Independent school loss of earnings cover ‘not comprehensive’

Loss of earnings cover provided by independent schools may prove to be “value for money”, but they are often “very basic”, an industry expert has said.

According to Steve Danson, a chartered financial planner at Elementum, the insurance would not cover sickness absence or death in some cases.

“People should definitely get a plan for their particular circumstances, and quite often the plans we would recommend would be the same types of plans we would recommend to anyone with a big commitment,” he said.

He added that many companies will sell school fees insurance as a specialist product, when in fact it is a combination of normal insurance covers.

The Independent Schools Council (ISC) recently claimed that 620,000 children are educated in around 2,500 independent schools, which represents an estimated seven per cent of the total number of British schoolchildren.

Of the ISC’s member schools, 31.43 per cent of pupils received financial support with their fees this year, valued at a total of £300 million.

Tags: combination, plan, Wycombe Abbey, circumstances, Financial economics

Lloyds TSB loans help start-ups

Recent reforms to the Small Firm Loans Guarantee (SFLG) have led to the possibility of more focussed funding to small businesses, high street bank Lloyds TSB said today.

SFLG is a government promise against default in certain circumstances.

Whereas previously available to all businesses, it is now on offer exclusively to those companies in their first five years of trading, which Lloyds head of communications Stephen Pegge said was “where it is most needed”.

The maximum amount which could be claimed was previously £100,000 for start-ups. Now, as a result of the sharper focus, they can claim £250,000.

Mr Pegge said: “It’s not that there were exclusions of start-ups that have suddenly been lifted; it’s mainly that the long-established businesses can no longer borrow. There’s more of an emphasis on start-ups. And perhaps some bigger start-ups can get more money than they previously could have got.

“I think it’s true to say that where businesses need it most – and are least likely to have security to support their applications – are in the early years,” he added.

Tags: first five years, Royal Bank of Scotland, high street bank, Uninterruptible power supply, focussed funding

An exercise regime for your finances

Many of us could do with giving our finances a good workout, just like we do when trying to get our bodies into shape.

The British Bankers’ Association (BBA) says that we can keep our finances looking fit just as we can begin living a healthier lifestyle.

We are being advised to review our finances and speak to our banks and financial advisors, much like how you might consult a gym for a fitness check.

Although many people find banking to be daunting and something of a chore, the BBA points out that getting your finances in order means you are better prepared for any future changes to your circumstances.

“The British Bankers’ Association is recommending customers take a little time to plan their financial needs just as you would consider your physical health,” said Angela Knight, chief executive of the BBA.

“That way you can ensure your finances are in good shape and you have the right banking and borrowing services in place.

“You can go to your bank and talk through your specific needs just as you would go to a personal trainer and talk through an exercise routine. It is vital that you set aside some time every month to review your bank statement,” she added.

The BBA has compiled a ‘Fit for Finance’ checklist and says that anyone considering visiting a financial advisor should run through the list and get a good idea of how they are doing.

The list asks: Do you pay your credit card balance in full every month? What plan do you have in place to repay a debt? And are you always struggling to cover debt repayments?

Tags: finances, healthier lifestyle, bank, card, regime, circumstances, physical health

Bad credit doesn’t mean bad mortgage

It is something that occupies the minds of many young adults today but a leading mortgage broker claims that bad credit need not mean higher mortgage rates.

London and Country (L&C) claims that 71 per cent of people with credit problems who have visited them have walked away with a mainstream mortgage deal.

This is despite the borrower’s belief that he or she will be hit hard for a previous bad record.

L&C admits that most lenders will not deal with people who have recent defaults and County Court Judgements but points out that the situation is never black and white.

It is possible that some lenders will be more lenient than others and the broker claims that many people with only minor blemishes may be surprised by the kind of deals available to them.

“All too often, people assume that because they’ve had some credit problems in the past, they will have to pay a much higher interest rate and in some cases, high broker fees,” said James Cotton, mortgage specialist at L&C.

“In fact, our research shows that by getting whole of market advice from L&C, borrowers can seek out the best deal for their circumstances and can often secure a better rate than they thought possible.”

The news will be welcomed by first-time buyers, many of whom are of the belief that they will have to wait years until they can get a mortgage.

Tags: Mortgage broker, best deal, situation, specialist, Financial services

Brits urged to borrow sensibly

British consumers are being encouraged to make sure that they only borrow what they can reasonably pay back.

Debt advice firm Thomas Charles is calling upon Britons to take control of their finances following the expensive Christmas period.

The company says January and February are some of the worst months for consumers when it comes to falling into debt.

This is put down to over spending during the festive season and often results in people borrowing more money to see them through the difficult period.

James Falla, director of Thomas Charles, says consumers need to ensure that they are only borrowing money which they can afford to repay.

“If you are taking a loan, then you should know full well that you have to pay back an amount every month,” he said.

Consumers are also advised to take a proper look into the best ways of borrowing money and see which method is best suited to their circumstances.

Tags: James Falla, british consumers, director, Thomas Charles, control