This is intended as a very brief introduction to this subject. First of all a life insurance policy is a contract between the insured and the insurer. In English law there are five basic requirements for a contract which are as follows,

- Offer and acceptance;

- Consideration;

- Capacity to contract;

- Insurable interest;

- Consensus ad idem, which in English means a consensus of agreement. You were both contracting about the same thing.

Offer and acceptance. In English law under a contract there is offer and acceptance. One party makes an ‘offer’ and the other party accepts that offer without qualification. If the acceptance is qualified it simply becomes an alternative offer. There is also under English law something called an invitation to treat. That is basically an advertisement. Insurers issue out their prospectus and brochures. They are not offers in their own right. You could not go into the insurer’s office and hand over your cheque for the policy shown in the advertisement.

In life insurance the insurer usually makes the offer to contract by telling the insured that he has accepted the proposal and is willing to offer insurance at a set sum, based on a set policy and subject to the first premium being paid. The insured then usually accepts that offer when the insured pays the first premium.

Usually when a life insurer make their offer they make it subject to the first premium being paid by a certain date and that until the first premium is paid the life to be insured should remain in the same state of health.

So if once you get the insurers offer, your health deteriorates before you pay the first premium then the life insurance contract may not be valid. You would need to discuss that with your insurer.

Consideration. There needs to be consideration on both sides. This applies to all contracts which are not under seal. The insured’s consideration is the first payment of premium and then after that the continuing payment of premium. The insurer’s consideration is the offer to pay out the sum insured if the life insured was to die during the policy period.

Capacity to contract. Both parties must be able to contract. Minors under the age of 18 years are restricted by the Family law Reform Act 1969. Minors under the age of 18 can enter into a contract but subject to certain restrictions the contract can not be enforced against them. That is why most insurers will not issue a policy to someone under the age of 18.

Generally you can not enforce a contract against some one of unsound mind if you knew they were of unsound mind when you contracted with them. Under the Mental Health Act 1983 the affairs of a person of unsound mind can be placed into the hands of the court of Protection who can then appoint someone to handle affairs on their behalf.

The Life Insurer must be authorised under the Financial Services and Markets Act 2000 in order to issue policies of life insurance in the England.

Insurable interest. The life insurance proposer, the person taking the policy out, must have an ‘insurable interest’ in the Life Insured. Prior to the Life Insurance Act 1774 this was not the case and many people would take out life insurance policies on famous or notorious people as a form of gambling. The Life Insurance Act 1774 put a stop to this. The act requires the proposer to have an insurance interest in the life insured and that the level of insurance taking out must not exceed the value of that insurable interest.

Courts will usually hold that a person has an unlimited interest in their own life and that of their spouse. In an 1854 court case called Dalby v India and London Life Insurance Co it was held that a life insurance policy was not a policy of indemnity, and so the insurable interest only had to exist when the policy was first taken out.

Consensus of agreement. The parties basically must be in agreement about what they are contracting for at the time the agreement comes into force. The original idea came from a case where one party was selling a boat and another person was buying a boat. Unfortunately there were two boats with the same name and each party thought the other party was talking about a different boat.

In life insurance this area of law has been extended by the idea of ‘utmost good faith’. Courts believe that the insured has all the knowledge about themselves and the insurer has none. The insured therefore under English Law has the duty to advise the insurer of all material facts.

What Is A Budget Simply put, a budget is a spending plan. It details how much you earn, how much you spend, and how much is left over. If you have any money left over, then you have a budget surplus. If you don’t, you have a budget deficit. If you happen to fall into the budget deficit category, then you have to cut non-essential purchases completely out of your budget. Generally, living and leisure expenses can be modified slightly to fix the problem.

Why Start A Budget

Statistics show that the average American spends 10% more than they earn. This means that if you have an annual household income of $50,000, then on average you would be spending $5000 more than you earn. The only way to combat this cycle of overspending is by establishing a realistic household budget and stick to it.

What Are The Benefits of Budget

Maintaining a budget allows both individuals and families to become debt free, save money, track spending patterns, and achieve financial goals. Whether you are looking to pay for your next car in cash or funding your child’s college education, establishing a budget is a sure way of doing it.

Why Some People Fail at Budgeting

Many people fail to live within their budget when they feel that it is too restrictive or too difficult to manage. Therefore, it is a good idea to allow room for leisure entertainment and some discretionary spending. This way, you stick with your budget and it becomes a habit without feeling miserly.

How To Start A Budget

Follow these quick and easy steps and you are well on your way to becoming a master at budgeting.

1. Set your goals. Why do you need to budget? Saving for a new car, vacation, or nest egg?

2. Determine your cash flow. How much is coming in every week, month, year? Write it down, or enter your information into a budgeting software program, such as Budget Forecaster by Strativia.

3. Determine your expenses. Where is your money going? Again, write it down.

4. What the verdict? Do you have a budget surplus or budget deficit?

5. Maintain or modify your plan. Depending on your results, you should either stay the course, or change your course to achieve your financial goals.

There you have, Budgeting 101. It’s not hard. The difficult part of budgeting is actually starting and sticking to it. If you start today, you will be financially free tomorrow.

The situation as I see it!

Money seems to be in short supply; interest rates offered by banks for saving money remains diabolical; unemployment is expected to increase by quarter of a million as students leave university and college and members of Parliament from all sides of the political spectrum have exploited their expenses for years.  Meanwhile the Royal Bank of Scotland which we all co-own has warned that they are preparing for two â??very toughâ? years after they announced yet more losses for the first three months of this year. Confidence is a fine grey line and the experts are still scrambling around trying to find solutions and answers. Do we really believe that the recession is nearing the end?

The Bank of England decided to keep interest rates at 0.5% which is at an all time low after their monthly monetary meeting yesterday. It is thought that they are more concerned with the results of quantitative easing which they implemented earlier this year to inject money into the economy. They are now studying the economy for signs of improvements as they continue to print loads of money in an effort to get the economy moving again.

Estate agents around the country are reporting that more people were showing an interest in buying properties. One institute announces house prices starting to climb while another says they are still falling, who should we believe? The Halifax reported that housing affordability for first-time-buyers had improved substantially and was the best for six years in other words the house price to earning ratio had improved. Unfortunately, the average first-time-buyer still needs to find around £20,000 as a deposit and to cover legal expenses. The amount of money spent on a mortgage each month had dropped from 48% in 2007 to 31% in 2009 mainly due to the cut in interest rates for borrowers on tracker rate and standard rate mortgages. This has not been the case for homeowners on a fixed rate mortgages.

Number of Mortgage schemes available rises

Mortgage Brain, is one of two live mortgage systems used by mortgage brokersâ?? to search the market for the best mortgage and remortgage product for clients. They have reported an 8% increase in last monthâ??s mortgage product available. The number of products available in March 2009 was 3,091 and on the 5th May 2009 it rose to 3,322 products available. Whilst this looks like a glimmer of hope it should be remembered that at the height of mortgage lending there was some 23,000 plus products available to homeowners to choose from.

During the past twelve months the number of mortgage products available has remained bleak with a 73% drop from this time last year. It seems that over the past two months the number of new mortgage schemes available has risen by 22%, which is good news.  Although this information can be seen as encouraging I donâ??t believe that there is yet any indication that the market will bounce back today or tomorrow. There are bigger issues that need resolving first.

The stark Facts

This information is great news for borrowers and homeowners looking to borrow money for a mortgage up to 85% of the value of their home. Mortgage Lenders are still not showing any signs of offering mortgages to new clients with any adverse credit. If you have missed a mortgage, credit card or loan payments and you have less than 15% equity in your home then there is limited number of mortgage schemes available to you. Your only option is to remain with your current lender and take what they offer. Not an ideal situation I know! But hopefully you still have a roof over your head.

The situation as I see it!

Money seems to be in short supply; interest rates offered by banks for saving money remains diabolical; unemployment is expected to increase by quarter of a million as students leave university and college and members of Parliament from all sides of the political spectrum have exploited their expenses for years.  Meanwhile the Royal Bank of Scotland which we all co-own has warned that they are preparing for two â??very toughâ? years after they announced yet more losses for the first three months of this year. Confidence is a fine grey line and the experts are still scrambling around trying to find solutions and answers. Do we really believe that the recession is nearing the end?

The Bank of England decided to keep interest rates at 0.5% which is at an all time low after their monthly monetary meeting yesterday. It is thought that they are more concerned with the results of quantitative easing which they implemented earlier this year to inject money into the economy. They are now studying the economy for signs of improvements as they continue to print loads of money in an effort to get the economy moving again.

Estate agents around the country are reporting that more people were showing an interest in buying properties. One institute announces house prices starting to climb while another says they are still falling, who should we believe? The Halifax reported that housing affordability for first-time-buyers had improved substantially and was the best for six years in other words the house price to earning ratio had improved. Unfortunately, the average first-time-buyer still needs to find around £20,000 as a deposit and to cover legal expenses. The amount of money spent on a mortgage each month had dropped from 48% in 2007 to 31% in 2009 mainly due to the cut in interest rates for borrowers on tracker rate and standard rate mortgages. This has not been the case for homeowners on a fixed rate mortgages.

Number of Mortgage schemes available rises

Mortgage Brain, is one of two live mortgage systems used by mortgage brokersâ?? to search the market for the best mortgage and remortgage product for clients. They have reported an 8% increase in last monthâ??s mortgage product available. The number of products available in March 2009 was 3,091 and on the 5th May 2009 it rose to 3,322 products available. Whilst this looks like a glimmer of hope it should be remembered that at the height of mortgage lending there was some 23,000 plus products available to homeowners to choose from.

During the past twelve months the number of mortgage products available has remained bleak with a 73% drop from this time last year. It seems that over the past two months the number of new mortgage schemes available has risen by 22%, which is good news.  Although this information can be seen as encouraging I donâ??t believe that there is yet any indication that the market will bounce back today or tomorrow. There are bigger issues that need resolving first.

The stark Facts

This information is great news for borrowers and homeowners looking to borrow money for a mortgage up to 85% of the value of their home. Mortgage Lenders are still not showing any signs of offering mortgages to new clients with any adverse credit. If you have missed a mortgage, credit card or loan payments and you have less than 15% equity in your home then there is limited number of mortgage schemes available to you. Your only option is to remain with your current lender and take what they offer. Not an ideal situation I know! But hopefully you still have a roof over your head.

The first distinction to make is between Life Insurance and Life Assurance. Although these terms are often used interchangeably there is a difference: Insurance generally refers to an event that might happen whereas assurance refers to something that will happen.

Using this definition Life Insurance would generally cover accidental death whereas Life Assurance would cover for when the policy holder dies at the end of their life. However, most companies do not make such an explicit distinction between the two. It is of course important that you make it clear what type of cover you are looking for.

Life Level Term

Life Level Term Insurance provides the policy holder with a rate of cover that stays the same throughout the policy. The policy holder can decide on the number of years and the level of cover they require at the outset of the policy. The policy can be set up as a single life plan in which the sum of money that has been insured is paid out if the insured person dies before the end date of the policy.

Alternatively a joint life first death policy can be arranged. This is where two people are insured with the sum insured being paid out after the death of one of the insured.

People taking out this type of insurance can benefit from Critical Illness cover which means the sum insured is paid out upon the diagnosis of a critical illness. To include critical illness cover the policy holder will have to pay an additional premium. If the insured person survives the length of the policy then no money is paid out.

Mortgage Life Insurance

Mortgage Life Insurance is designed to cover the costs of a mortgage in the event of the death of a key breadwinner. It is a popular option for a family as it pays the outstanding balance of the mortgage in a lump sum if the insured dies before the end of the policy. As the insured is insuring to cover the cost of the mortgage the policy costs reduce over time as you repay more of your mortgage.

Mortgage Life Insurance can also be taken out in a single life plan or a joint life first death basis. In the latter the mortgage will be paid off in the event of one of the insured dying. This is where the policy finishes – nothing is paid out on the death of the second insured.

Mortgage Life Insurance also provides the option of taking out Critical Illness cover for the cost of an added premium. Critical Illness cover will pay out if the insured is diagnosed with a critical illness. If the insured survives beyond the policy end date then nothing is paid out.

Critical Illness Insurance

Critical Illness Insurance pays out if the insures is diagnosed with a critical illness within the dates of the Insurance policy. The amount of money covered by the policy can be decided at the outset as can the duration of the policy. It is available as a single life basis or a joint life basis.

The policy can stand alone but it is often added to a Life Level Term Insurance policy or a Mortgage Life Insurance policy for the cost of an added premium. If the insured survives the length of the policy then the sum insured is not paid out.

There are a number of companies that help you find the right policy for you by cross checking a number of different insurance companies for quotes.

The first distinction to make is between Life Insurance and Life Assurance. Although these terms are often used interchangeably there is a difference: Insurance generally refers to an event that might happen whereas assurance refers to something that will happen.

Using this definition Life Insurance would generally cover accidental death whereas Life Assurance would cover for when the policy holder dies at the end of their life. However, most companies do not make such an explicit distinction between the two. It is of course important that you make it clear what type of cover you are looking for.

Life Level Term

Life Level Term Insurance provides the policy holder with a rate of cover that stays the same throughout the policy. The policy holder can decide on the number of years and the level of cover they require at the outset of the policy. The policy can be set up as a single life plan in which the sum of money that has been insured is paid out if the insured person dies before the end date of the policy.

Alternatively a joint life first death policy can be arranged. This is where two people are insured with the sum insured being paid out after the death of one of the insured.

People taking out this type of insurance can benefit from Critical Illness cover which means the sum insured is paid out upon the diagnosis of a critical illness. To include critical illness cover the policy holder will have to pay an additional premium. If the insured person survives the length of the policy then no money is paid out.

Mortgage Life Insurance

Mortgage Life Insurance is designed to cover the costs of a mortgage in the event of the death of a key breadwinner. It is a popular option for a family as it pays the outstanding balance of the mortgage in a lump sum if the insured dies before the end of the policy. As the insured is insuring to cover the cost of the mortgage the policy costs reduce over time as you repay more of your mortgage.

Mortgage Life Insurance can also be taken out in a single life plan or a joint life first death basis. In the latter the mortgage will be paid off in the event of one of the insured dying. This is where the policy finishes – nothing is paid out on the death of the second insured.

Mortgage Life Insurance also provides the option of taking out Critical Illness cover for the cost of an added premium. Critical Illness cover will pay out if the insured is diagnosed with a critical illness. If the insured survives beyond the policy end date then nothing is paid out.

Critical Illness Insurance

Critical Illness Insurance pays out if the insures is diagnosed with a critical illness within the dates of the Insurance policy. The amount of money covered by the policy can be decided at the outset as can the duration of the policy. It is available as a single life basis or a joint life basis.

The policy can stand alone but it is often added to a Life Level Term Insurance policy or a Mortgage Life Insurance policy for the cost of an added premium. If the insured survives the length of the policy then the sum insured is not paid out.

There are a number of companies that help you find the right policy for you by cross checking a number of different insurance companies for quotes.

When you go car shopping, what are you looking for? Are you looking for a sporty little two seater that’s going to impress the babes or a sensible sedan with plenty of room for car seats? Do you want a car that’s going to be good on gas mileage or one that will give you plenty of space to spread out? These are all things that people think about when they’re standing in the middle of a car lot looking for their next set of wheels. What they don’t usually consider is which car will give them cheaper car insurance.

Unless you’ve taken the time to sit down with your insurance agent and find out how they calculate the cost of your car insurance you probably don’t realize that your car itself has as much to do with your insurance premiums as, say, your driving history. Insurance companies don’t like to pay out claims, and there are certain cars that seem to attract trouble like a magnet! You could be the best driver in the world, but if you’re behind the wheel of a “high risk” car cheaper car insurance is going to be as hard to come by as front row seats at a Hannah Montana concert.

So how do you know which cars are going to give you cheaper car insurance? You do your homework. The first thing you should do is make a list of what, exactly, you need in a car. There are a lot of resources on the web that will help you find cars that are cheaper to insure, but they usually forget to mention that this isn’t a one size fits all solution. You’re not going to fit five kids in a Toyota Prius. Not legally, anyway! That means you need to shop with your family in mind.

When you’re shopping for a car you can find out how big a risk your car is the same way your insurance agent does-by consulting the Highway Loss Data Institute. The HLDI has statistics on just about every make and model on the market, and they can tell you whether the car you’re considering buying has losses that are considered to be less than, equal to or greater than the average loss for its vehicle class. Fewer losses and expenses as a result of accidents and/or theft=cheaper car insurance every time.

Regardless of what type of car you’re going to buy, know that cars with advanced safety features are always going to equal cheaper car insurance premiums. Safety features like airbags and anti-lock brakes are going to minimize the injuries suffered by you, your car and your passengers if you’re ever in an accident, which is going to lower your comprehensive and liability insurance costs dramatically. Remember, the less they’re likely to have to pay out, the less you’re going to have to pay in!

Security features like car alarms and GPS tracking systems can also pave the way to cheaper car insurance. Since your car insurance provider has to pay the bill if your car is stolen and/or vandalized, taking steps to stop that from happening will always win you bonus points with your insurer-and the cheaper insurance premiums that go with it!

Cheaper car insurance might not be the first thing on your mind when you go shopping for a new car, but it shouldn’t be the last either. Do your homework before signing on the dotted line and you’ll have the hottest car insurance rates in town every time.

Direct Car Insurance is the option of buying your car insurance directly from an authorized insurance company instead of going through insurance middlemen and independent agents.

To explain let us take this example. If you are sick with pain in your joints, there are two options you can choose from. You either go to a general practitioner and he would recommend certain medicines that would ease your pain. Or, you proceed directly to an orthopedic specialist, one who specializes in illnesses related to the bones of the human body. Chances are that the bone specialist would be able to diagnose the exact nature of your ailment and prescribe maybe some medicines or exercises that will at once have better effect on your condition. The general practitioner would probably have an idea about your actual condition but may not be in a position to accurately treat it.

Something similar happens when you choose a direct car insurance policy over an indirect car insurance policy.

One may argue that it is far easier to get quotes and information on car insurance policies from multiple indirect sources, as there are plenty in the car insurance market. It may also be a better idea as these indirect car insurers offer a wide variety of services in order to keep their car insurance policies better than the rest.

This is however not without its associated costs. Remember middlemen and independent agents and such indirect car insurers are in a business and not providing you the service out of charity. They obviously are looking for their profits. While on the look of it you may be offered multiple services at some good prices, you must never forget that you are paying a higher rate for the same. The independent car insurance agents are putting in their profits into the quote. The larger these independent car insurance companies are, the higher the hidden costs.

The direct car insurance agencies, on the other hand have their benefits. If you go at first to a direct car insurance company, you will directly be in touch with the car insurance provider itself. These direct car insurance providers are usually large companies which have in house services like emergency pick up vehicles, tie ups with official car service centers, legal advisors and such important services. What happens here is that these direct car insurance providers may not have to outsource their services to other car insurance agencies? Even if they do, they have clear and set procedures that are outlined. This removes the reasons for inordinate delays in providing emergency car services, settling claims and providing interim relief through rent a car services etc.

When you buy a policy from a direct car insurance agency you also save on costs. You can get cheaper car insurance with some very good facilities. Remember it is not the amount of services that you can get but whether those services can be used when you need them.

You may even be able to work out cheaper premiums for flexible periodic payments as well when you go to direct car insurance agencies. And to top it off you may even get some free extra covers along with your standard cover as well. These come in handy and end up saving you some money at a later stage. For example you may get free extended territorial cover or the direct car insurance agency may offer extended legal liability to family members. These would be specific to the district of residence of course.

There are some direct car insurance agencies that also offer you a better premium if you insure more than one car with them. This really gets you a good reduction in your associated costs and it always helps if there is just one direct car insurance agency that has to be co-coordinated with at all times.

There are quite a few car insurance companies which provide direct car insurance and you may need to shop around a little before you actually make your decision. This will also give you adequate knowledge about what the direct car insurance agencies are offering in the car insurance market. So remember, going in for direct car insurance is in the larger picture more beneficial to your pocket!

Besides their needs, certain people reinstate antiques car as a leisure Pursuit. These antiques car also require insurance cover on them. Your work is to find out the insurance company which provides Car Insurance for an Antique Car. There are a number of reasons such owners can provide to support their neglect for acquiring proper car insurance for an antique car, but to be so neglectful is borderline irresponsible. If one is going to invest a great deal of money in purchasing an Antique car, then a proper Car Insurance for an Antique Car policy will properly compliment the investment of the antique car.

Insurance Companies Providing Car Insurance for an Antique Car:

Not all insurance providers insure all types of cars. There are a multitude of different antique cars and the totality of antique cars includes exotic cars, military vehicles, motorcycles, tractors and trucks. As such, different antique car insurance policies will be needed to cover the various different makes and models of cars that are out there on the market. Keep in mind Car Insurance for an Antique Car policy take into consideration the equity value of the cars and vehicles.

A person looking for insurance for their vehicle has Car Insurance for an Antique Car from which to choose, and sometimes information can be conflicting and difficult to understand. Contractual language in most insurance policies is difficult to understand without an interpreter and even then, the meanings of some language may seem to be contradicted in other areas of the contract.

Self Governing Car Insurance for an Antique Car:

There are many self-determining assurance companies available to buy car insurance for an antique car. While the basic premise of obtaining Car Insurance for an Antique Car is the same for all car insurance companies, how they sell the policies, price the coverage and react to customer claims is what separates them. Car Insurance for an Antique Car must be licensed to sell insurance in the state in which they do business and not all will be available in every state. Depending on an area’s history of claims due to theft, weather-related losses and driving reputation a company may decide not to do business in a particular part of a state. Although there is some regulation concerning a company’s ability to only service certain areas. These companies lean to focus in antique car insurance and will not cover any other types of cars.

There are also many insurance companies presented to purchase car insurance for a classic car. These companies tend to specialize in Classic Car Insurance and will not insure any other types of cars. Some of these independent insurance companies will only insure a particular type of classic car, so if the car you are attempting to insure is a rare one, if may be difficult to find an insurance provider that will insure it. When choosing an independent insurance company to provide car insurance for a classic car, be sure that the company is a reputable one. You do not want to find that after months of paying the insurance premiums that the company will not or is unable to pay your insurance claim.

In making any purchase, you want that the item purchased must have a long term utility. However, while selecting the debt management technique a shift in the approach is quite noticeable. We find that short term debt management techniques like debt consolidation loans are much greater in use. Nevertheless, this is not double standard on the part of people. The choice is mostly influenced by the immediate pressure of debts.

Debt settlement techniques, which have a longer standing effect, are the rule of the day. People know them by the name of debt management in the UK. Debt management aims to strike at the roots of debt, instead of simply countering the after effects of debts. When debts are not allowed to increase, the use of debt consolidation loans and other short-term debt management techniques become redundant.

Why is debt management preferred to have a longer effect? The realisation is the result of people accepting that debt consolidation loans can give succour for only a time being, but not for ever. Even when borrowers are able to pay all the debts at a particular point of time, is there a guarantee that debts will not arise again? What shall one do at that time? Taking a new debt consolidation will not be a viable solution. The loan providers will be the first to deny loans to borrowers who have grown a habit of borrowing. And what about your home against which the loan is taken? Will it have sufficient equity left to be used for any other purposes? No! These are the reasons that have pushed borrowers towards seeking long term debt management.

Certain borrowers are perplexed at the inclusion of debt consolidation loans in debt management, when the debt management agencies themselves say that debt consolidation loans are of not much good. To this the debt management agencies reply in the following manner; “We do not recommend the total ban on the use of debt consolidation loans. What we recommend is a ban on the misuse of debt consolidation loans.”

Debt consolidation loans are rampantly used in the UK. It is because of the ease with which people are able to draw debt consolidation loans that people have started spending rashly; thus being further weighed down by debts.

Debt management agencies have come down on this habit of the people of the UK. Since debt consolidation loans abet people in taking more debts, debt management agencies also criticise debt consolidation loans.

Debt management makes a planned use of debt consolidation loans. Compare the situation with an ailment that a person is facing. Debt consolidation loans will be like a surgery to be performed. However, doctors will first try to cure the ailment through oral medication. The oral medication is to be given through debt counselling. Only when oral medication is not able to cure the ailment, doctors will suggest surgery, i.e. debt consolidation loans.

Debt counselling is referred to the advice to borrowers about the manner in which they can cure a debt problem. The advice is not general in nature. Debt counsellor, who is an expert, will sit with the debtor during a few sessions to discuss the details of the debt problem. When debt problem is at its preliminary stage, it will require efforts from the borrowers own side. Debt counsellor offers certain suggestions through which borrowers can bring upon a marked change in their finances. Debt management agencies have given a new look to certain age old principles of coping with debts. It is these principles that are made use of to inculcate debt sense in borrowers.

It is during these sessions that the debt counsellor will access the use of debt consolidation loans. The factors that will be considered while making the decision are as follows:

• What is the amount of debts that the debtor owes to one or different creditors?• Does the borrower have sufficient available income to repay debts on his own without using debt consolidation loans?• The nature of the debts- whether debts are accruing higher interest rate, and if they have already reached their repayment date.

The various tips that you learned during the debt management process must not be forgotten during repayment of debt consolidation loans. While debts owed to creditors have been settled, you continue to owe to the loan provider. Never must the borrower relax until the final instalment of debt consolidation has been made.

First-time buyers are finding themselves in a predicament with falling house prices as the housing market becomes more affordable. Expert opinion is they are being squeezed out of home ownership by the very large deposit they are required to have in order to secure their first mortgage.  Saving up to £25,000 for a deposit takes a lot of effort and you need to have the commitment to save that much money each month for a deposit. Lloyds Banking Group was recently rescued by taxpayer’s money when the government stepped in after they acquired the ill-fated HBOS (Halifax and the Bank of Scotland). Today Lloyds have released an innovative mortgage product aimed at first-time buyers looking to get on the property market.

Now is a good time for first-time buyers to buy their first home. It is a â??buyers marketâ?? and buyers can negotiate some great deals with sellers that are eager to sell. Property prices now stand at 2004 prices which make them excellent value and the fall in house prices is possibly nearing the bottom. The best time to buy a home is when the market is nearing the bottom of a falling market before house price stabilise and then start to rise which they will do one day in the near future.

This new product from Lloyds is a good deal for adults who are fortunate to have parents that are able help them purchase a new home. This is a niche mortgage product and unfortunately is not suitable for buyers where their parents are unable to help them financially. This will limit the number of people this mortgage will be available to help. The mortgage market remains an unfair battle ground as lenders battle to find more ingenuous ways to lend money without risk to their balance sheets.

The Lloyds banking Group are offering a very attractive mortgage deal for first-time buyers and an exceptionally low mortgage rate for a 95% mortgage; you would expect these interest rates for a 75% mortgage scheme.

Here is Lloyds lending criteria to secure a first-time buyers 95% mortgage:

1.      Mortgage for 95% of the property value

2.      A 5% deposit required

3.      Parents or guarantors will need to deposit 20% of the purchase price of the home into a Lloyds Savings Account for the next 3 ½ years. Lloyds have not announced the interest rate for their saving account yet. There will be a legal charge over the money deposited a savings account and the deposit is locked away for 3 ½ years.

4.      Income required is between 2 ½ times income to 5 times income. It is dependent on the type of job, time in employment, other financial commitments, whether or not you are a Lloyds customer already, etc.

5.      A £99 activation fee and a valuation fee based on the house price is required to start the application process.

6.      This mortgage is portable which means that you can move from one home to another without any penalty.

7.      There is no â??Higher Lending Feesâ?? which is normally added to a mortgage over 75% loan-to-value.

8.      There is a Penalty fee of 3% of the outstanding mortgage for the first two years and then a 2% fees for the third year if you were to sell the house and repay the mortgage early.

9.      This product allows up to 10% overpayments each year and after the first twelve months you are allowed to under pay the mortgage if required by any overpayments previously made.

10.  The interest rate is fixed from 4.39% to 4.89% for the next three years depending on the product fee you pay.

·         4.39% has a product fee of £995 which can be added to the mortgage.

·         4.49% has a product fee of £495 which can be added to the mortgage

·         4.89% has no product fee

This scheme works like this:

The house is valued at £100,000; the first-time buyer finds a 5% deposit of £5,000 plus valuation fees, solicitorsâ?? fees, search fees and other disbursement fees. The parents or guarantors agree to deposit 20% or £20,000 into Lloyds Savings Account for the next 3 ½ years minimum. After the three and a half years if the value of the mortgage has dropped to below 90% of the value of the home purchased then the parents or guarantors are free to move their money.

Their commitment to the legal charge placed over their savings money ends to the mortgage lender. The parents will remain tied into the mortgage until the value of the mortgage has dropped to below 90%. So parents could be tied in for a long time if house prices continue falling and the housing market does not recover soon.

If you take a repayment mortgage over 25 years for £95,000, after three years you would have paid back around 6% of the capital borrowed. So after three years your mortgage balance would be £89,300 and your parents would then be released from their legal commitment to the mortgage.

This is a great opportunity for first-time buyers to take advantage of in the current climate. First-time buyers are essential to the housing market returning to normality. Other products offered in the past required the parents, guarantors and grandparents to provide a legal charge over their own home and this placed them at total risk of losing their home as well.

Always take ask to speak to a Mortgage Adviser before committing to a new mortgage and ask as many questions as you need to in order to fully understand your new mortgage product. Mortgage Brokers who use the ‘whole of the mortgage market’ are the best. They will be able to provide you with the best mortgage for your circumstance from the whole of the mortgage market. Furthermore, they will be able to provide you with full ‘Advice and Recommendation ‘ for your new mortgage.