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.

Whether you are going to University this year or you are already there, the financial side of things can be difficult to manage.

Find some helpful tips you can use if you are trying to save or just make your money go further as a student.

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.

The Office for National Statistics released their unemployment report for the quarter containing December 2023 to February 2024.

Unemployment

 The Unemployment rate has risen to 3.9% whereas last quarter it was at 3.5% leaving many people without a job and a source of income.

The amount of job vacancies and advertising is decreasing by 4.5%, as the number of vacancies in December 2023 to February 2024 was 908,000, a decrease of 43,000 from September to November 2023.

The industry with the most dramatic fall in vacancies was human health and social workers sectors.

Redundancy

People reporting, they left a job due to redundancy has increased by 2.5 per thousand employees.

Number of hours worked

The number of working hours has increased since lockdown measures were relaxed in the UK. However, they are still lower than pre-pandemic levels. From November 2023 to January 2024 there was an average of 1.06 billion hours works across the UK.

Pay levels

In 2024 UK employers should receive a pay rise of 4.4% which should boost the economy and boost morale within workplaces.

The average weekly earnings were estimated at £666 for total earnings and £623 for regular earnings in November 2023. This has been a steady increase over time.

They have also revealed that the monthly update on wage growth, the increase in average employee wages including bonuses was at 5.6% November 2023- January 2024. This shows wages are growing higher than the rate of inflation which is currently at 4%

Annual inflation is slowly falling meaning pay levels can ease.

Forbes reported that there are roughly 3 million workers on the National Living Wage of £10.42 which is set to rise in April 2024.

Why unemployment rates are rising

The Office of National Statistics (ONS) states that the high unemployment rates are due to employers cutting back on hiring new staff. They have stuck to internal staff cutting down the number of vacancies.

They argue that employers are waiting until the economy picks up before hiring new talent as they believe it would be difficult to recruit.

As well as this the cost-of-living crisis is making it difficult to afford to hire new staff.

The ONS have also found a high number of people reporting long term illness deeming them unable to work full time.

Budgeting can be difficult to set up and stick to especially if your monthly income is small. If you are trying to save, have noticed the rising prices or just need to cut down to decrease your monthly outgoings then these tips could help you to budget.

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

This international women's day we spread awareness for those who work in the financial and business sectors where they suffer from inequality at work.

As one of the top business and financial regions, London is on top in many areas with booming business and advances in investments and more. Despite this city’s success it is greatly behind in it’s diversity and equality movements.

Bloomberg’s report from 40 women across banking, insurance and asset management in Britain have describe diversity and inclusion initiatives as ‘tokenistic’ and lacking any real change in the industry.

Many believe we won’t reach gender pay equality until at least 2050 or later.

Change is moving too slowly to make a real impact in the long run and many are worried how long it will take to reach gender impunity.

The UK parliament released a report on the Treasury Committee’s urge for action on tackling sexism in the city.

Are we Moving backwards?

• On average in the UK men are paid 14.5% more than their female counterparts. This gap has increased in the last year from 14.3%
• EY figures found that only 44% of directors in European financial services firms appointed in 2023 were women, this is down from 51% in 2022.
• EY research also shows that in the financial industry, the gender split among board directors is 39% female and 61% male.
• Many victims of workplace abuse have been made to sign a non-disclosure agreement meaning the abuser is given their freedom whilst the victim of assault is forced into silence.

What needs to be done

• The Treasury Committee has urged for a ban on NDA’s in cases of sexual assault.
• More support at all different levels including young women in education, help to provide access to education to more women and encourage them to pursue business and finance.
• Increase focus on the wellbeing of staff rather than the reputation of the company as the committee found HR teams were prioritising the business and those in senior positions.
• Firms should focus on internal talent and on developing those within the business already instead of buying talent into the business.
• The UK parliament’s report suggested more education and awareness around menopause would help many women able to remain in their roles for longer.

The trade union Unite explained:

“We lose good people [ … ] at menopause, when you have qualified, capable women choose to leave their roles due to the lack of understanding and willingness to work through the issues and keep that good person in role.”

• Gender equality campaigner, Baroness Helena Morrissey told the BBC that more men needed to be involved in the change. The business and financial industry is still a male-dominated industry and riddled with bullying and abuse towards women, this can only change if both men and women are aware and willing.

The Financial and Business sector needs to do more to improve it’s equality and diversity stand point. This will widen their talent pool and improve the skill shortage problem in addition to encouraging more women to take on senior positions as well as enter into the industry to begin with.