Monthly Archives: October 2013

Mortgage repayment options are an important consideration – what are my options?

What are my options when considering a mortgage?

Mortgage lending opportunities have been reduced in recent years following the revelation that many applications for borrowing were not backed by worthy assets or a sustainable repayment plan.

Mortgages are typically provided by high street banks but the types of mortgage products available differ greatly in terms of the impact they have on individual customers.

What are the options that are out there?

Low Monthly Repayment Versus Capital Reduction

New applications for fixed rate mortgages are now vetted much more closely due to the number of customers believed to have no provision for the point at which a fixed rate deal runs out. Despite this there remains a number of fixed rate opportunities in existence and the benefit of enjoying a low monthly commitment for a mortgage can provide greater financial flexibility.

It is important to be disciplined with any plan to create a fund with which to repay the capital outstanding on the mortgage but the lack of fixed capital repayments mean that borrowers can withstand many short term cash flow difficulties without compromising the security of their home.

Try Shopping Locally To Save Money On Food Bills

Shop locally to save money

The explosion in the number of supermarkets has created a culture of dependence for shoppers who are attracted by convenience, low prices and store displays.

Many shoppers are so used to shopping at the same store that they are unaware of the savings that could be made by spreading their purchases around other shops and businesses in the local area.

Markets Offer Great Value

Local markets usually occur once or twice a week but if shopping habits can be altered to take in a market, a great range of bargains are on offer particularly for fruit and vegetables.

Average Cost Of A Wedding Reaches New Highs But Cheaper Options Are Available

Bride and groom in a park outdoor - Married couple

It is quite easy to get carried away with wedding arrangements and with dresses available at several thousand pounds and reception packages being offered in mind boggling locations, costs can soon escalate.

Despite the hype it is still possible to arrange a traditional wedding cost effectively, but consideration must be given to the style of wedding required when looking at costs.

Typical Wedding Costs

  • Services can vary in costs and civil ceremonies usually involve just the cost of a registrar. Religious ceremonies may require the addition of an organist or choir but costs vary between parishes and are often dependent upon the status of the church venue, a minster or cathedral costs significantly more than a simple parish church.

Planning Your Holiday Can Lead to Huge Savings

Holiday

When running a household budget it is easy to address any spending issues when routines are regular as this allows an accurate estimate of costs to be developed. It is when routines are broken that the majority of budgets are overspent.

When on holiday or just in new and unfamiliar surroundings many people will make purchases that they would not normally consider.

It is possible to save money by planning activities to ensure that situations do not arise that are likely to result in unplanned expenditure.

Arrange an itinerary

Even a simple day trip can result in huge amount of expenditure if not planned correctly. It is important to be familiar with the destination and have an awareness of what food may be required and available on arrival. A failure to consider this may lead to food purchases made in desperation and even low quality food can be heavily overpriced in a tourist destination. If food is required as part of a journey then good planning will consider the availability of food at various stop off locations. Food can be very expensive at motorway service stations but they are convenient and many offer concessionary stores which are more competitively priced.

Know how to shop around and compare prices in order to bag extra savings

tablet pc shopping from

Do you understand how much things cost and do you shop around for the cheaper offers? Many individuals are so time-poor that they are quite detached from their own finances; if they need something they will buy it and not query the price.

This can lead to a huge cumulative overspend but until budgets become tight it is possible that it goes unnoticed.

If an individual is offered a straight choice between two identical products at different prices, the choice will inevitably be for the cheaper item. Poor market knowledge may lead individuals to accept the higher price if they are unaware that it is possible to buy at a lower price. Improved awareness can help people save thousands of pounds a year and the internet can be a great help.

Price Comparison Websites

There are many websites which compare prices and take the strain out of online shopping. These can be an effective way of identifying a bargain, but buyers must still beware because some comparison sites are not what they seem to be. It is important to note the product that is being compared as many sites will only list companies that subscribe to their service.

There may be cheaper alternatives in the market that do not appear in the search. On a similar note, some sites may be sponsored to provide a favourable comparison or may highlight a provider that is not the cheapest but has paid for a showcase slot on the website which attracts customer attention.
Top Tips

Three Financial Terms Explained: Cost of Borrowing, Failure to Meet Payment Targets and Inflation

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Many individuals are turned off by financial jargon and do not understand many of the standard terms used in financial advertising. A lack of knowledge can be a dangerous thing as many financial products are dressed up as attractive to customers when they are actually uncompetitive.

Cost Of Borrowing

Borrowing can be undertaken through a formally arranged loan or overdraft facility. An overdraft must technically be repaid on demand, although a lender may have an understanding that this is not always practical and will work to renegotiate terms if they wish to remove the facility. The account holder can go overdrawn up to the agreed overdraft value but it will be expected that activity will cause the overdrawn balance to vary.

A loan is more structured and involves borrowing a fixed capital amount before agreeing to repay at fixed intervals, usually monthly, and at interest rates that are fixed or set to vary with the base rate of interest as set by the Bank of England. Interest represents the cost of borrowing and is expressed as a percentage of the outstanding balance or capital amount borrowed.

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