Jul 15

Welcome to my financial advice blog

Hello Everyone and welcome! Money affects every aspect of our lives, doesn’t matter whether it is in your personal or professional life, finance is there in some capacity. Being able to navigate your way around the financial world is actually quite important even in our daily lives. You need not be an expert but if you know the basics, you can improve your financial situation. If you have any great tips, feel free to share them.

Mar 20

Credit Ratings Explained

Credit rating refers to a report that is compiled with special reference to your past financial behaviour. This report is always considered whenever you apply for a loan, a mortgage or a credit card. It helps the lender to determine whether the application should be approved or not. The information found in your credit report determines the interest rate you will pay if the loan or the mortgage is approved.


How to Access Your Credit Rating Report


Depending on the country of residence, you can obtain your credit rating from your countries official credit rating bureau. In the UK, you can get this information from Equifax, Call credit and Experian. This organizations are charged with the responsibility of compiling information about your financial activities which they latter supply to the lenders when you seek credit from them. You need to regularly check with the credit agencies to not only ensure that the report is correct but to also protect yourself from ID fraud.



Information Included In the Credit Report


The information compiled in the credit report comes from banks, credit cards, building society and any other company that you currently owe money. More information can be collected from sources such as electoral registers and utility companies. The credit report gives detailed information on when you borrowed the money and whether you have repaid it or not. Some of the information that will be found in your report includes;

  • Your name, date of birth and address
  • Whether you appear in the electoral register at your current address or not
  • The amount of money you currently owe lenders
  • Any payments made on the existing loans
  • Any late payments you made on the existing and past loans accounts
  • Any court judgments made against you
  • Whether your house has been repossessed
  • Whether you have been adjudged bankrupt or you have entered into individual voluntary arrangements


Despite the fact that your credit report will contain more information on your current activities, it does not contain information on the following aspects:

  • Your current salary
  • The amount of money in your bank accounts
  • Students’ loans
  • Criminal records
  • Parking and driving fines
  • Council taxes
  • Medical history


How You Can Improve On Your Credit Rating


If you realize that you cannot access accredit facility because of a bad credit history, you should despair. There are steps you can take which can help you redeem your image and improve your credit rating. All you need to do is to lay down strategies that can help you clean up your credit report. If you have never borrowed before, your credit rating may be bad and thus, you need to start building it up. Here are some of the steps you must take:


Check Your Report

Checking your credit score regularly is important since it will help you lay strategies of cleaning it. It also helps you to check whether the information it contains is true or not. If the report has mistakes, it could stop you from getting the much needed credit. If you notice some information which is not correct, you must report it to the agency as fast as you can.


Get Yourself in the Electoral Register


If your name is not appearing in the electoral register, it may be difficult to obtain any credit. You can register online or find where the electoral offices are situated and register.


Avoid Unnecessary New Credit


Any new credit you obtain leaves its marks on your credit file. This information will be visible to other lenders. If you have been turned down in the past few days, applying for another loan immediately should be discouraged. Several applications tell lenders that you are in financial difficulty and you may not be able to pay them if they give you the facility.


Close All Your Credit Cards Accounts


creditLenders will look at how much credit you have before giving you a credit facility. Accounts that have high limits may dissuade the lenders from giving you more money.


Terminate All Financial Associations with Your Ex-Partners


Being married or cohabiting with someone with a bad credit rating will not affect your credit rating. However, if you take a joint account with such a person, it will create a financial association between you and the person and lenders will also be interested in their report before they make a decision on whether to lend you money or not.


Improve and Have a Good Credit History

If you want to enhance the chances of getting credit in future, you may have to start by building a good credit history. Demonstrate that you can pay on time and operate within your credit limits. If you have never borrowed money before, try to borrow limited amount of money and pay it on time. You may also take out high interest rate credit cards which play a role in building your credit rating.

Feb 23

Tips To Help You Secure Business Funding

There are times in the life cycle of the business where financing may become necessary. Financing may be secured at the start of this business as a way to obtain capital for start-up purposes.


One of the primary tasks and essentially the most important task at this point that needs to be accomplished, is the development of a comprehensive business strategy. Properly done, this will lay out a blueprint in depth of the needs to be accomplished as a way to have all things in place to begin this business with a profitable note.



Each minute element of the company will come under scrutiny and be analyzed so that the processes of costing, organising and implementation can be examined. These are generally real items and real procedures and they should be assembled inside a plan. This could be asked for by lenders or other financial institutions who would be considering the provision of financial assistance to the business. Furthermore, it serves as a guide for the entrepreneur to ensure no procedure is overlooked along the way of starting and running the company.


There are several templates that exist when it comes to implementing your own business plan, and a lot of finance institutions will probably be glad to offer their assistance during this process.


After the financial plan is done, the business owner should seek the council of people who are going to be playing a part in the process of obtaining funding. This could range from your solicitor, financial advisor, insurance advisor and banker. The organization might take the shape of a sole proprietorship, a partnership, or possibly a corporation. A popular form is that of a Limited Company, that provides flexibility and advantages that happen to be conducive to get a new business.


One way of raising capital for a business venture is to sell stock. This could cause ownership to be diluted, but it may be a extremely effective way of raising money for that initial financing. When stock is purchased in a business, the stockholder then gets to be a part owner in the industry, therefore the portion of ownership is a prime consideration in this decision.


If the selling of stock is to be the way of increasing funding, then it is imperative that those purchasing the stock along with the majority shareholder see eye to eye when it comes to the future of the business.


A much more traditional way of financing any company is usually to seek funding from a bank or other lending institution. In order to achieve this, the business owner will be required to undergo a rigorous examination of the company books. In most instances, the personal credit worthiness in the business proprietor will need to be solid because there is a very real likelihood that collateral will be required and this usually means the business owner’s home. This is the reason it really is extremely important for the owner to obtain all of his or her financial facts because there can be a high risk that all those personal assets will be lost in the event of business failure.


It is also easy to see why an incredibly detailed business plan is actually fundamental to be sure that the Business financebusiness gets off to a good solid start. Depending upon the type of business, there would also be plans drawn up for marketing projections and a determination whether or otherwise there is definitely a good marketplace for whatever it is that this business will sell.


Another area where business capital can be needed would be when a business which is planning to expand. All the business plans, projections and expectations must be calculated and then looked at carefully so that you can go to the lender with all the information you need.


The lender look at the business’s track record because it will be simpler to base their lending decisions on the financial history. If the business is successful, then a lender will be inclined to believe that if similar business practices are applied to the expansion process, then an expansion will be likely to prove successful and so give you the means to repay the borrowed funds and generate the interest for the lender.


Needless to say, there will still be a lot of scrutiny, however, the entire process will likely be easier and less time-consuming. Records of company operations could be investigated going back to around 5 years, also it can be assumed that the new expansion process will be scaled to meet the brand new financial needs along with the debt service required.

Jan 28

Why You Need To Apply For Your Studen Loan Early

For many young people, the prospect of racking up thousands of pounds of debt in order to fund themselves through university is one of the most off-putting parts of what should be the beginning of their futures. This however, should not put anyone off further education. It does not matter what field you wish to study whether it is engineering, medicine, IT, teaching, etc. you should be able to access the same high quality education regardless of background and social standing. There are still some grants and bursaries available to disadvantaged students and student loans are available to virtually everyone.

Student loans are a flexible package that offer funding without huge rates of interest. Further education is an expensive business and for students in England and Wales, tuition fees have to be paid. Scottish students attending universities in Scotland have their tuition fees paid for by the Scottish Executive. However, it is not only tuition fees that need to be paid for, board and lodgings, books and equipment, and all the personal items such as clothing and toiletries also need funding. Student loans are not hugely generous, they are provided to pay for your education and allow basic living expenses, so if you are expecting to live the high life, you are going to be disappointed. You will need to be able to manage your money so that you have enough to pay for all the essential bills. Lots of students get summer jobs so that they can save a bit of money before going to university, this gives them a bit of a buffer so that they can have a higher standing of living.

It is important to apply for student loans early, even before you have your exam results. Providing you have a place at a recognised university, you can apply for a loan to pay for your education. Remember that this is an investment in your future, it is not to be seen as a millstone around your neck, you are investing time, money and a great deal of effort in securing a career for yourself. You will not have to start paying your loan back until you have a full time job which pays above a certain level. So, do not let the fact that you will be starting your working life with a substantial debt put you off learning and getting into the career you have always wanted.



Thinking of going to university this year? Applications for student finance in England are now open and aspiring students should apply as soon as possible to ensure their finances are organised for the 2015/16 academic year.

What’s available?
There is a range of finance available to help with university costs, including tuition fee loans and maintenance loans and grants, to help with your living costs while you’re studying.

Universities and colleges can charge up to £9,000 a year in fees depending on the course. Tuition fee loans are available to cover the cost of the fees.

These are repayable only after you leave university or college and are earning above a certain amount – at the moment it is £21,000 before tax.

There is also funding available to help you with living costs, such as rent and bills. Depending on your circumstances you may also be eligible to receive a maintenance grant and extra support is available for those with children and dependants.

How do I apply?
The Student Loans Company processes all applications for students in England and Wales and you can apply online here. Applications for students in Wales will be available soon and students should apply here.

Help and guidance is displayed throughout the online application process.

Students in Scotland apply to the Student Awards Agency for Scotland and Northern Ireland students should apply to the Education and Library Board.

What information do I need when I apply?
Make sure you have all the necessary information to hand when applying for finance – passport details (password number and validity start and end dates), your course details, bank account number and sort code numbers and national insurance number.

If you’re applying for finance based on household income, your parent or partner will be asked to provide financial information. They should provide exact figures and details from their 2013/14 P60 as the latest complete tax year data is required.

How will my funding be paid?
Once your application has been assessed by the Student Loans Company you will receive an entitlement letter which details how much funding you have been awarded and you can check your online account for payment dates.

You can keep up to date on your application, by checking for updates about your student finance in your online account by logging on here for students in England and students in Wales here.

When accessing your account online you can also update your contact details and bank details.

It is important that you ensure that your bank details are entered correctly and if they need to be updated, this should be at least five working days before payments are made, otherwise you may not receive your funds to the correct account.

When do I repay my loans?
While you don’t have to pay back grants and bursaries, you must pay back Tuition Fee Loans and Maintenance Loans and they attract interest.

Repayments are due once you have left university or college. The amount that is paid is dependent on how much you earn, currently you have to earn £21,000 or more before tax.

The repayment of student loans is administered through the UK tax system and currently each month 9 per cent of earnings over £21,000 is taken at source through the PAYE system.

Read more http://www.telegraph.co.uk/education/universityeducation/student-finance/11372047/How-to-apply-for-student-finance.html

Dec 11

The Benefits Of Legal Accounts Software

If you are like many people in this day and age, you recognize the benefits of going into business for yourself. Becoming your own boss allows you a measure of freedom that you could not receive otherwise, because there is no cap on your income and you have full control over your work days and the direction of the company. If you are a legal professional, one way to maximize the benefits of owning your firm is to invest in legal accounts software. This legal software will give you all that you need to manage your case load, while also dotting the i’s and crossing the t’s with your company on a regular basis. There are a lot of different versions of software to shop between, which is why it makes sense to find one that works best for you. This will allow you to take full advantage of your company as a whole and make sure that you are getting the most bang for your buck. This may be completely foreign to you if you have never used or purchased legal software before, which is why you should use this guide to help you out in that regard.

Small business bookkeeping video

These are some of the benefits that you can enjoy when you invest in a good legal software package:


#1: Backing Up All Of Your Case Data


When you have a busy law firm, details can get lost in the shuffle, due to the vast amount of cases that are tried on a daily basis. Because of this, you need to make sure that you use this software to help you keep track of it all. Legal accounts software will back up all of the case data in digital form, both on your office hard drives and in the cloudy. This is an excellent advantage to have, especially since a lot of software now comes with accompanying mobile apps, which allow you to look up your information on a cell phone or tablet. People who have the best software are able to take full advantage of this, so that they can pull up data in the court room or on the go. When shopping for software, be sure that the company has excellent tech support, so that you can quickly retrieve any kind of information if it happens to go missing or if you are experiencing any sorts of technical difficulties.


#2: Excellent Scheduling Tools


When you have the best legal software on the market, it becomes easier for you to get clients in and out and scheduling meetings on the books. This is valuable, because you will be able to make the most out of every Busy business womensituation, so that your receptionists can quickly set aside time when necessary. This will keep the lawyers in your firm off the phones, since the digital software does all of the work for you. Further, you can sync much of this data between mobile apps and the cloud, so that you always have your appointment book handy whenever you need it. The legal software typically comes with a great graphical interface, which gives you everything that you need and makes it easy for you to log in and access any forms of communication that are necessary. For instance, your receptionist can take a phone call and leave information about a message in the software, so that you can just log in and see the detailed information yourself. Each person in the firm will also have their own username and password, so that they can log in and keep tight schedules without any hesitation or confusion.


#3: Updated Billing Procedures


Let’s face it–you’ve got to get paid and keeping up with the nuts and bolts of billing can be a hassle. This procedure is time consuming, but also a complete necessity, in order to make sure that you get paid when you are supposed to. With legal accounts software, you will be able to get paid on time, while also keeping detailed accounts of each and every client. Billing is a major cornerstone of legal software, and will allow you to keep your mind and focus on your work, so that you are not worried about this portion of the business.


Each client will have a detailed file that includes money that they owe and money that they have paid. The software can send out reminders for patients to pay their bills and can cycle through timetables, so that accounts are sent to collections when they need to be. Each and every account is laid out plainly, so that you do not have to worry about how and when you will get paid. The software is automatically updated when a payment is made and can leave notes when reconciling accounts or when there are billing discrepancies.


With these kinds of tools in your back pocket, there is never a reason for your company to be out of sorts. Legal accounts software gives you the tools needed to keep your company running in tip to shape and keeps the stress and guess work out of it. Regardless of the size of your firm, it would behove you to sign up for this sort of software, so that all of the major tasks are ironed out, allowing you to keep your head in the game and focus on your job.


Get in touch with a company that can supply you with this software today.

Nov 21

Outsourcing Business Bookkeeping Makes Financial Sense

There are 2 ways of bookkeeping, either do it yourself or hire a specialist to do it for you. Either way, it really is essential that your books are accurate and kept up to date. Unless you already have experience of accounting or businessbookkeeping, I would recommend you hire someone who knows what they are doing.


One of the primary advantages of outsourcing the bookkeeping is that it is very cost effective.  The beauty of this system is that you are not paying for a fulltime employee or spending your own valuable time doing it yourself, you only pay for the time spent doing your books. The thing is, most people might think of contracting out work with exploitation of workers from emerging markets, however, this is not the case, if you are using a UK based accounting firm, they will only be employing people who are familiar with British accounting and tax regulations. It is therefore good practice to make use of one of these excellent firms.


If you do not already have information on a British accounting firm, you can find out about them online. There are plenty to choose from and whether you are a single trader or a firm who employs several thousand people, there is a great bookkeeping firm to help you. There are a variety of firms out there to help you, they can offer a variety of services from simple bookkeeping to payroll to taxation and virtually everything else to do with business accounting. How much you will be charged depends very much on the services you decide to choose.


If you can, try to get some recommendations from friends or acquaintances as word of mouth is actually the best way of finding great services. If you can’t, spend some time researching firms that you think you might like to use, look at it as an interview and see what their strengths and weaknesses are before you decide. Try to narrow your choices down to about 4 and go from there.

You can find out a great deal online and you can read reviews from current or past customers. Try to keep an open mind and use your own judgement. Remember that any firm worth its salt will be happy to provide you with satisfied customers. If you wish to be really thorough, you can go through the Financial Ombudsman to see whether there have been any complaints and whether they were upheld or not.


Most good bookkeeping firms will be straight with you as to how they hire their staff and whether they will be using foreign outworkers. However, it is always a good idea to ask so that you know how they operate. Some companies will offer a free 20 minute consultation for new customers, this can be a very useful way of finding out for yourself whether this is the right firm for you to trust with your business’s books.



The accounting part is just one aspect of business bookkeeping however, it is one of the most important because without having all the right information to keep the accounts, you will not know how much tax will need to be paid, how much tax relief your business is entitled to and also whether you have made a profit or a loss.


Small to medium sized businesses who do not need the services of a large accountancy firm could find the right solution with a specialist bookkeeping firm. These smaller firms are still able to ensure that your business accounts are kept in order, make sure that your tax bill is correct and see to it that staff payslips are done on time. By outsourcing you are saving your business both time and money. Finding the right firm to look after your accounts will give you the time to get on with your own work. It also gives you the confidence to know that you will not be having trouble with HMRC.

Oct 28

The Financial Ombudsman Is There To Help

In the UK the financial ombudsman is there to handle complaints both by individuals and businesses against financial institutions where a solution cannot be found between the parties involved. It is virtually unheard of in other parts of the world so is therefore pretty unique to Great Britain.

It is quite simple to make a complaint to the financial ombudsman, you can do this by calling the helpline, writing a letter or via their website. It is free to contact them and they have a neutral stance on financial matters so you know that if your case is taken on, it will be handled fairly.


Before making a complaint, it is very important to be both responsible and fair. Make sure that you have given the bank a chance to investigate your complaint and offer a resolution before taking it to the ombudsman. It is often noted that complaints occur due to misunderstandings which can be resolved if the bank has a chance to address your concerns.


Many financial complaints are due to minor errors which when pointed out are sorted to both parties satisfactorily however, if you find that this is not the case and you can show that you have offered the financial institution every opportunity to fix the problem, the ombudsman should be able to offer resolution. If you make phone calls to the bank, make a note of the time and who you spoke with. Get a proof of postage if you write and keep emails for future reference. This is all proof that you have afforded the business an opportunity to make right your grievance.


When making a complaint to the business in question, make it as factual and detailed as possible. Put it in writing and keep a copy. If you are not comfortable writing formal letters, get some help from family or friends or an organisation like the Citizens Advice. If you are making your complaint by phone, make a list of the points you want to make and be sure to get the name of the person you speak to, write it down so you have a record. Try not to get annoyed, keep your cool, be polite and remain calm. You will get a lot further than if you lose the rag and start being abusive towards the employee who is not actually responsible for your complaint, do try to remember that point!


Finance word cloudHowever you make your complaint, make sure that you have essential information such as your policy or account number, your customer reference or any other details that are individual to you and will help identify you with the business. Have copies of documents to back up your grievance so that these can be taken into account. Don’t expect a miracle solution, it takes time for the business to investigate your particular situation and most will be keen to resolve the matter quickly and without fuss. The business has actually got 8 weeks to resolve your grievance before you can take it to the ombudsman so make sure you use this time wisely and productively.


In some circumstances you can approach the ombudsman directly, if for instance you do not know who to approach in the financial institution. The financial ombudsman will be able to contact the right person on your behalf but this is a rare occurrence and should not be your first port of call.


The financial ombudsman has the power to decide whether or not a financial institution has handled your complaint properly or not and will if necessary, force the business in question to put right what it has done wrong. This is the main reason why it is so important to have as much in the way of facts and data before approaching them so that you have the proof that your complaint has not been taken seriously enough.

Oct 10

How A Business In The UK Can Recover Debt

If you own a business in the UK, eventually you will have to deal with debt recovery. You will have some customers that may have problems paying their bills. Sometimes you have a few customers who just do not pay attention to paying their bills, and they start to avoid you. What can you do about them? There are some options that you can take when you are trying to recover debt from delinquent accounts.

It is always good to keep communications open so that you are aware of what your customer’s financial situationBusiness finance is. This does not mean that you just write off small debts because those can add up and eat into your profits. For larger debts, you should be proactive and find out what the customer has not paid. If the debt was due to a dispute over products that you had delivered, the dispute must be resolved first. If the client has a problem with cash flow, you can work with them to develop a payment plan where you can collect partial payment on a set schedule.

You should always be diplomatic when you approach a customer for payment. You want to explain the steps that you will take to collect the money before you take any legal action. See if any agreements can be reached. Keep in mind, however, that you should always protect your bottom line. Customers who are worth keeping are the ones who respect their suppliers enough to pay their bills on time. The customers who do not put first priority in their payment to their suppliers may not be the best customers to keep.

Assess your business’ current financial situation. If you can reschedule partial payment of the debt, at least you can recover some money and still preserve the good relationship with your customers. This also depend if the customer’s financial problems are temporary. If the problem appears to get bigger and bigger, you may need to take further action.

When negotiating a payment schedule, you are in a better position if the customer still values your goods and services. You will also have a stronger position if each business transaction is backed by a clear set of terms and conditions. For example, if you are the supplier of certain goods, there may be clause that says you are entitled to remain the owner of the merchandise until you receive full payment. If the customer wants to avoid bad publicity from the possibility of your taking legal action against them, they will be more willing to negotiate with you. They know that if you take action and it leads to their filing for bankruptcy, it will impact their ability to get credit in the future.

You are entitled to collect interest on any overdue debt. A credit period and interest rate should be spelled out in your contract. The Late Payment Of Commercial Debts Act of 1998 allows you to charge interest at the base rate set by the Bank of England plus 8% from the end of a 30-day credit period. The base rate is adjusted every six months.

Legislation also allows you to collect on “reasonable debt recovery costs” if you incur them in your attempt to collect on overdue debts. However, this is usually enforced only if the case reaches the courts. If you do plan to charge interest and recovery costs on overdue debts, the best thing for you to do is to clearly have this written in your statement of terms and conditions, on your invoices, customer statements, and any financial document that you send to your customers.

You can use a solicitor to collect the debt for you. A lot of times, customers pay up more promptly if a solicitor comes knocking on their door. Solicitors deal with a high volume of debt collection and know how to go about this efficiently.

You can also use a reputable debt collection agency to help you collect overdue debts. A debt collector will handle the collection only if there is no dispute over the amount owed. They are effective in pursuing late payments.

You can use a factoring company to collect debt. This is where you can get partial payment of the debt from the factoring company when the customer is invoiced, then get the balance when the debt is collected. The factoring company collects payment directly from the customer. This is an option only if the debt is not disputed.

For their services, third party debt collectors will charge you a percentage of the total debt collected. That is the cost of your debt collection.

Before you sign a contract with a third party debt collector, ask about their approach. You would not want to alienate your customers by sending out someone who practices aggressive debt collection techniques. Legitimate agencies should be registered with the Credit Services Association. Make sure that you only use firms with an ethical reputation because you still have to protect the integrity of your brand.

Sep 24

There Are Different Types Of Mortgage

There are  lots of   kinds of mortgages  readily available to  our home buyer, and  along with  various mortgage  items, there are various ways in which interest on the  home loan is  computed and  paid back. It can be  mortgage-xsextremely  complexed and  tough to  choose which mortgage  finest  matches a home  purchaser’s  certain financial  scenarios. The  kind of mortgage that will be most suitable will  likewise  depend upon  your home buyer’s future plans for the  home; whether they  mean to sell within a  brief period of time, whether they  plan to rent out the property (most standard  home loans do not  permit the home owner to  lease the  home and so a  specific mortgage for  property managers is required).

Lots of people  choose to  obtain a fixed rate  home loan so that the interest rate is  dealt with at a particular  portion of the loan for the entire length of the  home loan period. This  makes sure that the borrow  understands  precisely what he or she must pay each month and it is much easier to budget for the  home loan repayments. This  kind of  home loan is therefore the most popular for this reason and about 75 % of all  home loans taken out are  dealt with rate type mortgages. The mortgage period can be ten years, fifteen years  and even thirty years. The advantage of this type of loan is that the borrower knows  precisely what she or he  have to  pay back  monthly for the set  period. The disadvantage is that these  kinds of  home loans  typically have a higher interest rate than other  home loan products and because the interest rate is  repaired for a set  variety of years, if  because time the interest rate goes down, the home owner is stuck making higher payments than might be  offered with other  home loan  items.

An Adjustable Rate Mortgage or ARM  normally has a set time period at the start of the loan ( normally a year or two) when the interest rate is  repaired and often at a lower rate than the current market  rate of interest.  Nevertheless after this period the interest rate changes with the market rate  therefore repayments after the initial introductory period  will certainly be higher. With a one year adjustable rate  home loan, the interest rate  modifications each year after the initial fixed rate  duration. This type of  home loan  brings a lot more risk as the borrower does not know from one year to other  exactly what the interest rate will be and  as a result  exactly what  his/her monthly  payments will be. This makes budgeting for the mortgage  payments much harder.  Since this  kind of  home loan  lugs an  extra  danger,  our home  purchaser can usually borrow more money and so  pay for a more expensive  residence.  Frequently caps are put in place so that the  rate of interest can not go up or down  outdoors  particular parameters. There are also  3 and five-year adjustable rate mortgages.

For those considering reselling or refinancing within a  brief period of time, a two-step mortgage might be a  much better  alternative. This type of mortgage has a fixed interest rate for the  preliminary  stage of the loan  and afterwards another  rate of interest for the remainder of the loan period. The interest payable  will certainly be  identified by the  present market rates and so the home  purchaser  runs the risk of the interest rate going up after the initial fixed  duration. But if the  obtain is planning on selling the  home before this  change date then this might be a  great  alternative to secure a  home loan at a low  rate of interest.

House  purchasers can  likewise decide to  opt for an interest  just mortgage  where  she or he only pays back the interest on the loan  monthly. The  concept loan amount is not paid back at all  throughout the  home loan period  therefore when the  home loan  ends, the borrower still owes the full capital  quantity of the loan. This has the advantage of lower  regular monthly repayments,  nevertheless at the end of the mortgage period, the  property owner  have to  discover a way to  repay the original loan  quantity,  normally  with the  methods of some  financial investment  item such as life insurance or an endowment policy.  Nevertheless, if the investment  item  has actually not performed well or  the marketplace as a whole  has actually suffered, the  property owner  could not get enough funds from the  financial investment vehicle to repay the loan. This  held true with  lots of peep mis-sold endowment policies in the 1980’s and 1990’s.  Generally borrowers are  offered the  alternative to have an interest  just mortgage plan for a set period at the start of the loan  however then after this time, the home owner  have to  begin  repaying the  concept loan as well as the interest and so repayments will rise steeply.  Generally this type of mortgage has a  greater interest rate than a  conventional  payment mortgage because of the interest  just period at the start.

Sep 02

Make Sure You Have A Properly Drawn Up Lease

Being able to understand what makes a particular property valuable and having the ability to estimate the approximate value of that property will give you the opportunity to make a profitable investment. Over the last few business-finance-graphs-and-charts-with-calculator-xsyears, there has been a rise in the approach of purchasing a building that is structurally sound but requires a bit of TLC and a bit of landscaping. This is a great way of buying a relatively cheap property to do up and either sell on or rent out. However, commercial property is not quite so straightforward.


For example, take 2 commercial buildings which were built at the same time, in the same area and have virtually the same features. You would think that they were worth a similar amount of money but you could be mistaken. One key factor will determine a difference in value and that is, the lease or leases. Landlords who have experience in renting properties will know how important it is to attract and keep good tenants and avoid or ditch the bad ones. With commercial premises just having a good tenant is not really enough. Commercial properties will actually have several different types of leases for each tenant and this one feature can have a huge effect on the value of the property.


One of the main reasons an investor will choose commercial premises over residential premises is down to the types of lease that can be offered. Residential properties will have fairly standard leases whereby the tenant has many rights. Commercial properties on the other hand have very different leases which are far more complex and individualised. For instance, if the tenant is renting commercial space to use as a clothing store, they will require a certain amount of floor space which will have been accurately measured for the lease and they will also want a access to a certain amount of car parking space outside the building. The clothing store will be responsible for their own equipment, decoration, cleaning and so on. Often, depending upon the lease, they will also be responsible for repairs and maintenance, unlike a residential property where the landlord is legally responsible for the upkeep of the building.


On the subject of leases, it is very important for an investor to appreciate the importance of having a very good lease agreement drawn up. An investor buys property to make a profit and the more money the property can make, the more it will be worth. That being the case means that a regular steady income has to be in place at all times but this needs to be offset by the amount of direct management that is required so you need to do your sums well beforehand. Be aware that the length of lease can become a major factor particularly if you have a poor quality tenant. Commercial property leases normally include a right to renew with the same terms or terms which have been modified and agreed in advance. This can be a double edged sword, on the plus side, a valuable tenant who does not want to or can’t relocate can be able to remain in place following a negotiation in terms and rent. On the down side, a not so good tenant can be difficult to dislodge and a group of poor tenants can reduce the value of your building.


When looking for a new property to purchase or plans to rent out space in an existing commercial property, remember that the most profitable leases are not necessarily those that are paying the most. A tenant who pays a high rate but only has a short time left on their lease and does not intend to renew is not nearly as valuable as a long term tenant who pays less. Another thing worth mentioning here is subleasing, this can be useful but you need to know all the details and be aware of what is going on so that you can retain at least a modicum of control over our own building as the tenant doing the subleasing may not be as experienced in property leasing and management.


Make sure you have the leases drawn up by a specialist lawyer and make sure that you read them properly before using them. Retaining a good solicitor could save you a great deal of time, trouble and money in the long term so choose one carefully. Remember that the lease is a legal document so you need to be aware of everything that is in it and what your responsibilities are. Make sure that it includes the specific amount of security deposit, whether it is returnable when the lease expires and also how much can be deducted for repairs or damage. This is important as it can weed out poor quality tenants as well as giving the tenant the incentive to look after the property or part of the property that they are renting. Take a look at the lease from the worst possible case, if a tenant’s business goes bust, is there any protection for you as the landlord to get your rent money? Having your solicitor draw up a lease that suits your needs and that is fair to your tenant will give you the best possible chance of getting a good return on your investment.

Jul 31

At Last, Schools Are Teaching Finance

I have been of the opinion, since my own schooldays, that youngsters need to be taught about money and finances. When I was in school we were not given any lessons in managing money, dealing with bank accounts, taxation or anything even vaguely useful regarding this area with the result that I was very ignorant where finance was concerened. Of course, like everyone else, I knew how to spend it but I earning and keeping hold of it was a whole new experience. With the aftermath of the financial crisis, it is more important than ever that young people are given the information and tools to prepare for life in adulthood and that includes being savvy with money. The students of today will be the decision makers of tomorrow so learning about finances will inevitably help them make good decisions in the future.


“Spend a little, save a little, life will be OK.” Manal Chaib, 13, reads out her “money promise” tweet to the rest of the class. “I want to spend so bad,” reads out another pupil.

A year-eight class at Heartlands High School in north London get a taste of lessons in the English national curriculum when secondary schools return from the summer break. With the introduction of financial education, 11- to 16-year-olds will solve money related maths problems and learn about public finances, pensions and how to budget.

In the wake of the debt-fuelled financial crisis charities lobbied hard for this change. In the classroom at Heartlands High School, pupils have mixed feelings.

“It’s probably as important as English and business studies,” says Karim Blake.

Chaib is worried about too much focus on saving. “We are teenagers. We should be able to spend on what we want. You should start worrying when you are 16 … I don’t want to get: ‘You are going to have a rubbish future.'”

Gabby Urbonaviciute is also unsure. “If it was for the whole time, I think it would get boring. Today is fun. Two lessons but not more than that,” she says while filling in a quiz on which celebrity spender she is most like – from “super saver” J K Rowling to “spenderholic” Mike Tyson.

This workshop is being run by MyBnk. Set up in 2007 it has so far helped 80,000 children with lessons on the difference between “needs and wants”, how to save, public spending, banking and enterprise.

Founder Lily Lapenna started the charity after working in international development in Africa and Asia. When she returned to London it was the calm before the great financial storm but Lapenna was already nervous about the build-up of personal debt.

“Credit flowed quickly and easily – overdrafts, credit cards and mortgages. Many of my friends were in debt but living fabulously without a clue of what APR meant nor how it impacted them,” she says, referring to the annual percentage rate (APR) measure of how much it costs to borrow money. “Something didn’t feel right. Sure, we could pay our monthly bills, but what if we lost our job, what would we do if our boiler packed up?”

She started classes for schoolchildren and since the onset of the financial crisis, demand for MyBnk’s sessions has soared. “We need to teach students to manage money. That was not the prevailing attitude pre-crash where thoughts were, they will learn from their parents,” says Lapenna. Click here to read on

Further information

4 essential finance lessons for your children

29 money lessons every high school graduate should know

Jul 16

A Simple Guide To Personal Finance

When we are attempting to understand Individual Finance, the best thing to do is to understand exactly what Personal Finance is not.


Many people believe that bookkeeping and personal finance are the same, however Personal Finance is NOT Bookkeeping.

On the surface they might seem the very same; they both have something to do with cash. However, the definitions will assist us better comprehend the differences.


Based upon this meaning, we see that accounting is the process of analyzing and tape-recording what you have actually currently done with your money.


This is why having an chartered accountant is generally not enough when it pertains to your individual finances.


Accounting professionals normally don’t issue themselves with personal finance (there are some exceptions to this rule). Unless your accountant is also a monetary advisor or coach, he or she will likely simply look at what you have done with your money at the end of the year and supply you with a report of their analysis.


This report is typically your tax return; what you owe the government or exactly what the government owes you.


Very seldom does the accountant offer an individual with a Balance Sheet or Earnings Statement or a Net worth statement; all very helpful devices that are required to successfully manage your individual finances.


Personal Finance is taking a look at your financial resources from a more pro-active and goal oriented viewpoint. This is what supplies the accountants with something to tape, validate and assess.


Consumers, business firms, and governments typically do not have the funds they need to make purchases or conduct their operations, while savers and investors have funds that could make interest or dividends if put to efficient use. Finance is the process of carrying funds from savers to users in the form of credit, loans, or invested capital through firms including banks, developing societies as well as other non-profit companies such as cooperative credit union. Finance can be divided into three broad locations: company, individual and public finance. All 3 include creating budgets and handling funds for the optimal outcomes”.


Individual Finance Simplified


By understanding the definition of “finance” we can break our ” individual finance” down into 3 easy activities:-.


1. The procedure of raising funds or capital for any kind of expenditure = Generating an Income.

A Business gets money through the sale of their services and products. This is labeled ” profits” or ” earnings”. Some businesses will likewise invest a portion of their income to create even more earnings (interest income).


An individual acquires cash through employment either for their own business or working for someone else. This money is termed income.


A Government gets money with taxes that we pay. This is among the primary means that the government produces an income that is then made use of to construct facilities like roads, bridges, schools, medical facilities etc for our cities.


2. Using our cash to make purchases = Spending Money.

Just how much we spend relative to how much we make is exactly what makes the difference between having maximum lead to our individual financial resources. Making good spending decisions is important to attaining monetary wealth – despite just how much you make.


3. Getting maximum outcomes = Keeping as much of our money as possible.

It’s not just how much you earn that matters – its how much you keep that actually matters when it concerns your individual financial resources.


This is the part of personal finance that virtually everyone discovers the most challenging.


Often people who make huge incomes (six figures or more) likewise tend to spend just as much (or even more) ???????????meanings they put themselves in debt which debt begins to accrue interest. Eventually that debt can begin to grow exponentially and can damage any hope they would have needed to accomplishing wealth.


Individual Finance made easy.


Personal Finance does not have to be complex if you keep this simple formula in mind:.


INCOME – SPENDING = What you have left over.


For Optimal Outcomes you just have to make more than exactly what you invest and invest less than exactly what you make so you can keep more for you and your household!


If you are not actively working to an optimum result you will by default get less than optimal results.


It truly is that easy!


Now that you understand individual finance and WHAT you have to do, the next step is finding out HOW to do this!


The very best means to start is by following these 3 easy steps:-.


1. Knowing what you want to achieve will help you choose a pathway and give you incentive to do more to get what you want.


2. Have a strategy – that you can follow that will get you to your goals. Knowing how you will accomplish your goals in a step by step plan is invaluable. Sometimes this is much easier with the help of an consultant or a financial coach.


3. Use tools and resources – that will assist you to stick to your strategy and not become sidetracked by the things in life that might limit our incomes and make us spend more than we should. Do not try and work all of it out in your head! You will certainly end up with a large headache and your financial resources will certainly turned into one massive dark fog!