In fact, not many people look to invest in their home to increase it's value – according to Shelter, 74% of people who dream of improving their property want to create the ideal home rather than increase its value.

The charity says just 8% of people were aiming to make their home better to improve its value. This is unsurprising – people want beautiful places to live first and foremost – but it might be likely that property price improvement is an unintended side affect of a good home improvement.

Campbell Robb, chief executive of Shelter, says: "This survey reveals that homeowners are almost ten times more likely to want to create a better home than merely increase its value, showing that home is so much more to people than just a financial asset."

Shelter says kitchen extensions were the most popular home improvement, closely followed by conservatories and attic conversions. These are expensive, but by unlocking some of your home's equity they are affordable. And they will increase your home's value – so, with a bit of planning it might be that your dream home improvement doesn't cost you a lot in the long run because the increased value will pay for some of the subtracted equity.

To find out whether you can use your home to fund your dream home improvement, talk to a mortgage adviser. And with a good plan, some sensible decisions and some sound advice you may find that your dreams are cheaper than you first thought.

SOURCE: Shelter, 19/04/10

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None of us are getting any younger, and these tough economic times have just hammered home the fact that we all need to set provisions aside for our later years – and thankfully it is happening. Legal & General says almost one in three people say they're thinking of saving for retirement.

Claire Evans, L&G unit trusts marketing director says: "It is encouraging to see such a healthy rise this year in the number of people thinking about saving for their long-term retirement income, particularly in the younger age groups.

"We all appreciate the importance of starting saving as early as possible. I can't stress highly enough that the sooner we start saving the better."

So if you want to work out what to do with all your assets, talk to a mortgage adviser about your largest asset. While you may need to set aside money for a pension, you need to discuss your options when it comes to your home's equity.

In years to come it might be necessary to unlock some of that wealth or even downsize your property – but it's good to get an idea of what could be today.

SOURCE: L&G, 12/04/10

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One such big expense might be a car. You may have gone through the last year or so crossing your fingers each morning, hoping your old car would not die. But sometimes you have to admit defeat and seek out a newer mode of transport. But you are not alone – the latest figures from the Sainsbury's Finance has found a sharp increase in the number of people planning to buy a car in the six months to August this year.

It has found a 47% increase in the number of people planning to purchase a brand new, used or pre-registration car. 7.56 million people anticipate doing so between March and August this year compared to just 5.14 million people in the six months to February 2010. Sainsbury's says this is a collective spend £49.1bn in the coming six months.

That's a lot of money. For most people, finding maybe £5,000 or even £10,000 to buy a car might be a stretch. Steven Baillie, head of loans at Sainsbury's Finance, says: "There are obviously concerns that continued financial instability as well as uncertainty over the coming election will put people off buying new or used cars."

But in this day and age a car is a necessity and without it your life would be impossible – getting to work, getting the kids to school, getting to the supermarket – it's a big spend, but it's a need more often than not.

If you need to splash out thousands in the next few months, talk to your broker about using some of your home's equity to fund your new car. It's a sensible way of raising much-needed money and it needn't cost you the earth to pay it back.

SOURCE: Sainsbury's Finance, 30/03/10

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According to Santander, 40 million people in this country are still continuing to cut back on their outgoings. It says there is has been a recent emphasis on shopping around for good deal on groceries, switching off lights and electrical items, and starting a culture of ‘make do and mend'.

Many people have had to go through the last two years with no pay rise and probably a pay cut while seeing their bills and financial responsibilities grow. This has led them to tighten their belts as far as they will go. While over half of Brits are looking around for the best grocery deals, one in five have started taking their lunch to work – people are being forced to sacrifice so as to be able to afford to pay their mortgage, their loans and their bills each month.

Helen Bierton, head of Santander current accounts says: "Forty million people are still feeling the pinch and trying to find ways of slashing their outgoings to cut back, including starting a ‘make do and mend' culture, buying second hand goods on eBay and in charity shops, or cutting reducing household help and their childrens' pocket money."

One of the best ways to ease the financial burden is to consolidate existing debts into one manageable secured loan. It would give you a little bit extra each month, which would go a long way in making your life easier during these continuing tough economic times.

SOURCE: Santander, 26/03/10

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According to the Finance and Leasing Association, secured loan lenders lent just £27m in January of 2010, a 27% reduction in lending compared to December 2009. It also found that over the last year second charge mortgage lenders lent just £339m, an 82% reduction on a year earlier.

Fiona Hoyle, FLA head of consumer finance, says: "We have seen a slow start to the year in terms of new business, but affordable credit will play an important part in supporting the economic recovery in the coming months."

There was also some very good news within the figures – direct unsecured lending was down 52% in January across the UK – so while less people opted for secured loans less people saw the need to increase risky unsecured lending also.

While the market for secured loans is certainly muted, there is still money being lent through second charge mortgages. That's money that has gone towards debt consolidation, home improvement and sensible investment – all of which has improved hundreds if not thousands of people's financial situation.

If you think extra money taken from your remaining home equity could help your financial situation, talk to a mortgage adviser about the benefits of secured loans. They are not for everyone, but for some they could be the answer to all their prayers and problems.

SOURCE: FLA, 26/03/10

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One year ago this month the Bank of England ended six months of dramatic rate cuts to try and stave off the effects of the recession, leaving base rate at a record low of 0.5% but that hasn't stopped personal loan rates rocketing.

According to Moneysupermarket.com, the best £3,000 loan over five years has risen by a massive 1.25% on average, to 14.92% over the last year, which is more than double the average rate of 2007. The best £5,000 loan over the same period has also risen on average to 9.08% from 8.88%.

Tim Moss, head of loans at moneysupermarket.com, says: "There was a time that a personal loan was the perfect solution for anyone looking to borrow to buy a car or consolidate existing debts. But the personal loan market has changed beyond all recognition with rates shooting up and borrowing for relatively small amounts becoming uneconomical. The last twelve months has not been kind to borrowers looking for a personal loan and there is little sign of this changing in the near future."

In the past it was personal loans people turned to when looking to consolidate debt or find some extra money. Now people have to consider secured loans instead – lenders are a lot happier to lend on properties that are rising in value than to people without security. Talk to a mortgage lender about using your home to raise the cash that you need.

SOURCE: Moneysupermarket.com, 04/03/10

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According to Moore Blatch, 67% of mortgage lenders and foreclosure experts are predicting an increase in the number of repossessions in 2010. They think that more people will simply be unable to keep up with paying their bills and the lenders will have no other choice but to take the property.

Of those who are predicting an increase in repossessions, 50% believe repossessions will rise by as much as 5%, while 17% believe a rise of as much as 15% and a further 6% foresee a rise in repossessions of over 15%. They think that growing debts will be the main reason for repossession, but unemployment and the possibility of rising interest rates may play their parts too.

But there are not all as pessimistic – more than a quarter of lenders thought there would be no change in repossessions in 2010, while 6% believe there will be a decrease.

Paul Walshe, head of lender services, Moore Blatch says: “The Council of Mortgage Lenders revised, and subsequently lowered their 2009 predictions for repossessions to 48,000 in 2010. However, much of this fall was due to the the Government's initiative to provide consistency in lenders’ approach to repossessions. This created a bottleneck which will start to clear in 2010.

"Sadly, the underlying cause of repossession, being excessive borrowing, is still causing people to default on their mortgages."

If you are struggling to pay your secured debts, you must talk to an expert right away. The lenders might be right and more people might not be able to handle rising rates, fees, penalties and short-term debt pressures. Do what you can now before you find there is no way back.

SOURCE: Moore Blatch, 10/02/10

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In fact, personal loan rates stand at a nine year high, according to Moneyfacts. Lenders are unhappy to offer money to people with no security. On the other hand, lenders are still offering money to people who are able to afford to secure debt against their home, safely.

Michelle Slade, analyst for Moneyfacts says: “Unlike on a mortgage, there is no security that a personal loan debt will be repaid. In such a risk adverse market, lenders are only offering loans to the most creditworthy applicants and then at a premium."

The website says there is now a £1,055 difference between the cheapest and most expensive £5,000 personal loan – for those people who are unable to secure the cheapest deal, that's expensive money indeed.

Andrew Hagger of Moneynet.co.uk says: "With banks and building societies still adopting a far more cautious stance even when it comes to mortgage lending, even with your property as collateral, it’s no surprise that the appetite for unsecured lending has pretty much dried up."

If you want affordable loans, you need security in 2010, and that is only possible with a secured loan or a mortgage. Talk to a secured finance specialist about your ability to use your home as a means of getting hold of cheaper credit.

SOURCE: Moneyfacts, Moneynet, 01/02/10

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The Financial Services Authority has released full regulation of Sale and Rent Back – particularly the much stricter conditions on promoting these schemes and making sure that people in debt trouble are not abused.

Sale and Rent Back is targeted at those who are in financial difficulties who may be vulnerable to selling techniques which obscure the downsides. The last thing those who are struggling need to hear is a cowboy pouring honey into their ear, telling them that they should sell their home to pay off their secured and unsecured debts.

As a result, the FSA says it will be banning cold-calling, leaflet dropping and the use of emotive phrases in promotional material will be crucial, along with tighter monitoring of the activities of these firms.

Adam Phillips, chairman of the Financial Services Consumer Panel says: "Sale and Rent Back can provide rich pickings for firms seeking to make money from people who are desperate. Firms have been able to lure vulnerable people into deals which they later regret when the rent rises or they lose their home: people see the promise of being able to stay in their own home and get cash up front quickly, without necessarily being warned of the longer-term consequences.

"However, we still have worries that firms will try to exploit consumers both within the rules, and by trying to operate outside the rules. The fact that only around 80 firms have applied for FSA authorisation, when the OFT had judged that there were over 1000 firms undertaking sale and rent back, means the FSA must watch the authorisation boundary carefully."

If you are at your wits end, only ever consider selling your home and renting it back after your have spoken to financial advisers, your lenders, debt charities and your family. It can be a sensible option, but only to a small minority – for the other struggling secured borrowers there are always less severe options.

SOURCE: FSA, FSCS, 29/01/10

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But too many people think their problems will just go away now they have spent a year being financially sensible – Gocompare.com says that while money matters topped 60% of peoples' resolution lists last year, only 37% will resolve to sort out their finances and pay off debts in 2010.

Lee Griffin, business development director at Gocompare.com says: "The credit crunch ensured that everyone was thinking about money this time last year. It gave people a jolt and got us thinking about how we could save money. I doubt very much that everybody has got their finances in order, so resolving to cut outgoings and shop around more are still likely to be good resolutions this year too."

So people who have debt problems need to persevere and make some more promises to themselves for the next 12 months. New resolutions could include saving money on outgoings, getting out of debt or reducing loan and credit card costs, putting more into a savings account or even shopping around for the best financial products like insurance and mortgages.

The key to getting out of debt is perseverance. But we all know reducing debt is tough, so get some help in making your resolutions stick. Talk to a professional financial adviser about putting together a new 2010 plan of action – a good plan alongside some professional advice can go a long way in making sure your 2010 financial resolutions work.

SOURCE: Gocompare.com, 30/12/09

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