Here at Knights Castles we are providing you with a collection of finance related articles that we have written while working in a number of high street banks and other financial institutions over the past few years. The aim is to provide you with general guidance to help you manage your finances more smoothly. I hope you find something useful. Please check back regularly as we plan to add many more articles in the upcoming months.
A few months ago I was commissioned by a colleague to write a series of articles about money, borrowing and debt. He was seeking to get some insight into these areas, notably how people can become trapped into slavish repayments at alarming interest rates and the negative name this has attracted to the concept of loans. He turned to me to draw on my insights as a high street bank employee and asked me to comment on the ups and downs, as I have also maintained that loans, if taken out sensibly,... more
Mortgages are essentially another form of loan, but they differ substantially from normal bank loans in that they are secured. A secured loan is a loan which is backed up or guaranteed by a physical asset (the house in this case). What this means for the bank is that in the event that you were unable to make your repayments they would have something to sell to reclaim at least part of the money. That is why a bank will lend you more on a secured loan, but also why some institutions suggest a mo... more
Mortgages: the biggest debt normally taken on by an individual in their lifetime. They typically last from 10-25 years, range from £25,000-£300,000 and come in all shapes and sizes. One product which goes hand in hand with a mortgage and is almost always offered, though not always taken, with a mortgage is some form of insurance. These come in different types, some paying out on accident, sickness, unemployment or other loss of income, others, the most common type, just paying out o... more
Debt to equity ratio is a measure of risk when borrowing on a property. With a mortgage on a house for example it is the total outstanding on the mortgage divided by the current market value of the house times 100%. For example a house worth £200,000 with an £80,000 mortgage on it has a debt to equity ratio of 40%.... more
Before consolidating or restructuring any debt it is extremely important to complete a financial plan of your weekly or monthly cashflow. Here are a few pointers for what's important in calculating affordability of repayments.... more
House price stability is a measure of how much house prices are changing in a given area over a given time. If house prices are level or going up this is seen as a good time to be investing in property and all else being equal banks will tend to lend more in mortgages as there is less danger of falling house prices and negative equity .... more
Your credit file, credit report or credit history is all the same thing. It is an entry in a database of your major financial history to date, held independently of all banks and building societies, summarizing your behavior across all areas of financial involvement, to which all banks and building societies have access.... more
You might want a new car, a computer, or money for college. Whatever it is your probably looking for a saving account. I hope the following article will help you decide which kind of savings account you require.... more
N.b. Individual circumstances vary and these articles only provided for illustrative purposes. I recommend you see a bank assistant or a financial advisor if you need help with your finances.
