HowTo - Finance channel

How To Protect your income if you cant work

6 Sep 2011 09:54:56

Whilst many of us have life insurance, we are actually three times more likely to fall seriously ill during our working lives than die while in employment. Yet just 1 in 10 people in the UK have their income protected in the event of a major illness, meaning millions of us are risking serious financial hardship for ourselves and our family if the worst was to happen.

How to sort your Christmas Finances

31 Jan 2011 13:57:04

Are you the kind of person who starts next year's Christmas shop in the January sales, or do you always leave it until the last minute and find yourself desperately rushing around on Christmas Eve?

How To Protect Your Home Contents

12 Apr 2010 10:57:33

The home of the future - watch our video to see what the gadget home of 2011 looks like.

How to make a PPI Claim (Payment Protection Insurance)

3 Feb 2010 18:44:53

Watch this HowTo.tv video to see if you’re eligible for money back

Be financially prepared for female cancers

26 Mar 2009 16:10:08

One in four cancer patients have difficulty keeping up with everyday payments. Learn how to keep your family financially safe in our video.

How To Find Help For Your Mortgage Repayment

5 May 2009 10:55:17

There is a wealth of strategies, advice and practical support that can help you keep your head - and your home

How To Rent a Room

26 Jan 2009 10:43:32

Are you looking to boost your income? If you have a spare room, there is lots of information to consider. For instance, by law a 'resident landlord letting' is where the landlord and the tenant live in the same building. This includes conversions where they live in different parts of the same property (however long ago the property was converted) but excludes purpose built flats, with landlord and tenant in different flats. Resident landlord lettings differ from other types of tenancy in two ways: rent and security of tenure. Help is at hand to make it easier to find out about the correct way of renting out your spare room. Watch the video to see how easy it is and you can start enjoying some of life's little luxuries again.

How To Trace a Lost Pension

26 Jan 2009 10:43:32

What would it mean to you now if you could get your hands on thousands of pounds? You may have money sitting in a pension scheme you paid into years ago and have forgotten about. Watch the above video and see how easy it is to trace a lost pension.

The Pension Tracing Service can help you track down a lost pension even if you don't know the contact details. With free access to a database of over 200,000 occupational and personal pension schemes, you will be able to search for a scheme you may have forgotten about.

The Pension Tracing Service may be able to provide you with current contact details for a pension scheme, you will then be able to use this information to contact the pension provider and establish any pension entitlement you may have.

Make your pension work harder

26 Jan 2009 10:43:32

On the 1st October 2008, the government gave those who have contracted out of the state second pension greater control over planning for their retirement.

What does this mean? Over the years many of us with pensions have opted out of S2P - or SERPS as it used to be known. This is the second part of the state pension into which our National Insurance contributions are made. The technical name for this is Protected Rights and until now where this money could be invested has been governed by strict rules.

Now that the government has changed the rules, individuals have a much greater choice of where to invest their money. Vehicles now permitted include commercial property, Unit Trusts, Investment debentures and warrants – many of which have performed significantly better than the managed pension funds currently invested in.

So what should you do? According to the results of a survey released by independent investment strategists Killik & Co, half of people in the UK with a pension never check its performance with even more having no idea of what they have in their fund. 78% of us have no kind of pension strategy yet this major change in the law could impact on how much money we have in retirement.

Here to explain how the law will affect you and offer advice on where to invest your money, is TV's independent financial expert, Alvin Hall.

For more information visit www.killik.com

How To Buy At Auction - How To Buy at Auction

26 Jan 2009 10:43:32

It's vital to understand as much as possible about how property auctions work when you're considering buying by this method. As a private buyer there are 5 main advantages of buying at auction over an estate agent.

There's equal opportunity, all interested parties on the day of sale have an equal chance of buying
There's no risk of being gazumped, because the property is sold on the fall of the gavel, and the contract is binding
There's no danger of the seller pulling out as the contract of sale is binding at the fall of the gavel.
There's more choice of properties at auction, including repossessions, properties in need of renovation, and those only available for sale through auction.
Because all legal work and surveys are completed prior to sale you can enjoy a speedy purchase and completion.

As a private buyer, you must consider four key issues before making your first serious bid.

Visit an auction to get a feel for the process. You can also ask the auctioneer any questions that you have. There's often only about three to four weeks between the auction catalogue coming out and the date of the auction, so you have to be prepared to move fast.
Finance - you will need enough funds to pay your deposit on the day of the sale - usually 10% of the total price, plus you will have to have your mortgage in place to pay the balance if you are successful, which is usually due 28 days later
You should get a survey done to ensure that the property is sound. If you are taking out a mortgage your lender will wish to have their surveyor assess the property prior to the sale date.
It is important that you are careful in your selection of the property because any survey costs are payable by you, whether you are successful on the day of the auction or not.

Research the market carefully to find the selection of properties in your price range, and arrange an early viewing with the auctioneer. To get information about auctions, you can order catalogues from individual auction houses, or subscribe to a specialist website or database. Remember that although many auctions are held regionally, some of the bigger auctioneers sell properties located in all areas at a major nationwide event, often in London.

Finally some tips to help you make an informed purchase.

If you're nervous about auctions, get your solicitor or surveyor to do the bidding for you.
Always set an upper price limit, and stick to it. It's easy to get carried away in the heat of the moment
Make sure your mortgage lender is satisfied with the valuation on the property, or you could face delays.
Don't buy a property without having a survey done
Don't buy a property unless you've sold or completed the sale of yours, if you're relying on that money to finance the new purchase.

With prices up to 40% cheaper than on the open market, property auctions are definitely the place to pick up a bargain, but you must be fully prepared to avoid the pitfalls.

How To Save Tax Free

26 Jan 2009 10:43:32

Few people are aware that it is possible to invest over £90,000 a year in tax free savings. The personal allowances are as follows :-

Invest £15,000 in each issue of three and five year Index linked Savings Certificates which have tax free, inflation proof returns. You can also save £15,000 in each issue of two and five year fixed rate interest savings certificates, which offer fixed rates and tax free returns - giving you a total of £60,000.

The maximum an individual can invest in Premium Bonds is £30,000, which although paying no interest, offer you the chance to win large tax free cash prises of up to one million pounds each month.

Finally, you can invest up to £7,000 each financial year in an ISA, or Individual Savings Account, which is simply a savings account where the interest isn't taxed. They were launched by the Government to encourage people to save for the future.

There are two types - cash ISAs called mini ISAs and stocks and shares ISAs called Maxi ISAs.

Your £7,000 allowance can be split between either one maxi or two mini ISAs.

Maxis are used by people who want to invest their full allowance in shares, but they do allow some flexibility. You can invest up to £7,000 in stocks and shares or up to £3,000 in cash and the balance in stocks and shares. This must be done with one company.

The two types of mini ISAs are a mini stocks and shares ISA with a maximum investment of £4,000 and a mini cash ISA with a maximum investment of £3,000. Make sure you know what you are signing up for, because once you have bought a maxi ISA you cannot buy a mini ISA in the same tax year.

Stocks and shares ISAs can be bought from independent financial advisors, fund supermarkets, a financial broker or sometimes through high street banks. Cash ISAs are offered by virtually every bank, and funded management companies.

Finally remember that only the cash portion of a mini and maxi Isa is tax free - there's no tax to pay on any interest earned. Income on share dividends is taxed, so equity Isas are not completely tax free. Always think carefully and plan thoroughly before opening any ISA.

How To Arrange a Secure Loan

4 Feb 2009 16:08:17

There’s no shortage of companies in the financial sector eager to sell you loans, and finding a secured loan can mean sifting through a mountain of information. Here’s an introductory how to guide to finding your way through the maze.

Secured loans are loans where you are required to use your property as security against the loan – they’re sometimes called Homeowners loans, and by their very nature are riskier for the borrower than for the lender. The amount you can borrow varies from lender to lender and varies with your individual circumstances. The amount, the term available and the Annual Percentage rate (APR will depend of three things:

the value of your property
your ability to repay the loan
your personal circumstances.

If you default on the loan you risk losing your home.

Most unsecured personal loans allow you to borrow less money and usually set a shorter repayment period – rarely more than 7 years. Secured loans allow you to borrow more and repay over a longer period – up to 25 years. They can normally be used for any purpose. Borrowers who have difficulty accessing other loans – those that are self employed, have recently change jobs, or have previous credit problems are more likely to be considered for a secured loan.

You’ll have to do some thorough research when it comes to choosing the best secured loan for your situation. You can either do all the comparisons yourself, or register with a comparison service, usually via the internet. You need to be certain that the advice given is totally independent, and that the service provider is fully accredited to carry out their task.

Secured loans are mainly available from three outlets:

1. High street banks and building societies

2. Specialist loan providers, some of which only cater for people who have had previous credit problems

3. Brokers – they do not offer loans directly, but act as intermediaries between lenders and customers. Some loan providers only work with brokers. They are not tied to specific lenders, but work with a panel of lenders, so they can match the customers needs to the right lender. If a borrower successfully takes out a secured loan through the broker, they will receive they are paid commission by the lender.

The benefits of using a broker are that they can secure the lowest interest rates for borrowers, borrowers need only give their details once, and using a loan broker will ensure a quick response to an enquiry.

The main risk involved in taking out a secured loan is that the property is used as security against the loan. You will need to be sure you can maintain regular repayments. If you default on the loan, the lender can claim your property as payment for the outstanding balance owed. Worst case scenario, you will lose your home, damage your credit rating and affect future borrowing potential.

If you have any doubts whatsoever, consult an independent financial advisor before taking out a loan.