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According to Sainsbury’s Finance, the current property market is resulting in an increased level of spending on home improvements.  It has been estimated that 425,000  personal loans were taken out for this purpose in 2008, equating to a combined value in excess of £4 billion.  This marks a 24 percent increase in the loans taken out for home improvements in 2007, and a 22 percent increase in the total value of loans.

During 2008 over 1.1 million loans, totalling over £11.3 billion, were taken out in order to either partly or entirely fund home improvements.  A like for like comparison between the volume of loans in 2007 and 2008 revealed a 53 percent increase.

Head of Loans at Sainsbury’s, Steven Baillie, commented: “It is well-documented that the housing market struggled last year, and our figures might suggest that people have decided to stay put and make the most of their existing homes. It may also suggest however that they’re trying to add value to their current homes in order to get a better price for them when the property market recovers.”

Homeowners that are looking to improve rather than move may wish to consider taking out a secured loan to fund the planned work.  A secured, home improvement loan could be used to finance a range of projects such as fitting a new kitchen or bathroom, converting loft space, or even extending the property.  Making home improvements to an existing property could enable homeowners to stay in the home and area they already love, but would also allow them to create the home they need to move to, for example, adding extra bedrooms or increasing existing living space which would accommodate a growing family. Secured loans are usually repayable over a term to suit the borrower from 5 to 25 years.

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Nowadays, buying a house is, in theory, your safest bet for a financially successful future. But with the prices of houses these days, this ideal seems more like an unachievable dream to those not already on the property ladder, than a realistic venture.

For those who are considering buying a house, another frustration may be lurking in the background - saving for a mortgage deposit. Obviously you want to put down as much as possible, or at least be able to afford the minimal amount due. But saving for that inevitable deposit is no laughing matter. Most people can’t even afford to take care of their present debt, let alone saving for a deposit on a home.

Saving for a down payment on a home is a challenging task to say the least. But do not fret - there are various options for those wanting to save for a mortgage, but are struggling to find the right resources.

So how do you come up with money for a substantial down payment?

Retirement savings

Even though tapping into your retirement savings early is not always recommended, in this case it could be a valid option. Buying a home is one of the biggest and best investments you can make, so claiming from your retirements savings is a good idea in this case. Remember the old saying, ‘The end justifies the means’? Many retirement schemes allow you to draw a portion of your money early. Check to make sure your retirement schemes allows you to do this. If you very lucky, a member of your family may choose to hand down some early inheritance. This can be an attractive prospect to those who are looking to ensure their son or daughter does not incur exorbitant inheritance tax.

Budget, budget, and budget some more

If you plan on simply saving for your deposit, it is time to re-evaluate the way you handle your finances.

Budgeting is always a good idea for those wanting to get a grip on their finances. Write down everything you purchase, even small, insignificant things. Do this for a month, then assess your spending habits. See where you can improve, where you have been spending too much, and what you can eliminate.

All the money you will save in the following months by simply eliminating a few unnecessary items will prove saving small amounts can go a long way.

Ask advice from the experts

A wonderful option would be to get in touch with the experts when seriously considering buying a home. Seek out the advice and services of a professional mortgage or independent financial advisor. They will be able to advise you on the best financial route to take. How much you might be able to lend and how much you would subsequently need to save. Just make sure that your IFA or mortgage advisor can be trusted and has your best interests at heart. Generally speaking, you should not be charged a fee by the IFA for any advice and if you do decide to take a product from an IFA – the commission should be paid by the lender, not by the client (you).

Ask your family for help

Asking family members for money or contributions may be slightly embarrassing to some, but it can be very fruitful in the end. If you have reservations about doing business with family members, there are services available on the internet to make the process easier and more professional for all parties concerned. Heck, you could even ask to move back in with your parents if it’ll help you to save money. Free or low cost accommodation and food would make a huge difference to how much you could save each month!

Saving is still the best

With the right method, plan and attitude, you can save for anything you put your mind to. And with that determination, you will soon be able to save for a house of your own. This method may take time, but will be worth it in the end. You should thoroughly investigate the best options available to you which will yield the highest returns.

The housing market is currently experiencing a down trend, making it a good time to start saving for that dream home. And the sooner you start to save the better. It’s no mean feat saving for a home and it’s a long term commitment. House prices move up and down on a regular basis and at the moment, some speculators think there is still a way to go before we see the bottom of the market. That said, some opinions indicate that the faster they fall, the faster they’ll come back up again. Remember, if you decide to buy a house, buy a home you will love and make the most of it.

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uSwitch.com and first:utility have combined forces to offer the cheapest standard energy plan in the marketplace.  And not only is the plan low-priced but it also includes the installation of free smart meters, which could save customers up to 10 percent annually.

The smart meters are available for both gas and electricity, and they enable customers to manage their household usage, and avoid the downsides of estimated energy bills.  Instead, energy bills are based on precise and up-to-date information, which eliminates the possibility of the supplier accidentally charging the customer either too much or not enough.  The latter scenario can result in debts on the customer’s part and is therefore undesirable.  43 percent of energy customers, which equates to over 11 million people, have been in such a predicament and have owed their energy supplier money following a meter reading.  This comes as a result of previous estimates being far lower than the reality.  The average outstanding sum owed is £137.

The smart reader removes the possibility of discrepancies as it has a built in communication device that takes electricity readings every half an hour to provide exact monthly bills.  Not only this but the 30 minute readings are also fed back to first:utility’s head office to allow customers to access information on their current usage and associated costs online at any time of the day or night.

Energy expert at uSwitch.com, Will Marples, commented: “This is about putting consumers in control of their energy usage and their bills.  Smart meters are being piloted by all the major suppliers, but it will be a long while before we see one in every home.  With energy prices so high, many householders cannot afford to wait for this - they need to understand how they can cut their bills and avoid falling into debt today.
“As with any energy plan, consumers should always check whether it is suitable for their needs before signing up.  The first:utility plan is a two year contract with early exit penalties.  This tie-in allows first:utility to invest in its customers by subsidising the cost of the smart meters.  It won’t be for everyone, but this plan will offer real benefit for many consumers.”

Chief Executive of first:utility, Mark Daeche, added: “In a marketplace where there is very little in terms of differentiation between suppliers, we feel that the offer of 100% accurate bills through innovative smart meter technology will answer a lot of consumers’ needs.

“In addition, as an independent player, we are a nimble organisation which is able to respond quickly to the fluctuating market conditions, and pass on real benefits to consumers.”

Pennywise homeowners that are looking to lower their energy bills further may also wish to consider implementing some energy-efficient measures in their homes.  For example, by increasing property insulation, replacing draughty doors and windows, and installing solar panels.  Such projects could be funded with a secured home improvement loan – a finance option that is usually repayable over a term to suit the borrower from 5 to 25 years.

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