Darren Smith
Darren Smith

2 Plan Wealth Management & IFA

  • 47 Merton Road
  • Basingstoke, Hampshire, RG21 5UB
  • 45.17% of answers helpful
  • 259 posts

Contact

Telephone:
01256 636437
Send an Email

About

I first started working in Financial Services in 1996 and have undertaken a variety of different roles, initially for one of the high street banks but moved to an Independent Financial Adviser status to offer a broader service to my clients who reside in many counties across the south of England.

i cover the following counties:

Hampshire, Berkshire, Surrey, West Sussex, East Sussex, London area.

as clients move i continue my relationship with them so in fact i have client contacts across the length and breadth of the UK.

That's one advantage of the internet, it makes it easier to keep contact with clients that are not on the doorstep and still allows time for face-to-face meetings.

Specialisms

Loans:
Loans
Tax:
Tax
Debt:
Debt Management
Investments:
Investments & Savings, Pensions
Mortgage:
Remortgage (Uk Residential), Equity Release, Commercial mortgage, Mortgage (Uk Residential), Overseas mortgage
Insurance:
General Insurance, Life Insurance and Protection

Payment

Options:
  • Fee
  • Commission

Qualifications

Level A Qualifications:
CII Diploma (DipPFS)

Long term Care & Equity Release (Certs CII MP & ER)

CeMAP
Level B Qualifications:
Diploma in Investment Planning (DipIP) CIOBS

Richard
answered 1 year ago
I found www.simplyfinance.co.uk/tax/inheritance-tax.html to be a good starting point. You may want to read it before contacting an inheritance tax expert.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
potentially, yes.

It all depends on what cover you applied for when you took out the policy. Often people use comparison sites to get the "cheapest" quote only to find it doesnt include accidental damage (not good when you fall through the loft into the room below, or hit a nail through a pipe or the kids spill ribena on the carpet etc) and the same is true of "personal possessions or cover away from home" which is the element you are referring to.

its often found out too late that the reason it was so cheap is that the benefits have been stripped down.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Hello Greatscott

i cant help you directly but i can suggest that you look at the www.freeindex.co.uk website. it lists all sorts of trades over the country and some companies will have customer testimonials so you might be able to use this to help narrow down your search.

this is assuming you dont have a trusted friend or business contact that might be able to recommend someone.

often a word of mouth recommendation means more when you know the person.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Hello Richard

a secured loan will nearly always be the most expensive solution. The main reason for this is that the second lender will be lower in the pecking order of repayment if you were to default on your mortgage payments and as the risk of loan 2 going unpaid increases, so does the rate.

you will usually get the cheapest deal by looking at the entire debt as one mortgage with one lender but even this has drawbacks.

for example before rates dropped through the floor i was able to secure many clients on lifetime base rate trackers where they pay only 0.5% above the bank of england base rate for the life of the mortgage. but what if that lender wont lend any more whether its for home improvements or any other reason?

well in that instance you wouldnt want to lose a really attractive deal for the sake of a smaller top up mortgage and this is when a secured or second charge loan can work out best because the overall cost of servicing your total debt will often be lower.

the lowest remortgage deals at the moment would still be at least double the rate described above.

another instance of taking the second charge is when your primary lender wont lend but you would incur a big penalty to move and the cost of the extra loan is still cheaper than paying a big penalty and moving.

your question is a prime example for why it makes sense to ask for and pay for the advice from someone that doesnt have a vested interest in you taking lender A over lender B but will put your needs first and demonstrate to you why the recommended option is the cheapest having weighed up all the feasible alternatives.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
generally speaking when you offer security for a loan the rates will be cheaper. if that lender is the same as your main mortgage it will be the cheapest of all (generally).

in terms of cost you could make the order:
main mortgage lender - secured loan company - unsecured loan company - credit card - payday loan / pawnbroker / door to door loan company.

the reason for not securing the loan would be if you think you are likely to default as you would lose your home - but some credit card companies have sucessfully taken a property charge even on an unsecured debt!

you also need to consider that your ability to get a good remortgage deal will be effected by your total level of debt on your home and the total monthly commitment from your income of all debts: secured or not
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Hello Rossy

you should allow for stamp duty, on properties over £125000 its 1% of the purchase price, over £250000 its 3% of the purchase price and over £500000 its 4%.

you will also need to allow for a survey, i would always recommend at least a homebuyers report as this will give the valuation that your lender will insist on but also it will look into the condition of the property and given an indication as to whether you are paying a fair price/if remedial work is needed and other useful information.

in addition the basic mortgage valuation is only for the lenders benefit. you state that you have a 40k deposit. if the purchase price is £100000 the property might be valued at £90000 but the lender will probably still be happy to lend you £60000 to cover the purchase as they will still have lots of equity for security but how would you feel at buying over value?

when you take a survey above the basic level, the surveyor is then working for you and is liable to you for his/her opinion which means if they miss a vital flaw in the property which later surfaces like severe rot or subsidence found 6 months on, you then have the right to legal and financial redress from them so they will tend to be much more careful with the work they do.

fortunately most surveyors are good at what they do but overvaluations are a part cause for the state the housing market is in now.

expect to pay between £250 and £750 extra on top of the basic valuation for this peace of mind - well worth it when you are putting down £40000!

finally you will need to allow for your legal bill, your solicitor will probably want £300 on account to cover searches when you commence the purchase (assuming there is no HIP in place - some properties still have them) but in all you can expect to pay approx £1200 to the solicitor for the sundry costs and their fees, they will also deal with paying the stamp duty so you should add that in too.

a lot of these fees are dependent on the purchase price but some solicitors charge more for their fees on higher value purchases, which seems odd as the amount of work involved in buying a £100000 property isnt that much different to a £500000 property.

i have been able to source good deals for clients, sometimes half of the normal cost on the high street!

you will possibly find that most lenders will automatically add the arrangement fee to the new mortgage but most will allow you to pay it back on completion by sending them a cheque in the post - check your mortgage offer or key facts illustration, it will confirm what your lender does.

i hope this helps you......
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Balloon loans are very popular in the US and not as well known in the UK.

The nature of making the balloon payment is the very reason that the monthly costs are low as you are hardly paying anything at all towards the actual cost of the car.

paying the balloon can be difficult if you have otherwise spent your savings but if you havent got the balloon now, you will probably need to be saving as much money each month as you would "save" on the lower loan costs. In the long term you might be better off with a traditional loan that will reduce all through the term gradually reaching zero.

The nearest comparison to this is like having an interest only mortgage with no repayment vehicle in place and "hoping" that you will find the money in 25 years. This task would be just as difficult with a smaller sum of money in only 3-5 years.

if you dont plan on keeping the vehicle perhaps consider one of the leasing options?

i would suggest that you ask as many questions from the car dealership as possible and then compare how they stack up against other dealers from the same car group and others so that you can at least compare if you are getting a good deal for your circumstances.
100% Helpful
report abuse
anony365mous
answered 1 year ago
You should keep enough savings so that you could last 6 months without a job. If you are not strong willed enough to not touch the money in a savings account, get a savings product that penalises you for early withdrawl.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
first of all, you need to contact the insurer and let them know your change in circumstances. if you dont, they might take a dim view and see this as an attempt to defraud them which i am sure is not your intent.

there are many policies that will still allow the benefit to be paid on the basis that you have lost x% of your income and therefore would pay x% of your cover.

these are the exact points to check before you take out cover so that you know how to cope with the return to work. it is commendable that you have found new work but dont let your hard work fade by this issue.

most insurers will look favourably on cases where they can and where they see you are trying to remedy the problem.

your concern might not even be an issue as the insurer might only have a concern once your number of hours is above a certain level, the only way to know for sure is to call them.

they will want to know dates, amounts and hours of work so make sure you have this available for when you call them. The better insurers will also have "back to work" departments to help you get back on your feet. They can help with all sorts of skills such as cv writing and interview technique.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
usually when you have specified items as "personal possessions" within an insurance policy it will cover them globally but you must check with your insurer first.

the reason for checking is that some insurers will ask about high risk items within the home (home office equipment, games consoles, jewellery, antiques) so that they know what their potential risk is in the event of a claim but they wont necessarily charge an extra premium. some insurers will impose a limit on high value items which could be a flat £ value or a % of the total sum assured.

if you dont have your insurance policy schedule of cover ask the insurance company to issue another, they might charge for this though but some insurers are now giving access to documents online so that all you need to do is log in and download them.
100% Helpful
report abuse
Expert Financial Adviser Answer
Islay Robinson
answered 1 year ago
Yes, you will pay tax on the rental income received, the interest part of any mortgage and some other expenses can be offset however
100% Helpful
report abuse
Expert Financial Adviser Answer
Islay Robinson
answered 1 year ago
No, not at all. Your payments will stay the same (provided you have a guaranteed premium policy & you make all your payments etc). It is the sum assured (death benefit) which decreases according to how the policy is set up.
100% Helpful
report abuse
zoewildsmith
answered 1 year ago
In simple terms, you have PMI to cover the big stuff incase you get really sick and you need to go in hospital or have tests etc. Hopefully you pay if for years, never get sick but when you do you'll be glad you had it

HCP on the other hand is about the day to day stuff you need to cover even when your well. Dentist bills, Opticians etc - with the added benefit of that if you do get sick, many HCP offer you a small amount of benefits in other areas like therapies (Physio, Osteopath etc) & Consultation benefit. The consultation benefit in a HCP can still be used to go private initially to see the consultant when you get sick, but once you run out of benefit you can be transfered back to the NHS to continue your treatment. The whole point is to help you reduce your waiting times to get seen in the first place and establish if there actually is something wrong.

Hope that helps!

P.S - The best option for Cash Plan is always if you get your company to buy it as an employee benefit - This will give you the best terms, Pre existing conditions covered, 100% refund up to set limits. Plans generally start from £1 per person / per week.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
The answer is to try both. its important to have a cash reserve to fall back on so that you dont rely on credit cards especially when your credit limit can be reduced or withdrawn at any time. if you have a good credit record you should look at a balance transfer deal. the 0% deals are good if you can repay the full debt in the 0% limit but this can sometimes be only 12 months and with a 3% average fee to move balances you might be better to look for a transfer rate "for life" where you could pay a typical 4-4.5% on a balance for as long as it takes to repay it which will work out cheaper in the long run.

people have a different view of how much cash you should keep but you need to consider how long your current cash would last if you lost your job/income. a good starting place is 3 months income or outogings (the higher of the 2) as a safety cushion.
67% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
i generally agree with rsmith above.

you need to review your debts in terms of % cost and the monthly minimum payments.

if you have determined that you will still have adequate cash for emergencies after paying off your debt, there is no harm in doing so.

with a good credit file you can always borrow back if you need to.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Personal loan rates are subject to fluctuation. most lenders will quote "typical" rates which in theory must apply to a majority of borrowers but that doesnt mean you will qualify for them. a good credit record could mean a better rate whereas a poor one could mean a worse rate.

as lenders can choose what rate to charge there is nothing to stop you applying for say a 9% rate but then only being offered a 19% rate. this could be because you are a bad risk of default or the lender might fear that you would repay them early (meaning less profit) and so they will charge you a higher rate to put you off or to make the profit in a shorter period.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
There are many ways to split the equity. A clean break can only be achieved where both parties agree the amount involved and one of them has the cash to pay the other off.

it may be possible for one party to buy out the other by taking on a mortgage and raising the extra capital but this will be limited by that person's ability to get a mortgage and the lender's opinion of the value of the property.

a good divorce solicitor will help with the initial steps but you will need to use an IFA to sort the mortgage side of things as your current lender (if you have one) might not be willing to help whereas another lender might.
100% Helpful
report abuse
Expert Financial Adviser Answer
Islay Robinson
answered 1 year ago
Yes you can - you need to contact your insurer or financial adviser and they will send you the forms, it is quite simple but make sure you get advice before you sign anything
100% Helpful
report abuse
Expert Financial Adviser Answer
Keith Churchouse FPFS
answered 1 year ago
To help, I have answered this question in video format and have covered this topic further in my new book, Addicted to Wedding Cake, The Journey of Divorce.
Availble at www.addictedtoweddingcake.co.uk

Thanks, Keith.
100% Helpful
report abuse
Expert Financial Adviser Answer
Richard Salter
answered 1 year ago
No Interest is paid on loans of cash. We should all be most familiar with interest.

By contrast Dividends are the business investment trading returns 'divvied' up ('divided up' if you prefer) between shareholders. If the shareholders - who own the business - can afford and desire to do so, they can award themselves a dividend. However if no profit is being made or capital is felt more desired to be reinvested into the business then a reduced dividend, or no dividend at all, will be paid. Interest is typically paid on a regular (often monthly or annual) basis - typically at a defined rate of return for a defined period. The loan of capital on which the interest is being paid is then repaid - or the investor can accept a revised rate of interest return.

Dividends are typically paid twice a year. An interrim amount half way through the year and a final amount designed to more accurately reflect the whole trading year profits. Some businesses will pay more frequesnt dividuends which attract those sekeing more regualr income payments but these are in the minority.

Dividends are often unrelated to the current share price of the underlying company paying them. Thus a company can see its share price fall or rise whilst its dividend is maintianed or even increased! A few compaines have even managed to pay an ever increasing dividend every year for over tweny years. Others have of course come and gone in this time.

It might be argued that dividends are part of the return to investors who have taken the risk of investing in that particular business and as such should pay a risk premium better than interest. However you can make relatively safe loans in return for typiclly low interest payments and you can also make relatively speculative loans in return for higher promised interest payments - but at much greater risk of capital loss.
100% Helpful
report abuse
petematthew
answered 1 year ago
Yes, there's a difference. If you think of an ISA as a bucket with tax rules attached to it, the difference between a cash ISA and a stocks and shares ISA is what you can put in the bucket. The other difference is in the limits. The overall ISA limit is £10,200, rising to £10,600 next year. Of this, the most you can have in a cash ISA is £5,100. If you do this, you still have another £5,100 you can put in a S&S ISA. If, however, you put the full £10,200 into a S&S ISA, you cannot have a cash ISA in that tax year.

Remember that the limits are how much you put in each tax year, not on how much you have in, so every April 6th, you get a new allowance. Cash ISAs can be held from age 16 up, and S&S ISAs from aged 18 up. There is talk of a new Junior ISA designed for children which will replace, to some extent, the now defunct Child Trust Fund. Not many details are out in the open about these yet.

As long as you don't withdraw the money from your ISA, it will remain tax efficient. Only Cash ISAs are completely tax free, because the interest is paid gross, that is, before income tax. Income from an S&S ISA is often in the form of dividends, not interest. These have a notional 10% deducted before you get the dividend, and that 10% cannot be reclaimed. S&S ISAs are free of Capital Gains Tax though.

You can transfer an ISA from one provider to another and keep your tax free status. You can also transfer a cash ISA into a S&S ISA, but not the other way round.

Hope that helps

Pete Matthew - meaningfulmoney.tv
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
You haven't mentioned if you currently reside in the UK as many lenders will only deal with residents of the UK. Having said that there are some that will help ex-pats etc but this is where you really need to see an IFA who can use their specialist knowledge.

to be honest there is no one answer to who is the best lender as the follow up questions will often lead to a different lender for a dozen people with the same initial requirements.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Many lenders will offer valuation and legal fee incentives to acquire your business and even though this might sometimes come with a higher rate than a package without these perks, when you add up the cost of them its often still cheaper in the long run.

there is no set scale for valuation fees as most lenders include other charges in the fee scale so you could see a difference of over £200 from one lender to another to value a property of the same estimated value.

A good IFA will help you to get the best deal for your circumstances but you will need a decent amount of equity to make it worth leaving your current lender unless you are on a very high rate as most remortgage deals are only really competitive when you have at least 20% equity. But this does change daily!
100% Helpful
report abuse
Expert Financial Adviser Answer
Kevin Langshaw
answered 1 year ago
Unfortunately it is not really a holiday depending on the lender the missed mortgage payment/s will either be divided over the next 12 months in addition to the normal payment (this is the better option although on monthly budgeting it may not appear so!) or the missing payments are added to the end of the mortgage. (this means you will pay more interest on the deferred payments).
It shoulded be pointed out that deferring mortgage payments to pay for a holiday is not a good idea, payment holidays are limited by the terms of the mortgage agreement and are meant for times of difficulty i.e. loss of job or reduced income to prevent the mortgage going into default and effecting a persons credit file.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
You shouldnt need to spend hours at the bank, it should take no longer than 15 minutes of time with someone to complete a bank account application and fill in the necessary authority forms for them to switch you.

But you will need to ensure that you have relevant ID (uk passport or drivers licence) and proof of address ie current bank statement or utility bill but not an internet paperless bill that you have printed off or mobile phone bill. If you have been at your address for a short time, less than 6 months, take proof of address for the last 3 years of addresses.

you will need your old bank details, sort code and account number and if your wages are paid to the account, the details of your payroll dept to switch all across.

many of the banks offer guarantees to switch within X days as long as they have all the data from you but to move DDs will rely on the payee updating their system so there can be a time lag here. At least standing orders/faster payments can be set up instantly but ensure that you have an overdraft on the new account to cover the switch - often this will be interest free to entice you over - the last thing you want is for the mortgage not to be paid because the DD bounced!

be careful when choosing your new account, the bank will probably try and upsell you to a fee paying account which can cost from £5-£20 per month! do make sure that you will use enough of the add-ons to make it worthwhile...
100% Helpful
report abuse
Expert Financial Adviser Answer
John Stirling
answered 1 year ago
Well really I am afraid there is no substitution for regular substantial payments, however there are a number of things you can do to improve the potential outcome.

You should sit down and think about the following issues;

What do you want from a pension (how much, when)?

How 'active' do you want to be in managing it (there is no substitute for involvement in how your money grows for making all concerned concentrate on the outcome)?

Look hard at the costs - cheapest won't necessarily be best, but make sure that what you are paying offers good value.

Get good advice - and at risk of showing my prejudices I'd suggest an IFA might be a good place to start - they will not be cheapest, but ask them to demonstrate that they can add more value than the differential in cost, a good IFA will be comfortable with that discussion.

If you have surplus capital, or annual bonuses or profits surplus to your immediate needs a lump sum contribution can be a major boost, but you may wish to think about phasing how it is invested, so that you aren't exposed to any sudden market drops just after investment.

Decide how much risk you can take - classic human psychology is to invest at the top of a bubble, and sell at the bottom - the exact opposite of rational behaviour - of course this is only obvious with hindsight, and by ensuring you are not in a market which you will not be able to stand when things go wrong then you can hopefully avoid this dreadful mistake. Getting timing right is very very difficult, getting it wrong is very very simple, so the best option for most people is to ignore timing, and the only way to do that is to be in markets where getting it wrong won't force you to disinvest for emotional reasons.

Oh, finally, and very importantly, if you are employed check whether your employer will contribute on your behalf, either into a scheme they sponsor, or yours - for many people the largest part of their pension contribution comes from their employer - joining an employer funded pension is really like a payrise - it may 'cost' a few pounds from your net salary for your contribution but the benefit is usually comparatively huge.

Best of luck - and remember the worst decision you can make is to do nothing.

100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
There is no one single answer to this question as all lenders will operate different criteria but a good rule is at least 1 year but some lenders insist on 3 years and that the CCJ must have been satisfied.

it would make sense to have a chat with an IFA who might be willing to give you some initial assistance so that you can plan a realistic schedule towards your first home.

adverse events like CCJs or missed payments will have a much larger bearing when the amount of deposit you are putting down is relatively small (nowadays you would need more than 10% to counteract the existance of negative bureau data)
100% Helpful
report abuse
Expert Financial Adviser Answer
Tony Pomphrett
answered 1 year ago
seek out an insurance specialist and not someone who just uses quoting software. Make sure they have tried to fully understand your circumstances both now and in the future and recommended the plan (not just the cheapest) for you.
100% Helpful
report abuse
Expert Financial Adviser Answer
Paul Richardson
answered 1 year ago
Most life assurance companies ask the question about smoking and to qualify for a non smoker rates you must NOT have smoked for a minimum of 12 months - failure to do this will result in the contract being void for non disclosure and they will not pay out.

Life assurance companies do not set premiums on the amount you smoke only the fact that you smoke.

I hope that helps?
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
The key with insurance is all down to risk and as its not usual for everyone to take a skiing holiday or even when visiting a ski resort to participate in winter sports it would otherwise increase the cost of all policies to add this in for everyone.

it makes more sense to have a clear idea in your mind as to what you plan to do beforehand and then you can establish the cover you need. to be honest, adding on winter sports need not cost the earth but trying to save a few £ now on a policy will cost you dearly if something happens and you are not covered and the cost of travel insurance is minimal compared to the cost of the holiday!
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Actually, not all equity release schemes involve the original owner retaining their ownership. Home Reversions involve selling a part or all of the property. It is only with a lifetime mortgage that the original owner always retains ownership with the mortgage debt registered as a first charge (in the same way a standard residential mortgage is charged).
100% Helpful
report abuse
Expert Financial Adviser Answer
John Stirling
answered 1 year ago
An interest only mortgage is one where you only pay the interest (hence the name) on a monthly basis, and at some predetermined time (set at outset) you will have to repay the balance as a lump sum, which allowing for fees, and rounding errors will be the same amount as you borrowed.

A lifetime mortgage is one that lasts for life (or often until permanent vacation of the property as a result of ill health) - you may or may not make payments, but it is not expected that the loan will ever be paid off until death - there is no fixed term. Obviously if you are not making payments then the principal (the amount you borrow) will increase by the amount of interest you are not paying.

The two types of mortgage are available to different people, and are generally very differently underwritten (the lenders take different factors into consideration before granting them).
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
all lenders have their own requirements for income which still impact on the employed!

common requirements for the self employed can be full accounts drawn up by a qualified individual; self assessment return (the printed version HMRC post out not a home printed document); some lenders will ask for personal banks statements only. Some lenders will want all the above for the last 2 or 3 years.

this is a part of the filtering process that an IFA will look through when researching mortgage options for you and another reason to take advantage of someone with up to date industry knowledge rather than a pundit on a tv show or newspaper website column!
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Firstly:

there's no need to pay for access to your file. go to www.creditexpert.co.uk this is run by experian and they will give all first time users 30 days free access to their credit file. You have to register a card with them as part of the sign-up process to pay the £6.99 monthly fee which only applies after 30 days.

you can check your file, save a copy to your pc, then ring them up before 30 days and ask them to cancel - but you must ring them an email is no good.

equally, dont bother paying to see your "score" as all lenders use different score cards and you could say to a prospective lender that "i scored 1000 which is good etc" they will answer (to paraphrase) "so what".

you need to look at the results of your file check, its all traffic lighted. all greens is good, any yellows are cause for concern more than 2-3 in the last 12 months and you will be stumped. and red will indicate a default and thats the worst possible.

this exercise might uncover errors on your file and credit expert will help to correct them if you can evidence what's wrong.

once you have done all this. if its "bad" as you say. consider taking out one of the expensive credit cards like capital one or vanquis and use this a couple of times per month for small items ie £10-£20 here and there and ensure you pay off in full. this will help you to build a positive history and you will probably find they will only offer a small credit limit anyway.

used carefully this method can help to set aside some negative aspects but prompt action with credit related matters is always essential.

hope this helps
100% Helpful
report abuse
Expert Financial Adviser Answer
Pete Matthew
answered 1 year ago
Totally understand where you're coming from Danny - new equipment is worth saving for, and it's to your credit (so to speak) that you haven't succumbed to the easy method of putting the amp purchase on a credit card. The amp will sound better when you know it's yours and not on tick.

Anyway. I presume the reason you want an account in Hertfordshire is because you want a high street branch rather than internet banking? Or maybe it's because you want to support a local business? If the latter, the Harpenden Building Society might fit the bill, but their interest rates are nothing special.

For a decent independent comparison of savings rates from most if not all banks and building societies, you could check out the Money Made Clear website at http://www.moneymadeclear.org.uk/tables/ and click on Savings.
100% Helpful
report abuse
Expert Financial Adviser Answer
John Stirling
answered 1 year ago
Try Natwest first, they know you best, and should be most likely to take a positive view of your circumstances.

Once you've paid for some costs you will be borrowing close to 90% which is pretty much a stretch for the best borrower, and I'm afraid whether it's fair or not you are unlikely to be viewed as a great prospect.

I'd have to say it's unlikely, but if you are really keen then find a local independent mortgage broker, who will take a sympathetic view regarding fees, and see what they can do.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Generally speaking, yes, that's the whole idea of paying.

But having said that you would need to check whether your preferred treatment location (private hospital or private wing in an NHS hospital) offers that service and is on the list of authorised locations for your policy provider and policy level.

usually the more budget the policy, the more restricted choice as the "centres of excellence" will often carry a premium. But this is where careful choice of a policy excess can give the reassurance of knowing you have access to the best locations but without having to pay for it each month - just set aside the excess instead.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
i'm yet to find an occasion in the current climate whereby the notion of renewable is better but having that if your medical or work issues are complex you might only be offered cover by a company that offers renewable as opposed to guaranteed.

given that medical inflation is always increasing and of course age of the policyholder is also increasing, a renewable premium is only a short term saving over guaranteed as it might only take a few years to meet the guaranteed premium and then overtake it!

by choice i will always recommend guaranteed for the above reasons. its not the same as comparing fixed to variable mortgages where you can possibly save on a variable. the only time we have seen significant reductions is in the decade that followed the AIDS outbreak as life cover rocketed before gradually coming down.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
the aim of buildings insurance is to cover the cost of rebuilding the structure of your home and certain fixed internal fixtures such as sanitaryware and kitchens - a basic rule of thum is that it covers the bits you leave when you sell your home that cannot be easily removed.

you can also opt for accidental damage which can be good for the avid DIYer who climbs into the loft and exits between the rafters, through the ceiling and into the floor below!

in terms of a total loss claim it will also cover the cost of clearing the site to enable a rebuild - fortunately these extreme type of claim isnt too common.

having said all this, there are still many people that dont cover their personal contents even when they have the building covered (often due to cost and because a lender wont insist on contents cover as they are only interested in the building).
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
It would vary from 12-24 months but the 24month option is quite rare and will naturally cost more to buy cover for that period. Many providers insist on you having a mortgage and will determine the amount of cover you can have by a % of your mortgage payment or % of your income.

its also worth noting that not all providers will allow you to take cover when not linked to a new mortgage or will make you wait up to 6 months before you can claim (ie 6 months before you are given warning that you might be at risk of loss) whereas when linked to a new mortgage this can be as little as 2 months.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
This varies widely.

some lenders simply insist that you have an income of any amount and others will state £20000-£25000 as a minimum. Some will also impose a minimum age of 21 and wont lend to first time buyers / first time landlords.

what seems like a straightforward question, sadly doesnt have a simple answer.

you will also need a decent deposit to make the costs viable, at least 25% and most lenders will require the rent (assessed by their valuer) to be on average 125% of the mortgage ie if the mortgage is £500pcm the rent must be at least £625pcm
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
You can achieve this with a buy to let mortgage but will need at least 25% deposit.

the problems (potentially) will be timing related. its highly unlikely to get a lender ready to complete within an auction completion deadline as they are all very slow at the moment.

the only way to overcome this is to apply for the mortgage, get them to survey the property and confirm the max mortgage they will allow on the property which will be based on a combination of the market value and requiring the rental income to cover 125% the monthly mortgage.

the downside with all this is that if you dont win the auction you will lost all the money spent thus far with the lender.

the situation wouldnt change that much if you took auction finance and then wanted to convert to buy to let later but this will cost a lot as you will essentially double many of your costs and still have the lender % issues as described above.

its never been as easy as you are lead to believe on "homes under the hammer" !
100% Helpful
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
Effectively none - other than tax! A cash ISA is simply a savings account which is not taxed. The interest is paid to you in full, so they are slightly better for you if you are a taxpayer. If you are a non-taxpayer then there is no difference - you can arrange with the bank to have your interest paid free of tax anyway. The other main difference for you is that there is a maximum contribution you can make into an ISA each tax year, which runs from April 6 to April 5 the next year: £5100 this year, so you are well within that figure.

You will notice that I have talked about cash ISAs. The other kind is a stocks and shares ISA, which can hold investment funds (stocks and shares) - but investments such as those are not suitable for your short savings timescale. Just to complete the picture, though you can invest a maximum of £10,200 into a stocks and shares ISA, as long as your total investment into all kinds of ISAs this year (ie including what you have in a cash ISA) is no more than £10,200.

100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Your first step should be to speak with the mortgage department of your lender, the local branch will most likely be powerless to help even if they want to.

the collections department of the mortgage section will be able to speak with you in more detail, with the budget info you have already gathered, and they might be able to come up with a recovery plan for you.

if you feel unable to approach them yourself you can consider the local CAB or consumer credit counselling service as they will help to mediate with debt issues.
100% Helpful
report abuse
Expert Financial Adviser Answer
John Stirling
answered 1 year ago
Generally international private medical insurance (PMI) will cover pregnancy as a standard cover item, however UK mainstream PMI will exclude anything to do with a normal pregnancy.

It is possible to be covered though, and most providers will offer an element of cover on their more expensive options.

Certainly it will tend to only be available on the higher end policies, and won't be something you'll get on a 'budget' policy.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Generally speaking, No. You will have difficulty getting a fully fledged bank account as you have already demonstrated by having a poor record that you are a bad risk.

you can try to overcome this by looking at a basic bank account which will offer basic functions such as the ability to pay direct debits and standing orders etc but will not have an overdraft available or a cheque book or full debit card (you might be offered an electron card or similar which only allows limited transactions).

some banks that offer this account will consider upgrading you to a full account in the future but only if you have managed the account well.

you wont find basic bank accounts being advertised much and they wont offer cash incentives or high rates of interest as they are a loss leader to the banks.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
To be honest the outlook would be bleak.

you will get letters from the lender asking why you havent paid, possibly phone calls too.

as each month passes your credit rating will deteriorate making it difficult to secure credit in the future - this can even knock on to car and home insurance as more insurers are credit referencing people now if you want to pay monthly.

eventually the lender will take court proceedings but it has been known in the past for unsecured lenders (such as a credit card company) to be able to enforce the sale of your home to recover debt.

really, your best advice is to speak to your lender to see if they can help you.

poor credit can follow you indefinitely and if bankruptcy were to occur, forever, as discharged bankrupts must always declare themselves to new prospective lenders.
100% Helpful
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
Oh dear, I don't think there is a good answer for this. The only investments that a responsible adviser would say are low risk are deposit accounts, which are hardly suitable for long-term savings and and are certainly not alternative. Gilt funds and corporate bond funds are regarded as pretty low in risk, too, but they are also mainstream.

Other investments which might be thought of alternative could include direct purchase of artworks, or fine whisky, for example, but these are certainly not low risk. There is a market known as the Alternative Investment Market (or AIM) which a stockmarket for specialist funds. The link at the end will take you to some more information about this. However, with investment in such things as oil prospecting, or loans to third world economies, although large gains can be made by investing there, the potential for large losses makes AIM investments high risk, in my view.

I'll be interested to know if any other contributors have additional thoughts on this interesting question.

Look at this link: http://www.londonstockexchange.com/companies-and-advisors/aim/aim/aim.htm
100% Helpful
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
Jackie, the last thing you should do is to get another loan, because that will only add to your financial woes. If you are thinking of a loan to 'consolidate' your debts then you just might get out of trouble, as long as you keep to the payments and don't do as almost everyone else does in that situation, which is to pay other debts off, take a new loan, then build up those debts again.

Do look at your incoming and outgoings carefully (make a budget, if you haven't already done so, and see whether you can adjust your spending here and there to keep within that budget), and seek the help of a specialist debt counsellor. The citizens' advice bureaux are the right places to start because, even if you are not in debt at the moment, it looks like you soon will be, and it would be wise to look at your personal spending patterns and take appropriate steps. The CAB wouldn't charge you, and they advise - you enter into no commitment by going to see them.

And make really big efforts to keep your bill payments up to date, because in this situation, whilst sorting yourself out, it is really worth your while to keep your credit history as strong as you can. Good luck.
100% Helpful
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
You mortgage rate is 'too high' if it is possible to obtain a similar mortgage at a lower rate elsewhere.

But if you are locked in to a higher rate than elsewhere, because you are benefiting (or perhaps, in this case, suffering from) a special deal such as a discounted product or a fixed rate product, then there may be nothing you can realistically do about it because of redemption charges and penalties.

To get the full answer, first of all check with your current lender whether there are any redemption penalties, and also ask them whether they have any alternative products that you could transfer into. Note down the total cost of any redemption or remortgage with them, remembering that you will not only have any penalties to pay, but you will also have some form of final fee to meet as well.

Armed with that data go to an independent financial adviser or an independent mortgage broker, and ask if they can do any better for you, bearing in mind the fact that you will have to meet some or all of survey fees, mortgage fees and legal fees (which can mount up to some thousands of pounds) - some brokers also will charge a separate fee, so check this out.

Please let the broker know of the current situation and what your own lender could do for you - this will make the process more efficient for everybody. I should mention that in my own experience your existing lender is likely to give you the best deal, because the total fees due would be very much smaller - but you never know, and a good broker might suggest a strategy that could suit you better, such as perhaps a lifetime rate or an offset product.

100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
If you mean to claim redundancy cover on a loan on which you took out protection at a time when you were working then generally yes. But you will have to meet the eligibility criteria stipulated by the insurer which could mean anything from being in work for a minimum number of hours per week and for a minimum number of weeks/months before taking out the cover or making a claim. One common element is they will expect you to register and be eligible to register for jobseekers allowance. In this instance as the rules vary so much, so will any answer you find here.

You really should call the loan/insurance company as they will be able to assist you further. if they cannot or say that you are ineligible you should check if you would ever have been eligible as less scrupulous lenders have been known to arrange this type of cover for people that might never be able to claim.

there might also be a deadline within which you have to lodge your claim so do act quickly
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Generally speaking any income earned in the UK must still be taxed in the UK but there are sometimes double taxation treaties in place. In this instance you would be best served to contact HMRC to establish your UK liability and then the US IRS as you might still have a further tax burden as the US system tends to look on a global basis.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
banks/building societies set their interest rates at a level to attract new business.

a good indicator in the past of a building society being in trouble was that it would offer "bonkers" interest rates as it was desperate to shore up its reserves.

equally there are banks now that have been told that they must shed customers to reduce their dominance in the market - the new lloyds group and rbs are good examples. RBS has sold over 200 branches to santander and the associated customers.

a cheaper way to achieve this same result is to "coax" people to leave by offering dire returns. But what if they dont leave? well then the bank makes even more profit! its win:win.

in choosing a provider for any financial product you need to consider the "package" how does the complete proposition add up, dont just focus on headline rates.

comparison sites can be useful when your need is simple ie which credit card offers 0% balance transfers the longest.. but if you need to know results on combined criteria, you still need to do more legwork. providers rely on this to put you off of reviewing your position and staying where you are - they call it inertia.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
ISAs are a good option as you can use them for short term savings in the form of cash up to £5100 per financial year or up to £10200 per financial year in stocks & shares but only if you are prepared to accept investment risk and to invest for a longer term ie at least 5 years. There are many who think ISAs are a waste of time but the thing to bear in mind is that many investment houses will offer charge deals through IFAs so an investment fund can often be cheaper to access through an ISA as opposed to outside the ISA wrapper.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
It's not really a case of debts "passing to your loved ones". Joint debts will defer back to any surviving debtors and single named debts will become a debt on your estate and all debts must be settled before any assets (ie cash) can be paid out. The top ranking (and priority) debts on an estate are IHT and other HMRC due taxes and usually the only debts allowed to be paid before an estate can be wound up will be the cost of funeral arrangements.
100% Helpful
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
Well now, a lot of people would like to know the answer to that question! There is still a view that what are known as the 'leading indicators' of inflation still point to a lessening in inflation but, as I am sure you know, the Bank of England has predicted this lessening for some time, and it hasn't happened yet.

I think that most people share the view that bank rates will remain low for some time to come. With unemployment increasing, house prices insecure and the 'recovery' at best uncertain, there are many factors other than inflation that will give those who want to raise base rate food for thought. If there are rises on the horizon, I believe that those rises are likely to be modest, and slow - but of course I could be very wrong.

It is wise not to defer savings for too long, because you never get back lost time. And it is also wise not to take too much heed of the short-term, nor to try to spot the 'right time' to make an investment decision. Rather, develop your plans with sufficient flexibility to meet changing conditions; if you think that conditions will change, avoid tying yourself into a product that will penalise you (by, for example, loss of interest) if you choose to go elsewhere.

100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
To a degree yes it is a marketing hype but that doesnt mean you shouldnt take advantage!

if the terms of the account suit you, does it really matter that its called a christmas account (unless if it offends in some way) in the past there were often good savings accounts to supporters of certain football clubs with some money being paid to the club in recognition (these were historically with smaller local building societies).

usually the only time you might fall foul of these accounts are the ones marketed to first time buyers as they might link the savings rate to insisting that you apply for a mortgage with the same company, although the savings rates might be good, the mortgage ones might be useless.

Basically, if once you have read all the terms and conditions, if there is nothing screaming at you to stay away, it will probably be a good idea.

and looking on the bright side, wouldnt you rather spend your own money on next christmas as opposed to "hoping" that you will be accepted for that 0% credit card next November?
100% Helpful
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
Well, let's start by getting rid of the word 'should.' This suggests some rights and some wrongs, which of course is not a useful way to look at any financial matters!

Let me answer your answer obliquely. Financial management always involves balances and compromises, the playing off of one need against another. For example, should you (there we go again!) have life insurance, which protects you and your dependents, but costs money, or should you save the money you would otherwise have spent on premiums?

Many 30 year olds will have little or no savings, because they are devoting all their income to a partner or family, and are rightly ensuring their safety and everyone's quality of life. It actually doesn't matter if you don't have anything saved for retirement at that point; however, if you can, it will be wise to be moving forward on four fronts at same time:
1 Start, or continue with a long-term savings plan.
2 Start, or continue with regular pension contributions
3 Make sure that you have enough available funds for short-term needs, as a separate category from item 1 (which you don't touch!)
4 Make sure that insurance and protection issues are properly understood and addressed.

I hope this helps.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
I would start by reviewing your monthly budget as you will often identify things that you dont even need to spend on which can result in a 100% saving. eg that gym membership you dont use, the breakdown service when you already get it as an add-on with your current account.

in terms of the other points you raise, the remortgage can have potentially the biggest improvement if you are on a standard variable rate with your lender or even if you are tied to a high fixed rate, with 25% equity you could get massive savings and even more with more equity but of course this will mean a little effort from you as a good IFA will be able to do most of the work with little or nil outlay from you.

the same IFA will be able to help you review your investments, pension planning and protection arrangements. Protection is important to bolster your plans, the last thing you want is that your aspirations are knocked because of ill-health or other matters beyond your control.

These are all things i review with my clients regularly, it doesnt always mean that we take action as i am mindful of my client's budget and their short term objectives but the big obstacle for many people is to realise that they need to take stock - at least you are already at that stage now!

you might find that your first "proper" review takes a lot of effort especially with a new IFA but the benefit is that all the future ones will be much easier as you will have done all thr groundwork now and will be just building on your plans and tweaking them as necessary.
100% Helpful
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
Some higher percentage loans have re-emerged on the marketplace, with up to 90% loan theoretically possible. In other words, you would be required to put down £10,000 on a £100,000 purchase. As with all mortgages, your creditworthiness and income will also play a part.

Bigger percentages are available if you go for a 'shared ownership' property, where you buy a percentage of the property from a housing association, and rent the remainder - when you move on, you are entitled to your percentage of the sale price. And guarantor mortgages, where another person guarantees to pay the loan if you fail to do so, will also give a higher percentage.

However, it is in my view sensible to try for a larger deposit, because you will normally get a better deal (lower rates) if you can put down more - the greater the deposit, the greater is your choice of product costs and features (because there is more competition) and if you can I would try to save 15% or even 20% or more. Furthermore (an important point, this) the greater your deposit, the greater will be your security if house prices tumble, and of course the lower will be your monthly payments.

Other major costs you will have to meet include legal fees and disbursements (money paid by the lawyer to do various searches on your behalf), property valuation or survey (a survey or homebuyer's report costs more than the simple valuation, which is what the lender requires, but the fuller report will cost you more). Stamp Duty - a tax on property purchases - is zero for properties costing up to £250,000 for first-time buyers, with this special rate applying to first time buyers until March 2012. If your new purchase is more than this then Stamp Duty will be payable on the whole amount at 3% or above on the entire price. A house costing £250,000 would give rise to zero Stamp Duty, a house costing just £1 more would give rise to a £7,500 Stamp Duty!

So how much do you need, on top of the deposit? Probably not very much on a modest first-time purchase, especially if you carry out the removal yourself and if the lender allows certain of their fees to be added to the loan (which they often do allow, even if these fees take the loan above the percentage deposit figure). I would suggest £3000 to £5000, to allow for unexpected costs and perhaps a few sticks of furniture and some paint.
100% Helpful
report abuse
Expert Financial Adviser Answer
Duncan Hannay Robertson
answered 1 year ago
The advice of pound-cost averaging is based on the long-term, not for short term one-off investments. It is also more about regular saving. For example, if you saved £10,200 over the next 20 years (assuming the ISA allowance is constant), the result is sometimes you will buy shares at a low cost and sometimes high. Ideally, we would all want the stock market to be low when we are buying and high when we need the money, for example at retirement. In the long run, regular savings is probaly going to give you better returns and a better nights sleep rather than the risk of timing the market. Its time in the market, not timing the market.
100% Helpful
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
You need a level term insurance if your mortgage/remortgage are on interest-only bases. Why? Because the amount of the loan will remain at its start figure (unless you make overpayments), so, in order for your insurance to give you full cover, it needs to be level, for the full amount, and for the duration of your loan. If you increase your mortgage - for example you move - you can add extra cover by a suitable top-up or extra policy (subject to yourinsurability at that time).

If you change your loan to a repayment basis, simply reduce your existing cover to a reducing insurance for the remaining term of your loan - this can be done without further medical questions, because you will be reducing the risk to the insurance company.

You might choose to have a mortgage with is partly interest-only, and partly repayment (a 'part and part' mortgage). If so, you can have two separate policies, one matching the interest-only part, and the other matching the repayment part. However, it might be cheaper to take a single level policy for the full amount (and hence build up some over-insurance as time passes).

Ideally - and if not too expensive - try to cover your mortgage for critical illness cover as well, and if the mortgage is jointly held and depends upon a partner's income, then the policy should be on a 'joint life first death' basis.

As with all financial answers, this answer is a 'generalised' one which suits most people. However, your own situation may have some quirks that can influence the best solution for you; if you have any doubt, seek good advice.
100% Helpful
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
Mortgage life insurance normally refers to a reducing term policy designed to follow the reducing capital of a repayment mortgage. Life insurance is a broad term covering all kinds of insurance which pay on death, and would include level term insurance, reducing term insurance, whole of life insurance, and others.
100% Helpful
report abuse
Expert Financial Adviser Answer
Richard Salter
answered 1 year ago
From a monetary point of view it is almost certainly much cheaper to buy a house than to rent. After all despite taking on a frightening amount of mortgage borrowing you should eventually pay it all off and be left with a real tangible property which you own outright. Historically it should also be worth (far) more than you paid to buy it. By contrast if you choose to rent you will never own your property and thus will have to rent until the day you die! A number of surveys have shown exactly how much more you will pay to rent over your lifetime than to have bought!

Even if your circumstances change and you end up not being able to pay all of your mortgage off you should still, hopefully, find that you have at least some equity built up over time to show for your mortgage payments.

There are of course other factors at play such as job mobility and maintenance costs which favour renting compared to the security of ownership and freedom to decorate as you like which favour buying. In my experience it is also often cheaper to buy via a mortgage than to rent the same property - in other words you may well find you are paying less every month to buy than to rent the same place - certainly as time ticks by this will be the case. Think about it. If you have reduced your mortgage to £50,000 on a £200,000 house the monthly repayments will be far less than renting a similar sized property. Indeed as a professional adviser I have often found that people pay less for their mortgages than they receive back in rent.

Finally not only will you be renting for life but those rents will rise (every) year - perhaps as your ability to meet ever rising rental costs reduces especially once you retire. Meanwhile those who have bought have typically paid off their mortgages by the time that they retire and so face reduced living costs compared to those who must still pay rent.

If this is an investment question then matters may be different. Renting avoids maintenance costs, estate agent and lender fees, letting fees and gas safety inspection costs etc and leaves capital free to invest elsewhere where it might perform better. Certainly, as we should all be very well aware after recent events, property can (and does) fall in value as well as rise. You should therefore not mix up buying as a home to live in with investment. However you may be lucky and enjoy both!
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
yes it will be possible but what you need to consider is that if you find a willing lender they will inevitably charge a higher rate of interest or possibly even want security over the car.

the end result of this is that you would end up paying significantly more for the car.

the following example is not in any way monetarily accurate but consider:

you buy a car today for £5000. with interest the loan for the car will cost £11000 over 5 years. How much is that car worth then? £2000 if you are lucky?

how about wait a bit until your credit has improved, save some cash - you should be able to do this if you can afford to pay the car loan, then when your credit is in a better place you will not only have adjusted your budget to afford the car loan, you wont need as large a loan as you will have a cash deposit to put down and the rate of interest on the loan would have improved and that could halve the cost of interest in one hit!

this of course is before you work out how much the maintenance on the car will cost and the insurance, are you better waiting until you have that next year of no claims bonus?
100% Helpful
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
This is a huge question, so I can only note down a few pointers.

If asked, ''what is my house worth?" there is only one answer: "it is worth what someone is prepared to pay for it." In other words, like most investments, its worth depends upon sentiment seasoned with other influences.

If people are confident about the economy, house rises will rise (it is a feedback loop - conversely, if house prices rise, people become confident about the economy). With current economic insecurity, we have seen house prices fall, of course.

Affordability is another issue, with mortgages dependent upon income. The more money available to buy properties, and the lower the rates, the freer are people to obtain loans. A major effect of this is to increase the cost of the house they would have bought anyway, with a marginal possibility that they could buy a better (as opposed to more expensive) property.

An influence here is earnings. Earnings tend to rise a little faster than inflation, so progressively more money comes available to fund house purchases - hence house prices will also tend to rise.

Locally there will be other influences on house price movements, such as unemployment levels, the influx or otherwise of new industries, the catchment area of a school with a good reputation, regeneration plans or proposed new wind farms or recycling centres, for instance. The quality of the immediate neighbourhood is critically important.

Finally, consider that it is impossible, mathematically, for house prices to rise indefinitely, as it is also impossible for indefinite growth of any investment. If they could, then the value of those investments or house prices would tend towards infinity.
100% Helpful
report abuse
MoneyWatch
answered 1 year ago
Tesco are offering around £7.31 / g which apparently is 70% of the current market value.

A professional gold dealer should offer around 90%, so it's not the best deal, but it might reduce some of the legwork in finding your local bullion dealer!
100% Helpful
report abuse
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
Buildings insurance cover is based on rebuilding costs, so often not. Most of the time if you pay £150,000 for a house, this will include the land, garage etc and you would expect to pay a lower amount for rebuilding costs, which is always mentioned in the surveyors report, so in answer to your question, no.

The cost is dependent on where you live as it will cost a lot more for a buildings insurance policy in a city than it is in rural areas, and the type of house you have and its age, so it is impossible to give you an idea of how much you should pay. It is best to look on a price comparison site - that should give you a good indication
100% Helpful
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
Life insurance is something that most of us will be all too happy not to claim! Most policies are purely for protection and, as Paul says, have no surrender or maturity value.

Endowment policies are combined life insurance/savings plans, and are not really very good at either. Whole of life policies are designed as insurance policies with an investment element as part of the insurance structure. These plans can build a (very modest) value. Of course, you cannot outlive such a plan, but you may be able to surrender it and put a small sum in your pocket.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
you can consider an IVA, individual voluntary arrangement. but this requires certain conditions to be met, such as at least £15000 owed to at least 3 lenders and at least 75% of lenders must agree to the IVA.

this is a case that should be looked into in more detail before you rush in as some people are able to remedy their situation without taking such drastic measures as IVA or bankruptcy.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
offset deals have their place but are not right for everyone.

take the worst case scenario that your lender has financial difficulties like we saw with northern rock et al, your deposits have been offset or merged with your mortgage and therefore effectively extinguished by having reduced your mortgage debt - so not lost - just not savings anymore. this isnt the case with all lenders as some offset without the savings element being a part of the mortgage so when its a separate account the above wont always apply.

setting that issue to one side you need to consider why are you using an offset, do you have large cash on the side that you need/want to retain access to with very short notice perhaps its earmarked for a building project or some other reason and when you compare the rate on your mortgage to your savings you are better off with the offset - this makes sense to consider.

but many people have taken offset mortgages because they were trendy and never really used the offset or flexible features. given that most lenders will allow overpayments of 10% without incurring a penalty (although some only allow 5% and others 20% !) and if you have overpaid will allow you to borrow back, often you will get a better underlying rate with a normal tracker.

An offset would be the desired outcome if you plan to overpay the mortgage by more than the penalty free allowance EVERY year.

this is why it makes sense to spend time with an experienced and qualified IFA such as myself and other colleagues on this site. As we can explore all of your needs and then make a recommendation that will best suit your circumstances, then as each deal is due to expire you can repeat the exercise to ensure that you continue to get the best deal for your circumstances.

you cant get all of the above from a comparison website!

there are still many benefits to the human touch and a face to face meeting!
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Yes is the simple answer.

But the follow is, why? if you have too many searches on your credit file over a set period, many lenders will see this as desperation and might decline you on those grounds (too many searches). This limit will vary from one lender to another but 6 searches in 6 months is probably at the top end.

if its a case that you need a top up, i would approach your first lender as if you are within 30 days of the initial application being made they might be able to lend more but without incurring a further search on your credit file but the downside is that the rate would possibly be higher or there would be a penalty to repay the first loan back unless there is provision for this within the terms.

in the first instance go back to the original lender and explain what you want.

if you have already taken the maximum from that lender (a typical maximum is £15000 as this was the old limit under the consumer credit act but some lenders have increased to £25000 which is the current consumer credit act limit on unsecured debt).

feel free to get in contact if you want to talk this through some more....
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Paul is right in his assertion that you are a limited company director.

the reason for this is that the limited company rules mean that you and the company are separate legal entities (hence the limited liability status) and so when determining taxation, your gross profit after all allowable costs will then be liable to corporation tax.

you will then declare a dividend from your profits and the corporation tax paid will satisfy your personal income tax liablility at the basic rate. if your dividend income, when added to all other income, takes you into the higher or additional rates of income tax you will then pay the additional amount of tax due so that you have paid the correct amount of tax.

the notional higher rate when you have dividends is 32.5% and 42.5% for the additional rate which broadly equates to the 40% and 50% standard income tax rates.

you can of course reduce your liabilities across the board and still benefit by making an employers pension contribution to you as an employee as this is treated as a business expense and will therefore be exempt from corporation tax.

feel free to get in touch if you want to talk this through more.

if however, you are not a limited company but instead in a partnership or sole trader, you and the company are regarded as the same entity and therefore corporation tax isnt due only income tax and class II and IV national insurance.

there are many ways to legitimately reduce your tax burden without leaving you worse off, i have been able to successfully improve my clients' financial position after carefully analysing their needs and structuring their income to give them what they need for now and still plan for later.

it can be a complex matter and not easy to try and cover off in this type of forum but hopefully these initial answers will give you the incentive to look at your position in more detail.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
The answer here is that anyone can get a tax rebate as a rebate simply infers that you have somehow overpaid.

if your income - salary, savings interest, share dividends, rental income (basically all forms of income) falls below your personal allowance of £6475 this year rising to £7475 from 6-4-11 you wont get a rebate as you shouldnt have tax deducted. if you fit into the above category you should be able to claim gross interest on your savings but share dividends are the anomaly as you cannot reclaim the tax on them as this was removed by Gordon Brown when he was chancellor in 1999.

i hope this has answered your question, if there are further points, feel free to post more or email me...
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
they do, in small numbers, but the rates might be punitively unattractive.

the difficulty is that if you have already had a bad experience with credit, a new lender will consider your ability to repay when they judge your application and will most likely increase the cost - its a similar situation to boy-racer 18 year old novice driver compared to a careful older driver with full no claims.

its often called "risk-based pricing".
100% Helpful
report abuse
Expert Financial Adviser Answer
John Stirling
answered 1 year ago
Sometimes.

It depends on the bad debt, a bankruptcy, county court judgement (CCJ), Individual Voluntary Arrangement (IVA), or serious default will all make life very tricky. Late payments or small defaults or CCJ are significant problems, but provided they are isolated incidents some lenders will still take a chance on you.

Generally if it is possible to get a mortgage, it will be more expensive, and require a larger deposit than would otherwise be the case.

100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Even in the modern electronic world there are still some costs involved in banking and not all countries are as up to date as most european countries and the US.

having said that it is a case of shopping around. even for large payments in the uk the price can vary massively, faster payments is free but most banks limit the amount you can send.

your own bank might charge say £25 to do a same day transfer to your solicitor when you buy a house but the solicitor might then charge you £50 to send the money on because their bank charges more and they want to mark up the cost to you.

if you do regular overseas payments its best to try and reduce the number, ie instead of monthly, can you send double the amount every other month?

there are specialist foreign currency companies that deal in overseas transactions and can often beat the high street rates but if you use one you should check that they are FSA authorised and what protections are in place if they should become insolvent whilst in possession of your money.

generally you should send overseas payments in the local currency and not sterling. ie in europe send euros as although sending sterling from the UK will be cheaper, there will be interbank charges and the exchange rate might not be as good and you will end up worse off.

for more "exotic" locations you should check their preferred currency, for example in many carribbean countries the US dollar is the preferred currency.

generally the more remote or underdeveloped the receiving country, the more it will cost as every step/bank that handles the money on its journey will make a charge.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
consolidation is effectively reducing the number of lenders you have but retaining the same overall level of debt.

there are many companies that will entertain debt consolidation but the best rates and terms will only be achieveable if you have a currently clean or reasonably clean credit history now.

what you need to consider before entering the arrangement is a good review of your income and outgoings.

do you currently have any scope to reduce outgoings now from areas of overspend - ie step down a level at the supermarket or reduce the sky tv package, review your utility providers.

its really useful to look at this now so that if you are accepted with your new lender you will be able to fairly judge whether you can maintain that new agreement without the temptation to build up more debt because you have "spare" money from having reduced your outgoings by rolling the debts into one.

if all the above have been tried and you still have trouble or if you cannot get a loan deal, i would strongly advise you to seek help from either the citizens advice bureau or CCCS consumer credit counselling service. They will be able to help with negotiations with your lenders and might come up with a mutually agreeable outcome.

the main thing, is timing, act soon but not hastily.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
bankruptcy isnt something to rush into. if you havent already sought help from someone locally i would suggest that you see someone from your local citizens advice bureau or the consumer credit counselling service as they will be able to help identify possible alternatives or at least make you fully aware of the implications of bankruptcy.

you will be obliged to always disclose bankrupt status in the future (for ever) which may mean that some lenders will completely shun you from any service starting with bank accounts or a mortgage but even the ability to pay an insurance premium for your car is often now credit scored.

do make sure you are fully aware of the drawbacks before you commit.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
The key with any investment is research and timing.

you need to understand the risks attached to all investments from cash to shares and also identify your time schedule and exit strategy.

no one can accurate predict in advance when to invest but you can look at historic trends. generally shares should be held for the long term, five years or more.

many people have made money day-trading but some of that success has been "accidental" rather than planned and controlled.

this is why when i recommend a portfolio of investments to a client is based on their risk profile, investment term, financial circumstances and a range of investments which have a good proven track record and not just simply jumping onto the bandwagon of the latest trendy or esoteric investment.

sadly many people have been caught out in the past with penny shares and boiler room scams because they have let greed overtake common sense. dont get me wrong, we are all driven by greed and greed can be good but if someone is promising you double digit returns in an investment you have never heard of, tread carefully.

one of the latest scams is encouraging people to buy plots of land on the basis that planning consent will be granted and a £10000 plot of grass will suddenly escalate in value overnight. on the whole its simply not true, sometimes it will be but thats a rarity, most of these scams have been in remote towns, far away from the investors home, where they have no local knowledge and worst of all in green belt conservation areas!
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
yes it can be but you have to consider why are you investing.

if it is in response to recent media coverage of an investment, the chances are that the profit in the short term has already been made and you are ready a report on yesterdays news.

with any investment you need to consider how long are you prepared to invest, what degree of risk are you willing to accept, what contingency do you have in place for emergencies (always good to keep some cash in the bank for a backup), are there other more pressing reasons to use the money for something else ie paying down a debt with a very high rate of interest?

i dont know if this has answered your question as it was a little vague but if you are willing to expand on the situation it will be simpler to give you a more relevant answer
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
yes, it could relate to the interest rate or APR which also includes other costs attached to the loan.

some lenders will charge application fees and closing down fees, its common when buying a new car from a dealer to be charged £100ish when you pay the final payment to release the charge on the car.

a bad loan might also have unfavourable terms such as very steep penalties on early repayment or missed/late payments.

this is why it is so important to read through all the terms before you sign and if you realise after signing that you dont like the deal, you can usually "cool off" or cancel but this is only within a very small window of time.

i find its often time better spent researching most financial matters in advance rather than trying to spend time against the clock sorting out a mess.
100% Helpful
report abuse
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
Let me guide you to the website, http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm which will give you simple info on this area.

The main problem with answering this question is that are many more questions than answers. Such as "are you the person receiving the gift or giving it". "What is your tax status?" and what is the inheritance tax situation?", so sorry if it sounds like sitting on the fence.

100% Helpful
report abuse
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
Unfortunately not, but there have been initiatives available in the past from Business Link, there website is http://www.businesslink.gov.uk/bdotg/action/home . Unfortunately, the coalition governments cuts have ensured that there funds are not as generous as they have been in the past to help with this type of thing
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Generally speaking, most banks will expect the actual account holder to make all contact especially at the application stage as this is often when security information will be set.

the usual exceptions to this would link to you holding a power of attorney.

you might even find some reluctance from the bank to talk to you about the type of account as they will usually be more interested in talking to the prospective account holder so that they can sell the "benefits" of everything else they offer.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
no

lenders are free to set rates and charges at any level and even when they were challenged as unfair by the OFT in a "super complaint" the banks won!

banks/card companies will set their rates at a level to both attract new customers and to heavily penalise those that default.

a crafty act by many has been to reduce the minimum payment levels, in the past 3-5% was the norm but now there are cards requiring as little as 1% as a monthly minimum payment, how on earth you ever pay back the capital when the interest rates on cards are typically 18% is beyond me!

they are almost like signing up to a lifetime of debt that hardly ever changes nomatter how much you pay "the minimum"

at least now, card providers have to allocate your payments to the most expensive debt first, it wouldnt surprise many to know that often they would clear the 0% promotional balance whilst charging you 18% on your new purchases.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Yes Natwest is offering 6.89% for 5 years but its not much to party about.

also remember as natwest is almost entirely state owned they have deep pockets but these type of rates are best avoided usually.

even by scraping a little more deposit and getting an 85% ltv loan will dramatically cut the above rate and would be far more attractive.

personally i think it highly unlikely that 100% will come back on standard schemes. there should always be a buyer contribution otherwise what financial incentive does the borrower have to make the mortgage work if they dont stand to lose anything?

one of the reasons the rate is so high is because 90% loans are still considered high risk
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
at 6.89% for 5 years its not much to party about.

also remember as natwest is almost entirely state owned they have deep pockets but these type of rates are best avoided usually.

even by scraping a little more deposit and getting an 85% ltv loan will dramatically cut the above rate and would be far more attractive
100% Helpful
report abuse
Expert Financial Adviser Answer
John Stirling
answered 1 year ago
According to their website it's 5.99% unless you are a Halifax current account customer with £1,000 pm credit in which case it is the 5.79% you quote.

As it is available to 90%, and furthermore pays some of your fees (still have to find stamp duty, and moving costs, and possibly some legal fees) it is quite competitive if you are a first time buyer with a small deposit.

However 5.79% is expensive compared to rates available for only slightly higher deposits, so the answer to your question is 'yes and no', in that it's good if you are borrowing 90%, or I suppose if your loan is very small, and fees make up a disproportionate amount of the overall cost, but it's expensive if you have other options in terms of the amount of deposit you can raise.
100% Helpful
report abuse
Expert Financial Adviser Answer
John Stirling
answered 1 year ago
I'd say the average has dropped below 70%, with many borrowers who have higher loan to value ratios effectively landlocked until their property increases in value.

For a new buyer around 80/85% is still vaguely commercial, but I really would avoid going to 90% if at all possible.

Paul is quite right about how other factors can affect your chances too.
100% Helpful
report abuse
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
A survey by Aviva has revealed that apathy is leaving 20 million UK adults at financial risk because they don't have any form of life or income-related protection.

Figures from Aviva Life Insurance show that of those without any life cover...

more than 37% say this is because it's still on their 'to do' list or that they haven't thought about it
one in seven (15%) say they have made other provisions
one in ten (10%) haven't bothered because they have no dependents and feel no need for a life insurance policy
9% say they don't have it because they don't have a mortgage to insure
3% of people say they haven't taken out a policy because they don't understand it.
Head of protection marketing at Norwich Union, Darren Dicks commented... "These findings are cause for concern as they suggest many people are taking an 'it won't happen to me' approach to protection. Around 52% of UK adults have no life cover at all* and the remainder are either underinsured or unsure about what type of cover they hold.

"There is currently a £2.3 trillion protection gap in the UK which leaves a large proportion of the population vulnerable. Many people wait until they have a particular event in their lives, such as a house purchase or the birth of a child before they purchase life cover, but people shouldn't take the view that they need to wait."

Aviva's research also reveals a number of key 'trigger' events which motivate people to purchase life insurance cover. These events include:

Buying first home: 44%
Moving home: 18%
Divorce/separation: 14%
Getting married or moving in with partner: 13%
* Source: Swiss Re
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
generally the rates on personal loans dont follow the normal interest rate trends.

loan companies will reduce their rates as a sign that they want to lend more and will therefore be competitive but the rates quoted are always "typical" which means you might see a deal at 6.9% but once your application is processed you might be offered 14.9% because they regard you as a higher risk than the "average" applicant
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
PMI premium levels tend to be guided by the increase in medical services inflation which runs much higher than any of the normal published inflation measures.

Having said that, it doesnt mean that you cannot improve on the premium you are paying and potentially add in new benefits. It can vary from person to person but there are often good deals to be had in switching providers to secure a deal in today's terms.

even if you have pre-existing conditions (which are typically excluded on new plans) you can still retain cover when you move but as ever you need to be honest with your medical history when you let an IFA review the plan for you.

failing all this, if you like the peace of mind of having PMI but have seldom claimed, it might be worth finding out if you have the option to increase your excess which will reduce the monthly premium.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
i personally wouldnt recommend an online will or a budget one you can buy for £10 from the post office.

in my opinion there are some things you dont skimp on and this is one of them. too many DIY wills have failed because they were incorrectly executed by someone wanting to save a little money which inevitably ended up costing their estate even more by having to follow the rules of intestacy and not only that the emotional impact it has on family.

if you cannot afford to pay for a will from a solicitor, a simple single person will is around £100 plus vat then often there are charities that will offer a free will-writing service with the proviso that you might leave them a small bequest as a gesture of goodwill.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
products marketed as over fifty usually dont need to be underwritten which means that if you are in poor health you can at least take out some cover.

But for people in reasonable health even aged over 50, an underwritten "standard" policy will still tend to work out cheaper and will often be more flexible in terms of how long the cover can run and being able to change the cover mid policy.

lots of the building societies promote these plans and often they give you M&S vouchers as an incentive - why? well they can afford to as they are a real money spinner as they are sold on a non-advised basis which means you take responsibility for whether the product is actually suitable.

having said that i have used these products for clients in the past but as a last resort as i have been able to place cover more appropriately using more traditional methods.
100% Helpful
report abuse
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
As follows:

2010/11 personal allowance £6,475
2012/12 personal allowance £7,475

2010/11 20% tax rate: £6,475 - £43,875
2011/12 20% tax rate: £7,475 - £42,475

2010/11 + 2012: 40% tax rate: Up to £150k, over that you pay 50%

Please see http://www.hmrc.gov.uk/rates/it.htm
100% Helpful
report abuse
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
Assuming you've got a plan in place, then it is best to increase the existing plan, but only if the insurer allows it. With many you have to wait for a special event to occur such as a marriage, birth of a child or moving house. So, with this in mind, if your health is still good, it may be best just to cancel the existing plan and start a new plan with the correct sum assured. But take care not to cancel the existing plan until the new is in force.

However, if you have a term assurance plan, this will expire at some point, as they are designed for fixed terms. If you're looking for funeral expenses to be covered, you may want to consider a plan just to cover these costs. Dignity offer a plan where you pay for your funeral expenses over a 2 year period, if memory serves me right, by means of a monthly payment and the funeral expenses are covered, irrespective of inflation
100% Helpful
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
A bit off-topic, but for any non financial advisers out there, I think that Paul is being somewhat modest about his approach to the work. All competent financial advisers have some knowledge of the law, particularly as it relates to financial matters - and I would be surprised if Paul, like me, has not from time to time outlined information for a Solicitor, whose knowledge is occasionally very basic on such issues. The three professionals who may have impact on an individual's financial affairs - Solicitor, Accountant, and Financial Adviser - have complementary, occasionally overlapping but essentially different specialisms.

100% Helpful
report abuse
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
I usually advise my clients to consider a unit trust and designate it for your child /children. Even though a unit trust is associated with risk as there is an element of stocks and shares, over the long term, they do generally outperform better than cash accounts.

The alternative's are savings accounts with your local building society or a National Savings account. At present, the interest rates are dire, and probably will be for awhile, but I would seek advice on this area through an adviser so that you can consider the best option based on the amount you want to save, the term and your attitude to risk.

Feel free to ask me anymore questions
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
a holiday home could be a business venture - like a buy to let property but only let on "holiday" terms ie a fortnight at a time.

second home insurance will usually infer that you own a second home that you spend time in but its only occupied by you and your family (which poses a lower risk of a claim when compared to a let property).

it's a reason why insurers will always ask who will occupy and how often the property is left vacant as this will impact on the cover available.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Honestly? No.

But it will give an unbiased appraisal of how you spend you money and what actually comes in.

take a look at this previous answer for some budget tips:

http://www.simplyfinance.co.uk/answer/when-does-debt-consolidation-make-sense
100% Helpful
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
Credit card debt is very expensive, and debt consolidation, where you roll these debts up into a single one at a lower interest rate, could well save you money in the end, as well as reducing your monthly outgoings. However, be careful where you get such a loan from, using a high street bank if possible, and check the details very clearly. Incidentally, the way many people run up high credit card debt is to use their cards for lots of little purchases, or to take cash out (perhaps in small amounts) as and when they want some. If this is you, maybe you could decide to take the week's money out on the same day, not using the card until the next week.

The danger is that, once you have consolidated your cards into a single loan, you will start running up your card debts again - so ending up in a worse state than you are at the moment. A way to reduce the likelihood is to cancel your card arrangement (don't just cut up your card).

Thinking about your spending patterns so far and designing a budget (contact me if you would like me to send you a budget planner that runs on Excel) will help you manage your finances. And do take a long-term view; managing your finances effectively is like overeating: losing weight slowly by changing your diet permanently is far better than going ON a diet. Your financial diet needs to be sensible and gradual and controlled, with enough slack and enough enjoyment money to make it acceptable for you.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
a personal loan is really the only viable, and cheapest option.

it would be worth looking at slightly lower values though. sometimes the banks are crafty with rate changes and you might get a better loan rate by either looking at £9950 or £10050. having said that, the amount you are seeking is "average" so the most attractive rates will be in this price band.

do consider carefully before agreeing to loan protection, the banks have stopped offering this as widely as before, mainly due to mis-selling, but you might be able to take a broader income protection plan to safeguard more of your earnings rather than limiting you to the loan repayments.

choose your lender carefully and check their qualifying criteria before you apply. if you make too many applications in a short period you can be declined for making too many attempts as this will impact on your credit file - it makes you look desperate rather than resourcefully seeking the best deal.
100% Helpful
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
There are three factors involved when comparing renting with purchasing: personal power, potential long-term advantage, and cost.

There is no doubt that a property owner has greater power over what he or she can do in a property than does someone who rents. Although there are are likely to be restrictions on what you can do in an owned flat (because of the management rules of the property) you don't, for example, have to ask permission to paint the walls or hang a picture, or to buy a better cooker; you don't have regular inspections or have paid a deposit that you may not get back.

The potential long-term advantage of owning a property is that you have an asset that we expect to increase in value, eventually owning it outright. It is therefore not only a place to live in now, but is an investment and a place that you will be able to live in 'rent free' in the (distant) future.

The final financial issue is the cost and affordability of purchasing, and here you will need to make your own calculations. But I suspect the overall costs will not differ very much unless, of course, you are living in very cheap rented accommodation.

The last part of your question relates to timing. Nobody can foresee the future and, although another housing crash is currently thought unlikely, in the short term property prices can move in either direction. It seems to be a good time to buy but, at any rate, with house ownership being a very long-term strategy whose main aim is to provide you with somewhere to live and whose secondary aim is as an investment, I see no reason to wait for things to 'improve.'
100% Helpful
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
100% loans are not just difficult - they are impossible, I'm afraid. So you will need a deposit of at least 10% of the purchase price, though with a (relatively!) small deposit, you will not get the best (ie cheapest, with good features) products.

It really is not easy for the first-time buyer, nowadays. Some people take a gift from parents, who may have savings or who may be able to increase their own mortgage a little, or who (if elderly) can take an 'equity release' product to help you out. If such a gift is available and is readily offered then you should seriously consider it.

Other than this, you need to start a regular savings plan, making sure that you stick to it by regarding the money saved as 'not available' and the monthly savings as simply a reduction of your income. A final, really important, point is to maintain excellence in your credit history: pay all bills regularly and by standing order, so they don't get overlooked and avoid any blemishes. If you don't have a credit card, do obtain one (this will improve your credit score) but don't get carried away and use it more than minimally.
100% Helpful
report abuse
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
If you're a first time 10%, minimum, if this is your second house, 5% for a limited amount of companies, but the more you have, the better deal you will obtain
100% Helpful
report abuse
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
I don't think so. Of the 5,500 mortgage deals available on my sourcing system, 754 are for 5 year+ fixed rate deals

Darren is quite right, where mortgage companies offer deals and withdraw them all the time with revamped terms
100% Helpful
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
An interesting question. When you take a fixed rate deal you are gambling on the average variable rate you would have paid being equivalent to the fixed rate. Let me explain.

Let us imagine a £100,000 interest-only mortgage, with the choice of 3% variable or 4% fixed, with a 2-year special rate. In this example, after 1 year the variable rate jumps by 2%, to 5%.

At 4% the interest-only payment is £4000 each year, a total of £8000. The variable rate payment is £3000 in the first year, then £5000 in the second year - also a total of £8000. In other words, the average interest rates are identical. So how do you choose between them? Just compare the interest rates of a variable rate loan and a fixed-rate loan over the same period. Then double the difference between them, and if you think that interest rates will not rise by that much, then the variable loan is likely to be better. In the example given the difference was 1%, and the rates would have to rise by over 2% for the fixed rate loan to be the better bet.

Now this is a simple example, but the principle is correct, assuming a uniform rise in rates. The question is: would it make sense..... and the answer must depend upon your need to stabilise your finances, how much you could bear a rise in mortgage costs in the short term, and your view on interest rates in general.

Let me also stress the importance of considering the rates that will be imposed following the fixed rate period. If the rate is a competitive one, then you should not have to remortgage, but if the rate is poor then, as you have said, you may wish to remortgage but be unable to because of house values or your own financial position. To be on the safe side, though, do work through the position should mortgage rates have risen a few percent at the end of the special rate - can you afford it?

100% Helpful
report abuse
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
The things you can do to drive down costs are:
Drive in a car, such as a Fiat Panda, Ka or similar as opposed to an Aston Martin. A useful site is http://www.ukwebstart.com/listcarinsurance.html

The area you live in does have an effect, so living in a quaint village would be a lot cheaper than living in the Isle of Dogs, London.

Like Paul has mentioned, your sex, the type of use for your car (social domestic, pleasure or do you use it for business use)

Some insurers discount your insurance via the Pass Plus course
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
what you might need to consider even more is the loss of that year of no claims bonus (unless if you already have the maximum) as you might be better off sticking where you are as 1 extra year of no claims can often make a bigger difference than switching mid term - this is one good thing you can confirm yourself from the comparison sites as you can tweak your details.

its also worth noting that all insurance has a cooling off period so if you are within the first 14 days of cover - some allow 30, that you can freely cancel with a full refund - no costs deducted as long as you havent made a claim during this time.

but do be careful to check your new policy, lots of "cheaper" policies are cheaper because the benefits are stripped out.

sometimes you can actually get a better price by purchasing fully comprehensive cover as opposed to third party/fire/theft - why? wel;, comprehensive drivers tend to be more careful drivers and usually in a more responsible life stage (perhaps with children, or driving a nicer car).

sometimes it can improve the cost for a young male driver to add his female partner to a policy as people in relationships are considered a better risk than singles!

but as insurers can pick their own rules (within reason) you need to be so careful when deciding where to place your cover.

100% Helpful
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
The interest rate charged will depend on a whole lot of factors: how big a percentage you wish to borrow, your credit history and so on. The range is from about 3% (or just a little under) to 6% or more. Just as a starter, I suggest you use 4% if you are borrowing under 75% and 5% if you are borrowing up to 85%, with 6% if you intend to borrow 90% of the purchase price.

But this is just a rough guide!
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
it is possible to get a personal loan on a low income but all companies will set their own minimum criteria.

what would make sense initially is to use a comparison site to get an indication of the monthly costs for loans. 5-8 years is usually the maximum term but if you can afford to comfortably pay sooner, you should.

the lender will need to know that after all your living costs you can afford the loan repayment and then still have an excess for emergencies - again this amount will vary.

100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
it can mean that you simply dont fall into their definition of "good" which is very subjective its like asking everyone to define "beauty" and expecting the same answer!

you might find that another institution will be more than happy to accept your custom but just in case there is a problem you should check your credit file. www.creditexpert.co.uk will give free online access to new users for 30 days and you can check for any inaccuracies and remedy them before its too late.

dont be tempted to pay to know your score as this is a worthless exercise. all lenders use their own score card and you cant compare one lender with another or even one product with another from the same lender (ie you could be declined a loan but accepted on a credit card from the same bank).
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
unfortunately, the last government seemed to encourage people to take on debt (secured and unsecured) to try and dig the country out of a whole buying unnecessary consumer goods.

its a bit like the debt equivalent of Gordon Gekko (wall street) saying greed is good!

sadly the reality is dawning for many people who now find they cant afford the repayments, have little to show for where the money went and will probably end up worse off financially as they will become excluded from mainstream lending if they fall into arrears/default/bankruptcy
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
David is quite right in what he says.

A lender takes a different view when a residential mortgage is granted over a buy to let deal.

Residential is occupied by you and under normal circumstances you will always keep to your repayment schedule and therefore the risk of default on the loan or damage to the property is minimal.

A buy to let deal is taken by you to make a profit, so why shouldnt the lender profit too? tenants are not usually as careful as an owner with property care/maintenance and they have little financial influence to ensure that they always pay you the rent, to then pay the mortgage.

also a residential mortgage was granted on the basis that you and/or your family would reside in at least 40% of the property - this has legal implications and also regulatory issues as the FSA doesnt regulate buy to let deals but they do on residential, this also impacts on your "protection".

David also identifies a point that i noticed, you seem to ask similar questions but posed on almost opposite circumstances.

many people have had help from these forums but it does require straight talk on both sides. clearly no one would expect you to divulge sensitive information but there are many people able to assist you if you let them.
100% Helpful
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
No.

The mortgage in place is the result of a contract between the parties and, as long as you do not break the terms of the contract, then the lender has no powers to alter it.

For people who are good with money and perhaps have an income which fluctuates (being self-employed, for instance, or receiving bonuses) then an interest-only loan can be an excellent idea. After all, a repayment mortgage is, in essence, only an interest-only mortgage with regular overpayments.

Such products may allow you to suspend payments completely (once overpayments have been made) or even borrow back the sums overpaid. Although doing so would put your repayment plans (temporarily) off-track, they can mean that you are able to cope during a downturn in your personal finances, without having to move house and perhaps running into debt or default problems.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
you can ask your tax office to send you a printed copy of your calculations and summary of account but it takes around 3-5 days from when you submit for the data to be officially filed and accepted so if you have only just done your return for last year you will need to wait a bit.

as ever this time of year is one of the busiest for hmrc as many people file at the last moment so you can also expect a delay in response time from hmrc as they will be inundated.

some lenders are more flexible in what evidence they will need, i know of some that will take business bank statements and accountants projections of income - but this varies widely with each lender and generally speaking the higher % you want to borrow, the more evidence a lender will want - nomatter whether you are self employed or PAYE.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
to be honest, men could actually pose a greater reason for inequality in the basic state pension age as men in the UK on average have a lower life expectancy than women and have to wait longer to claim.

a woman at age 60 could be expected to live an average of 25 or more years whereas a man at 65 might only have 16!

when the original state retirement ages were devised, very few men even lived to 65 and the pension was a nominal sum and often only paid out for a couple of years as you had to be almost on the poverty line to be eligible and therefore generally had a very low quality/standard of living.

the most likely reason for the age gap would have been looking at age differences between couples and that 5 years was an average gap between men and women in relationships therefore when the man was 65 and retiring, the woman on average was 60 so it enabled both to retire together.

ultimately as life expectancy has improved dramatically, the taxpayer cannot afford to pay a generous pension to everyone at such a young age after already having reduced the number of years to qualify for a maximum pension to only 30 years.

a woman used to pay in for 90% of 44 years and a man for 90% of 49 years. so you can see women also paid in less and in theory got the same as men - this to some degree would have compensated for raising a family and not working but again, when the state pension was devised it was highly uncommon for women to be working whereas in today's more modern society women are the main breadwinners in some families/relationships.

it might be considered hard for the age to be increased but lets be honest, no one can actually afford to live on only £100pw regardless of whether thats at 60 / 65 / 70 so people have to do more to plan for their own financial future.

you have omitted to mention that men will see their age rise to 66 before women will, and the young (born from the 1960s on) will reach state retirement much later, i'm already set to age 67 but expect that to rise - but im not relying on my state pension to keep me, in fact i would be surprised if its still in its current form in 30 years time.

you can check your state pension age here:

http://pensions.direct.gov.uk/en/state-pension-age-calculator/home.asp

but remember the benefit of planning your own retirement is that you dont have to wait until 60/65/70 etc. a personal pension will give access at 55 (this will probably rise in the future too) but if you have other assets you can stop working whenever you like!

my view is that its always best to control your own destiny rather than relying on a "nanny state".

100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
the value of property is partly influenced by supply/demand/desire.

some people feel that property is still overvalued and should fall by as much as 30% or more to enable people to purchase based on more traditional lending multiples of 3x single or 2.5x joint income.

although there might be some truth in this, i think the rationale is somewhat flawed.

lenders are lending more cautiously, sometimes overly cautiously, but the sector of the market most impeded is the 75%> ltv as these pose additional risk to lenders and so they want to restrict their lending to what they consider to be deserving cases (sometimes restricted to existing borrowers only and no FTBs).

liquidity in the market is not as good as it was at its peak but its better than when it was at its low.

The BoE cannot force lenders to lend, frivolous lending (and borrowing) is in part to blame for the state we are in now and for as much as people rant about bankers being overpaid, they never moaned about that whilst the times were good, and they also forget that they borrowed the money, spent the money, had no means of repaying the money and never took precautions to safeguard their income in the event of a financial catastrophe.

i'm not defending bankers per se, but we have to remember that the banks didnt spend the money, they lent it, "we" spent it, some wisely but most foolishly.

we also have a glut of new build properties because the last government forced local authorities to build ridiculous numbers of new builds (by granting permission to the developers) the problems here are that the building standards are not the same as they were in the past when to own a new home was like a stamp of approval (how many tv shows now show "homes from hell")

new developments also imposed a % of property to be used for social housing - which was not the case in the past, without being a snob many people now dont wish to spend their hard earned cash buying a nice new home to find out their nextdoor neighbour is a rehoused council home evictee with out of control kids and all the other bad habits.

even setting all this aside, too many flats were built in inappropriate locations, the upshot is that many towns and cities now have vast numbers of vacant flats that no one wants to buy now (and clearly didnt then either) but you can build more high rise flats that you can terraced houses on the same plot and all of today's lifestyle tv seems to centre on kids, gardens, animals etc which dont tend to fall into the flat owning community.

most of this is just my take on things but i am sure that others will have their thoughts and experiences to share too!
100% Helpful
report abuse
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
Generically, then you can't do much better han a stakeholder pension. But not all give you good value for money.

The best route for you to take is to seek advice from an Independent Financial Adviser because there are several factors to take into account such as what are they charging for, your attitude to risk and fund choice and you really need advice on this. Feel free to talk to me about this and I will be able to give you some pointers about this area.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
i'm not quite sure what you mean on this but i will take a guess that you have paperwork and are trying to identify what it relates to?

if you have been a member of a final salary pension and made it to at least 2 years of service, you will have deferred benefits in that scheme and might get an annual summary of benefits - but not all companies send this once you have left the employer although you can request them at any time.

in terms of personal pension types you should get paperwork from the pension/investment companies and if these are attached to former employers they will mention it on the scheme name ie "The Tesco Stakeholder Pension".

stakeholder plans will always carry the name so if you dont see the word on the paperwork, its a good guess that it is a personal pension which might be an older style contract but could also be a recent one.

if your question was relating to "do i have a pension with anyone as i am not sure" you can try the pension tracing service but they will ask you for details of who you have worked for, and you would already know this and could check with the old HR departments.

in terms of personal pensions that you have paid yourself, old bank statements will help.

if this doesnt cover what you meant, can you explain in a little more detail what you were hoping to find out.

thanks
100% Helpful
report abuse
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
As David and Darren have mentioned, these are effectively a thing of the past, "mosting pre 2001 plans", and most pension providers will probably increase the annual management charges by a small margin for the first 5 years to pay for advice given.

I have seen some shocking plans where there has been a 5% charge everytime you pay a contribution, policy fees, annual management fees, fees for switching and one provider charges a marketing fee (???) - a very strange one.

However, as mentioned, in 2001, things became simpler with the birth of stakeholder pensions and every provider had to drive down costs to compete in the market and satisfy the regulator
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
The reason is that bank accounts are a very "sticky" product, people seldom change banks even with £100 up for grabs as you have to get used to a whole new set of banking habits and rules etc.

also the average bank account application contains almost as much sensitive information as a mortgage and banks can use this data to cross sell other more profitable products to you such as their home insurance, personal loans, investments etc.

i have a client that was persuaded to pay £10pm for a premium bank account with all the frills even though she seldom drives so the breakdown cover wasnt worth much, was too old to be covered on the travel insurance, doesnt have a mobile phone so wont need to insure one, doesnt buy foreign currency as she holidays in the UK.... you get the drift. but what did she get in return? 5% on her account balance up to £2500 as long as she pays in £1000pm. her income is fine but she likes to keep a little more in the account so as she breaches the cash limit she actually earns 0.1% pa (same as before) but now pays £10pm for the privilege!
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
in general terms you could argue that gender is irrelevant.

insurance relies on interpreting past data on claims experience.

therefore a young female driver might be considered to be a safer bet than a young male driver due to the notion of "boy racers".

if there were common traits between the genders that influenced the reasons for claims on motor or other policies, gender related pricing wouldnt occur.

the notion of female pricing on motor policies had been thought to be short lived last year as legal challenges were being made to outlaw it as somehow a form of discrimination.

the truth of the matter is that you can probably find as many bad drivers of all genders and ages, occupations, home towns, and so on.

but in order that people with a safer driving record are rewarded for their careful driving, insurers have to set a benchmark and the "good risks" fall below the mark and pay less, whilst others pay more, and possibly only a few sit on the line.

otherwise if we all paid the same amount regardless of our circumstances or history, there would be no disincentive to have a claim every year!

but the above comments are very general and it is still often possible to find a good deal even if you fit into a high risk category as just as many insurers set up to cater for hot hatches, former drink drivers and female only - i suppose its just that sheilas wheels gets more air time on the tv!
100% Helpful
report abuse
Expert Financial Adviser Answer
Madelin Talbot
answered 1 year ago
Generally when looking at term assurance, which is a type of life insurance, women are cheaper to insure than men as women have a longer life expectancy. However, if we look at critical illness cover then women are more expensive than men, as they are more likely to contract a serious illness.
Without knowing more specific details about the individual we couldn't give a precise cost different. However, running a quote with one insurer, based on a man and female of the same age, and looking for the same cover the woman is 38% cheaper to insure.
100% Helpful
report abuse
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
The government has increased the IPT rate for any cover that will become effective on or after 04 January 2011. The new rate of IPT will apply to new business, renewals and mid-term amendments, as shown below.

Categories IPT Pre 04/01/2011 IPT From 04/01/2011
Motor 5% 6%
Rescue 5% 6%
Home 5% 6%
Pet 5% 6%
Travel 17.5% 20%
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
a debt arrangement scheme is the name given to an IVA (England & Wales) but only applies to people that live in Scotland.

basically its a way of managing the repayments of your debts without the risk that your creditors can enforce bankruptcy on you.

you remain protected from bankruptcy as long as you maintain your payments to the DAS.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
there are 3 credit reference agencies: experian, equifax and call credit (in order of size and usage).

all providers of credit ranging from banks to mobile phone companies and car insurers (if you are paying monthly) will report on your account management behaviour.

the banks/credit provider will pay for access to that data which is shared between all subscribing lenders but they dont all use all the agencies.

you can check your data online and many of the agencies will let you do this for up to 30 days for free, after that there is a charge of either £2 per agency by post or whatever they charge online ranging from £6.99 to £14.99.

dont waste your money on finding out your score as all lenders use their own scorecard - its a waste of your cash. there are other similar posts on this very topic which i have answered before so feel free to browse!
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
the very first step you need to undertake is a thorough budget planner to analyse your income and "essential" outgoings. you need to be ruthless about what is essential and what is optional - this might involve tv subscriptions or high level mobile phone contracts. you might be still paying for last year's new year resolution of a gym membership that you havent used since Feb 2010!

if there is no clear option here to help, including switching providers for utilities etc. you should contact your loan company and explain your difficulties, they are now obliged to be more considerate of your position but their obligation will start to fade if you can be seen as negligent (ie you should have contacted them 6 months ago).

if its early days they might be able to reschedule the loan term or might even offer better rates today than when you first applied.

if all this fails, you could consider speaking to a local citizens advice bureau or the consumer credit counselling service, both of which offer a degree of free assistance to people in financial difficulty - they might be able to help you present a stronger case to your current lender(s).

i do urge you though to take swift action before it starts to impair your credit worthiness as this will make current remedial action more difficult and in the future (when you are back on your feet) it will come back to haunt you.

dont panic, but do make contact with someone soon.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Private equity is a term used to describe money generated from individual investors and used to buy a portion of equity in a company. Many times, the purpose of generating private equity is to purchase a public company and turn it into a private one. Most private equity investing is done by wealthy individuals or investment banks that have excess money to invest. In some cases, a private equity fund is formed by working with multiple investors.

100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
A hedge fund is a lightly regulated investment fund that is typically open to a limited range of investors who pay a performance fee to the fund's investment manager.

Every hedge fund has its own investment strategy that determines the type of investments it undertakes and these strategies are highly individual. As a class, hedge funds undertake a wider range of investment and trading activities than traditional long-only investment funds, and invest in a broader range of assets including long and short positions in shares, bonds and commodities. As the name implies, hedge funds often seek to hedge some of the risks inherent in their investments using a variety of methods, notably short selling and derivatives.

In most jurisdictions, hedge funds are open only to a limited range of professional or wealthy investors who meet criteria set by regulators, and are accordingly exempted from many of the regulations that govern ordinary investment funds. The net asset value of a hedge fund can run into many billions of dollars, and the gross assets of the fund will usually be higher still due to leverage. Hedge funds dominate certain specialty markets such as trading within derivatives with high-yield ratings and distressed debt
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
it can be relatively straightforward to declare bankruptcy, once you have allowed for the court fees - there are companies that can assist you with the entire process but they will of course expect to be paid.

having said that, before you go too far i would strongly suggest that you speak with someone from the citizens advice bureaux or consumer credit counselling service.

bankruptcy isnt a quick fix and shouldnt be entered into lightly.

it may prevent you from owning your own home in the future if you rely on needing a mortgage, will certainly make it difficult to obtain a bank account after you are discharged (as well as other unsecured credit). it could even impact on your ability to take out car insurance if you might rely on being able to pay monthly.

there are alternative options such as IVAs that might help to reduce your burden and although these too can have side effects in the future, they are not always as severe as the stigma attached to bankruptcy.

bankruptcy is very much a one-way street and once you have entered you can only go forward - never back and change your mind.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
long term care is designed to cover the cost of care in old age and is usually associated with people that need care either in their own home or who have decided to move into nursing care.

although in the past it has been possible to pre-fund (to buy your care before you actually need it) most people have ended up buying/funding their care once the need has arisen.

however, given that the coalition government announced a wholesale review of the funding issues that surround longterm care, it wouldnt be wise to rush into making a decision now.

i would suggest that you contact an IFA for further assistance but you will need to ensure that they have passed exam CF8 or similar as it will demonstrate their awareness of the issues that surround care-fee planning and how state benefits interact with them.

it is a specialised area and that is why when i have seen clients for these types of needs, sometimes it can be of benefit to all parties for family members to become involved in the planning process.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
close credit cards / bank accounts that you no longer need - having lots of available credit can give the impression that you are stockpiling ready to draw it all out!

but keep a card for a backup or emergency

set up DDs to cover minimum payments

speak to your lender before you are late as they will often give leeway if you ask permission.

ensure that you are on the voters roll at your address as soon as you move home and try not to move too often.

always keep within your authorised account balances

check your credit file for inaccuracies - mistakes do happen and if there are mistakes you can prove, they must be rectified within 30 days.

this will give you a good starting point on your Top 10!
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
if you are a small company (profit less than £300000) then the corporation tax rate is 21% of the profit after all allowed deductions and expenses.

if you file your CT600 using the HMRC template, it will calculate the sums for you, just in the same way as the self assessment site does for individuals.
100% Helpful
report abuse
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
Introduction

IR35 is a complex subject. Being caught by IR35 is expensive. You can find out how expensive it is by using the IR35 Calculator on http://www.ir35calc.co.uk/legal_advice_ir35.aspx

This article explains why you should take professional legal advice when both reviewing your IR35 status and also in disputes with the Revenue when they challenge your employment status.

Clients and agencies protect themselves – so should you
Both clients and agencies take legal advice for the content of the contracts which their contractors (you) eventually sign. They do this to protect them from any legal challenge or action from HMRC, another Agency or you as the Contractor.

After an inevitable HMRC inspection every 5-6 years neither the client nor the agency wants a huge tax bill for the contractors they have used in the past. They will want to ensure that any tax liability is passed to the contractor.

This inspection can then involve you, the contractor, in discussions with the Revenue about your contract or even start a Self Assessment Enquiry of your own business.

It is thus equally important that contractors also take legal advice to protect their interests, namely the risk of IR35.

Cost of failing IR35
There is a huge difference in your net income depending on your IR35 status. Depending on your contract rate it can range between £2,000 and £10,000 per annum.

To maximise your net income it is important to take legal advice and ensure you remain outside IR35.

Status challenges
As a contractor you will be inspected by HMRC, on average, every 5-6 years.

They will challenge the tax status of each contract and will go back 6 years. It is thus important to ensure your affairs are water tight with respect to IR35.

It is very important to take legal advice to protect yourself against challenges from the Revenue. If you don’t take any legal advice then there is no one to protect your interest.

The best Revenue results are achieved when the client or contractor is not prepared for the review.

Conclusion
If you are about to sign a new contract then you should immediately ask for a review to protect your own interests.

Also, if you have been paying tax in previous years as though you are outside IR35 and have not had your contracts reviewed you should do so immediately.


There is no sign that this will be abolished
100% Helpful
report abuse
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
It's all about profit and loss and the costs of having a financial services arm is very expensive. Levys to support the FCSC (Financial Compensation Scheme) are shooting up and I suspect that their levy will be higher than most, given the recent fine imposed on them.

However, it is difficult to say whether your policy is okay or not, given that there are no details on it. However, I suspect it is fine as Barclays do offer some very good products. Give me a call or email me directly if you want a more, no obligation, detailed decision
100% Helpful
report abuse
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
You are correct, it doesn't make sense not to set up the policy in trust. It ensures payment is quicker and more efficient. I set up a policy in trust for one client and after she died suddenly, the partner was paid £300k 6 days later. The rest of the estate was settled 10 months later. It not only ensured £120k of IHT savings, but also the solicitor charged 3% for administering the state, hence another £9,000 savings. This is perfect example of why it should be done
100% Helpful
report abuse
Expert Financial Adviser Answer
Paul Jackson
answered 1 year ago
Yes - you need to obtain a PUC/PAC? code from your current provider to 'port' your number to the new network.
Note - if you are purchasing a new phone check first if this is 'locked' to a neetwork and if so whether it can be unlocked.
I've just moved from O2 to T-mobile and successfully 'ported' my number to a new 'locked' mobile.
100% Helpful
report abuse
Expert Financial Adviser Answer
Richard Salter
answered 1 year ago
Absolutely life cover is what it says, life insurance. The threats to your life are unaffected by whether or not your property is let out.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
In short, you shouldnt have a liability upon sale of the properties as long as you are divorced.

a married couple can only have one principle primary residence (PPR) for CGT purposes whereas once divorced you can each nominate your own PPR.

you will need to let your insurer know you have moved in as it should reduce your home insurance moving from BTL to an owner occupied deal.

100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
maintenance isnt tax deductable.

married couples allowance is only paid (once you claim it) to couples where one spouse was born before 6/4/1935 so there are relatively few people still in receipt of it.

guessing that you are not over 75 and still working, you never had it to lose anyway.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
all insurance contracts generally change in cost due to ongoing claims and admin costs and the rise in cost of replacement goods ie car prices increasing, garage rates increasing.

it has never been a case of individual underwriting for pricing a policy that is why its seldom the case that you will pay the same year after year even with no change to your record (except for your age).

even the old notion that insurance becomes cheaper when you reach, 18 then 25 then 30 etc is a nonsense!
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
pensions per se will not be altered but certainly annuities will.

currently, men get higher rates (when compared on a like for like basis) as we live short lives (on average) and therefore the same pot of money would need to be paid out in a shorter period of time when compared to a woman.

all of this will change.

people that take their benefit by drawdown (unsecured pension income) and hybrid annuities will also see the same potential reduction as the base point for working out their income is still currently gender based.

its fair to say that pretty much every insurance contract will be changed (there are the odd exceptions like car breakdown cover and cover for your washing machine failing etc!)
100% Helpful
report abuse
Expert Financial Adviser Answer
James Brooke
answered 4 months ago
Assuming that the policy was set up as a qualifying policy (virtually all endowments were) and has been running for more than 10 years and nothing has been done to the policy to affect its qualifying policy status, then there will be no tax to pay at all.
Qualifying policy rules are complicated but Aviva will be able to tell you if it is a qualifying policy or not.
100% Helpful
report abuse
Expert Financial Adviser Answer
Darren Smith
answered 1 month ago
Hello Kirsty

i dont know if you are still trying to sort this out, but your first port of call should be with the bank/loan provider and with their complaints department.

be certain to take notes of dates, times and contact names so that you can log the events as they unfold.

you can also lodge a complaint to the information commissioner, the following link will take you to the ICO website and their steps in how to proceed further....

http://www.ico.gov.uk/complaints.aspx

100% Helpful
report abuse
Record a videowith your webcam Upload a videofrom your computer
loading webcam ...
When done recording, press "Save" on the player to submit your question.
Cancel
Cancel

up to 50 MB as avi, mov, mpeg4 only


close
Tell a Friend
« Big Map

Related Financial Advisory Firms

MJN Mortgage & Insurance Solutions
P A Collins & Co
Protection & Investment
Waverley Financial Services
Sun Life Assurance Company Of Canada Limited