Is a ‘friends’ mortgage’ a good idea?
In the past most people that were buying a home either did so alone or with a partner/husband, which was the traditional way of getting a first home. However, things have really changed over recent years, and these days many people cannot afford to buy a home on their own.
This means that many have had to look at alternatives when it comes to moving out from their parents or from rented accommodation and trying to get their foot onto the property ladder, and things aren’t always easy, particularly given the difficulties that many face when it comes to raising a deposit and getting a mortgage in the current financial climate.
One of the solutions that some people have considered is to get a mortgage out with a friend, whereby both friends – or a group – are all in on the mortgage and they buy the property between them. This can certainly solve a few problems, such as being able to raise the amount needed for the deposit and being able to borrow the amount required for the property.
However, this can cause issues in the event that one of the friends involved wants to sell up and move on, as it means that they would have to get rid of their share of the mortgage. Another problem is if there is a falling out, and whilst most friends hope that they will never come to blows to a degree where things cannot be resolved this can happen.
Whilst a friends’ mortgage can be a good way of getting onto the property ladder in the current financial climate it is important for anyone getting involved to ensure that they consider both the pros and cons before making any firm decision or commitment, as things otherwise turn very sour very quickly – and it could end up being a costly mistake.
For those that do not really want to get involved in a mortgage with someone else but do want to get onto the property ladder another solution is to look at shared ownership, where only part of the property is purchased and the remainder is rented through a housing association and can be purchased in stages at a later date as and when the buyer is in a financial position to buy further shares in the home. The buyer then has the choice of buying the remainder of the home until it has all been purchased or remaining a part owner and selling their share when they decide to move on.
Tags: mortgage, Mortgage loan, friends, property, share
Expats urged to consider offshore savings benefits
January 4, 2008 by admin
Filed under News, News-Banking
While internet banking is 
popular with expatriates, they are not using it to take advantage of offshore savings accounts, it has been suggested.
A poll by Alliance & Leicester International (A&L International) revealed that 92 per cent of Brits living abroad used online banking to manage their finances.
However less than a third had an offshore savings account which, the bank suggested, meant they were losing out on a range of advantages including good rates of return and the potential to hold or send funds in currencies other than sterling.
A&L International managing director Simon Hull said: “With internet access now so readily available, offshore consumers should take advantage of internet banking and saving.”
More than half of homes in the EU have internet access at home, the research found.
In addition, expats wanted online banking options when setting up an offshore savings account.
Based on the Isle of Man, A&L International claims to be one of the largest offshore deposit takers and has share capital and reserves of more than £150 million.
Barclay’s share prices fall amidst rumours
November 10, 2007 by admin
Filed under News, News-Banking
Barclays Bank, one of the UK’s high street banking giants, has seen its share prices plummet to their lowest level in two and a half years.
It is thought that the fall in share prices could be partly due to rumours that the bank has experienced financial problems in light of the recent credit crunch that has swept across the UK. Rumours were sparked back in August when the bank took out two overnight loans from the Bank of England, which was blamed on ‘technical’ problems.
Share prices tumbled by 8% at one point, taking them to 524.5 pence. This was followed by a slight recovery, with share prices at 537.5 at closing, which was a drop of 5.9%. Barclays has denied having any funding problems following the emergency loans. In fact, in order to try and restore consumer confidence the bank’s head of global retail and commercial banking, Frits Seegers, purchased £700,000 worth of Barclay’s shares on Friday.
Ian Poulter at Landsbanki Financials stated: “There are concerns about writedowns and everything else, but the comments Barclays have made to date suggest that is not an issue, as does the fact they are still buying back their own shares.”
The thirty month low in share prices comes just shortly after the crisis that hit Northern Rock, where share prices plummeted by over 80% after it became widely known that the bank had taken an emergency loan from the Bank of England. This fuelled speculation that the bank was on the verge of collapse, and over £2 billion in savings was also withdrawn in addition to a huge tumble in share prices.
Tom Smith
10th November 2007
