Greater security could come from mobile payments compared to credit card ones

A recent report has suggested that consumers could enjoy a greater level of security through making mobile payments for transactions compared to credit card transactions. Read more

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Enquiries to IFAs increase under credit crunch

The number of consumers seeking advice from an independent financial adviser (IFA) has recently increased as people are being hit with financial difficulties due to the current credit crunch, says IFA Promotions.

Requests to the organisation for contact details of local IFAs are currently reaching about 10,000 a week and around 600,000 enquiries a year as people look for advice on how to increase returns on their money, according to chief executive David Elms.

The areas where people are seeking the help of IFAs include mortgages, property, pensions and investments, cash as an asset class and protection needs, although the popularity of these investments depends on which sector is performing well at the time.

IFAs are authorised and regulated by the FSA and offer advice on products from the whole of the marketplace in contrast to ‘tied’ advisers who can only recommend products from certain financial institutions.

Commenting on the type of people who usually seek this type of advice, Mr Elms said: “They are typically ABC1, so they’re middle-to-top rather than middle-to-bottom [income]. But the age range is 25-65, very easily split between males and females.”

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Costs may fall on 100% mortgages

The fact that many first-time buyers are taking out 100 per cent mortgages may be a good thing.

Many commentators and industry experts have warned that the mortgages are dangerous as youngsters are being saddled with large amounts of debt.

However, Ray Boulger, a senior technical manager at John Charcol, says with more people getting them, we will soon start to see 100 per cent mortgages that are value for money.

“Despite the furore surrounding the availability of mortgages reaching as much as 125 or 130 per cent of a property’s value,” he said.

“In actual fact, very few people qualify for that amount of money and the average plus size loan to value is more like 103 per cent.

“The good news for borrowers here is that as competition increases, the premiums usually associated with these kinds of mortgages should be reduced,” added Mr Boulger.

The rise on popularity of 100 per cent mortgages is down to an increased number of people going to universities, according to Mr Boulger, with more people coming away with debt which prevents them from being able to save up for a deposit.

It is predicted by the technical manager that the cost of borrowing on a 100 per cent mortgage will “come down by the year end”.

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