1stop Finance Shop Web Blog

Today there are many savings accounts that are available online.  Internet savings accounts allow you to access your account conveniently and securely, allowing you to view your account and make changes at any time, whether it is early in the morning or late at night.

When you open an Internet savings account you will be able to view the statement on your account whenever you choose.  You can also transfer money from one account into another with a simple click of a button.  There is a range of Internet savings accounts available online, and are similar offers from those that are found in a high street branch.  In fact an Internet savings account can offer you a higher rate of interest on your savings account than a high street bank.  Because there are less administration costs involved with an Internet savings account, you benefit with a higher rate of interest.

If you are concerned about security over the Internet, you can rest assured that all Internet based savings accounts use the latest technology to ensure that your details are kept safe.  As you are searching for an account online you will want to read over the terms and conditions on the account that the provider is offering.  You will want to check the rate on the account to check if the high rate of interest is an introductory offer or if it is for the life of the account.  You will also want to view the different types of savings accounts that are available to choose on that is ideal for you.

A study by SAGA and Principal International shows that half of their survey group,  aged over 50 will consider buying abroad with Spain as the favourite location.

Spain’s proximity to the UK, its climate and its slow pace of life are the determining factors.

However, realtors do warn consumers to avoid combining a holiday with property shopping.  George and Eleanor Whillock  set up Keyhole Property Search in Mallorca.

Whillock said: “You have an absolutely beautiful island with a vibrant property scene, but it is very competitive. It’s easy to get it wrong. People make the mistake of combining a holiday with buying a house. The combination of sun and wine can lead to the wrong decision, [especially] with some agents who can be a bit pushy. That was our experience when we were buying, so we got involved in helping people into the marketplace.”

However, moving to Spain is not cheap.  Apartments cost up to £1m and villas can cost as much as £13.4m in Mallorca.

But, Spain does have investment potential. “People are looking at high inflation on property prices,” Whillock explains. “As an average across the island in 2005, prices rose by about 15 per cent. We bought our apartment in June 2005 and paid €430,000 [£288,000] for it. Today it’s worth €650,000 [£435,000].”

Recent reports reveal that many UK consumers are purchasing homes around the world for their retirement partially for the investment, and partially to provide a variety of options.

The number one draw for the content is the lower interest rates.  Homeowner loans are cheaper in Spain, but like all things, consumers are warned to get a reputable agent and do not rush into anything.

There are many mortgages that are available, and that you may qualify for, and be interested in.  Today many lenders are pushing borrowers towards interest-only mortgages.  However, you must be aware that interest only mortgage is not for everyone.

An interest only mortgage is a loan where you will only pay the interest on the mortgage monthly for a fixed term, once the term has ended, you have to option to remortgage, pay the balance in a lump sum, or you start paying off the principal.  The typical term of an interest only mortgage is usually five to seven years.  Most people will end up remortgaging their loan if they are unable to come up with the balance of the mortgage by the end of the term.  If you choose to pay off the principal at the end of the term it may prove to be very costly.

You should only consider taking out an interest only mortgage if your income is mostly in the form of infrequent commissions or bonuses, or if you expect to earn a lot more within a few years.  You should really only consider an interest only mortgage if you know you will invest the savings that you are making by paying just the interest on the loan.  If you are a regular wage earner, financial advisors do not recommend getting an interest only mortgage, especially if they have no strategy for investing the savings.

It is worth discussing your options with your lender or broker to see what type of mortgage is best for you, and if an interest only mortgage is suitable for you and your needs.  By browsing and searching for the best offers, you will benefit greatly from the time and dedication that you committed to your search.

One of the most important steps in successful money management is saving money.  However, this is a hard step to master.  Many people quickly become discouraged when they attempt to save money, even when it is a small amount that they have to save.  Saving is a habit that you must form, and by making goals and sticking to it you can watch as your money accumulates and builds interest, encouraging you to save more and in time you will find saving money is easy.

When you first decide your reasons behind savings, whether it is for a down payment on a car, or a house, maybe a vacation or retirement.  Whatever your goal is, you have to make a set amount that you wish to save and what you are saving for.  This way you can always have this goal in mind whenever you find yourself spending money.

Once you know what you are saving for, you then need to sort out your bills.  You need to figure out how many expenses you pay out every month, along with how much income you receive.  This way you are able to sort through your bills and see just want is necessary and what isn’t.  Maybe paying for a cheaper package can reduce your cable bill, or you can do things within your home to help reduce your utility bills.  However, the biggest downfall may be your miscellaneous spending habits.  These are the hardest to overcome.  Buying a cup of coffee on the way to work, snacks as well as lunch while at work, and then other expenses such as clothes and jewellery.  These can add up over time and by writing down all your small expenses you will then realise just how much you are wasting, and how much you can save by changing some of these habits.

Once you realise what expenses you can save on, then you can write up a budget that you know will suit you and your lifestyle, and also help you to save money.  By setting aside a small amount every month, and sticking to your budget, you will quickly save up the money you need to obtain your goal.

Approximately, 65 per cent of British adults started saving last January, an increase from 51 per cent in December 2006, according to figures released from Legal and General’s MoneyMood survey.  This is collaborated by a report from UK payments association Apacs that claimed consumers are becoming increasingly adept at managing their debt.

Customer marketing director, Claire Stracey, said: “This is the highest figure we’ve recorded in three years of tracking and indicates the ‘MoneyMood’ of the nation is firmly in ’save’ mode.”

Around 22 per cent of UK consumers still overspend, the lowest level recorded by Legal and General.

The survey also reports a decrease in disposable income after paying bills and making debt repayment,

Stracy continued to say:

“A fall in household disposable money is the most likely factor in pushing down the mood to spend in our survey,” said Ms Stracey.

“MoneyMood found that the percentage of households who said they have money to spend after paying bills and debt payments fell again for the third year in succession.”

“A fall in household disposable money is the most likely factor in pushing down the mood to spend. We found the percentage of households which have money to spend after paying bills and debt fell again for the third year in succession. That would suggest fewer households would be in a position to spend this time round.”

This could have dire effects on the UK economy, which is currently driven on debt, secured loans in the form of mortgages and unsecured loans in the form of credit cards and store cards.

A recent survey by Unbiased.co.uk revealed that for  every pound saved in the third quarter of 2006, 49p was run up in debt. This means that consumers who have high debts and savings accounts are actually loosing money.

David Elms, Chief Executive of Unbiased.co.uk, who commissioned the report, said: “Consumers are beginning to sit up and take notice of the increasing calls to save – however, they are compromising these positive steps by continuing to borrow money to accommodate spending habits.

Until people take responsibility for their debt then the benefits of saving will be diminished.”

The financial adviser’s “Savings Brake” report outlines of the ratio of money UK adults borrow - not including mortgage debt - contrasted with how much they save.  This means that the actual figure of 49p is much higher than the report indicates.

The statistics revealed that the UK saved nearly £32 billion between July and September 2006.  However, while some people are taking steps to avoid debt, their misunderstanding about the impact debt has on their savings is eating their savings up, over the long term, faster than they can save.

“Consumers are beginning to sit up and take notice of the increasing calls to save, however they are compromising these positive steps by continuing to borrow money to accommodate spending habits,” said David Elms, the chief executive of Unbiased.co.uk.

“Until people take responsibility for their debt then the benefits of saving will be diminished.”

He concludes that the figures are “disappointing” and said:

“that although people are recognizing the need to save more they may not be budgeting to avoid taking on new debt”.