news

People choosing family over brokers for financial advice

Sat, 26 Nov 2011 20:36:42 +0100

Just 8% of people who responded to the survey from Friends Life said they would seek an IFA to guide them on financial matters.

This compared with a third (31%) trusting parents for financial advice, with a similar number (27%) choosing their partner's assistance.

However, the research indicated that it may not be the cost of advice that is shying people away from contacting an IFA.

The insurer said there was "an encouragingly strong showing in favour of paying for financial advice", with 31% saying financial advice should be paid for compared to similar figures for accountancy (34%) and legal advice (37%).

Andy Briggs, chief executive officer of Friends Life, said: "It appears people are recognising the need for financial advice, which on the surface is very encouraging.

"It shows that money matters are preying on people's minds and whilst they might be relying on family and friends for this instead of bringing in the professionals, they are at least assessing their financial situation."

"The danger is that by consulting your Mum or Dad instead of a qualified financial adviser you learn someone else's financial habits instead of making your own empowered decisions supported by all the facts," he added.

More 95% Mortgages Welcomed!

Sat, 26 Nov 2011 18:10:22 +0100

First-time buyers trying to raise a deposit to get a foot on the housing ladder are to receive a helping hand from taxpayers.

First-time buyers biggest barrier to entry to the property market is the current high deposit demands needed for a good mortgage rate. The benchmark sum needed to be raised is 20 per cent of a home's value, according to industry figures, which means potential homeowners need to save £26,000.

The Coalition is today expected to start a scheme to underwrite mortgages worth hundreds of millions of pounds for new homes.

David Cameron will promise tough action to help young people own their home.

Smaller deposit mortgages are still available, but at a much lower level than before the credit crunch arrived and they come with interest rates of almost double those charged to borrowers with larger deposits.Under the new mortgage indemnity scheme, likely to be introduced in conjunction with housebuilders, the Government will underwrite a percentage of each loan on newly built property – meaning buyers will not have to raise as much towards a deposit. They would be able to get more mortgages at up to 95 per cent loan to value.

90% LTV Deals

Sat, 26 Nov 2011 00:42:25 +0100

Nationwide recently returned its 90% LTV mortgages to the mass market with three and five-year fixed rates now available to first-time buyers and home movers. Together with other lenders operating in this market it’s good news for those struggling to raise a deposit and also for the wider economy as it may lubricate the housing market.

Sterling Mortgages & Protection Ltd

Sat, 26 Nov 2011 18:11:23 +0100

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