Why The Bank of Mum and Dad Should Adopt a More Professional Approach

More first time buyers than ever are turning to their parents to help them purchase a property as house prices continue to rise.

Why The Bank of Mum and Dad Should Adopt a More Professional Approach
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According to Legal and General’s 2019 Bank of Mum and Dad (BoMaD) report, UK parents granted approximately £6.3bn to help their children buy their first property, making them effectively the 11th largest mortgage lender in the UK.

It represents an average of £24,000 across the UK, including an average of £31,000 in London.

A helping hand

Whether it’s practical help like finding a solicitor for buying a house such as https://www.samconveyancing.co.uk/news/conveyancing/solicitor-for-buying-a-house-6267 or helping with moving in and decorating, parents do their best for their children, but when it comes to providing a cash deposit, the implications are often not thought through.

Lack of clarity

Sometimes it’s not clear between parents and their children whether any or all of the money is a loan, or what the conditions are. The situation can become even more complex if the children’s partners are involved.

For example, a mother tried to claim back money loaned her son for a property purchase. However, he died, leaving everything he owned to his wife. His widow claimed that the money was a gift, and in the absence of any documentation confirming that it was intended as a loan, the court agreed that the sum was a gift. The mother lost her claim and had to pay legal costs on top.

Written record

When a large sum of money is involved, as well as the complex scenarios that could arise, it’s crucial that the right advice is sought and an agreement drawn up. It ensures against disagreements and even greater costs should a dispute go to court.

Having that clarity isn’t just important for making sure loans are repaid or where other parties stand, it can clarify whether the money was intended as a gift. Should the parent die, documentation showing when the sum was given and that it was intended as a gift is essential information to take advantage of inheritance tax rules.

No professional mortgage lender would consider handing over money without a clearly set out, signed agreement in place, protecting their own interests and the interests of their customers.

The Bank of Mum and Dad should take the same professional approach.…

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Bad Credit Car Finance – Buy A Car With Bad Credit

Bad Credit Car Finance - Buy A Car With Bad Credit

Owning a luxury car, or a sedan or SUV is a dream come true and you can always buy your favorite car if you have ready cash with you. But, if you don’t have the ready cash available with you, then bad credit car loans can come to your rescue. Car loans for people with poor credit can be obtain at competitive rates based on you credit situation. There are many best deals happening out there in the car loan market, where the prospective car owner can easily get affordable interest rates for your poor credit auto loans. Applying for the loans is not a tough thing to do. Moreover, since the basic procedure of applying for the loan is same, irrespective of the fact whether you want to avail the loan by applying through dealer or you apply it online.

Car Financing For Those With Bad Credit

Gone are the days when shopping for car loans with less than perfect credit were really terrific as the interest rate incurred was quite high. However, as the times have changed, the very competition has changed the over all scenario of availing auto financing. You can easily buy a car with bad credit as the fair rates for poor credit scorer are available. Above all, since you can use the property as your collateral buying thee car has become an easy thing. But, despite the fact that car loans are available at low interest rates for people who are going for financing a car with not so good credit, the interest rates are still higher when compared to people who have good credit history.

It is quite significant to consider

here that people having poor credit history are the high risk clients and the lenders will decline the loan to such clients even if their loan application has got the approval. The lenders who otherwise offer credit car finance will inquire from your credit reporting agency, and this might take a little time for you to get your loan approved in case you financing a car with bad credit. Therefore, you need to show a little patience. Loans to buy a car for people with less than perfect are available at reasonable rates, and are seen as the boon for borrowers who are just thinking of buying a new car for themselves.…

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Bank of Mom and Dad Offers Great Rates

Bank of Mom and Dad Offers Great Rates

Banks are criticized for inadequate loans and for making too much profit. While some of these claims are dubious, there is one bank that undeniably offers very low-interest rates with potentially high loan capacity: Mother and Father Bank.

Lending money to children, both teenagers, and adults, is a valuable way to increase family wealth, provide opportunities and avoid burdensome gift and inheritance taxes. With both interest rates and asset values ​​low, now is a good time to consider low-interest family loans.

Tax Regulations

Under the current law, 2010 does not have a land tax. However, in 2011, the release rate will return to the 2001 level of $ 1 million. So, even though inheritance tax is no longer applicable, you don’t have to rely on a tax that remains that way.

The amount that you can pass to heirs tax-free before your death is also limited. Each year, an individual taxpayer can give only a limited amount to any other individual (including their child) without having to report the gift. For 2010 the cap is $13,000. Gifts beyond that amount count toward a lifetime limit on tax-free gifts, set at $1 million. Prizes above the $ 1 million lifetime exception will be subject to the gift tax. In 2010 the highest prize tax rate was 35 percent.

Family Loans

Family loans offer a way to reduce or avoid this inheritance gift and tax. It works like this: A parent gives a loan to a child, which can then be invested by the child, who tries to earn more than the annual interest he pays. If the parent had invested the money directly, those gains would belong to that parent and could potentially be subject to estate or gift tax when passed on to the child. Instead, using the loan strategy, the excess rate of return goes directly to the child, or a trust for the child’s benefit, with no gift taxes.

Free to Charge just The Minimum

The Internal Revenue Service sets a minimum interest rate that individuals must charge for a loan not to be categorized as a gift. This rate, known as the Applicable Federal Rate, changes monthly based on prevailing market interest rates. Most financial institutions charge much more than this, but the Bank of Mum and Dad is free to charge just the minimum. Since this rate is currently low, and asset values are also down, a child who receives a loan from his parent at the minimum rate should have little difficulty investing the money at a net profit.

Several Choices for the Family Loans

Children have several sound choices for their family loans. They may use borrowed money to buy investment securities, to buy a private residence or investment property, or to buy all or part of a family business.

One option is a portfolio of diverse investment securities, which, although volatile, generally have high rates of return over a long period of time. The Federal Rate that applies in August 2010 for a …

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Helpful Information on Business Finance Loans

Helpful Information on Business Finance Loans

When starting a business or if in need for some financial help for an existing business, there are several business finance loans. Depending on the size of the loan and the business will help in the decision on what one is right for you.

Guaranteed Loans From the Small Business Administration

The small business administration does not give you the loan directly, but can guarantee the financial institution that it will be paid. These loans go according to the requirements of the small business association. The 7(a) loan program is the most flexible and the one that SBA uses primarily. The major types of 79a) loans are express programs, export loan programs, rural lender advantage program, special purpose loans program, CDC/504 loan program, microloan program, and disaster assistance loan program. These loans are made for existing and start-up businesses.

Prior to Applying for a Small Business Administration Loan

There is a few things that you need to do before you apply for any loan programs. Prior to obtaining a loan with the SBA, you must first try to get financed through a different source. If the terms are reasonable and you qualify, you will not need SBA.

If you do not qualify, then you may apply for an SBA loan program if your business meets the requirements of being a small business. Check the types of loans that they offer and be sure they you meet the requirements. Make sure the program you apply for will give you enough financial help that is needed. Look to so see if there are any specifications you need to know.

Financial Information for Business Finance

Some of the financial information for your business finance will be different depending on if you already have the business or are just starting. If you have an existing business, then you will needs the last three years of financial statements. This includes income statements, balance sheets, and your net worth. If you are starting a business you will need to supply them with a projection of one-year about income, cash flow, and expenses.…

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Great Deals When You Buy New Cars on Finance Now

Great Deals When You Buy New Cars on Finance Now

If you are one of the thousands of people thinking about changing your vehicle then you should consider buying new cars on finance. There are a number of deals available now that can make finance products a practical option for your next car purchase.

Buying a New Car

There are many reasons why people buy new cars. They may be looking for something more economical and reliable or want to upgrade their car to a more luxurious model. Whatever the reason for buying new cars you could fund your purchase with a finance deal. Buying cars on finance is very straightforward these days and there are many different types of products available on the market. This means you can shop around and find the best deal for your needs and situation.

Shopping Online

The Internet is one of the best places to find great deals on car finance products. There are a good range of different lenders operating online and offering competitive rates for buying cars on finance. If you are shopping for your finance package online then make sure you do your research. Don’t provide any personal details until you have checked that you are dealing with a reputable lender. Also look for those providers that can offer good customer support including direct telephone helpdesks.

Dealer Finance

Don’t forget you can buy cars on finance directly from your local dealership. There are several benefits to using dealer finance:

– Competitive Rates – dealers are now offering some of the most competitive rates on car finance products available. They are motivated by the final sale to help customers find suitable finance packages and this means they can be more flexible than banks and other lenders.

– Fast Agreement – when you buy cars on finance from dealers you can often get an answer on your application in just a few hours. This means you could choose the car you want and drive it away the same day. This is ideal for busy people who need a car as soon as possible.

– Easy Process – it is easy setting up a car finance agreement at the dealership. They will talk you through the process step-by-step and it should only take between 1 and 2 hours to sort the whole thing out.

Buying new cars on finance can be a practical way to get your next vehicle. By spreading the repayments across a longer term you will be able to afford the type of car you actually want. This gives you the opportunity to choose a car which can offer economy, reliability and little more luxury.…

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