Your mortgage is going to be a huge financial investment and something new to factor in to your budget and financial abilities. When deciding what mortgage to borrow both yourself and the lender will have to evaluate your current financial situation including any existing debt to decide what repayments you can comfortably make.

Before you start the mortgage application process you should know how much to expect.

Mortgage to Income ratio

It is sensible to keep this ratio as low as possible to ensure you will be able to sustain it. If you miss payments or cannot make the re payments you could have increased interest added on as well as more severe consequences such as repossession.

Using  no more than30-40% of your post-tax income for your mortgage is a popular method for home owners and mortgage lenders too.

Lenders will generally prepare to lend 4.5 times your annual salary.

For Example…

If your annual salary is £50,000 and you have no debts then your maximum mortgage will be £255,000.

If your annual salary is £30,000 and you have no debts then your maximum mortgage will be £135,000.

If you are applying as a joint holder with somebody else then the lender will review both finances and your mortgage loan could be higher.

A big move is expensive and everything you need will add up very quickly so it is vital you have started saving before you begin.

You should try to save up to 3-6 months’ worth of living expenses so you can afford the move and to settle in. You will need enough to cover all the initial costs such as insurance, a car, finding your new living space and more.

For example the estimated living costs for Melbourne, is $2500 a month.

If you have your visa ready and are getting prepared for the move there are some ways you can keep the costs down.

6 hacks to use to keep the cost of moving to a minimum.

• Sell your belongings before you move

In the months leading up to your move you should gradually begin selling your belongings, furniture, kitchen ware and anything else you don’t need. You will be able to buy these things when you move and this will save you time and money in the long run as the shipping costs will be large.

• Open a bank account before you move

You are able to start the process to open a bank account in Australia before you get there, meaning once there you only have to go in the bank branch with proof of your documents and then you easily have a new bank account. This will save you on transaction fees and you will be able to easily spend money in your new home. Without an Australian bank account you will be charged fees when you withdraw or spend any money.

• Think about the timing

Often the prices of moving as well as rent prices will fluctuate throughout the year, this could be because in September, students are moving and this raises the prices. You should research what your new city is like as this could impact the time of year that is best to move.

• Don’t take your car with you

Not only are the shipping costs to get your car to Australia expensive there are also hefty import taxes you are required to pay. For any move abroad you will be better off selling your car or vehicle in the UK before you move and finding a new one once you are settled.

• Invest in proper travel insurance before you start the journey

Travel insurance is a vital part on your check list and will protect you from a large cost in case of emergencies. Don’t skip on travel insurance as there are many reasons you should invest.

• Start the house hunt early

When moving to Australia you should definitely be searching for your new home as early as you can as there are so many others who are looking for property too. If you find a place to stay quickly you will be able to cut down on the costs of staying in a hotel during the search. This will also help you find somewhere to live for a decent price.

Rent prices in Australia have been rising and currently the average price of renting in Sydney is $750 per week and in Melbourne it is around $550 per week.

Have you ever thought about how much technology has transformed our lives? Think about it - from smartphones that can do practically anything to those handy little gadgets that control our homes with just a voice command. It's pretty wild, isn't it?

And one industry that's been at the forefront of this technological revolution is banking. Banks aren't just those bland old buildings you visit to deposit your paycheck anymore. Oh no, they've jumped headfirst into the tech revolution.

No more waiting in line for ages to deposit a check or transfer money. Now, with just a few taps on your smartphone, you can do all that and more. And that's just the beginning.

In this article, we’ll talk about how banks are re-embracing all this fancy new technology and using it to revolutionize how we manage our money.

Why Banks Should Adapt to Technological Advancements

• Enhanced Customer Experience: Technological advancements allow banks to offer their customers more convenient and personalized services, improving overall satisfaction.
• Increased Efficiency: Automation and digitalization streamline banking processes, reducing operational costs, dealing with banking problems and solutions, and improving efficiency.
• Competitive Advantage: Banks that embrace technology stay ahead of the curve, attracting tech-savvy customers and staying competitive.
• Improved Security: Advanced cybersecurity measures protect sensitive customer data and transactions, safeguarding against cyber threats and fraud.
• Access to New Markets: Technology enables banks to reach new customer segments and expand their market reach through digital channels and innovative products/services.

9 Ways Banks Are Adapting to the Tech Revolution

By embracing innovative solutions and leveraging technological advancements, banks use advanced technology to revolutionize how financial services are delivered to customers. Here are eight key strategies banks are using to stay ahead of the tech revolution and meet the evolving needs of their customers:

1. Embracing Mobile Banking

With the widespread adoption of smartphones, banks are investing heavily in mobile banking apps to offer customers a convenient and accessible way to manage their finances.

These apps allow users to perform various banking transactions, including checking account balances, transferring funds, paying bills, depositing checks remotely, and even applying for loans or credit cards, all from the palm of their hand.

By embracing mobile banking, banks are empowering customers with greater control over their finances and providing a seamless digital banking experience that meets the demands of today's tech-savvy consumers.

2. Enhancing Online Banking Platforms

In tandem with the rise of mobile banking, banks are also enhancing their online banking platforms to offer customers a comprehensive and seamless digital banking experience.

These platforms are being upgraded with advanced features and functionalities, such as real-time account monitoring, bill payments, fund transfers, and budgeting tools.

By providing customers with easy access to their accounts and empowering them to manage their finances conveniently from any internet-connected device, banks are meeting the evolving needs of digital consumers and staying competitive in the ever-changing financial landscape.

3. Implementing Contactless Payments

With the increasing preference for cashless transactions, banks are implementing contactless payment methods to offer customers fast, secure, and convenient payment options.

Contactless payments utilize near-field communication (NFC) technology, allowing customers to simply tap their cards or mobile devices on a contactless-enabled terminal to complete transactions.

This technology reduces the need for physical contact during transactions and speeds up the payment process, making it ideal for busy consumers on the go.

4. Leveraging Artificial Intelligence (AI)

AI-powered chatbots, for example, are being deployed to provide 24/7 customer support, answer queries, and assist with account inquiries.

These chatbots use natural language processing (NLP) and machine learning algorithms to understand and respond to real-time customer queries, improving response times and customer satisfaction.

Furthermore, AI in banks is being utilized for fraud detection and prevention, where advanced algorithms analyze transaction patterns and detect anomalies indicative of fraudulent activity.

5. Introducing Biometric Authentication

Biometric authentication utilizes unique physical characteristics such as fingerprints, facial features, or voice patterns to verify the identity of users.

By implementing biometric authentication, banks can offer customers a more secure and convenient way to access their accounts. Instead of relying on traditional passwords or PINs, customers can simply use their biometric data to authenticate their identity, reducing the risk of unauthorized access due to stolen or compromised credentials.

6. Enhancing the In-Branch Experience

Beyond mobile apps and online platforms, banks are increasingly utilizing digital signage solutions for banks. These strategically placed digital displays throughout the branch offer several benefits:

Informative Content: Real-time wait times, product information, and promotions can be displayed, keeping customers updated and informed.

Financial Literacy: Educational content can be showcased to raise awareness about financial products and services, empowering customers to make informed decisions.

Personalized Experience: Targeted messages and offers can be delivered based on customer demographics or preferences, creating a more relevant and engaging experience.

Brand Awareness: Banks can leverage digital signage to reinforce their brand image and messaging, fostering stronger customer relationships.

7. Exploring Blockchain Technology

Blockchain, a decentralized and immutable ledger system, offers several potential benefits for banks, such as increased transparency, reduced transaction costs, and improved efficiency.

One critical application of blockchain technology in banking is in cross-border payments. Traditional international money transfers often involve multiple intermediaries and can take several days to settle.

However, blockchain-based solutions offer the potential for near-instantaneous cross-border transactions, as transactions can be recorded and verified in real-time on the blockchain network.

8. Personalized Financial Services

Banks are increasingly focusing on offering personalized financial services to meet their customers' unique needs and preferences.

One way banks are offering personalized financial services is through targeted promotions and offers. By analyzing customer spending patterns and preferences, banks can identify relevant products and services and offer personalized promotions to customers, increasing engagement and satisfaction.

9. Enhancing Cybersecurity Measures

As digital banking becomes more prevalent, banks prioritise cybersecurity measures to protect customer data and transactions from cyber threats and attacks.

Banks are implementing multi-factor authentication (MFA) methods to strengthen account security. To access their accounts, MFA requires users to provide multiple verification forms, such as passwords, biometric data, or one-time passcodes. This adds an extra layer of security beyond traditional password-based authentication, reducing the risk of unauthorized access.

Conclusion

The tech revolution has brought about significant changes in the banking industry, prompting banks to adapt and innovate to meet customers' evolving needs in the digital age.

As technology advances, banks must remain agile and proactive in adopting new technologies to stay competitive and continue providing exceptional customer service. Through these adaptations, banks are shaping the future of banking and contributing to a more efficient, secure, and customer-centric financial ecosystem.

If you are thinking about taking out a loan make sure you are considering it carefully and know what you are getting into. With any type of loan there are serious implications if you miss any repayments and find out you cannot afford to pay back to loan you agreed to.

To take out either of these loans you will have to have a good credit score so start by improving that if necessary.

Secured Loan

These are sometimes called Homeowner loans, second-charge mortgages or home loans.

If you take out a secured loan you will have to place a valuable asset as collateral, this is often property such as your house or a car depending on the value. This gives the lender security if you fault on your repayments.

If you cannot keep up with the repayments then the lender can sell you house or other valuable asset you placed as security.

When you apply for a secured loan you will receive the money quickly directly into your bank account. You will often have lower interest rates on a secured loan as you have given the lender security in the form of assets.

You can choose how long you have to pay back this loan and often giving yourself longer will be best as the monthly payments will be lower however the overall interest is then higher.

Personal Loan

For this loan you will not have to name any valuable assets however, you will be able to borrow less with a personal loan, usually up to £25,000.

If you miss a repayment or find out you cannot pay the lender back over time then you will face legal consequences.

If you do manage to meet the agreements then this could improve your credit score.

You can choose how long you have to pay back this loan and often giving yourself longer will be best as the monthly payments will be lower however the overall interest is then higher.

Taking out a loan is a serious financial decision and should not be made lightly, make sure you have all the information and are confident you will be able to pay back your loan in full.

So you have found your dream property and have had your offer accepted, now you are ready to handle the nitty gritty mortgage details.

You will have to find the best mortgage deal that works for you and then you can apply online or over the phone. You may choose to go with a broker to help you get the best deals.

Do you need a mortgage broker?

A broker is a qualified and regulated mortgage advisor. They should remain unbiased and be there to help you wade through all the offers and find you the best deal for your situation.

Having a broker will save you time and effort trying to find the best deal, they will also be able to handle the negotiations with the lender for you. A broker will help you understand the mortgage rates and know what you will need.

Make sure to be upfront with the broker about your finances and credit so they can do their job properly.

You either pay them a broker fee which is usually around £500-1000 or they will receive a procuration fee from the lender, which won’t affect your total.

If you are confident you can find the best deals yourself then you can skip this step and move on.

What you need for your application

You will need original copies of all the forms listed below, make sure you have these ready before starting the process, this will help you speed things up.

• A form of ID, e.g. a passport
• Details of your current employment
• At least 6 months’ worth of payslips
• Proof of current address
• Proof that you have the deposit
• Tax return forms, if you are self-employed
• Your latest P60 tax form

A mortgage in principle

This is a conditional offer from a lender with no guarantees this will go through to completion. This helps buyers to have a sense of confidence during the process whilst the lender continues with their checks

The lender will complete credit checks, these could damage your score so make sure not to have too many in short space of time.

‘Soft’ credit checks leave a less visible sign to the next lender so check which type they are using.

Don’t rely on your existing bank or building society as this vastly limits your options and cuts the market short.

Fees

On top of all the big payments you’re making to buy a house it is important to factor in all the other fees you have to think about too.

Arrangement fee

You will pay this to the lender and it can go up to around £2000 which you can pay upfront or add on to the price of your mortgage. If you pay upfront be aware that this is a non-refundable sum even if your offer falls through.

Booking/reservation fee

Some lenders will charge this fee to secure a fixed-rate, tracker or discount deal. This will be around £100-200 and is again non-refundable which you can pay upfront. Sometimes this will be rolled into the arrangement fee and won’t be a separate charge.

Valuation fee

The lender will carry out checks on your chosen property to determine the value in case you miss payments and the property is repossessed. The cost of this will depend on the property value. You can also ask for a survey at an extra cost which will check for any hidden damages and structural problems which is especially important if you are buying an old house.

Legal fees

This is paid to your solicitor and covers all the legal work needed when buying a house including, conveyancing which searches local authorities data for hidden damage on the property. This will cost roughly £500-1500.

Stamp duty

This is a tax paid to the government which some developers will offer to pay if you are buying a brand new home.

The price depends on the property value.

If the property price is between £300,001 to £925,000 then you will pay 5% in stamp duty.

The application process in total can take months to reach completion which is why before you start, it can be helpful to make sure you have all the information, are sure you can cover all costs and have all the correct documents.

Happy Mortgage hunting!

If you have decided that your child is ready for their first bank account and ready to learn about financial responsibility then below are some great options for junior bank accounts.

Most junior bank accounts are accessible for children between 11-17 and will need a parent or guardian to be a joint account holder. Your child won’t be able to open a bank account on their own until they are at least 18.

We are living in a cashless world and so if you give them pocket money this would be most beneficial being sent into a bank account, as well as being a secure way for your child to spend.

If your child is asking for more financial freedom and you think they are ready to learn then a junior account is a great option for them.

The benefits of Junior bank accounts

• Having a bank account is a great way to teach children financial responsibility as they will not learn this at school.
• Teaching your child healthy spending habits from a young age will help them when they are adult and have their own money, they can carry these habit on.
• Having a bank account will help your child feel a sense of independence and they can take their money seriously
• They can learn how to budget and prioritise what they want to spend on.

A study done by Cambridge University found that children’s financial habits are formed by 7.

This is why it is so important to teach financial responsibility from a young age.

Parent controls

• Junior accounts will have spending controls to protect you and your child.
• There will be no overdraft feature so there is no risk of your child getting into debt, when their money is gone, it’s gone.
• Some accounts will block certain places such as pubs, bars and off-licences so the card will not be able to be used here.
• Some will set spending limits so your child cannot overspend.
• You will be able monitor the spending habits of your child through a mobile app which you will both have access to.

At 18 the account will automatically become an adult account and your child will have full freedom. It is best that they have learnt how to correctly handle their money with your help before this transition happens.

As of March 2024 below are the best 2 year and 5 year fixed term mortgage rates.

With a fixed term mortgage you will not be affected by changing interest rates and you will often pay lower rates than if you were on a variable rate mortgage.

If your fixed term is coming to an end this year and you are worried about the rise in mortgage rates then make sure you are comparing the best deals.

2 year fixed term mortgages

Barclays

• LTV – 60%
• Interest rate – 4.5%

Natwest

• LTV - 60%
• Interest rate – 4.64%
• deposit – 40%

Halifax

• LTV – 60%
• Interest rate – 4.6%

5 year Fixed term mortgages

Natwest

• LTV- 60%
• Interest rate – 4.24%
• Minimum loan amount - £25,000
• Minimum Deposit – 40%

HSBC

• LTV - 60%
• Interest rate – 4.24%
• Maximum loan amount - £5,000,000
• Offers a 10% annual overpayment allowance

Is a 2 or 5 year fixed term better?

As seen above, currently 5 year fixed term mortgages offer lower interest rates meaning you will have to pay back less over time.

A 5 year fixed term is a long term commitment so you have to make sure you will be able to make your repayment for the whole duration.

Pros of a 2 year fixed term

• You will be able to switch lender to get a better deal after only 2 years so that when rates fall you can benefit.
• You are usually able to make over payments in a 2 year term meaning you will be able to pay off your loan quicker, saving on interest over time.

Cons of a 2 year fixed term

• You will have to remortgage sooner and could have to pay fees to do so.
• At the end of the two years, interest rates could be higher giving you a more costly rate.

Pros of a 5 year fixed term

• This offers you stability knowing what your monthly payments will be each month regardless of what happens to the base rate. This can help you with budgeting and financial planning.
• If you know your current financial situation won’t change and you are happy with the rate then this a great way to avoid the hassle for a while.

Cons of a 5 year fixed term

• If you want to take advantage of the changing interest rates then you will be unable to do so with this term.
• You will paying out for a longer time and so will have less disposable income.

Stay on top of your Credit card payments and avoid debt.

When trying to save it is important to first find the right savings account for your needs, there are many ways to make saving simple.

There are many options for savings accounts, below you can find out how each type can help you save.

Easy Access

You will be able to draw your money out whenever you like, this type of account allows you the freedom to know your money Is there whenever you need it.

Close Brothers

• 12% rate, this is a variable rate so the provider can change this but will give you
• You can claim interest annually
• A Minimum deposit of £10,000 and a maximum of £2m

Virgin Money

• 11% rate
• A maximum of 3 withdrawals a year before financial fees.
• You are able to claim interest monthly or annually
• There is a maximum deposit of £250,000 and a minimum of £1

Fixed term

You will decide a term length, either 2 or more years and you will not be able to withdraw your money until the term is over. This is a great option if you are saving for something big and know when you will need the money. A fixed term account also means you will not be able to give in to temptation and spend any of this money.

Barclays

• 65% rate
• A one year fixed rate
• Available from a minimum of £500

Smartsave bank

• One year fixed term deal at 5.28%
• Requires a minimum deposit of £10,000 with the ability to save £85,000
• Open the account online and make deposits within the first 14 days
• Interest is claimed at maturity.

Notice accounts

You will have access to you money but only when you give a notice to the provider of when you will need the money. You will need to prepare in advance and tell them in 6 months you will need to withdraw X amount of money from your account. This is a great option if you want to keep your money from being spent regularly and if you know when you will need money.

The West Brom

• A variable interest rate of 5.25% rate
• 60 day notice period
• Make deposits at any time
• Claim interest annually or monthly

Regular Savings accounts

Setting up a regular saving account means you could earn a higher interest rate however you may need to set up a current account with the provider before you are able to have a savings account. Regular savings account often have a maximum monthly deposit meaning you can only put small amount in at a time. These are a great way to save smaller amounts and will work well if you are just starting your savings journey. This is also a good option if you are thinking of setting up a junior account for your child.

First Direct

• 7% fixed for one year
• £300 maximum monthly deposit
• If you save £300 every month for 12 months and qualify for the 7.00% AER/Gross p.a. interest rate, you'll earn approximately £136.50 interest (gross).
• Only available if you already have a fixed Direct account

If you are trying to save, learn more about finances or want to take on some new techniques for your money then reading from those who have done it or are experts in the field could help you.

There is so much advise out there it can become overwhelming, when finding the book for you make sure it contains what you are looking for and won’t make it more complicated than necessary.

Below is a short list of books which could help you to invest, save, learn about finances and help you build better habits. Pick up one of these helpful reads for world book day and learn more about your finances.