Beware The Drawbacks Of A Bad Credit Score!

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A credit score is a value used by lenders and companies to see how financially trustworthy you are. It’s affected by factors such as when you pay your bills, how much money you borrow, and how much credit you use.

Most people don’t understand the importance of maintaining a good credit score. In fact, a report showed that 53% of households in the UK have never checked their credit report. It’s important to know how high your credit rating is, as a low one can affect your life in many ways. Here are some of the drawbacks of having a bad credit score.

Limited Borrowing Options

When it comes to getting a loan, a bad credit score can affect your options for the worse. Lenders often check your credit score before giving you money. Many will choose not to give you a loan if you have a bad credit score.

Having a bad credit score can often make your financial habits look worse than they are. Lenders will assume you can’t be trusted with money. It can make it much harder to get a loan when you need it. However, some companies look beyond these scores and offer poor credit personal loans for those who need it.

Your borrowing options can also be affected in other ways. Some lenders might require you to secure your loan against an asset such as your house. You may also have to deal with higher interest rates. When it comes to borrowing, a low credit score is also better.

Buying/Renting Accommodation

A poor credit score can also affect your living options. You might have trouble getting a mortgage, and some real estate agents may also be hesitant to deal with you. It’s not impossible to buy a home with a bad credit score, but you might still have to deal with higher down payments.

It can also affect your renting options. Landlords may not wish to rent to someone with a bad credit score. It gives the impression that they’ll be late with payments or be unable to make them. Once again, it won’t be impossible to find somewhere to rent. But your options will be limited, and you may have to settle for somewhere much less desirable.

It can even make your holidays more expensive. People might be hesitant to rent holiday homes to you. You might also have to deal with higher deposit fees.

Higher Insurance Costs

Insurance costs are one of the most crippling expenses for most people. Car insurance can take a significant chunk out of your income. Home insurance can also be expensive. These costs can be even higher when you have a poor credit score.

Car insurers take many factors into account when calculating your costs. Your age, the time you’ve been driving, and your car can all have an effect. Many insurers will also check your credit rating. If you have a bad credit history, you may be charged more, or they may refuse to insure you.

The same also applies to other kinds of insurance. You might be able to get a better deal by using an insurance broker. But suffice it to say, it’s always better to have a higher credit score.

Brave Enough To Buy-To-Let

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Buy-to-let has seen a resurgence in recent times.

As an income investment for those with enough money to raise a big deposit buy-to-let looks attractive, especially compared to low savings rates and stock market swings.

Meanwhile, the property market bouncing back has encouraged more investors to snap up property in the hope of its value rising.

Mortgage rates at record lows are helping buy-to-let investors make deals stack up.

But beware low rates. One day they must rise and you need to know your investment can stand that test.

There is also a tax rise coming, as buy-to-let mortgage interest relief is axed and replaced with a 20 per cent tax credit.  Additionally, from April 2016 landlords now have to pay an extra 3% stamp duty on property purchases.

Recent history provides an important lesson in how returns can be hit. Many investors who bought in the boom years before 2007 struggled as mortgage rates rose. A sizeable number were thrown a lifeline when the base rate was slashed to 0.5 per cent. Rates have stuck there since 2008, but remember they will rise again.

Yet despite the tax changes and potential for mortgage costs to rise, greater demand from tenants, rents that should rise with inflation and the long horizon for interest rate rises, mean many investors are still tempted by buy-to-let.

If you are planning on investing, or just want to know more, there are essential things to consider for a successful buy-to-let investment.

Like any investment, buy-to-let comes with no guarantees, but for those who have more faith in bricks and mortar than stocks and shares there are many things you need to know. On a positive note, good advice is plentiful and nationwide and whether you are looking for conveyancing solicitors  or the perfect insurance company, there is no shortage of resource available. Some of the finer details are included in this helpful list.

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Essential house purchase documents

Buying a house is a long, complicated process and it’s all too easy to forget the finer details. We take a look at the essential documents you should have with you once you complete your house purchase.

 Essential house purchase documents your solicitor / conveyancer should provide

  • Title Deeds: Normally you won’t have title deeds – this is because the Land Registry records are now all digital.
  • You may have title deeds if your property hasn’t been registered before, but this is becoming quite rare. You should still get confirmation from your solicitor that s/he has registered you as owner of the property– your solicitor should provide you with a copy of the registered title showing you as “registered proprietor” within a month or two of completion.
  • If your property is leasehold, your solicitor should give you a copy of the lease (with lease plan of your property) and any service charge accounts or forecasts.
  • Your solicitor’s report on title is a useful document to keep handy. As well as including a summary of the legal title and property search results, it should also have attached the seller’s property information form which contains lots of useful practical information like the location of the water stop cock, electricity and gas meters and confirmation of who is responsible for which boundary fences.
  • For new builds (or properties under 10 years old) – you should have a copy of your Buildmark (NHBC) or other new home policy/warranty documents.
  • Confirmation from your solicitor that stamp duty has been paid (within 30 days of the completion date).
  • As appropriate, you should have a copy of any restrictive covenant indemnity insurance policy, chancel repair indemnity insurance or any other legal cover if required by your solicitor (if it is required, the reasons for this will be explained in the solicitor’s report on title).

Essential house purchase documents from your seller (if not already provided by your solicitor / conveyancer)

  • Guarantees – e.g. any recent damp-proofing, new appliances (oven, boiler, etc), FENSA (double-glazing) certificates. FENSA certificates last 10 years; damp proofing guarantee should also be about 10 years. New appliances can have a warranty period of anything from 12 months to perhaps five years for a boiler.
  • Records of servicing of boiler.
  • Electrical certificates for any electrical works/rewiring.
  • Building control certificates for any extensions or conversion works that may have been done to the property.

Essential house purchase documents as a buyer

  • Buildings insurance policy details and contents insurance policy details (if you decide to have contents insurance).
  • Survey – if you have had a survey, it is useful to keep a copy of this to remind you what issues were raised/might need attention soon

Injured and Out Of Work – How To Keep Making Money

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Being employed and getting injured will generally make you liable for sick pay. But what if you’re unemployed and injured – where do you go from there? For most of us this is a nightmare scenario. Sure, there are unemployed people out there who will reap the system after spraining an ankle. But for most of us this isn’t the case – we want to work and an injury can be massive setback, preventing travelling to interviews and doing any trial shifts. That said, all is not lost. If you need to make money, here are the ways you can do it.

Work from home

There are a surprising amount of jobs out there that that you can do from a laptop or phone from the comfort of your own home. The more well-paid jobs – writing jobs, web design, accountancy and sales – may require qualifications or experience. But there are other money-making methods out there that don’t such as answering surveys.

Interviews may not be needed, although can be conducted over the phone or Skype if necessary. It is important to tell your employer that you are injured, even if working from home. Many employers may respect your work ethic enough that it could serve as a bonus in the hiring process.

Sell items online  

Although you may not be able to go out to the shops and flog items, you can still do it online. Being housebound may in fact be
the perfect opportunity, giving you the chance to assess your belongings and declutter what isn’t needed. You can pay for people to pick up items and also get packaging sent directly to your door, so that you don’t have to go out to the shops and get it. People have made livings buying and selling things online. You will need to declare tax if it becomes a regular income, but it can still be worthy venture if you’re going to be out of action for a while.

Make an insurance claim

Some people will sue for anything. Others will never make a claim for an injury, even if they are perfectly in their right to. Consider how you got your injury – could it have been prevented if health and safety regulations had been put into practice. Personal injury claims could be worth pursuing if somebody else was responsible for your injury. Don’t be too proud and let others get away with putting you out of work.

Look into benefits

If the extent of your injury if so severe and you cannot physically work (even from home), contact the Department for Work & Pensions and they may be able to give you some worker’s benefits. If you’re particularly sick or have just gone through a serious operation, this could be worth pursuing as a temporary relief. Just remember that this will have to be your sole income – no extra job from home on the side!

 

Secrets Revealed: Shifting A House That Just Won’t Sell

The sale of a home can just as stressful as buying one. There are some times when you just want it off your chest as soon as possible. At the same time, you don’t want to get burned by a lower price. You don’t have to rely on house buying businesses. Here’s how you can speed up that sale with your own actions.

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Make it a more attractive sale

Naturally, the first thing you want to do is attract buyers. Nowadays, most buyers look online before they look in person. The first minute they take looking over the details of the home are a make or break situation. You need to know how to grab their attention in that time. That means finding out what people really want from a home. They don’t just want to know how many rooms it has. They want to know what the area is like. They want to know what’s near it. Focus on selling more than just the home. Sell everything you can about the location.

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Get more people looking
Besides making it a more attractive offer, one of the best ways you can get people acting quickly is by having more looking at once. Instead of arranging individual viewings, you should consider hosting an open house. If more people are looking at once, they’re aware of how much attention the property is getting. That creates a certain tension and even a competitive nature that can get you the offer you want a lot sooner than you might expect.

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Get the right help

Finding the people who are going to buy your house isn’t where it stops, however. There are legal steps to take care of. The conveyancing of a house is a process that can take quite a while. But you shouldn’t let it drag on too long. Some conveyancers will simply take their time getting back to you because they know they can. Instead, they’ll look to finding more business. So, make sure you’re finding trustworthy, recommended conveyancing solicitors. Make sure that you have your conveyancing fees ready before you start selling, too. The quicker you are at preparing, the quicker you can get the ball rolling.

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Get competitive

Sometimes, you have to take a slight step down if you’re not getting any bites. A lot of homeowners will list their price high in the hopes of getting haggled down to what they really want. Go too high, however, and people won’t even bother trying to haggle. You need to make sure that you’re competitive in your pricing. Get an inspection and a valuation done yourself. Use your local registries to see how much similar homes in similar areas have been sold for. When all else fails, rely on cold hard data for your pricing.

Getting a good sale quicker means working to speed up every individual element of the sale. From the advertisement to the paperwork. If you know how to make your home a truly attractive deal, then you shouldn’t have trouble getting a bite anytime soon.

Living Options: What Makes An Ideal Place To Call Home?

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Where you choose to live is arguably the most important decision of your life. It can affect the people you meet, the job you get, and your general quality of life. It’s also a huge financial decision. It’s never something to be taken lightly, and there are many things to consider before you call a place home.

There are many living options to consider. You might opt to buy a house, or rent an apartment. Some people even choose to live out of a mobile home. Other factors, such as what’s available in the area, also make a difference. Here are some of the factors which can make an ideal place to live.

Affordability

Affordability is forefront on most people’s minds when they choose a home. Living somewhere beyond your means will only drain your bank account month by month. With less to pay, you’ll be less stressed and have more money for other things.

Many young people prefer to rent homes for this reason. Buying a house is a massive investment, and also involves cost such as upkeep and insurance. Apartments and rental homes often work out much cheaper in every regard.

Location can often have an impact on affordability. Some places are more sought after than others, leading to higher property prices. For affordable living spaces, you may need to look further away from busy city areas.

Local Amenities

The stores, services, and features which surround a house or apartment have a significant impact. Convenience is key, so having supermarkets on your doorstep can be a big help. Many people also enjoy having local parks and fitness centres near their home.

These features often affect the value of properties. Houses near lush green spaces and plenty of bars and restaurants will often be more expensive. Universities often build campuses to provide affordable student housing with great amenities. Housing companies often do a similar job by building affordable homes in attractive neighbourhoods. You can find various examples of these, such as yarrabend.com.au.

Nearby schools also make a great place to live for families. Many parents look to buy homes near the best schools in the area.

Safety

Crime is a concern for most people looking for a home. Having to insure yourself against the high-risk of burglary can be expensive. People also fear for their personal safety when walking home in some areas.

Before moving to a new home, people often do their research on sites like myboot.com.au. Although these areas can be cheap, people would much prefer to stay away from dangerous suburbs. It’s also a major concern for those raising families, as they want their kids to be safe.

Proximity To Work

People often dread the commute to work in the morning. Having to travel for hours on a train can be mind numbing. Driving during rush hours can drive commuters mad.

That’s why a home close to your workplace makes a fantastic place to live. If you’re close enough to walk or cycle, you can go to work every day in a good mood.

It also helps to be close to friends and family. Having the people you love nearby can improve your quality of life, even if you don’t have the nicest accommodation!