Amid all the doom and gloom in the UK mortgage & loan market, you'd be forgiven for thinking that there is very little facility to borrow unless your credit file is squeaky clean or you have stacks of equity in your home, or even both. But in recent months more and more lenders have been 'coming back' to the non-conforming market wanting to lend and offering increasingly flexible criteria opening up some of the space that has been closed since the credit crunch began. For many borrowers or would be borrowers, this news will come as a great relief finally opening the door to borrowing solutions that have been wanted or needed but unavailable for some time.
Some examples of the kind of loan deals that are 'back on the menu' are:
Self-Cert
- up to 65% LTV on a pure self certification basis
- up to 75% LTV with accountant's referance and bank statements
Adverse Credit
- up to 65% LTV available even with unlimited adverse
- up to 80% LTV available for 'medium' adverse
Prime
- up to £100,000 secured (max 80% LTV) or £15,000 unsecured loans available
- rates from just 10.4% APR
In addition to these examples, many other scenarios exist in individual circumstances and many lenders are more flexible than has been the case in recent months so solutions can often be found where they previously could not.
To find out more, visit www.theloanhelper.co.uk or call 0845 003 0065.
read more....
Wednesday, 10 February 2010
Thursday, 28 January 2010
Aegon Scottish Equitable reduce premium rates
Aegon Scottish Equitable today announced that from 1st February there will be a reduction in the premium rates for new policies covering Life Only and Life or Earlier Critical Illness.
According to information received by The Money Helper directly from Aegon, the changes will apply to policies where guaranteed premium rates have been selected (where the premium payable is guaranteed for the entire term of the policy - up to 40 years) on both level and reducing term options.
On average, premiums will be 0.9% lower than current rates, meaning that if you were planning on taking out a 40 year policy that costs £50.00 per month today, the savings to be made over the policy term based on the new rates available next week would amount to over £200. read more....
According to information received by The Money Helper directly from Aegon, the changes will apply to policies where guaranteed premium rates have been selected (where the premium payable is guaranteed for the entire term of the policy - up to 40 years) on both level and reducing term options.
On average, premiums will be 0.9% lower than current rates, meaning that if you were planning on taking out a 40 year policy that costs £50.00 per month today, the savings to be made over the policy term based on the new rates available next week would amount to over £200. read more....
Wednesday, 11 November 2009
Helping Businesses Survive The Recession
Every week the roll call of the latest failed businesses echoes across news and blog sites making depressing reading for us, but this is nothing compared to the devastation going on in the lives of those working in or owning those businesses who have lost their incomes and livelihoods and in many cases much more.
For the employees of these failed businesses there are a number of aspects which whilst important, are not the subject of this post, but which I will address at another time.
This article focuses on the the business owners and what effects the failure of the business can have on them, what can be done to reduce the pain in the event of the business failing, but most importantly, some things that may help to reduce the risks of the business failing in the first place.
First and most important for the current climate is to maximise the protection that a business has against what is probably the highest risk of the moment - delayed payment of invoices or worse, non payment including that resulting from the failure of a debtor.
The effect of either of these on the cashflow of any business can be catastrophic at the best of times let alone during the current climate. You see there is a domino effect taking place behind the scenes and whether or not you realise it, your business is a domino standing among other dominos working away at what it does as best it can without any real awareness of which other dominos are falling and if, how or when the chain reaction of these falling dominos will affect your business and cause it to fall also.
Creditors in businesses, mainly the banks, have much more awareness of this than most of the businesses which depend on them via the loans and/or overdrafts provided by them and for this reason they are much more nervous than they have been in recent years regarding their exposure to businesses and the losses they will suffer in the event of the failure of any business to which they have extended credit. Sadly, it is often the case that as a result of these fears, banks have been increasingly been known to revoke overdrafts to reduce their exposure in the event of a business failing, but it is this action which causes the business to fail through cashflow failure.
Banks however are not the only creditors in businesses, all suppliers which offer credit in the form of 30 day (or longer) invoicing terms are effectively providing a facility very much like the bank does with an overdraft, and they too are concerned in case a business customer fails with outstanding invoices and are highly motivated for their own survival to reduce their exposure leading to reductions in invoicing terms or changes to advance payment terms instead.
Both these types of creditors provide a vital buffer of cash which most business depend on and without which they could not survive and the very real risk of losing this buffer must be recognised and addressed if the business is to protect itself from it.
In addition to the risks presented by creditors, there is the more obvious risk posed by debtors. Most businesses have more debtors in the current climate than in recent times for all the reasons we know or can guess about, but in addition to these and the problems in both lost revenue and the lost time and cost of recovering it there are your potential debtors - those customers to whom you offer invoicing terms but who may fail whilst you are exposed to unpaid balances.
These are the most visible and common risks to businesses in the current climate, but in addition to these there are other risks that are always present and which can also cause the failure of a business and which should never be overlooked even when as currently, more visible risks seem more likely or important to take care of.
A risk which can devastate a business, usually through loss of confidence others (mainly creditors) have in the businesses ability to survive, is the loss of an individual viewed as key to the business. Whether it is the sole business owner, a partner a director or a manager, if there are key people in your business who are viewed a crucial to it's ability to trade or even survive then there must be a contingency in place to ensure that the business can continue to trade effectively in the event of that person being removed from the business through serious illness or even death. This is important on two levels - first and most obvious is to ensure the business can indeed survive such an event and continue. Second and possibly even more important is to give comfort and confidence to the creditors (banks & suppliers) of the business so that they do not react with fear and withdraw the credit facilities on which the business depends.
Probably the most important risk that a business owner faces is where personal guarantees have been provided to creditors, be they banks or suppliers. If a business owner is a sole trader or a partner (excluding limited liability partnerships) then by default the business debts are automatically also personal debts and creditors can take any personally held assets to cover the debts of the business. Likewise in the case of a limited company or LLP, if a shareholder, director or partner has provided a personal guarantee the same applies.
So, in the case of a business failing in these circumstances the business owners will be forced to liquidate any assets owned including even their family home to settle the debts of the business. Refusal or procrastination on this will usually lead to bankruptcy.
These are a lot of risks, all very real and all very often not addressed properly by businesses which is a contributing factor to the daily business failures we currently read about.
There are you'll be pleased to hear solutions to all of these which can be implemented by businesses and business owners to give themselves greater protection against them and thereby reducing or removing the likelihood of suffering the devastating results which could otherwise occur.
To discuss the size, impact and solutions to any or all of these risks you can call 0845 003 0065 for a free initial consultation or read more and complete and online enquiry form at www.theinsurancehelper.co.uk
read more....
For the employees of these failed businesses there are a number of aspects which whilst important, are not the subject of this post, but which I will address at another time.
This article focuses on the the business owners and what effects the failure of the business can have on them, what can be done to reduce the pain in the event of the business failing, but most importantly, some things that may help to reduce the risks of the business failing in the first place.
First and most important for the current climate is to maximise the protection that a business has against what is probably the highest risk of the moment - delayed payment of invoices or worse, non payment including that resulting from the failure of a debtor.
The effect of either of these on the cashflow of any business can be catastrophic at the best of times let alone during the current climate. You see there is a domino effect taking place behind the scenes and whether or not you realise it, your business is a domino standing among other dominos working away at what it does as best it can without any real awareness of which other dominos are falling and if, how or when the chain reaction of these falling dominos will affect your business and cause it to fall also.
Creditors in businesses, mainly the banks, have much more awareness of this than most of the businesses which depend on them via the loans and/or overdrafts provided by them and for this reason they are much more nervous than they have been in recent years regarding their exposure to businesses and the losses they will suffer in the event of the failure of any business to which they have extended credit. Sadly, it is often the case that as a result of these fears, banks have been increasingly been known to revoke overdrafts to reduce their exposure in the event of a business failing, but it is this action which causes the business to fail through cashflow failure.
Banks however are not the only creditors in businesses, all suppliers which offer credit in the form of 30 day (or longer) invoicing terms are effectively providing a facility very much like the bank does with an overdraft, and they too are concerned in case a business customer fails with outstanding invoices and are highly motivated for their own survival to reduce their exposure leading to reductions in invoicing terms or changes to advance payment terms instead.
Both these types of creditors provide a vital buffer of cash which most business depend on and without which they could not survive and the very real risk of losing this buffer must be recognised and addressed if the business is to protect itself from it.
In addition to the risks presented by creditors, there is the more obvious risk posed by debtors. Most businesses have more debtors in the current climate than in recent times for all the reasons we know or can guess about, but in addition to these and the problems in both lost revenue and the lost time and cost of recovering it there are your potential debtors - those customers to whom you offer invoicing terms but who may fail whilst you are exposed to unpaid balances.
These are the most visible and common risks to businesses in the current climate, but in addition to these there are other risks that are always present and which can also cause the failure of a business and which should never be overlooked even when as currently, more visible risks seem more likely or important to take care of.
A risk which can devastate a business, usually through loss of confidence others (mainly creditors) have in the businesses ability to survive, is the loss of an individual viewed as key to the business. Whether it is the sole business owner, a partner a director or a manager, if there are key people in your business who are viewed a crucial to it's ability to trade or even survive then there must be a contingency in place to ensure that the business can continue to trade effectively in the event of that person being removed from the business through serious illness or even death. This is important on two levels - first and most obvious is to ensure the business can indeed survive such an event and continue. Second and possibly even more important is to give comfort and confidence to the creditors (banks & suppliers) of the business so that they do not react with fear and withdraw the credit facilities on which the business depends.
Probably the most important risk that a business owner faces is where personal guarantees have been provided to creditors, be they banks or suppliers. If a business owner is a sole trader or a partner (excluding limited liability partnerships) then by default the business debts are automatically also personal debts and creditors can take any personally held assets to cover the debts of the business. Likewise in the case of a limited company or LLP, if a shareholder, director or partner has provided a personal guarantee the same applies.
So, in the case of a business failing in these circumstances the business owners will be forced to liquidate any assets owned including even their family home to settle the debts of the business. Refusal or procrastination on this will usually lead to bankruptcy.
These are a lot of risks, all very real and all very often not addressed properly by businesses which is a contributing factor to the daily business failures we currently read about.
There are you'll be pleased to hear solutions to all of these which can be implemented by businesses and business owners to give themselves greater protection against them and thereby reducing or removing the likelihood of suffering the devastating results which could otherwise occur.
To discuss the size, impact and solutions to any or all of these risks you can call 0845 003 0065 for a free initial consultation or read more and complete and online enquiry form at www.theinsurancehelper.co.uk
read more....
Thursday, 5 November 2009
Internet Use Doesn't Make You An Expert...
In the internet age, many people quite rightly gather information on a topic of immediate interest as part of a decision making process. This is great!
What often happens next is that after undertaking some research and gathering some knowledge you may feel sufficiently enlightened on the subject matter to go right ahead and make that decision on the basis of the knowledge you have now garnered. This is also great!
There is however a danger that the information and knowledge you have collected is not actually detailed enough or substantial enough for the 'right' decision to be made.
There are many areas where if the wrong decision is made it doesn't really matter too much, other areas where it would cause a bit of an issue and some where the consequences of a poor decision could be disastrous.
Financial Services is one of these areas.
You see, whatever you do for a living; Doctor, Firefighter, Lawyer, Telephone Engineer (the list is endless but you get the picture) - you have probably received substantial training both before and during the job and if I (your humble author) were to attempt to do your job for a day either from my current ignorant position or after a day or 2 of internet research, chances are I would screw it up and depending on the job in question the consequences could range from inconvenience to fatality.
Financial Advisers are pretty qualified and experienced at helping people make correct financial decisions. Even the humblest 'Insurance-only' adviser will generally hold qualifications such as CF1, which involves some 60 hours study and the passing of a 2 hour exam. Mortgage Advisers will also hold CF6 or similar, which is another 70 hours study and exam.
An IFA will need at least CF1 to CF5 or equivalent which is a total of 280 hours of study and 5 exams, although most also hold CF6 and an increasing number either hold or are working towards attaining Diploma status which requires a minimum further 400 hours of study across 4 additional exams.
In addition to all of the hours of study and exams detailed above, all authorised advisers are required to accumulate a further 56 hours of 'Continuous Professional Development' each year to ensure they stay on top of their game - this is in addition to actually doing the job every day.
The amazing thing is the number of people who decide that they know what financial products they want or need and through a little or a lot of online research find it and buy it.
So, unless your knowledge and experience in financial matters is at least as robust as that of a professional, wouldn't it be insane to make such important and potentially life-changing decisions yourself? read more....
What often happens next is that after undertaking some research and gathering some knowledge you may feel sufficiently enlightened on the subject matter to go right ahead and make that decision on the basis of the knowledge you have now garnered. This is also great!
There is however a danger that the information and knowledge you have collected is not actually detailed enough or substantial enough for the 'right' decision to be made.
There are many areas where if the wrong decision is made it doesn't really matter too much, other areas where it would cause a bit of an issue and some where the consequences of a poor decision could be disastrous.
Financial Services is one of these areas.
You see, whatever you do for a living; Doctor, Firefighter, Lawyer, Telephone Engineer (the list is endless but you get the picture) - you have probably received substantial training both before and during the job and if I (your humble author) were to attempt to do your job for a day either from my current ignorant position or after a day or 2 of internet research, chances are I would screw it up and depending on the job in question the consequences could range from inconvenience to fatality.
Financial Advisers are pretty qualified and experienced at helping people make correct financial decisions. Even the humblest 'Insurance-only' adviser will generally hold qualifications such as CF1, which involves some 60 hours study and the passing of a 2 hour exam. Mortgage Advisers will also hold CF6 or similar, which is another 70 hours study and exam.
An IFA will need at least CF1 to CF5 or equivalent which is a total of 280 hours of study and 5 exams, although most also hold CF6 and an increasing number either hold or are working towards attaining Diploma status which requires a minimum further 400 hours of study across 4 additional exams.
In addition to all of the hours of study and exams detailed above, all authorised advisers are required to accumulate a further 56 hours of 'Continuous Professional Development' each year to ensure they stay on top of their game - this is in addition to actually doing the job every day.
The amazing thing is the number of people who decide that they know what financial products they want or need and through a little or a lot of online research find it and buy it.
So, unless your knowledge and experience in financial matters is at least as robust as that of a professional, wouldn't it be insane to make such important and potentially life-changing decisions yourself? read more....
Friday, 28 August 2009
Cheapest Life Insurance?
These days it's increasingly popular for internet savvy consumers to 'self-advise' with simpler financial products such as life insurance, and there are many portals and websites which claim to offer price comparison facilities for this purpose.
Some sites do this well, others less so but the thing that many consumers often overlook is that aside from the lowest price there are other key considerations which are worth bearing in mind which are actually even more important than the lowest price.
Today I'm going to detail just one, which is that most if not all life insurance policies also include terminal illness cover (not to be confused with critical illness cover - these are VERY different to each other!) - terminal illness cover will pay out the sum assured on diagnosis of terminal illness, usually where one or more medical experts believe that the insured has less than a year to live.
What is not very well known is that most policies cease the terminal illness cover in the final 12 months of the policy, and some in the final 18 months, whereas a select few keep this cover in place and able to be claimed right up to the very last day of the policy.
Small details like this can fly completely under the radar for consumers shopping around for the lowest premiums and in a worst case scenario a few saved pennies each month could end up costing hundreds of thousands if such a situation arises.
Why is this important? Well, just imagine, you've bought life insurance thinking one policy is basically the same as the next and saved some money by shopping around for the lowest premium. You're now comfortable in the knowledge that your loved ones will not suffer financially if they lose you. Then at some point in the future the worst happens.
How different would things have been if you'd only known that for a few pence per month more each month you could have had a policy where the terminal illness cover remained in place to the very last day.
Whatever you do in your job, you probably know it well, you know how things are and how they need to be in the areas of your own expertise, you know the pitfalls to avoid and you know the benefits to be gained by doing things the right way. You also know that someone without experience in your field could not possibly be expected to do what you do as well as you can because they don't know what you know, and you may well scoff at the idea that an untrained person would even think about trying.
Well, ask yourself - are you an expert in insurance products or any other area of financial services? If the answer is no, then please consider speaking with an expert in the area concerned, because when it comes to the selection of financial products self-advice and self-selection can easily lead to inappropriate or at the very least 'less good' product selection than you are likely to receive from a professional in that field. read more....
Some sites do this well, others less so but the thing that many consumers often overlook is that aside from the lowest price there are other key considerations which are worth bearing in mind which are actually even more important than the lowest price.
Today I'm going to detail just one, which is that most if not all life insurance policies also include terminal illness cover (not to be confused with critical illness cover - these are VERY different to each other!) - terminal illness cover will pay out the sum assured on diagnosis of terminal illness, usually where one or more medical experts believe that the insured has less than a year to live.
What is not very well known is that most policies cease the terminal illness cover in the final 12 months of the policy, and some in the final 18 months, whereas a select few keep this cover in place and able to be claimed right up to the very last day of the policy.
Small details like this can fly completely under the radar for consumers shopping around for the lowest premiums and in a worst case scenario a few saved pennies each month could end up costing hundreds of thousands if such a situation arises.
Why is this important? Well, just imagine, you've bought life insurance thinking one policy is basically the same as the next and saved some money by shopping around for the lowest premium. You're now comfortable in the knowledge that your loved ones will not suffer financially if they lose you. Then at some point in the future the worst happens.
- You fall ill and are hospitalised, tests are done and a diagnosis made.
- Your illness is terminal; you and your family are forced to come to terms with the fact that you are going to die in the near future.
- It's highly emotional and amongst all the different aspects of your thoughts and emotions you think about how those you love are going to cope financially without you.
- Your thoughts turn to that life insurance policy you took out years ago, you remember that it was taken out for this very reason.
- Your brain races and checks itself to confirm that yes, you are still paying those premiums every month, the policy is still in force and when you die your family will receive the proceeds and their future will be financially secure.
- Then you remember that the policy includes terminal illness cover, you realise that you can make a claim now and use some of the money to make your final months more comfortable and see things out spending quality time with your family.
- You retrieve the policy documents to check it out, you find that the policy term still has some months remaining, you find the section on terminal illness and...
- Your heart sinks as you read that this benefit has already ended a year before the end of the policy term - you no longer have terminal illness cover and no claim can now be made until you actually die.
- But the policy only has months remaining, if you don't hurry up and die before it expires your family will be left in the lurch financially and you will have completely let them down.
- You are financially incentivised to hurry up and die quickly for their benefit.
- You are financially disincentivised to take your meds, to try, to strive for life, to beat this thing (yes, some have overcome the odds in the past) - you actually feel that have nothing to live for.
How different would things have been if you'd only known that for a few pence per month more each month you could have had a policy where the terminal illness cover remained in place to the very last day.
Whatever you do in your job, you probably know it well, you know how things are and how they need to be in the areas of your own expertise, you know the pitfalls to avoid and you know the benefits to be gained by doing things the right way. You also know that someone without experience in your field could not possibly be expected to do what you do as well as you can because they don't know what you know, and you may well scoff at the idea that an untrained person would even think about trying.
Well, ask yourself - are you an expert in insurance products or any other area of financial services? If the answer is no, then please consider speaking with an expert in the area concerned, because when it comes to the selection of financial products self-advice and self-selection can easily lead to inappropriate or at the very least 'less good' product selection than you are likely to receive from a professional in that field. read more....
Wednesday, 22 July 2009
Scottish Provident to extend CI coverage
Scottish Provident, a pioneer in UK Protection and now part of Royal London Group, have made further improvements to their long-standing Critical Illness product to keep it at the forefront of this ever changing sector. From July 27th Scottish Provident's Critical Illness cover will include 3 new conditions:
This means that Scottish provident will now cover an extended range of critical illnesses totalling 34 should you fall seriously ill.
New product literature revised to reflect these new definitions will be available from July 27, you can request a copy via our website.
Further improvements to the Critical Illness Cover include changes to the HIV definition, now making the definition ABI Plus.
The new Scottish Provident Critical Illness definition for HIV has been extended to include countries outside the EU. This new definition now goes beyond the standard ABI definition for HIV and takes the number of Scottish Provident CI definitions that are ‘ABI plus’ to seven.
As leading early proponents of Critical Illness cover in the UK Scottish Provident strive to deliver quality protection products that meet clients' needs. This is a changing world Scottish Provident understand the need to react by having a range of products that reflect today’s society and help to meet clients' changing requirements.
Commenting on this latest improvement, Michael Cooke noted: "Whilst the number of conditions covered is by no means the only consideration when choosing a Critical Illness policy, it is an easy to understand and simple element that consumers can use to compare products against one another; and Scottish Provident should be congratulated on bringing their total up to 34, equalling the number of conditions covered by rivals AXA, Legal & General & Friends Provident.
"Whilst these products are still bettered by the 35 conditions offered by Scottish Equitable, the 37 offered by Fortis Life and the 38 conditions graded by up to 154 degrees of severity from Prudential they all completely outshine the policies offered by many other insurers with the number of conditions covered as low as 25 with Aviva and the absolutely shocking cover pushed by Halifax to their poor unwitting customers which includes only 13 conditions.
I would urge any clients thinking about buying Critical Illness cover to understand what a policy actually covers before taking it out as these figures show, you cannot assume anything in terms of what you will be covered against under a Critical Illness policy." read more....
- primary pulmonary hypertension – of specified severity;
- pulmonary artery graft surgery – with surgery to divide the breastbone;
- structural heart surgery – with surgery to divide the breastbone.
This means that Scottish provident will now cover an extended range of critical illnesses totalling 34 should you fall seriously ill.
New product literature revised to reflect these new definitions will be available from July 27, you can request a copy via our website.
Further improvements to the Critical Illness Cover include changes to the HIV definition, now making the definition ABI Plus.
The new Scottish Provident Critical Illness definition for HIV has been extended to include countries outside the EU. This new definition now goes beyond the standard ABI definition for HIV and takes the number of Scottish Provident CI definitions that are ‘ABI plus’ to seven.
As leading early proponents of Critical Illness cover in the UK Scottish Provident strive to deliver quality protection products that meet clients' needs. This is a changing world Scottish Provident understand the need to react by having a range of products that reflect today’s society and help to meet clients' changing requirements.
Commenting on this latest improvement, Michael Cooke noted: "Whilst the number of conditions covered is by no means the only consideration when choosing a Critical Illness policy, it is an easy to understand and simple element that consumers can use to compare products against one another; and Scottish Provident should be congratulated on bringing their total up to 34, equalling the number of conditions covered by rivals AXA, Legal & General & Friends Provident.
"Whilst these products are still bettered by the 35 conditions offered by Scottish Equitable, the 37 offered by Fortis Life and the 38 conditions graded by up to 154 degrees of severity from Prudential they all completely outshine the policies offered by many other insurers with the number of conditions covered as low as 25 with Aviva and the absolutely shocking cover pushed by Halifax to their poor unwitting customers which includes only 13 conditions.
I would urge any clients thinking about buying Critical Illness cover to understand what a policy actually covers before taking it out as these figures show, you cannot assume anything in terms of what you will be covered against under a Critical Illness policy." read more....
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