Archived Entries
October 2008
Six Easy Ways to Insulate Your Home This Winter
It is human nature that when we talk about ways to improve our homes, we often equate that to cash rich projects including refitting our kitchens or bathrooms for example. However, have you ever thought of insulation as being a home improvement?
As with any home improvement, it will involve an initial outlay cost but again, we must think of this as a long terms investment which will add value when selling your home.
Insulating your loft can save up to 20% on your heating bills and if you really wanted to do your bit for the environment, try visiting the Green Building Store which can offer products made from 100% recycled material.
Did you know that most heat loss from traditionally constructed homes is via the walls? It is estimated that up to 33% of heat is lost through walls but this can be addressed by fitting cavity wall insulation.
If you have an airing cupboard, check that the hot water tank which is often located there is wearing a jacket. As Friends of the Earth point out - it's cheap and pays for itself within a year.
Fit a draught excluder to the bottom of doors and letter boxes.
Attach a piece of tin foil between radiators and external walls to reflect heat back into the house.
Fit a window sill or shelf above radiators to push warm air into the middle of the room.
To alter or not to alter - How to make the best of your property
To alter or not to alter, that is the question. Turn on the television or the radio and we are constantly reminded that the economy is in downturn and we are about to enter a recession. For mere mortals like myself, I cannot question this nor do I really wish to do so. Whilst the economy may be in a state of flux, the pressures of family and work life remain. For many of us, the economic downturn will impact on both work and family lives. Small businesses for example are beginning to shun rented accommodation in favour of setting up office at home. Families grow up or indeed children are returning to the nest- all of which puts pressure on the home.
With the housing market stagnant and pressure for additional living spacegrowing, we are all beginning to seriously focus on the opportunities that our present home can offer. As history has shown, improving our homes will not only add to our quality of life, it will add value to the house and ultimately, make it easier to sell.
We all have our ideas as to how best to improve our property be it through decoration or alteration. If you do decide to go down the alteration route, I would strongly suggest you begin by exploring all the options available to you before you fully commit to one particular proposal. For example, on practicality grounds, your proposal may simply not work or indeed be too costly requiring additional steel work or radical alterations to your roof structure. Therefore, before you get your heart and mind firmly set on any scheme, I would strongly recommend you discuss your proposal with an architect or designer. After all, it is their job to come up with imaginative solutions and in doing so, provide you with an estimate as to the anticipated costs of any proposal. Whatever you decide to do, if you fund your alteration work by borrowing more - either by way of a loan or remortgaging, please ensure that you can comfortably afford the repayments in the event that interest rates do rise.
Emergency interest rate cut!!
Today the BOE reduced base rates from 5.0% to 4.5%. Who says the Bank Of England is independent!!! This rate cut comes right after the government has announced the bail out of the banking system to the tune of £250bn and is the day before the board meets at the BOE to discuss rates. This is clearly a decision pushed through by government.
So who will benefit?
In the property market the only beneficiaries that will feel an immediate effect are those people with TRACKER mortgages. At this stage don't rely on lenders reducing their mortgage rates. One of the reasons that we are where are is because the lenders have loaned at rates that are now proving to be unsustainable so expect them to keep this rate cut benefit for themselves so that they can improve their position and become stronger in the future.
The downside is that savings rates can be expected to fall. This is not going to stop people saving where they have the cash to save.
If you are borrowing to invest in property be careful about the deal you buy for your mortgage. Paying a high fee upfront for a reduced monthly payment may not be the best solution. In these times cash flow is everything. It may be wiser to pay more each month and burn the cash slowly rather than to pay a 1.5% to 3% up front fee to get a deal especially as rates will fall over the next year and at some stage lending rates for mortgages will surely fall even if it is not now.
.................and if your current deal is coming to an end it maybe better to pay the Standard Variable Rate (SVR) rather then buying another deal and paying a substantial fee to get the deal.
This will not be the last rate cut this year thats is for certain and its just a case now of how far rates will fall. Don't be surprised to see BOE base rates down to 3.5% by next summer. This will probably be the time when there is a bit more cash to borrow from the banks and is most likely the time that deals that make sense start to arrive in the market. If this does happen look to FIX for the long term.
There are a lot of mortgage deals coming to an end over the next 2 years so the market is going to be busy but rates may not be that cheap.
We all need strong banks which is why we should not expect the cost of money to fall quickly. the banks just have to increase their operating margins.
