Nomi_Omi23
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Does mortgage protection cover me against a tenant defaulting on their rent payments?
- Nomi_Omi23 asked 1 year ago in Mortgage
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Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
Mortgage protection is at the simplest an insurance policy designed to repay the outstanding mortgage balance upon the death of the policyholder. It is, in other words, nothing to do with the tenant, or whether they pay their rent. Landlord protection policies are available, and many rental agents offer this, often free during the first 6 months of the tenancy. In order to offer this insurance the tenants have to be properly vetted; the policies themselves are provided by insurance companies (do a Google search on 'Landlord Insurance.') and they can cover such things as loss of rent and legal costs.
Incidentally, do make sure that your buildings insurance is for the property to be rented out - otherwise you might not be able to make a claim if need be.
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Incidentally, do make sure that your buildings insurance is for the property to be rented out - otherwise you might not be able to make a claim if need be.
Is there a maximum number of income protection policies you have have in one household?
- Nomi_Omi23 asked 1 year ago in Other
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Expert Financial Adviser Answer
Neil Liversidge
answered 1 year ago
No but each person with a policy must have sufficient salary to justify the cover they have. If the policy is mortgage payment protection rather than income protection then the cover amount is related to the mortgage and other associated payments such as insurance. Income protection is complex so get personal advice. We're available via www.wrpfs.com
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What's the minimum cover period of life assurance?
- Nomi_Omi23 asked 1 year ago in Insurance
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Expert Financial Adviser Answer
Paul Richardson
answered 1 year ago
You can get policies to cover all periods, whether they are cost effective for shorter terms is debatable and you will have to show insurable interest. I have known policies to be as short for 12 months but these policies have certain conditions and certainly don't come cheap !
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What does buildings insurance cover?
- Nomi_Omi23 asked 1 year ago in Insurance
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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).
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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).
Is it possible to get a banking account with a bad credit score?
- Nomi_Omi23 asked 1 year ago in Banking
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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.
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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.
What private banking accounts have the lowest interest rates?
- Nomi_Omi23 asked 1 year ago in Banking
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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.
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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.
Is it benefical to get involved in banking investments?
- Nomi_Omi23 asked 1 year ago in Banking
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Why are the banking transfer charges so high for offshore banking and how can this be avoided?
- Nomi_Omi23 asked 1 year ago in Banking
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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.
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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.
Can I open up an international banking account for a family member from the UK?
- Nomi_Omi23 asked 1 year ago in Banking
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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.
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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.
Does the interest percentage on credit card banking have anything to do with the price of the minimum payment?
- Nomi_Omi23 asked 1 year ago in Banking
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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.
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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.
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