First time buyers still have options to help them get on the property ladder

Times are hard, and now we’re hearing that the UK’s economic recovery is ‘paralysed’ by Europe’s debt crisis. With the economy the way it is, first time buyers often write off the possibility of ever getting on the property ladder and believe they are set to rent for the rest of their lives. This is not the case anymore, with the government; various agencies; housing associations and property developers now offering a range of deals to help first time buyers get on that crucial ladder. Here are 5 tips that can help you keep those costs down…

Shared ownership

Shared-ownership is a terrific way into home ownership and is the main affordable housing scheme. If you cannot afford to buy outright, you can part buy part rent your home – you pay a rent on the share that you do not buy which is set at an ‘affordable’ rate. The bigger the share that you purchase, the less rent you have to pay.

The FirstBuy scheme

Saving for a deposit is something that holds lots of first time buyers back. Schemes like this give you a step up onto the ladder, by lending you some of the money through a shared equity offer. If you purchase your first home in England though the FirstBuy scheme, your deposit could be as low as 4% – there are online calculators to see the difference it could make. If you are looking in Scotland or Wales, there’s a similar scheme called Head Start.

Avoiding stamp dut

Not an offer as such, but a way to reduce the cost of purchasing your own home. If your home’s value is less than £250,000 there’s no Stamp Duty to pay if you complete before March 24, 2012. That could save you up to £2,500 when you move.

Family ownership with your parents

It is becoming increasingly popular for young single people to include their parents on their mortgages. Even if they just own 1% of the property this security enables you to borrow more money from the bank and buy a more expensive property.

Move to a cheaper area

This does not sound like a perfect solution but sometimes in life, we have to take a step sideways to move forwards. House prices in some areas are much cheaper. If you are willing to move to these areas then you can make buying a house a real possibility. You never know, you may make a hefty profit in the end. It is worth bearing in mind that cheaper areas do not always mean lower quality. For example, some areas are more expensive because they are close to good schools so it is worth researching prices in different areas.

Tags: Equity sharing, stamp duty, housing associations, tips, Ownership

Interest rates unlikely to increase this year

A recent poll has suggested that the base interest rate is unlikely to be increased over the course of this year, which is something that will bring relief to many homeowners and borrowers who are already struggling to make ends meet due to soaring costs and bills. The data comes from the latest Reuters poll of economists, which reveal that there is now only a 30 percent chance that the Monetary Policy Committee will increase the base rate from its current record low of just 0.5 percent where it has been for well over two years.

However, economists are predicting that there will be a base rate increase in the first quarter of next year although some believe that the next rate hike could be at least one year away, perhaps even longer. One industry official welcomed the news of the unlikelihood of a rate rise, stating that there were many households and individuals that would not be able to cope with a rate increase in the current climate due to overstretched finances, soaring living costs and rocketing bills.

He said: “Given that many people in the UK are currently struggling to make ends meet, an interest rate rise which will push up mortgage payments will cause a huge increase in families facing financial difficulty. The longer that interest rates are left unchanged the better from a personal debt point of view.”

The MPC has faced a difficult decision over recent months when it comes to increase interest rates, as members have been under pressure to vote for an increase due to soaring inflation levels but have also been under pressure to keep the rate on hold because of the concerns about the economy and affordability.

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New regulations from FSA spark comments from Cable

Spokesperson for the Liberal Democrats, Vince Cable, has recently commented on the changes that have been introduced by the Financial Service Authority with regards to mortgage lending. Read more

Tags: building societies association, economy, fsa, Association, something, FSA mortgage lending, Mortgages, mortgage

More protection for DIY holiday fans

Over the years an increasing number of people have started to book their own DIY holidays rather than opt for a pre-bundled package deal with a travel agent, and with the expansion of the Internet, with all of the choices on offer with regards to flights, hotels, and other extras, more and more people have started to book their holidays in this way. Read more

Tags: diy, expansion, Tourism, DIY holiday, something, british travel agents, holiday protection, announcement

More parents may take their kids on holiday during term time

The high cost of holidays outside of school term time is resulting in many parents threatening to take their kids out of school so that the family can afford to go on holiday. Read more

Tags: percent, family holidays, school holidays, map, school, holidays, something

Card fraud rife despite Chip and Pin

A few years ago the nation was introduced to Chip and Pin technology which was a new type of technology that had been designed to increase security for plastic card users and to cut down on the rising level of card fraud that was being seen across the country. Read more

Tags: fraud, country uses chip, chip and pin, credit card fraud, United Kingdom, internet

Officials offer advice on mortgage arrears

A recent report has shown that many homeowners in Scotland are struggling to keep on top of their mortgage repayments, and figures from the Financial Services Authority have shown that at the end of the third quarter of last year there were around 340,000 homeowners in Scotland that were in arrears. This was around 24 percent higher than the same period in the previous year. Read more

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Claims that energy firms are ripping off consumers

Further claims have been made recently that the UK’s energy giants are continuing to rip off consumers, and as many households struggle to keep up with bills and payments on their homes, he energy giants are said to be sitting on billions of pounds worth of consumers many. The claims come amidst controversy that British Gas, one of the UK’s major suppliers, has been increasing the direct debits of customers by 50% or more over the winter, even in cases where the customer’s account is in credit. Read more

Tags: something, consumer, Utilities, cash, lib

Taking care of your savings

With all that has happened in the banking industry over the past year it is little wonder that consumers are so nervous about where to put their hard earned money when it comes to savings accounts. This time last year saw Northern Rock go through its crisis, and many people flocked to withdraw billions of pounds worth of savings from the bank before it was eventually nationalised. Many other building societies and banks benefited from this situation, as consumers tried to find alternative places to put their savings. Read more

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Is wedding insurance cover a good idea?

As a nation we Brits love to feel secure and safe with total peace of mind that we have done all we can to protect ourselves and our loved ones from a range of eventualities. This is why the insurance industry has become so huge, with Brits taking out all sorts of insurance policies to cover all sorts of circumstances. From travel insurance and home insurance to insurance for our pets, cars, mobile phones, health, and even our lives, insurance is something that gives us a sense of security – and often helps us to avoid the huge financial losses that we may otherwise have faced without it. Read more

Tags: total peace, something, Marriage, travel, security

Different types of bank account for UK consumers

Over recent years banking services in the UK have come a long way and consumers have enjoyed more choice than ever when it comes to finding a suitable bank account for their needs. In the past most banks offered one standard bank account for the average consumer, take it or leave it. However, with competition stiff between the growing number of high street and Internet banks, and consumer needs expanding on a continual basis, most banks now offer a choice of accounts to suit a wide range of needs and circumstances. Read more

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Financial education in schools needs to be practical, say experts

A “purely theoretical financial education” in schools is not enough to assist students as they need practical experience of making decisions about their money, one financial expert has claimed.

Educational charity pfeg said that students at university need to be trained in balancing a budget in class so they can work out how to balance their finances.

Alastair Mathews, director of policy for pfeg, said: “Some students have already learned something about personal finance in their business and economics work – and yet they still don’t have a clue how to manage their credit card.”

The firm added that a theoretical financial education on its own “is not a lot of help” but any subject in the curriculum could be adapted and used to teach children how to use their money.

In the Future Leaders Survey 07-08, conducted by environmental charity Forum for the Future, universities association Ucas and insurers Friends Provident, 81 per cent of respondents (taken this year’s prospective university students) claimed to be ‘very’ or ‘quite’ good an managing money.

Tags: Provident, prospective university students, personal finance, credit, something, Knowledge, Alastair Mathews, balancing

Quarter of Brits ‘hide insurance info’

More than one fifth of British motorists admit they have intentionally kept quiet about motoring convictions and license points to their car insurance provider, to avoid premium hikes following policy renewals.

Confused.com has found that although 96 per cent of motorists are aware that lying to the insurance company could result in invalidated claims, 21 per cent of drivers would be happy to take the risk and hope that they don’t get caught.

Debra Williams, managing director of the comparison site, warned drivers: “Insurers take a dim view of people who don’t update them immediately should their circumstances change.

“Changes in job title or annual mileage may seem insignificant to most drives, but this can significantly affect your premiums. If you are caught lying about your details, your insurer can reduce your pay out and may even refuse to pay at all.”

A report commissioned by the Association of British Insurers earlier this year revealed that fraudulent claims on car insurance, something one in ten (five million) drivers admitted to, push up average premiums by £40 a year.

Tags: circumstances change."Changes, car insurance, GBP, car insurance provider, mileage, Association, something

ABI issues warning as floods worsen

The Association of British Insurers (ABI) said yesterday that the floods in Southern and Western England, still ongoing, could hit the industry for “hundreds of millions of pounds” in claims.

With flood levels at 60-year highs in places, and with waters still rising, the ABI made its sombre announcement based on calculations that the average business would claim £100,000, and the average home £15,000 to £30,000.

Last month’s catastrophic floods in the Midlands already carry an estimated £2 billion insurance bill, according to the association.

Gordon Brown, visiting Gloucestershire – the worst-affected area by the floods – today, told reporters that “what we saw here was a month’s rainfall in some places in an hour, something that was quite unprecedented, and put enormous pressure on water and the emergency services”.

The Financial Times estimates the average insurance payout for storm damage in a year as between £400 million and £800 million.

Tags: water, United Kingdom, something, economics, Southern, insurance bill

UK banks asked to ’share branches’ to help rural customers

Banks in the UK are being urged to share their branches in an effort to provide the required financial services to those in rural parts of the country.

It has been claimed that sharing branches would allow banks to significantly reduce costs and therefore enable them to provide essential services to rural communities without having to run them at a loss.

According to Derek French, director of the Campaign for Community Banking Services lobby group, as much as £500 million could be saved every year by banks if they shared their branches in more remote parts of the country.

The government is putting increasing pressure on banks not to close their rural services because of the damage this will do to village economies. However, many banks are concerned that their current arrangements in rural parts of Britain are causing them to lose money because there are simply not enough people to support the services on offer.

Although Mr French admitted that banks have in the past been against such proposals, his organisation believes that the pressure now being placed on banks from the government could mean that they are reconsidering these schemes.

Unless something is done soon, Mr French warned that banks could disappear from rural communities within five years.

Tags: country.The government, lobby, lobby group, bank, government, State Bank of India, derek french

£6.1bn cost of holiday cancellations

British holidaymakers lost a combined total of £6.1 billion last summer because they had to cancel their trips.

Figures released by More Than show that millions of people lost out financially because they did not have travel insurance.

People were forced to pay for travel and accommodation which they had booked despite never actually making it to their destination.

Travel insurance is a key element to any holiday and can at least help to prevent a bad situation from getting any worse.

More Than says that 26 per cent of travel claims it dealt with last year were for cancellation of holidays, something the firm believes is positive news.

“It’s encouraging that holidaymakers are catching on to the importance of travel insurance, but many still don’t realise that by purchasing their policies late, they miss out on valuable cancellation cover,” commented Keira Clarke, head of travel insurance at More Than.

“We encourage travellers to arrange their insurance at the same time as they book their break, to ensure they’ll be covered if anything goes wrong before the trip.”

According to More Than, the average travel insurance claim for cancellation of a holiday stood at around £856 last year.

Tags: total, situation, firm, accommodation, something, travel insurance.People, Travellers, cancellation

Making Sure You Get The Cheapest Pet Insurance Available

With recent changes in veterinary treatment and technology, it is now very possible to incur veterinary bills in the thousands of pounds. If, therefore, you are thinking of taking out pet insurance to cover and illness or accident that your pet may suffer, this may not only be one of the wisest decisions you make on behalf of your pet, but could also be one of the most financially astute decisions you make. Read more

Tags: health insurance, cheapest pet insurance, something, The, place, main types, age, pet insurance providers

What Is A Warranty?

Second hand or first time round?

When you buy a used car from a dealer you will nearly always get offered at least three months warranty. If you are buying from new then you will get about three years warranty as standard. But what is it and what’s it got to do with insurance? Read more

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