Figures released recently show that more than one million british workers could currently be employed on a zero hour contract, these contracts offer no guarantee of regular work or a steady income. Therefore if your hours become further and far between there is a chance that unpaid bills could pile up and financial worries could develop.
These contracts are predominantly used within the retail, domestic care and hotel industries with 25% of those on these contracts being students or post grad students who are teaching. Many people see these contracts as exploitative and an easy way out for the employer but for those who want flexibility within their workplace they are a much better experience.
Mortgage lenders assess whether or not you can afford a mortgage based on the evidence of an income and your outgoings as well as your other financial savings and borrowings. If you are borrowing with another person they will take into account their financial circumstances. If you have little evidence of a steady income the lender will assess this and it will then be up to the lender to decide if they will offer you a mortgage. This type of contract may cause the lender to be more inclined to reject your mortgage application because of the uncertainty. Even if you have previously been working 40-50 hours a week and have always repaid loans their attitude is what if your hours dry up tomorrow? You would be unable to pay back your mortgage which would then be a red mark on your credit score making it even more difficult to secure any other loan.
If you are struggling with any type of debt and need to find a manageable way to pay your loans back there is support out there and companies who can help you consolidate your debts.
When you are going to take out a mortgage, one thing you are always going to be wary of is getting into debt. When you are actually applying for the mortgage you can avoid any future debt problems by making sure that you can afford the mortgage in the first place. If you want to make sure that you avoid debt in the future, the amount of the mortgage should reflect your own, or you and your partner’s income. People have often taken out mortgages for more than they can realistically afford and they soon run into financial difficulties.
Aside from your actual mortgage, you are going to have to take into account your other financial obligations as well. You are going to have household utility bills, such as gas and electric, that are going to have to be paid as well. Then there is other household expenditure like your weekly food shopping and travel expenses. If you want to avoid debt you need to make sure that you are living within your means and not overspending on a regular basis, if at all.
One way that you can definitely avoid keeping out of debt is not to borrow any other money if you can help it. It can be hard when you have credit card companies continuously bombarding you with offers of cards. The thing is you can easily find yourself running up more debt that you may not be able to afford. It may be a good idea to have a credit card, just in case of emergencies, just make sure you stick to that rule and do not go using it on luxuries you do not really need.
So, it is possible to avoid debt when you have taken out a mortgage, you just have to make sure that you are in complete control of your finances. One way you could avoid debt and keep up with your mortgage repayments is to consolidate any other debts you may have. This could include mobile phone payments, credit card repayments or other loan repayments. We managed to find a great website that helped with how you could do this so go to www.consolidationloancentre.co.uk/debt-consolidation-loans-for-bad-credit where you will be able to find out more information on helping you cope with your mortgage.
In October 2013 the UK government-backed Help to Buy scheme enters its second phase with a range of 95% mortgages being made available from the Lloyds Banking Group and Royal Bank of Scotland. Many people have already benefited from the first phase of the scheme which gave home buyers an interest-free loan on new-build homes, effectively increasing the deposit on their mortgage from 5% to 25%.
Ministers now claim that another 500,000 home buyers could be helped in the next three years with this latest part of Help to Buy. Banks are being encouraged to offer more mortgages for those with lower deposits (5% or more) with the loan amount over 80% of the house value being guaranteed by the government.
As the financial restrictions that have slowed down the housing market over the last few years begin to ease, it follows that many more people will now be able to afford to buy their own home. Thus, many commentators and the government itself believe that house sales will pick up again following the Funding for Lending and Help to Buy schemes. Recovery has already been seen in London and the South East, but these figures have boosted the national average, and hidden the true picture in many other less affluent areas. In fact, the government has been criticised by some leading experts for the decision to launch this scheme nationally rather than focus on areas which need it most.
Recovery in the housing market may also be hampered by discrepancies in supply and demand. Whilst many are keen to take advantage of the new lending it appears that there are still a lack of homes coming onto the market, so rather than widely increasing house sales, it may be that Help to Buy succeeds only in increasing house prices and leading to another housing bubble.