Mortgage is a security that the lender makes to the borrower. One of the popular forms of mortgages is called interest only mortgages. It requires you to craft a monthly payment to mortgage lender to pay off the interest on the amount borrowed. Further a separate long term strategy should be committed in interest only mortgage and can comprise of an investment plan, inheritance or settling the property in the future. 

In case of investment plan mortgage can be paid off in one of three forms; an ISA (Individual savings plan), a pension or an endowment. Such investment should not be provided by the mortgage lender.

Interest only mortgage can also converted in to a repayment mortgage in the future and becoming increasingly popular among first time buyers who get it hard at first to afford the mortgage costs. Mortgage lenders in this manner are very keen to facilitate you with interest only mortgage as specifically design product. Beware! Making your interest only mortgage into repayment form in future can cost you nominal charges from lender.

  • If your set limit of investment growth exceeds then you may able to pay off all of your mortgage before due time
  • You can use tax free investment plan.
  • If your investment doesn’t excel as per you expectations, chances are you may unable to pay off your mortgage.
  • Debt will remain same throughout the mortgage period.
  • Penalties will impose on some form of investment if you stop paying premiums.

Posted by muzaffar abbas Monday, December 7, 2009 0 comments

Refinancing is very lucrative option for home owners for payments of their mortgage. Usually people opting for refinancing when interest rates falls and get money by applying for new loans to reduce the burden of existing loans .Although such offers seems very attractive but most people fall prey into wrong hands due to lot of hidden charges. Taking financial advice from any competent advisers help you out in this scenario .They know about financing more than you so be wise and consult with them before it’s too late.

As I said people having home mortgage loan mostly go for this option but you must understand the various types of mortgage loan types and their terms of the new loan. Following are some of many mortgage loan types that you may want to consider:

·         Interest Only Mortgage
·         Option ARM Mortgage
·         Adjustable-Rate Mortgage
·         FHA Loan
·         Reverse Mortgages

 Sometime the loan you obtain is a no-cost from any mortgage lender but remember they are in this business for making money. So if lender is not making money then they can increase interest rates high by converting the fees into loan. Albeit there are very few banks those are offering a cost free loan but are very limited in numbers. This is the reason you must compare the lenders and get a GEF (Good Faith Estimate). Although laws don’t forces GEF guarantees but you can ask lender for this as virtually guarantee. Following are the costs that you may pay:

Lenders can waive document preparation, Administration, processing, application fees as per your request. You should also understand the YSP (Yield Spread Premium). If lender did not pay YSP to the broker, you might have received a lower interest rate on your loan. Consider it on first hand because by the time you get noticed it, probably you are about to closing the deal.
Drawbacks to Refinances
·         Costs: In case you are paying fees to obtain the loan and can be expensive. To figure this out, do some math: add all the fees, difference between your old mortgage payments and you new payments. Then divide that difference into the loan fees, which will equal the number of months you must pay on your new loan to break even.
·         Longer amortization Period: You have option to minimize the period of amortization, by paying your loan faster, there is no need of higher payments and to pay more each month.
  • Bigger mortgage: By rolling the existing loan into new loan can increase your cost so be wise in this manner as well.
Refinance Benefits
·         Lower Monthly Payment:  by taking new loan to pay your home mortgage at low interest rate guarantees you a greater monthly cash flow.
·         Shortening the Amortization Period: If the new loan interest rates are substantially lower than the existing loan, then you must consider shortening the term of your loan in exchange for a slightly higher mortgage payment.
·         Cash in hand: Many obtain cash to invest at a higher rate of return than the new interest rate.

Posted by muzaffar abbas Saturday, December 5, 2009 0 comments

Public Liability Insurance is insurance plans where company will pays all the claims for damages and compensation if your business has caused injury or death to public lives or damage their property.  It is called must have plan for your business otherwise your business may look into serious financial trouble if all the claims need to be covered from your own pocket. Compensation amount cover by company can be extremely high and pays any related legal fees as well. Consult with your local adviser in your area for sound financial counseling.

There is no law that forced you to have Public Liability Insurance but the way it pays out in course of mishap asserted as essential part of your business. Usually most business have minimum of 2m pound cover but actually it depend upon the size of business. So you have to tailor your insurance policy that match exactly to your needs. Take advice from a knowledgeable staff from your local adviser and secure your business from any financial disaster.
Association of British Insurer (ABI) is an independent body that every insurance company should be a member of. Taking advise from any financial adviser is good option and if you are decided to do it by yourself then take all the necessary steps to check the insurer credibility.  Usually, premiums depend upon type of business and rated on an estimate of the level of the business. For most of the business it is turnover, but other factors may be used. For example, in a hotel business numbers of beds used to determined the numbers of guests.
Although there is no obligation by law on you to have Public Liability Insurance but you may find it very difficult when dealing with customers’ .Because they can ask for adequate proof for insurance in order to do any business. This is the reason almost every businessman have this policy that not only help to minimize the financial burden occasionally,  but  also give you a peace of mind as well. You can have extra pair of hands in your decision making process by taking advice from any local adviser.

Posted by muzaffar abbas Wednesday, December 2, 2009 22 comments

Employer’s liability insurance is a type of insurance where in course of any injury or disease if employee claims on employer then his insurer will pay the price to claimant. By law employer is bound to have such policy in order to cover the cost in occurrence of any physical injury or death to employee.

Albeit it protects the liability of employer’s on employees but not cover the claims like: Sexual discrimination, wrongful dismissal etc. These deeds not only shielded employers but employees as well in case of anything unusual happen to employees while doing their jobs. If being an employer you neglected the physical injury or death of an employee and prevented their loss, if then they decided to opting for compensation the insurer will bear all the losses.

Employer’s Liability Insurance is designed for the welfare of employees and to compensate them accordingly if they failed to work after any accident. But it all depends on to scrutinize the event that who is responsible; whether negligence of an employers or the employees. Laws forced you to have an Employer’s Liability Insurance otherwise authorities reserves the rights to shut you down permanently.

As indicated before that law compels you to have Employer’s Liability Insurance then people from any sort of business having employees must have this policy. Generally, claim can arise in number of ways, for instance: employees get injured seriously or leading to death due to employer’s negligence and will be held responsible. Thus your local adviser can provides you a set of guidelines to finalize the process from every aspect.

The Health and Safety Executives (HSE) are responsible to check the status of actually having a Employer’s Liability Insurance otherwise you are breaking a law and will be punished by them under rules and regulations. Next you are also liable to check the validity of insurer prior to getting policy. Furthermore you are also bound to show the relevant certificate to the employees by any means possible and should have the complete insurance record as well.HSE can inspect you any time and if you failed to satisfy them on papers then you will be fined heavily.

Posted by muzaffar abbas 26 comments

Although you can’t change the inevitable but can try at-least to make situation conducive. Suppose you badly injured due to accident and can’t work anymore, then how would you mange yourself financially? Insurance in this regard can help you through the situation and can improve your status economically. Accident, Sickness and Unemployment (ASU) insurance give you guaranteed financial support in case of accident, sickness or unemployment. Usuasally pays you the claim under these three sections on monthly basis up to designated period of time set under the policy. Payment can last up to maximum of 12 months depend upon the plan you picked.

Your monthly benefits are subjected to falling within certain policy qualifications. Your maximum benefit amount in this regard would not exceed when combined with other similar Accident, Sickness and Unemployment (ASU) policies so as cost when combined with other protected items such as mortgage or loan. After selecting the level of benefit of your choice the premium will be determined by the benefit amount. There are no extra rating factors involved such as age, smoking, drinking habits or life styles. Your  local adviser highlights the key areas of your attention towards achieving Accident, Sickness and Unemployment (ASU) policy. You can also use it for repayments of mortgage and loans. Accident, Sickness and Unemployment (ASU) usually covers the payments of mortgage and loans thus you can’t spare money for other daily expenses. It also can be very expensive in terms of cost and pays you for limited time or until restoration of your employment. Everyone can apply for ASU as long as your age is between 18 years to 60 years. Your working hours should be at least 16 hours in a week continuously up to 6 months. A payment generally starts after 60 days of work off. You must differentiate between Accident, Sickness and Unemployment (ASU) policy and other policies and take a wise decision towards acquiring certain one. Covers can be as low as 4 Pounds or 100 pound of monthly benefit purchased. If you are so concerned about the prices then you must checked them from various brokers. It can vary significantly from company to company.  You are directed to read the levels very carefully before selecting any plan because it may differ according to your circumstances.

Posted by muzaffar abbas 41 comments

Think for a second; you are running a small business with 10 to 20 employees and all of sudden one of your key man died or injured in an accident, then what will be the impact on your business? Of course it can affect you in downwards and your profit will decrease .Although insurances can’t be alternate of a person but at-least can give some stability to your business. In this hour of need insurance expert form a special type of plan called as Keyman’s insurance.

Keyman’s insurance covers the cost of business in case of any misfortune as mentioned above. It will not cover the cost of actual loss but a sum which is declared in the policy. By insuring your best employees gave maximum protection of your business and buy you a time in order to cover the cost of temporary staff, recruitment or loss of profit .Therefore, count as one of the most important insurance plan in business circle. Your local adviser  will educates you with all the relevant information connected to Keyman’s Insurance and can get highly professional financial advice with no hassle.

Insurance brokers are considered well suited people for getting quote on such insurance policies. Because it’s not like car insurance where you can get a quote in minute’s .When time comes to finance matters then timely good decisions apparently can boost the chances of the recovery of your business. After referring to your  local adviser the chances are high towards taking sound decisions in this endeavor. There are main four classifications of Keyman’s Insurance: Key people (covers when your influential employees are unable to work), Protect profits (pays you to protect the profit), Protect shareholders and Partners (securing the interests of partners and shareholders), and personal loan guarantees.

Keyman’s Insurance costs you in many ways like: the effect on profits if key man loss, the cost on recruitment and training in case of replacement and revoking of keyman’s loan after death or injury. Your local adviser also shares the information on the factors to determine the premium like: profit, salary, term and tax. Although taxes are exempted on premiums but you must inspect weather it qualifies for the exemption tax.

If you observe the situation in UK, you will see small that businesses with 10 to 20 employees are backbone of the country. If by any chance they failed to flourish ultimately effect the whole society. This is the reason Keyman’s insurance is designed to protect such people from any loss.

Posted by muzaffar abbas 0 comments

Insurance is categorized as risk management solution that indemnify in case of possible loss. It falls under many categories in terms of their working and payments. Being your local adviser we dedicated our service to counsel you in choosing your commercial insurance plan. It is a form of insurance that generally deals in property, liability and worker’s compensation.
If you want to secure your business or personal property in case of any mishap, you don’t need to worry about; our best resources will guide you throughout the process in order to help you cover the losses. Generally, property insurance is designed in a way that helps you minimize the losses. Proactive approach in this manner is always considered as a prime aspect to lower the risk. As you know the basic ideology of insurance is risk management; contacting your local adviser has set a standard that gives you peace of mind in course of opting such insurance plans.
An independent financial adviser in your area can suggests you the best among the good. There are whole array of products where you find an excellent advice while selecting insurance plans like; Debris Removal Insurance, Boiler and Machinery Insurance, Builder’s Risk Insurance, Inland Marine Insurance, Glass Insurance, Business Interruption Insurance, Ordinance or Law Insurance etc.
People more often unintentionally become liable of a loss which is not actually theirs, but still they have to pay the person who in fact faces the damages. Your  local adviser in this contest steps in and advises you to go for liability insurance; also referred as third-party insurance. In such kind of scenarios all the claims are tolerated by the insurance company, but exclusive of such claims done intentionally. We also keep an eye on every minor detail regarding insurance plans and advices in Error and Omission Insurance, Malpractice Insurance, Automobile Insurance, Directors and Officers Liability Insurance.
Workers Compensation facilitates the working class in course of employee injury while working due to employer’s negligence.  In case of any disaster all the claims are covered by insurance company however in some cases worker decides to settle it as tort claim and then must surrenders the payoff right on insurer.

Posted by muzaffar abbas 0 comments

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