Loan Origin

Understanding Car Insurance Discounts

admin — Thu, 24 Apr 2008 14:15:43 +0000

Trying to save money wherever you can is important to us all. Car insurance should be no different. Do not assume that your agent knows everything about you and your vehicle.

Drivers should take advantage of all discounts that many providers offer, that can significantly reduce the cost of car insurance. Understanding discounts and how they can affect auto insurance premiums can help smart shoppers make better decisions about their coverage and possibly save themselves some money in the process.

Read below to identify possible discounts that could help you save on auto insurance this year. Other than discounts, there may be some other ways for you to save on your insurance premiums. We will go over several discounts that can help with your current situation.

First, there are discounts for Auto Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seatbelts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply. If the principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary meaning that it was not the result of a violation or infraction.

Some insurers will give you a discount for having multiple vehicles. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver’s discount.

Many companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. It makes sense, you have carried insurance with a company for several years, and have not had an accident, your insurance company likes you and wants to reward and keep your business. Some companies honor you with a discount if you had prior limits on your previous policy. They discount you because they understand you are a better risk.

Conversely, if you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer. If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states the age is 21) you could be eligible for a good student discount. If you own a home, including condominium, town home, or mobile home, which is used as a principal residence, a discount could apply. Military personnel either currently active or retired from any branch of the US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.

You could lower the cost of your insurance in other ways.
For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of your vehicle and the premium that the insurer has offered, you may find that it cost as much for the insurance as it does for the vehicle. If the car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.

In addition, keep in mind that the type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid sized sedan. This is also true of vehicles that are on the list of most stolen. There are many ways that policyholders can save on their insurance. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles. The last way to save is to assume more risk. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is the amount of money you have to pay before your insurance company begins paying the rest.

Understanding how discounts affect your insurance rates is important to save you money.

Some Call for Larger Interest Rate Cut

admin — Tue, 18 Mar 2008 15:33:29 +0000

In reaction to the Bank of England’s recent decision to cut the interest rate to 5.25 per cent, mortgage lenders announced they will pass on the savings to borrowers. The Bank of England’s decision to cut the rate was based on assisting the economy in light of the credit crisis.
Economic adviser to the British Chambers of Commerce, David Kern, explained, “The Monetary Policy Committee’s decision to cut interest rates to 5.25 per cent was necessary for the economy. In the face of worsening global and domestic conditions, a refusal to act would have entailed unacceptable risks.”
However, Mr. Kern went on to add that the cut “is not adequate on its own,” explaining that threats to economic growth are “much more acute” now than are the risks of inflation. “We would have welcomed a bold U.K. move to five per cent,” he lamented.
Consumers can still be happy with the savings they will receive from lower mortgage interest. For a £100,000 mortgage, the average savings would be £16 a month.

Offset Loans Can Save Consumers Money

admin — Mon, 18 Feb 2008 15:34:26 +0000

Intelligent Finance, a division of Bank of Scotland initiated in 2000, recently released research showing that if offset loans were as popular in the U.K. as they were in England, U.K. residents could collectively save £345 billion or nearly £70,000 for each average borrower.
Offset loans are situations, typically in mortgage loans, in which the borrower maintains a savings account with the lender. The interest payment due on the loan each month is calculated only on the net balance of the loan minus the savings account. Although offset mortgages have become more popular in the U.K. in the past ten years, Intelligent Finance would like them to become as prevalent as they are in Australia. According to Cammy Amaira, Intelligent Finance sales director, the “latest number crunching roves it’s definitely worth it.”
Why exactly are offset loans so prevalent in Australia? Mr. Amaira explains, “In Australia, the popularity of offset has a lot to do with mind-set. Australians value home ownership as much as we do, but they don’t want their mortgage to take over their lives, making offset their ideal choice.”

Benefit of Fixed Rate Mortgages Seen

admin — Sun, 17 Feb 2008 15:32:49 +0000

With the majority of fixed rate mortgages offered only lasting for five years, Chancellor Alistair Darling recently made a call for 25 year fixed rate mortgages to increase in opportunity-and even become normal-in the future. Currently, Nationwide is the only major mortgage lending company in the U.K. that offers a 25 year fixed rate mortgage.
Chancellor Darling’s reasoning behind his desire for wider availability of affordable long-term fixed rate mortgages is to bestow homeowners with added security in the current unstable financial conditions. Chancellor Darling explains, “For many households, particularly those on low incomes, fixing the level of mortgage repayments for several years makes real sense. It can also contribute to wider macroeconomic stability.
The popularity of the fixed rate mortgage is apparent. After Nationwide initiated the offer of their 25 year fixed rate mortgage in March 2007, they announced that it sold out within only five weeks.

Bank of England Cuts Interest Rate

admin — Sat, 16 Feb 2008 15:32:10 +0000

The Monetary Policy Committee (MPC), whose panel of nine members meet every month to discuss and set the interest rate for the U.K., recently decided to cut the interest rate by .25 per cent-down to 5.5 per cent. The Bank of England made the decision for a low cut to address slow economic growth while keeping an eye on inflation.
John Charcol’s Ray Boulger reflected that most experts expected the cut. He explained, “With the MPC receiving significant criticism for not cutting the rate for a second consecutive month in January, after a unanimous vote for the December cut, together with discussion on whether a .5 per cent cut might be necessary to achieve economic stability, there was never any real doubt on the outcome of today’s meeting.”

Interest Rate Predicted to Fall Through 2008

admin — Fri, 15 Feb 2008 15:30:28 +0000

Financial experts, Global Insight, stated recently that they forecast interest rates to fall for 2008 and early 2009. Specifically, Global Insight predicts that by the end of 2008, the interest rate will have fallen to 4.5 per cent, and will continue to fall to 4.0 per cent in the beginning of 2009. Currently, the interest rate is at 5.5 per cent, with an expected cut by the Bank of England of at least a quarter per cent coming on Thursday.
Chief European and U.K. economist at Global Insight, Howard Archer, explains that, “This [prediction] is based on out assumption that the U.K. will avoid recession, but will see extended below-trend growth.”
In addition to the interest rate forecast, Global Insight set the gloomy prediction that the Gross Domestic Product growth will be “the equal weakest performance since 1992,” of approximately 1.8 per cent in 2008 and 2009.

CML Concerned Over Mortgage Fraud

admin — Thu, 14 Feb 2008 15:29:34 +0000

According to Council of Mortgage Lenders (CML), the trade association for the mortgage lending industry, U.K. mortgage lenders want increasingly tighter rules so that mortgage fraud is reduced. Specifically, the mortgage lenders are upset about sales of newly built city centre flats.
Mortgage lenders are concerned that in the current unstable property market conditions, developers are offering deals of buyers that inflate the new home’s cost. Many of these deals include cash-back offers, free holidays, paid legal fees, and buying white goods.
The CML publication states, “In recent years, discounts and incentives have had the effect of making the real value of new homes less than transparent. This is bad news for genuine buyers and for lenders. Buyers may find themselves with a mortgage worth more than the property’s value, while lenders may find themselves exposed to fraud and the risk of loss.”

Manchester’s Home Market is Affordable

admin — Wed, 13 Feb 2008 15:28:43 +0000

Manchester has a lot to offer its residents: affordable housing in a city centre with everything one would expect from city living. Exactly how affordable? Real estate provider Savills states that first-time home buyers can find plenty of options for around £100,000, while living in the city centre.
Savills residential investment consultant, Tom Rogers, explains that in Manchester, “There is a lot on offer. The market is going through a little blip at the moment but as far as property prices go, I think they are quite fairly priced in Manchester. A one-bedroom apartment is still quite affordable and that’s city centre living .You wouldn’t get that in London.”
Further extolling Manchester’s pluses, Mr. Rogers continues that Manchester has grown “significantly” in the past few years and is “still growing.” This observation is corroborated by Manchester’s website, manchesterfacts.com, which states that Manchester will commit £4.9 billion to construction projects over the next ten years.

Younger Consumers More Apt to Choose Debt Consolidation Loans

admin — Tue, 12 Feb 2008 15:27:37 +0000

According to new research from Halifax, younger consumers, in the 20-29 year old age group, are the most likely consumers to opt for a debt consolidation loan. Debt consolidation loans are the second most frequent option for the 30-39 year old age group. Halifax’s research further shows that men are more likely than women to take out a debt consolidation loan.
Whether due to New Year’s resolutions or not, more loans are taken out in January than in any other month of the year. In fact, January loan totals nearly double the average loan amount taken out in some other months.
Neil Chandler, head of Halifax Unsecured Personal Loans, explains that, “For many people, the start of the year is a time to get personal finances in order - transferring debt from more expensive products such as store cards or other loans.”
For consumers who have loans, the Consumer Credit Counselling Service advises they share loan information with family members and friends.

Loans are Available for First-time Homebuyers

admin — Mon, 11 Feb 2008 15:27:02 +0000

First-time homebuyers should not be dismayed by the plethora of news reports and discussions expounding on the crisis in the mortgage industry. Although it is true that there are fewer loans available for 100 per cent of property value and that eleven mortgage companies have reduced their maximum loan amounts since December, 2007, Moneyfacts.co.uk wants first-time buyers to understand loans are still possibilities for them.
Darren Cook, head of mortgages at Moneyfacts.co.uk, explains that though mortgage companies are tightening their lending practices, first time buyers can still receive appropriate loans. He explains, “It’s not all doom and gloom for first-time buyers, it’s just that in the current mortgage market, [mortgage lenders] are not sure what is going to happen so they are being a bit prudent.”