Your questions
Your frequently asked questions

I’m hearing that pensions might be affected by the downturn.

I’m hearing that pensions might be affected by the downturn. Is this true?

Many pension schemes invest in the Stock market as a way of managing their savers’ money and trying to grow the investment to benefit their returns. As part of the falling economic climate the Stock market has fluctuated and is at a low point relative to recent years. This will affect the value of the investments that pension funds hold in the market. Pensions are long-term investments and will fluctuate with the market over time but their ability to pay an individual will vary with the terms of their policy and the amount of the saving they have made

Where should I put my savings?

I’ve got some money in a savings account but the interest on it has dropped massively. What can I do?

If you haven’t already made the most of your tax-free ISA allowance this year then it’s worth considering. ISA’s have the benefit of tax-free interest on your savings with instant access and monthly interest. Alternatively a fixed rate policy may offer a better rate than a standard savings account. These have regular fixed amounts of interest over the period of the account, but can have some restrictions on access to the funds at short notice.

What’s the best product to manage my debt over the long term?

What’s the best product to manage my debt over the long term?

The type of product that’s best for you depends on your personal circumstances. There are many options to consider. The most common is to consolidate debt in one place, which could make it easier to manage. This can be a loan or a balance transfer on credit cards. The first thing that you could do is look at what debts you have, then consider how much you can afford to repay. Once you know this, it could be a good idea to speak to your bank or building society to see what they can do for you.

Is it going to be harder to get a personal loan?

I’ve heard that it’s going to be harder to get a personal loan in the current environment? What is the best way to consolidate my debts at the moment?

The availability of lending is in most cases purely based on your personal circumstances. If you’re considering consolidating your debt into a more manageable payment then this is something that you can discuss with your preferred lender. Primarily you need to consider how much you can afford to repay to clear the debts you have in a manageable way.

I’m concerned about my debt and my ability to repay it?

I’m concerned about my amount of debt and my ability to continue repaying it – what can I do?

The first thing you should do is have a close look at your income and spending to see where your money is going. Once you know that you may be heading towards some difficult times make contact with each of the companies you have a debt with and talk to them. In these times of uncertainty you will not be alone, and many companies have a range of measures they can put in place to help you. It’s worth remembering that companies you owe money to want you to continue paying and it’s in their interests to help you do that.

I’m concerned about meeting my mortgage repayments.

I'm concerned about meeting my mortgage repayments. What can I do to prepare myself in case I can’t afford them?

If you're already facing financial difficulties, or think you are likely to, get in touch with your mortgage lender now. Delay will not help your situation and may make it more difficult for you to get help.

If everything's fine right now, but because how the economic situation is affecting your position and if the worst happened you’re just thinking ‘what if’, there are options. You could look at your household budget now and see whether spending could be reduced if to pay for your mortgage. It might help you rest easier to know that there are things you could do if the worst happened. Next, if you can afford it, you could start or increase your savings. This could give you a safety net if something happened to your income in the future. Or, depending on the mortgage you’ve got, you could pay extra towards it now. Paying extra will reduce the overall debt and should reduce your payments in the future – so a later reduction in income might be less of a problem. The other thing you can do is take out insurance against losing your income. There are a number of different insurance policies which could help protect your income and pay your mortgage. They are subject to individual circumstances and terms of your policy, but could cover various circumstances including unemployment and illness.

I’m a first time buyer. Just how much harder is it to get a mortgage?

I’m a first time buyer. Just how much harder is it to get a mortgage these days?

In recent years, to help first-time buyers get on the ladder in a market where house prices were rising rapidly, many mortgage companies were prepared to lend 100% of the property value – so you didn’t always need a deposit. Prior to this, up until a couple of years ago, you would have needed to put in at least 5% of the property’s value yourself - and now, with house prices falling and a world-wide Credit crunch, we’re back to that situation again. You will probably need at least 5% of the property value and, with many lenders, it will be 10% or more. But while that may seem to be a disadvantage compared to needing no deposit, because house prices are falling, the amount you need for a deposit in cash terms is less than it might have been and, overall, housing is becoming more affordable against average income.

How does tax and inflation affect my savings?

How does tax and Inflation affect my savings?

Interest you earn on savings is subject to tax. The only exception to this is a Tax Free savings account such as a Cash ISA. If you have savings and have not used your ISA allowance then this is something to consider. Inflation affects the value of money over time. Basically this means that a pound was worth more in terms of its spending power ten years ago, than it is today. If you saved a set amount and earned no interest on it over a period of time its value in real terms would reduce.

I’m hearing that pensions might be affected by the downturn. Is this true?

I’m hearing that pensions might be affected by the downturn. Is this true?

Many pension schemes invest in the Stock market as a way of managing their savers’ money and trying to grow the investment to benefit their returns. As part of the falling economic climate the Stock market has fluctuated and is at a low point comparable to recent years. This will affect the value of the investments that pension funds hold in the market. Pensions are long term investments and will fluctuate with the market over time but their ability to pay an individual will vary with the terms of their policy and the amount of the saving they have made.

What is the best type of protection product if I do lose my job?

What is the best type of protection product if I do lose my job?

Again, this depends on your personal circumstances and what you need that protection policy to cover. If you have a mortgage as well as other debts then an income protection policy may be suitable. It’s designed to pay out a fixed sum on a monthly basis to help you cover these outgoings. If you have credit cards or loans to pay then payment protection products are available that will cover the minimum payments while you’re looking for a new job. It may be that a combination of products is best for you. The most important thing is to establish what bills you will need to pay, and how these products can best suit your needs.