The Best Flexible Mortgages

One of the biggest worries for many people when taking on a large debt, like a mortgage, is what will happen if they run into money problems.

Perhaps it is not as well known as is should be but some lenders do offer some flexibility, allowing the borrower to vary the amount they pay each month – which comes in handy if you suffer an unexpected drop in income or you have to deal with an unplanned expense.

In its most basic form, a flexible mortgage is one which allows the borrower to vary their repayments. This could be through a variety of ways like overpaying your mortgage to pay off the balance quicker, payment holidays, switching to interest-only temporarily, under payments or borrowing back some of the money you may have paid in the past.

best flexible mortgagesWhile the features mentioned above are quite common place and are offered by most lenders, there are more niche products which offer even more flexibility.

Perhaps the best known is the interest-only mortgage. These can either be bought as standalone products or a lender may decide to allow you to switch to an interest-only mortgage if you run into financial difficulties.

This type of loan arrived in the UK in the late 1980s and slowly became more and more popular – so much so that 1 in 3 loans advanced by lenders just before the crisis was an interest-only loan.

With these mortgages the borrower does not pay back the loan capital but only the interest that is charged on it. Ideally, the borrower would have some way of repaying the capital at the end of the mortgage term – for example: savings, a pension, investments or another method.

These days interest-only mortgages are harder to qualify for, following a clampdown from the Financial Services Authority, the City regulator. Until recently lenders often did not check if the borrower had a valid way of repaying the loan at the end of the term.

But new mortgage rules state that lenders have to check to see if the borrower has a method to repay the loan at the end of the term. Moreover, lenders have also limited what they accept as repayment methods, known as “repayment vehicles” in the mortgage sector. One repayment method which most lenders no longer accept is the sale of the home, meaning you will not be able to sell the home to pay back the money at the end of your mortgage term.

Another popular flexible mortgage is the offset mortgage. Most people believe these types of loans are hideously complicated but in fact they are quite simple. Take, for example, a borrower who takes out a £200,000 offset mortgage a bank. If this person deposited £50,000 with the bank, in its specified offset savings account, interest would only be charged on a net balance of £150,000.

While you won’t earn interest on your savings, the benefits of reducing the interest paid on your mortgage are clear. And at a time when banks are squeezing savers by offing poor rates of interest, an offset mortgage could be a good option to consider.

Many lenders now offer an offset mortgage product, including Yorkshire Building Society, Santander, First Direct and Woolwich, a subsidiary of Barclays. It is also worth remembering that it is not true these products are only suitable for those who receive big bonus payments, like bankers. They are not; offset mortgages can be a suitable and sensible option for most people, especially if they want to pay off their mortgage early.

Mortgages that offer borrowers more choice over how they pay their mortgage have obvious benefits but it can be difficult to decide what type of mortgage would serve you best.

For the best flexible mortgages, tailored to your circumstances, then it is best to see an independent mortgage broker. Independent advisers have the advantage of knowing the lender’s criteria thoroughly and can advise across the entire mortgage market, making it more likely that you will get the best deal.

How to Ensure You Have a Good Credit Score

Not having a good credit score can be problematic if you want to get hold of a loan at a favourable rate of interest; credit scores are primarily worked out via your past credit history, and how much you’ve borrowed and repaid in the past. Debts that haven’t been cleared, and issues with your employment or address history can all negatively impact on your credit score. In this way, it’s worth thinking about some ways in which you can try to ensure you get a good credit score.

credit score improvement tips Regularly Check Your Score

It’s possible to ask for a copy of your credit report from the UK’s three main credit agencies – Equifax, Callcredit, and Experian – this can usually be achieved for a small fee. Looking over your report can allow you to fix any inconsistencies or mistakes that might be affecting your credit score.

Pay Off Your Credit Cards

If you can, pay off as much or all of the balance of your credit cards every month to avoid incurring charges; similarly, try not to exceed your credit limit, and take advantage of 0 % balance transfers to get better rates.

Avoid Unnecessary Loans

Don’t apply for lots of different credit at the same time, as this will show up on your credit record; similarly, pick the right loans with bad credit depending on the credibility of the company- the compounded interest charges on these loans can be very high.

Find a Guarantor

If you have bad credit, try to get a loan with a guarantor – this is a third party that assumes responsibility for repayments if you can’t make them, and is able to help you to boost your credit score by ensuring consistent loan repayments.

Don’t Make Multiple Credit Card Applications

It’s important to avoid making lots of credit card applications over a short period of time, as this can end up with a lot of rejection, and repeated, and costly checks on your record.

Avoid Joint Financing with Another Person

A joint financing approach can be a problem if you have a good credit score and they do not – bad credit by association can end up dragging both your scores down, even if you have been able to make consistent repayments elsewhere.

Get the Details Right

Make sure you update your details with credit agencies and lenders; this includes a fixed land line on top of a mobile, and updates to your employment history and living situation; being with the same bank for an extended period of time is also recommended to show that you’re in a stable position to borrow.

Get on the Electoral Roll

Another way to demonstrate your stability and ability to borrow is to get on the electoral roll; doing so will help to convince lenders that they aren’t encountering fraud, and will give you more ties to your local area.

Cancel Old Credit Cards

Any out of date credit cards should be cancelled, as they will appear on your file, even if you no longer pay into them. Check to see whether there are any outstanding cards on your record by requesting it from credit agencies.

Clear Off Any Old Debts

These debts might include anything from county court judgements to defaults on personal loans or car payments; make sure that everything is paid off that can be to avoid taking a hit on your file.

Affordable, Effective Home Insurance: The Best of Both Worlds

Home insurance is one of the most important things that you can have if you the owner of your house, as it will guarantee that you are covered should anything happen to your property. If there are fires, floods, hazards, explosions, hurricanes, and other forms of damage, home insurance will guarantee that all you will have to pay is a deductible to get your home repaired. It will cost you a bit to purchase home insurance for your house, but it’s worth it!

The Good News: It Doesn’t Have to Cost a Fortune

The good news is that home insurance doesn’t have to be too expensive, and you can find ways to cut the cost of your home insurance without reducing the value of the coverage. If you want to find good coverage that will be affordable, there are a few things that you can do:

Raise Your Deductible

The deductible is the amount that you’ll pay, and it is usually fairly low – meaning the insurance company will cover the rest. If you raise the deductible amount, it will reduce your premiums. You will end up covering more costs should anything happen to your home, but at least you will save a lot on your insurance payments each month.

Home Insurance
Home Insurance

Combine Policies

Those who purchase two types of insurance from the same company will often get better rates on both, so it’s a good idea to look into getting health insurance, auto insurance, homeowners insurance, and life insurance from the same company. It will lower your homeowners insurance rates, along with the rates on all your other policies.

Shop Wisely

Many people will purchase coverage for things they don’t have to worry about, but you can save money by eliminating wasteful coverage. For example, if you live far from any bodies of water, why would you purchase flood insurance, or why would you add jewelry coverage to your home insurance policy if you don’t own any costly jewelry?

Call Every Year

You will find that the insurance company will change the rates, policies, and conditions of their insurance every year, and even a small change can work in your favor. Rather than accepting the same rate for the rest of your life, call the insurance company every year to check if the policy has changed in any way. If the changes benefit you, it would be good to know about it.

Avoid Insurance Risks

Owning a Pit Bull, Doberman Pinscher, and certain other dog breeds can void your home insurance coverage, or at least limit it. A trampoline or swimming pool can also raise your premiums, but you may not realize it. Make sure that you read the contract carefully, and avoid anything that would raise the cost of your premiums. You will find that it spells out clearly what may exclude your home from the insurance coverage, so avoid these risks.

Your home insurance policy will cost you, but it doesn’t have to cost you more than you can afford. If you use the tips mentioned above, you may be able to save a tidy sum on your insurance policies every year.

Sam Fenton is a professional insurance agent. He writes about a variety of insurance-related subjects and loves helping his customers get the best deal possible. 

Health Insurance without All That Unhealthy Spending

For many, health insurance is a constant source of worry and trepidation. After all, if you’re self-employed, an uninsured family or a small business, all costs add up…no matter how big or how little that expense may be.

Add to it, the growing expense involved in healthcare over time and you’re looking at an expense that can make you wince…not to mention your wallet and your bottom line.

Let’s set this aside for a second and take a little deeper look at the expense of certain medical procedures.

What if you needed a heart valve replacement? Obviously it’s a major procedure and the bill reflects that at a staggering $177,000. Taking care of a nagging shoulder injury which, while not a necessity but certainly a quality of life issue, will set you back over $10,000. Even something as simple as strep throat can run you in to the hundreds of dollars. This is all coming out of your pocket if you’re not insured and ready for the road ahead.

medical insurance quotes
medical insurance quotes

So, how do you avoid…or at least work in a smart, strategic way to make sure that you’re getting the most bang for your buck when it comes to the health insurance provider you chose?

By getting an accurate and understandable medical insurance quotes.

The Internet has given rise to a virtual cornucopia of medical insurance options for individuals, families and small businesses. No longer does going online involve sifting through reputable providers…because with the heavy regulation of Internet offers—companies don’t survive if what they offer isn’t up to standard or true to the promises they offer on their sites.

Now, you have to look at all avenues when you’re getting a quote. That means not just online companies offering rates that are easy to access and quick to deliver on your expectations, but also, looking at the tried and traditional local and national insurance companies.

There are certain factors that need to be weighed when looking at quotes. You need to make sure that the company you’re looking in to can provide you with the local doctor or health care provider you want. Of course, being choosy in who you go see may drive up the price a bit.

Yet another important factor to consider is the type and amount of coverage you need. Paying higher deductibles and having less coverage in certain areas (effective cost savings for those who are relatively young and healthy) can keep premium payments at a minimum.

Perhaps the greatest cost to a quote will be dependent upon the number of dependants a person is claiming. Individual policy quotes will come in much lower than even a two person quote, whereas families—those are going to run you to excess.

In the end, the one key point is to shop around. Understand that not only are you looking for good medical insurance coverage but also that you want to get the maximum coverage for the money you’re willing to pay. It’s smart shopping that will pay off not only in the immediate future and for years to come.

eindividualhealth.com, a insurance agency that offers affordable Medical insurance quotes to individuals and families.

How You Can Save Money For Your Retirement

It is a real nightmare to reach the retirement age and find that you have not saved much enough to get financial support. Most people get into such a predicament due to their unwise or untimely planning. This article makes an effort to educate you on making prudent retirement planning and avoid such disastrous possibility. Here are some simple ways to save money for your retirement.

It is not a magic but logic how you can save a huge sum for your retirement days

save money for your retirement
save money for your retirement

Start early when it comes to do retirement planning. If you start planning at the ripe age of 50, you can’t save much for your twilight days which are drawing nearer. If you start at the age of 30, you can definitely save more. Every year, section a part of your monthly earning. It is better if the saving sums up to $2,000 at the end of each year. However, with increment in your pay-scale, try to push this target further.

Saving for retirement days requires a little bit sacrifice at present. This sacrifice is justified considering the fact that you will get a financial peace of mind. Make a little adjustment with your monthly expenses so that you can save a good part of your disposable income for this retirement purpose. Several investment vehicles are there but ensure a safe ride with government bond, IRA, 401K planning etc.

The riskier investments are more tempting on the ground of promising rewards. Investing into them will not be very bad unless you invest a lot. Diversify your retirement investment and consider investing into less riskier schemes. After all, you definitely hate the idea of losing your hard-earned money, is not it?

Have you taken a mortgage loan? Do you have any outstanding loan? If yes, think about paying them off. Being saddled with mortgage burden while you are approaching the retirement age is not a good idea at all. Through mortgage payment, you retain the equities and also have some assurance to live in your own house. And with passing of days, your equities become more valuable.

If possible, invest in a second property. Real estate makes a good return on investment. And having a second home earns you an excellent equity to make good use of in times financial instability.

Retirement planning is not an easy thing to do. Extensive market research, proper planning, appropriate approach and right vision are some of the components to outline a workable retirement plan. Following some simple steps like those stated above will ensure a peaceful post-retirement sailing as you have always dreamt of. .

Different Types of Markets in India

India is slowly becoming one of the leading economies in the globe. The reason for such tremendous growth is the versatile nature of different types of markets in India. Right from the agricultural field to the large industries, everyone has their own substantial place in the Indian market. So the transition of money occurs on a very large scale and this promotes financial growth of the country.

Different Types of Markets in India

Similar to the world economy, Indian economy too has market types such as the stock market, food (agricultural market), clothes market, real estate market, pharmaceutical market, industrial market, consumer market. These market places are mainly platforms wherein the manufacturer/ service provider sell/ exchange their goods/ products/ services to buyers. Each of the market is governed by an authority (usually led by government or government aided organization). Let us have a look at the prominent Indian market types in detail.

 1. Agricultural market in India:

India is an agriculture based country. Agriculture is the major occupation of the Indian population. The agricultural markets in India include transport of farm products from the field to the wholesale marketing place, selling of the products to wholesale dealers, transport from the wholesale market to the retail market, and finally selling the products at retail price to the actual customers. Apart from this basic process, this market also deals with processing of food material, advertising of various brands, selling of seeds, manufacture and sale of farming products (such as pesticides, fertilizers, farming equipment etc), storage of the food items, packaging etc. It goes without saying that the turnover of the agricultural market is very huge in India.

2. Industrial market in India:

Industrial market has seen recent upsurge in India and it is more commonly known as business to business (B2B) market. It simply includes exchange of products or service from one business to the other for monetary gain and profits. In India, ‘outsourcing’ service or product needs by a large organization to a smaller one has become a common practice. For example, if a manufacturing organization of 500 employees is looking to start a short-term advertisement campaign for its latest product, then instead of engaging its current employees in the extra work or hiring new advertising professionals, the organization will simply outsource all its ad campaign related work to a smaller firm that specializes in advertising. The industrial market in India witnesses an extensive exchange of finances every year.

3. Stock exchange market in India:

The Indian stock exchange constitutes of the National Stock Exchange (NSE) and the Bombay Stock Exchange. Both these markets deal with the trading of shares of various companies that are listed with the corresponding stock exchange.

4. Real estate market in India:

Real estate market in India has seen surprising spurt in its growth in the last decade. In fact, it is estimated that by 2020 the real estate market in India will reach a whooping figure of US $180 billion! With the increasing population, there is increase in the demand of spaces for residence or commercial purpose.

These different Indian markets make the economy stronger. With the in-sync working of all these markets, it is sure that the Indian economy will continue to grow.

Reclaim Your Owed PPI

PPI or payment protection insurance is one of the most popular forms of insurance in the UK and in many parts of the world. This is insurance taken against a loan. It protects you when you borrow, in case; you are not able to repay the loan. Some of the reasons why you may be unable to keep up with the loan repayments include being sick, getting redundant, or when you are declared bankrupt and unable to work. On these grounds, payment protection insurance is a godsend and can protect you from liabilities when things go opposite than expected.

Reclaim Your Owed PPI
Reclaim Your Owed PPI

Most banks often package payment protection insurance as a separate package from the loan and run it to the fullness of the loan. Thus, all you do is pay for it alongside the loan repayment. Many banks have, however sold people PPI without them knowing or to people who do not qualify for the insurance. This article gives you some of the reasons why you need to claim your owed PPI as soon as possible.

The money belongs to you

What most borrowers who get credit insurance or PPI buy this as a package of the main loan they borrow. No matter how your bank tries to package the PPI in their loan package, when it’s paid by you, then the money is yours after you have successfully repaid the loan amount. In most cases, banks will charge you the PPI as an extra cost on the loan and in the end; make you pay it as well as interest. As you can see, this money belongs to you and you need to reclaim it.

What next if you choose to claim?

When you choose to claim your PPI, you should follow two main routes. The first one is to get you immersed in the claims process yourself. This means contacting the bank yourself and filling in necessary paperwork. Most banks miss-sell their PPI to customers, charge an interest rate on it and then refuse to pay when claimed. This is fraud and in such a case, there are steps you can take like file a claims case with the government ombudsman office. Close to 70% of those cases rejected and passed to this office, win the cases paving way for the refund plus interest. This route is laborious, but effective.

However, considering that most of you are busy professionals with day jobs and children to take care of, why not start working on the PPI claims through a certified PPI company. These experts know and can determine whether you deserve to be paid these extra costs incurred by you, or not. www.consumerfinanceclaims.org.uk is a great resource where you can start on this quest to ensue that money owed to you is paid to you.

In general, PPI is your money, depending on the borrowing contract you signed with your lender. You simply need to study your eligibility, chase the claims yourself, or get help from the experts.

Commercial Finance & Some Important Considerations

In UK, commercial finance refers to the process of money outflow to business establishments in the form of loans. Usually banks and other lending houses provide commercial financing which is available in two forms – Secured and Unsecured loans. The first type requires collaterals in the form of physical asset while the second type can be secured without risking anything as collateral. However, the lenders provide unsecured commercial financing only if they are convinced about good cash influx into business.

It is always easy for the big established business houses to secure finances while the small and medium size business owners struggle a lot to get loans. However, there is also a silver lining for them. SBA or Small Business Administration is a good source of obtaining commercial finance.

commercial finance solutions
Commercial Finance Solutions

The small businesses can also gain benefits by hiring a financial coach or expert who will advise them how to structure a convincing plan for getting loans. The expert being an erudite personality on finance and investment can guide you and other small business owners with a number of commercial finance solutions. The lenders are more concerned about whether an applicant can pay off the loan within due date. Unsecured loan carries more risk and the lenders adopt a stricter approach towards lending.

Here are some essential considerations that one must keep in mind while opting for commercial financing.

What Security You Can Provide

To obtain secured commercial loans, you must place something as collateral. Any of these following assets can be used as collateral to obtain commercial finance:

  • Property (houses or commercial establishments)
  • Supplies or equipments
  • Gains from invoices

If you need a larger sum of commercial loans, the lenders will ask for a security in the form of building or land or other physical assets which are highly expensive. This is because the lenders require more security as they are loaning a heavy amount.  Higher is the worth of collateral, more will be the amount of loan – this is the simple principle of commercial financing.

If financial climate is not favorable, it is not possible to avail more than 70% of the property value. If requirement is small, loan is provided against vehicles or equipments. Some lenders take a more flexible approach by allowing the borrowers to refinance equipments and obtain what they require for business funding.

Consider Your Credit History

A borrower’s credit history is the most important factor to determine the likely interest he will be offered. Good history, lower rate – it is as simple as that. However, only a few possess a perfect credit history in these days of financial chaos. Those who are suffering due to credit crunch need to deal with the bad credit loan providers.

Approach Directly or Consult a Broker

Direct approach to the lenders is a common choice but the brokers can provide you with more options. They have good knowledge about market and the available loan schemes too. The brokers can bring you the best deal that suits your financial strength and requirements. The brokers will charge fees for their service but it is worth considering.

Top 8 Reasons Why People Lose Money in Stock Market

All of us want to invest in the Stock Market and make quick profits out of it. Most of the small time investors have limited capital resources and little knowledge of the market. More than often we are driven by our personal sentiments and beliefs. Most retail investors follow the news or some analyst and they want to invest in the market believing the stock will behave the way it has been predicted. What we fail to understand is that the capital markets are immensely complex and requires thorough research and diligence. Most of the Best Stock Brokerages provides you with Research Tools that will help in making safer bets.

Stock guidanceTo help some of our readers who aren’t well acquainted with the stock market, we have made a list that will help you avoid losing a major chunk of your initial investment.

1. Buying Stocks when they show a declining trend: Most of the retail and inexperienced investors believe and trade in stocks when they show a declining trend. To newbie traders, such stocks appear to be cheap. Although this doesn’t seem to be logically incorrect, but one has to understand that the market can remain irrational for a long period of time. So a declining stock may fall further and stay there for a long period of time before changing its course. This is also known as knife catching and it must be avoided at any cost.

2. Buying Second-Rate stocks with the hope of a huge payout: New investors want to make some quick money when they trade stocks that look cheaper as compared to their competitors. Investors have to realize if a stock’s market cap is lower than its competitor, there is usually a good reason behind it as “the market is always right”. Investing in low P/E ratio companies is a fool’s game. One has to understand that most of the successful companies have a high P/E ratio such as Amazon. Companies with a low P/E ratio offering high dividends generally have a weak capital position and they might get stung in the long run.

3. Adding to Losing Positions: One of the biggest mistakes made by new investors is trying to average down their holdings. When investors see that their shares are falling, they try and buy more quantities of the same share. Again this seems to be logical as they are reducing their average price per share but please realize that it also increases your position size. Predicting the market is just way too difficult if not impossible. The stock may fall further and result in much bigger losses as compared to the situation when you haven’t added more shares to average down. Holding onto losing positions also is not the best approaches as the markets can stay irrational longer than you can stay liquid. It is always advisable to downsize your loss in the initial stages and not invest further into losing positions. One must always place stop loss limits to minimize your losses.

4. Buying a dropping making stock instead of the one that is breaking into new highs: A stock which has fallen always seems more attractive than the one which has reached an all time high. They appear to be cheaper and investors believe that it is time for them to perform better. Stocks which have reached an all time high are expected to fall as new investors believe that is the best they can do. One has to understand that these stocks have a better probability of rising further as those stocks have lot of buyers interested in them. Stocks which have reached an all time low might fall even further and then may take a longer duration of time to come to their previous levels, which might not go well with short term traders.

5. Emotion Driven Trading: This is the most common mistake made by early stage investors. Most people have sentiments attached to some very popular or not so popular brands and they fail to understand that trading is an analytical job. Studies have proved that the decision making of investors are affected by various biases some of which include:

  • The mistake of over-estimating oneself
  • Making decisions made on whatever little information they have
  • Using new information to re-affirm the decision you have previously made

6.  Not selling at the right time: Greed is something that results in the maximum number of losses in the stock market. People fail to realize the best time to sell their shares and the opportunity to walk off with a decent amount of profit. They believe a rising share will rise further and when it starts falling, they wait for the prices to rise again. All this ultimately results in converting their profits into losses.

7.  Buying stocks based on what others say: One has to undergo a little amount of personal research too before buying into a stock. An investor must never invest money just because he has heard some rumors or based on what analysts have been saying on TV. One must be competent enough to do some research on his own and re-affirming the facts that have been pointed out by those analysts.

8.  Failure to learn from their mistakes: This is one of the most important lessons of life which applies to the stock market as well. One has to take every experience as a learning experience. So while your shares are sliding down, it is advised to bail out at the earlier stages rather than waiting for it to rise again, which might not happen for the lets say next 6 months. It is advised to take it as a learning experience. You must analyze what went wrong, what were the market indicators, when the correct time to exit was and what should you do next. People failing to learn and trying to blame their failure on other people or external factors end up blowing up their account.

The points mentioned above can lead to huge amount of losses to early stage investors and more than often they give up on trading. Trading is a good job for a living and can also guarantee you quick returns. But it requires a good knowledge of the financial markets and a lot of preparation. You have to follow the market on a regular basis, learn how to analyze the market on your own and make safe bets based on proper research. One must study regularly and follow some experienced traders and the advice they give.

10 Money Saving Tips To Manage Finance

Money Saving Tips
Money Saving Tips

Saving money is a good practice. This way, you can amass a goodly sum to support yourself during retirement days or hard phase.

Here are 10 money saving tips that can see you through the tough times.

Do your financial planning:

Without planning, you can save nothing. So, make your financial planning and spend accordingly. This will help you realize your target saving goal.

Outline a budget:

Prepare a monthly budget. This will help you keep a tab on where all your money is heading to and put an end to unnecessary spending. Analyze your monthly spending habit and you can immediately understand if things can be managed differently to make more saving without ending up being a great miser.

Lessen your credit card debt burden:

A mere transfer to a low interest rate credit card will reduce your credit card debt in greater measure. You can even avail the option of 0% transfer to a new credit card and save more than ever.

Envelope system is really good, try it:

You may not be familiar with this system. Buy a box of envelops. Label each envelop for the expenses on a particular purpose. The fund you allocate to each envelope should be a limit for you and will check your habit of overspending.

Bulk buying:

Buying in bulks makes the items cheaper. The fact that the seller receives larger revenue from a single customer, makes him compromise with the average price.

Avail discounted offers or coupons:

Most of the shops offer their products at discounted rate during festive season or in times of stock clearance. The new set-ups also follow the same footprints to attract the customers. Whatever the purpose behind the rebate offers is, it makes the price more reasonable and helps you save on your spending.

Go through the community calendar:

It is available in every town. It comes with the news of upcoming events where you can buy assortment at much a cheaper price. Some events allow you to make free buy.

Try out customer rewards programs:

These days, many retailers are providing free incentives and other inspiring offers for promotional purposes. Sign up for such programs and enjoy free offers and moderately priced products and services.

Avail free tax services:

Some tax consulting agencies offer low-cost tax services. Seek help from them much before the tax season kicks off. You can save a lot on the expenses that you usually spend on preparation for tax filing.