begin negotiating the fees. Typically, most business loan brokerages charge a fee ranging from 2% to 10% of the successfully raised capital. Again, this is subject to negotiation. If you have a substantial amount of collateral, an excellent credit score, and a solid business plan then the fees should be lower as your chances of obtaining a business loan are much higher than people that do not have the same qualities.
One of the pros of working with a business loan brokerage is that you can quickly receive a number of loan offers from a number of banks and lenders within days of submitting your formal application. Additionally, the business loan brokerage can assist you immensely with developing the appropriate application and business plan so that your business loan request can be processed faster than if you did it on your own.
One of the primary negatives to working with a loan brokerage is that they can charge substantial fees for their services. However, these fees can be justified if the loan brokerage is legitimate and able to secure a business loan on your behalf.
Real Estate With No Credit Checks!
June 16th, 2010CBs #1 Rated Real Estate Program For 3 Years In A Row! Thats A Clue As To How Hot This Is! Earn Up To $83.50 Per Sale!
Real Estate With No Credit Checks!
