NLIC.org

Cheryl Said:

How worrying are Pensions in the UK?

We Answered:

Very worrying! Since the chancellor decided to tax pension plans the situation has become very grave. I have had friends who paid into a pension plan for 29 years and have lost everything! I really do not understand how insurance companies and fund managers can not be prosecuted for fraud there have been so many people fleeced of thousands. Most of those who have lost money are just ordinary people who thought they were providing for their old age. Company pensions have been the worst losers. I would look for something more profitable to put your money into. What ever you do don't put any money into bonds they have a real sting in the tail! I know that I am still working in my sixties, I certainly can't afford to retire and what pension I do get they tax. They tell me it is unearned income but I seem to remember earning every penny of it! Good luck for the future and thanks for an interesting question.

Donna Said:

(UK) one account mortgage - what are the catches??

We Answered:

There are many lenders offering the same type of product known as an offset account. The main feature is that any savings you have in the account are used to offset the balance of the mortgage. If you then continue to pay the same monthly amount, you are in effect overpaying and will repay the mortgage much quicker.

To answer the contradictions:
1. The minimum term you can set the mortgage over is 5 years. The five year or greater term you select is what your monthly repayments will be worked out on. However you could repay the mortgage or remortgage to another deal or company within that time. Just like most people initially take out a 25 year term mortgage but that doesn't mean that they have to keep it for that period. You should however check for early repayment charges although most offset accounts don't have any.

2. You can withdraw your saving at any time. The part about leaving them for the full duration of the mortgage is one of the assumptions used when showing how quickly you could repay you mortgage off using an offset. The saving are yours to take as and when but remember they can only reduce the amount of interest paid on your mortgage when invested.

The interest rate on this type of product is normally marginally higher than a standard mortgage so in order for it to be worthwhile you need to really have at least £20,000 savings to offset.

In the current climate of increased interest rates an offset can make a huge difference but you should also take into account that the savings aren't earning interest. Basically if the interest rate on the mortgage is higher than your money would achieve in a high interest savins account then you are winning. In the current economic climate this is generally true so it is a good time for offsetting.

If you need anymore help just let me know.

Roland Said:

First time buyer...need mortgage advice (UK)?

We Answered:

Assuming your credit is ok, not to much debt, and you have the downpayment and everything you and your parents can certainly afford the place with those numbers. Your dad will have to sign in on the mortgage, and maybe your mother too (at least they'll ask that she be included but you could probably swing it without her). Since they would be on the mortgage they'd have to be on the deed too so you'd be co-owners.

George Said:

Funding for Going Back To University UK?

We Answered:

Consider a professional and career development loan. Check sources for more info. Unfortunately, it is unlikely you will be able to qualify for Student Finance as you had already borrowed from them.. but I'm unsure as you do not have a first degree strictly speaking. Double check with them to make sure:

Student finance: 0845 300 50 90 (Monday to Friday, 8.00 am to 8.00 pm; Saturday and Sunday, 9.00 am to 5.30 pm)

Last, but not least, there is a charity to help young, single mums like you to get into training and development, called Family Action:

http://www.family-action.org.uk/

Check final source for Application Form for a grant. They can assist with things such as cost of childcare, travel & books etc.

Good luck

James Said:

(UK) one account mortgage..what are the catches??

We Answered:

Check out some of the other "Offset" Mortgage offerings ..

The main 'cons' are as follows :-
1) Interest rate is typically 0.5% higher than the best deal you could have got elsewhere

2) The Interest Rate is typically a 'tracker' (i.e. follows the BOE Base Rate). This is fine when rates are going down (like now) but less fine when they are going up.

3) It's typically only available for those borrowing a maximum of 60% of the house valuation.

4) You might be tempted to spend the 'equity' in your house (since this is often very easy to do .. see 'Pro 2' below)

The main 'pros' are as follows :-
1) Your savings (and in some cases, your Current Account balance as well) do indeed 'offset' the mortgage. This means you pay NO Interest on that part of the Mortgage covered by your savings .. and IF you keep the Mortgage payment the same, you are effectively over-paying and will pay off more of the capital (and so end up paying it all off early)
NB. This only happens so long as you keep your savings in the account (hence the possible confusion re: keeping them in for the full term ..) and (of course) so long as you keep 'overpaying' ..

2) When you take out the deal, you are can agree a limit for further borrowing against the house. Plainly you would not use this UNLESS you had already used up all your savings, however you COULD be allowed to borrow up to the balance of the 60% limit (some accounts only allow you to borrow whatever you have already 'overpaid')

PS Intelligent Finance (the internet banking of Halifax) have the same thing. You can offset your IF Mortgage against both your IF Savings Account and your IF Current Account ...

Justin Said:

SAHM and hubby hoarding money?

We Answered:

Wow. My husband would never refuse me anything let alone our children. We don't earn a lot of money at all but every single penny goes on the kids and whats left over goes on us and treats for the kids. Ask your self if you really want to be with this man. Do you love him? Does he make you happy? Does the way you live your life with him make you happy? If your answer to any of these questions is "no" then I think your should seriously consider leaving him. He is using you to live the life he is accustomed to. Please don't let him do it any longer. You have to be strong and do the right thing for yourself and your daughter.