If you have just got the renewal quote for your House Insurance and are not happy with the quote then there is a way to reduce the cost.
It is advisable to review the amount you are insured for at least every two years. The amount that you insure your house for is referred to as the Reinstatement Value or the Rebuilding Cost. Basically this the amount of money it would cost to rebuild your house in the unfortunate event that it burned to the ground.
If you have not checked the rebuilding cost of your house recently then chances are you will be way over insured. The reason for this is that it is now allot cheaper to rebuild a house than it was a few years ago.
Your house insurer will never tell you that you are over insured as they want to maximise profits. The higher your rebuilding cost the higher the profits are for the insurer.
A great guide to the amount you need to be insured for can be found by clicking on the following link
http://www.scs.ie/2010-SCS-House-Rebuilding-Insurance-Guide.pdf
This link is a PDF guide which you can download from The Society of Chartered Surveyors website. You need to know the approx Sq. Ft size of your house and the guide then shows you how to work out the up to date rebuild cost.
Armed with your new lower rebuild cost you can get your insurer to quote you a new lower premium.
Tuesday, August 31, 2010
Friday, August 6, 2010
Debt Legislation
Ireland is in urgent need of new personal debt legislation. There has been allot of talk from Politicians and organisations like MABS calling for help for our over indebted population. However little or nothing has been done to help families struggling with debt.
The time for action is now. We really cannot afford to wait any longer. Families across the country are struggling with loan and credit card repayments. Organisations like MABS, by their own admission, cannot cope with the numbers seeking their help.
In the UK there has been proper legislation put in place years ago and they really are light years ahead of Ireland. Anyone in the UK who is struggling with debt can avail of an IVA. This is basically an agreement that is negotiated with your creditors. A full assessment is done of a persons income and expenditure. After all necessary living expenses are accounted for an affordable monthly payment is agreed. This payment is then formalised legally by an IVA and the person can be clear of debt in 3 to 5 years.
Its not rocket science and works very well in the UK. In Ireland we normally copy quality legislation like this but to date nothing has been done. The Irish legislators really need to put under pressure to introduce something similar to IVA's here.
Without IVA's, those in debt are really at the mercy of their creditors. if you are unable to make your repayments on a loan or credit card you can find yourself in court. First to have a judgement for the debt registered against you and then to have an installment order against you. if you fail to make repayments under an installment order you can then face jail. This is a crazy system and how nothing has been done yet about this archaic system beggars belief.
Hopefully those in power will have some compassion soon and give people in debt a helping hand?? I really hope they do sooner rather than later.
The time for action is now. We really cannot afford to wait any longer. Families across the country are struggling with loan and credit card repayments. Organisations like MABS, by their own admission, cannot cope with the numbers seeking their help.
In the UK there has been proper legislation put in place years ago and they really are light years ahead of Ireland. Anyone in the UK who is struggling with debt can avail of an IVA. This is basically an agreement that is negotiated with your creditors. A full assessment is done of a persons income and expenditure. After all necessary living expenses are accounted for an affordable monthly payment is agreed. This payment is then formalised legally by an IVA and the person can be clear of debt in 3 to 5 years.
Its not rocket science and works very well in the UK. In Ireland we normally copy quality legislation like this but to date nothing has been done. The Irish legislators really need to put under pressure to introduce something similar to IVA's here.
Without IVA's, those in debt are really at the mercy of their creditors. if you are unable to make your repayments on a loan or credit card you can find yourself in court. First to have a judgement for the debt registered against you and then to have an installment order against you. if you fail to make repayments under an installment order you can then face jail. This is a crazy system and how nothing has been done yet about this archaic system beggars belief.
Hopefully those in power will have some compassion soon and give people in debt a helping hand?? I really hope they do sooner rather than later.
Tuesday, July 20, 2010
Variable Mortgage Interest Rate Increases
EBS Building Society is the latest mortgage lender to increase its variable mortgage interest rates by 0.6%. This recent increase also applies to anyone who has a mortgage with Haven Mortgages, the Broker arm of EBS.
Is this rate increase justified?
EBS will quote the cost of funding and the fact that they have to become a profitable company again in order to start paying back the money that the government has pumped into the society. On the one hand it does seem logical that they cannot continue to make a loss on mortgages if they are to move forward and become profitable again. However this is very hard for mortgage customers to take as they are the ones who have effectively saved the banks with the tax payers bailouts.
Variable rate mortgage cusotmers are really the only ones that the banks can use to increase their profit margins on morgages. Tracker rates can only be increased when the ECB moves rates but it is unlikely to do so in 2010.
Unfortunately it seems like there are more interest rate increases to come this year and next. There is a good chance that Bank of Ireland, AIB, Ulster Bank and Irish Nationwide will also increase rates before the end of August.
These variable rate increases will not affect those on fixed or tracker rates. Those on fixed rates however will be moving onto higher variable rates once their fixed rates end. Those on trackers will not see any movement until the ECB moves rates.
Anyone on variable rate mortgages really should consider a fixed rate. Fixed rates have increased over the last 12 months and in hindsight last year was the time to fix. However there are still some good fixed rates available.
Is this rate increase justified?
EBS will quote the cost of funding and the fact that they have to become a profitable company again in order to start paying back the money that the government has pumped into the society. On the one hand it does seem logical that they cannot continue to make a loss on mortgages if they are to move forward and become profitable again. However this is very hard for mortgage customers to take as they are the ones who have effectively saved the banks with the tax payers bailouts.
Variable rate mortgage cusotmers are really the only ones that the banks can use to increase their profit margins on morgages. Tracker rates can only be increased when the ECB moves rates but it is unlikely to do so in 2010.
Unfortunately it seems like there are more interest rate increases to come this year and next. There is a good chance that Bank of Ireland, AIB, Ulster Bank and Irish Nationwide will also increase rates before the end of August.
These variable rate increases will not affect those on fixed or tracker rates. Those on fixed rates however will be moving onto higher variable rates once their fixed rates end. Those on trackers will not see any movement until the ECB moves rates.
Anyone on variable rate mortgages really should consider a fixed rate. Fixed rates have increased over the last 12 months and in hindsight last year was the time to fix. However there are still some good fixed rates available.
Thursday, July 1, 2010
Negative Equity Mortgages. Right or Wrong??
According to Charlie Westin negative equity mortgages are on the way with some mortgage lenders already offering them to their existing customer.
Are Negative Equity Mortgages a Good Idea??
It is obviously not a good idea to have a mortgage for more than your property is worth, however many people in Ireland today (me included) are in negative equity through no fault of their own. If you are in a property you are happy with and you can afford the repayments then negative equity is not necessarily a total nightmare. The hope is that in time property prices will recover. How long this will take is anybodys guess but you would imagine that prices cant continue to fall indefinately.
As I see it there are two main groups of people who are suffering badly from negative equity. The first group of people are those who simply cannot afford to make their mortgage payments. With no option to sell the property they are stuck in an awfull situation. Most mortgage lenders are helping people with interest only repayments and in some cases agreeing to write off the negative equity if the property is sold for the current market value. If you are unable to make your mortgage payments you really need to approach your mortgage lender and see what your options are. If you cannot get anywhere with your mortgage lender then firms like DebtLine can offer help and advice.
The second group of people badly affected by negative equity are able to afford their repayments but need to move. This group of people most likely bought an appartment or a starter home just to get on the property ladder in the Celtic Tiger property rush. This is the group that can be helped with negative equity mortgages. A negative quity mortgage will help them move and get on with their lives. They will still be in a negative equity situation but it is much easier to handle if you are in a property you want to be in.
From a Banks point of view it is much better to have a negative equity customer in a home they are happy with. There is much less chance of repayment deliquency you would think.
In my opinion negative equity mortgages used correctly for people already in negative equity can be a workable solution for mortgage customers and mortgage lenders. Hopefully we will start to see more information on negative equity mortgages sooner rather than later.
Are Negative Equity Mortgages a Good Idea??
It is obviously not a good idea to have a mortgage for more than your property is worth, however many people in Ireland today (me included) are in negative equity through no fault of their own. If you are in a property you are happy with and you can afford the repayments then negative equity is not necessarily a total nightmare. The hope is that in time property prices will recover. How long this will take is anybodys guess but you would imagine that prices cant continue to fall indefinately.
As I see it there are two main groups of people who are suffering badly from negative equity. The first group of people are those who simply cannot afford to make their mortgage payments. With no option to sell the property they are stuck in an awfull situation. Most mortgage lenders are helping people with interest only repayments and in some cases agreeing to write off the negative equity if the property is sold for the current market value. If you are unable to make your mortgage payments you really need to approach your mortgage lender and see what your options are. If you cannot get anywhere with your mortgage lender then firms like DebtLine can offer help and advice.
The second group of people badly affected by negative equity are able to afford their repayments but need to move. This group of people most likely bought an appartment or a starter home just to get on the property ladder in the Celtic Tiger property rush. This is the group that can be helped with negative equity mortgages. A negative quity mortgage will help them move and get on with their lives. They will still be in a negative equity situation but it is much easier to handle if you are in a property you want to be in.
From a Banks point of view it is much better to have a negative equity customer in a home they are happy with. There is much less chance of repayment deliquency you would think.
In my opinion negative equity mortgages used correctly for people already in negative equity can be a workable solution for mortgage customers and mortgage lenders. Hopefully we will start to see more information on negative equity mortgages sooner rather than later.
Thursday, May 6, 2010
Debt Management
Many people in Ireland today are struggling with huge debt repayments that they just cannot afford. Most debt problems arise due to a change in circumstances. You may have taken a wage cut, lost your job, suffered health problems or perhaps a relationship breakdown.
Debt can quickly creep up on you. You might have a car loan, personal loan, credit union loan, credit card and store card. All of these debts can be very manageable when you are secure in your job but if you end up on a reduced income then late payments quickly turn into arears and solicitors letters.
The sooner you face up to the problem and seek help the better. There is help available from government agencies like MABS and also from private Debt Management companies like DebtLine.
A company like DebtLine can help you with a Debt Management Plan. The first step is for your debt adviser to help you with a budget. Your own personalised budget will document all of your income and outgoings.
The next step is to prioritise your Debts. There are two types of Debts. The first type of debt is secured Debt like mortgages and car loans. Failure to make payments on secured debts will eventually result in repossession.
The second type of debt is unsecured debt like personal loans and credit cards. Failure to make payments on unsecured debts will eventually result in you being brought to court where a judgement for the debt will be registered against you and a payment order agreed upon. In a worst case scenario you could face a jail sentance.
Your Debt adviser will assess your overall financial situation and negotiate with all of your creditors to come to an affordable solution to your debt problems. A Debt Management Plan will mean that you will have one affordable monthly repayment to cover all of your unsecured creditors.
If you are struggling with debt then you should contact DebtLine today to see how a Debt Management Plan could be the solution to your debt problems.
Debt can quickly creep up on you. You might have a car loan, personal loan, credit union loan, credit card and store card. All of these debts can be very manageable when you are secure in your job but if you end up on a reduced income then late payments quickly turn into arears and solicitors letters.
The sooner you face up to the problem and seek help the better. There is help available from government agencies like MABS and also from private Debt Management companies like DebtLine.
A company like DebtLine can help you with a Debt Management Plan. The first step is for your debt adviser to help you with a budget. Your own personalised budget will document all of your income and outgoings.
The next step is to prioritise your Debts. There are two types of Debts. The first type of debt is secured Debt like mortgages and car loans. Failure to make payments on secured debts will eventually result in repossession.
The second type of debt is unsecured debt like personal loans and credit cards. Failure to make payments on unsecured debts will eventually result in you being brought to court where a judgement for the debt will be registered against you and a payment order agreed upon. In a worst case scenario you could face a jail sentance.
Your Debt adviser will assess your overall financial situation and negotiate with all of your creditors to come to an affordable solution to your debt problems. A Debt Management Plan will mean that you will have one affordable monthly repayment to cover all of your unsecured creditors.
If you are struggling with debt then you should contact DebtLine today to see how a Debt Management Plan could be the solution to your debt problems.
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