Monthly Archives April 2011

Secured Loans – UK Market Still Active

Secured loans in the UK ended up with a pretty bad reputation after all the financial fuss of ’07 kicked off. There is no doubt the secured loan lending practices of the past were just as bad as some of the crazy mortgage offers around at the time with up to 125% of the value of your home being available to borrow. Much like the banks, when the easy money stopped flowing and the industry started to collapse the secured loan companies couldn’t get funding and many of them turned to dust. By 2009 14 lenders had left the market leaving
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A Life Insurance ‘Trust’ Party – Bring cake…

Lucy: ‘Oh I’d love to be your trustee. It would be an honour. What time shall I come over?’ Sarah: ‘Well Catherine and Sally are getting here for about 2.30 and don’t forget to bring cake!’ 2.30 arrives, pleasantries are dispensed and the ladies sit down to talk shop: Sarah: ‘OK, so Simon and I are in the process of getting our life insurance up to date since we took out a bigger mortgage for the extension and our adviser has talked to us about putting the policy in ‘trust’ Catherine: ‘Is that like setting up a trust fund for
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Coping Classes – the bigger picture.

A recent report launched by Friends Life finds that the combination of the recession and spending cuts has brought about profound changes in the way in which generations within families support each other. This information comes to the fore as 44 tax and benefits changes are introduced which could wipe billions off household incomes over the next year. Rather than finding the traditional “sandwich generation” model, the ‘The Coping Classes’ report finds middle income households increasingly relying on their retired parents for financial support, while remaining more committed than wealthier or less well off households to helping their children financially. Key findings:
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Risk Based Pricing & Responsible Lending – some thoughts…

In a nutshell risk based pricing is the reason why people with a poor credit score pay higher interest rates for credit. It is standard practice to charge a higher rate of interest to a customer who is considered ‘higher risk’. The price is based on the perceived risk involved in lending money to someone who might not have a very good track record with credit. I’m struggling to come up with a really good argument for why this is a good idea… People with either a history of badly managed credit or with no provable track record of managing credit could quite
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