Not all children ‘would be interested in taking financial advice’

Children would benefit from more financial education in order to make the most of their Child Trust Funds (CTF), but they might not “necessarily be interested in taking that kind of advice”, claims a financial expert.

Ark Financial Planning said that although there are children who have been made aware of the ‘value’ of money, there are more who are concerned about what they can do with it rather what it can do for them.

Phil Perry, a spokesperson for the company said that issues arise when attempts are made to label money in funds for educational costs when not everyone wants to go to university.

“I certainly think the government need to have a little bit more idea on what they expect that money to be used for,” he added.

CTF are saving accounts for children and those born after September 1st 2002 who receive a £250 voucher to start their account.

According to reports in the Daily Telegraph, those children born within a year of the September 1st 2002 can expect windfalls worth a total of £2.4 billion when they reach 18 years of age.

Tags: little bit, CTF, expert, child trust funds, company, advice, daily telegraph

Borrowers offered huge mortgage deals

Borrowers can now take out a mortgage of up to six times their salaries, according to recent reports.

Mortgage lenders are now willing to splash out huge loans to allow desperate first-time buyers to get on the property ladder, with soaring property prices and a lack of affordable housing becoming major stumbling blocks.

The Daily Telegraph claims high street names such as Alliance & Leicester, the Royal Bank of Scotland (RBS) and Northern Rock are now lending huge amounts compared to a person’s salary.

Nick Gardner from Chase De Vere Mortgage Management told the paper: “We have done deals for more than six times income with Alliance and Leicester, and very near that with Abbey and Intelligent Finance.”

But borrowers must still meet strict “affordability criteria”, claim the banks, meaning borrowers must be on high-end salaries, sometimes as high as £100,000 per year, or take on mortgages of a long-term fixed rate.

Of course, critics argue this means people who can normally afford a mortgage anyway will be the only ones to benefit from the deals.

Tags: long-term fixed rate.Of, mortgage management, abbey, daily telegraph, Affordable housing, property prices