21/06/2014 Your Money


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The savers who want more for their money and borrowers who are worried


that it will make their mortgages less affordable.


Welcome to Your Money, your weekly guide to making the most of your


cash. Interest rates on the way up `


eventually. We'll tell you what to do now to


boost your savings How to make sure you get what you


expected for your money when you treat someone to


the thrill of a lifetime. And making sure you've got


the right insurance if you've got The Bank


of England's interest rate was Well, now the Bank's governor has


hinted it could be before the end But what does that mean if you've


got a mortgage, or you're relying The interest rate we get or pay at


the high street banks has for a long time paid very little attention to


what the Bank of England charges. Two great experts to give lots


of advice for savers Jane Symonds, financial expert from the


independent Money Advice Service. For mortgage owners, Ray Boulger,


voted Guru of the Year From the independent brokers


John Charcol. We will talk about savers, if rates


are going up, you might not want to have a fixed rate deal now?


Locking it in now could see you losing out in the future. We would


recommend that you keep your savings fluid, check out the tables.


And the other reason for checking the best buy tables to make sure


that you are getting the best deal, because interest rates might go up


before they make a formal announcement, if the money markets


seems to ring that it is going to happen?


They might to, although there is a government initiative which is that


they do not have to work as hard to get these savings. We might not see


the impact until later in the year, but always keep an eye out for the


best buys. At the moment, some of the current council giving you the


best rates and flexibility that you need. Do not lock it in yet, there


are better times ahead for savers. The point of the ice count is that


it is checked. Here is the headline saying that


some rates could be close to zero. There are some bad rates out there.


Yes, the race is the first game. We have information on the `` the rates


are the first day. We have information on the website. Keep


your eye out, keep it flexible, be prepared to move quickly when there


is a good rate. Do not expect them in the next couple of months, but it


will happen. You and Ray have a long history of


working together to help people. He was my men talk, he told me `` he


mentored me and taught me everything that I know about mortgages.


These rates have been falling because of the scheme to get the


banks to lend more money. Are they still falling now?


The fixed rates have been going up. They struck bottom five years ago.


Now the best rates are around 3%. They have not gone up that much yet


since the comments, so it is not too late to get a deal. There are good


deals out there, some places are struggling to cope with the volume


of business that they are going. Is it worth fixing now? Is the


prospect of a rise in the rate going to lead to an increase in


mortgages? There is no doubt that when we get


the first rise, most lenders will put up between 4% and 6%. I think is


that goes up, some of the lenders with bigger rates will not follow,


but the fact remains that if you are paying standard variable rate, there


are plenty of options to get cheaper fixed rates and locked in, providing


that you have a reasonable amount and you can `` prove your income.


The people who cannot do anything are the people who are on a fixed


income. They need to wait for that to run out.


Since the beginning of last year, many people have been taking fixed


rates or five`year fixes. Just under two thirds of people have got


variable rates. 60% of those who have fixed rates only have two`year


fixes. So people with short`term fixed rates need to look at this as


well. Some people who are on a two`year fix which might come to an


end at the end of this year, it is early to start thinking about what


is next. Many people have stretched their


finances to afford their mortgage, even a small rise in interest rates


could give them trouble? Yes, it is something that we are


keen to address. Take a look at mortgage payment calculator is to


look at what would be the effect on you and start living as if it had


happened already. Make a budget, or the good money management things. If


you think you will have a problem and you cannot deal with it, speak


to your lender and creditors early. If you allow yourself to get behind


on payments, it will affect your credit rating and your ability to


get good deals in the future. If you have ever wanted to throw


someone out of a moving plane, spent enough money on it and you could say


that it is a gift. These gift experiences have become a


fashionable present. But you have to do read the small print to get what


you expected for your cash. Here is one way to celebrate 90th


birthday. The former US president George Bush clearly wanted some


peace and quiet. But you do not have to go over the


pond to find adventure is pensioners. This ex`school secretary


Barbara has not stopped until she `` since he retired.


I have piloted and aircraft, I have walked down a building, jumped with


a parachute, a wing`walk and I have walked around the sky Tower in New


Zealand. Something inside me tells me to do it.


What does it feel like when you are out there?


It was like being up in heaven. The only thing that was not nice was the


cold air up my nose, but apart from that, everything was wonderful.


It is easy to find shops and websites selling experiences, a


voucher for an unusual day out parcelled up as a present for a


special day. There are many specialist firms. You can spend ?10


for a spa treatment to hundreds of pounds for something extreme. The


average spending according to the association is ?50. But you must


look at the small print, because if you don't, availability may be tight


and that special day might just drift away.


Experts warned that the voucher might be valid for yes `` less than


a year and that insurance might not be included. You need to do your


research. You need to look through all the


terms and conditions to find out what you will do on the day. If you


are booking an experienced a racy because, you need to know how long


you will be driving for, `` to drive a supercar, you need to know how


long you will be driving for, whether or not you will have to pay


for people who want to watch you. That is advised that Barbara's


family will take on board as she makes her next adventure.


I want to go to Silverstone. She has no intention of slowing down


just yet. Our reporter learning never to work


with balloons. The price of classic cars has gone


up five times in the last ten years. Welcome to the programme. What is a


classic car? It tends to be a car that is 15


years old or older. It is a car that someone would love and cherish,


rather than be an old car. Anything older than 15 years, but it is also


happy view the car. It has to be well looked after, it


cannot be a rusty heap on the street.


No, but many of them are in garages and they could be worth a lot as


well people do not realise. There is a concern in the industry


that the price of them has risen so quickly and so much that people may


not have the right amount of cover. Why that problem?


With classic car insurance, people agreed the value with us. That may


have been done many years ago. We had a client this week who had a car


insured for ?35,000, and we have been writing to clients and asking


them to review the value of their car. It is difficult for us to


assume that the car is worth more. The client came back to us having


had a professional evaluation and the car was with ?80,000. So what


those that the car would be worth ?35,000, we might pay out more.


If you need to get it replaced, then the insurance might not give the


full amount. But these things are irreplaceable, aren't they? If you


own one of these cars, it is not amount of money, it is the value of


the car to them? Yes, it is what we are finding. It


is the people who have got these cars and have had them for many


years, who it means more than money to them who do not realise how much


the car is worth. We wonder whether it is the


insurance companies trying to pay more for premiums? I am in these


last it about classic cars and I want them to be insured properly.


The gentleman who had his car valued at ?80,000, she was only paying 15


more pounds a month. If people have a claim, we want to make sure that


they have something equivalent to what they had. It will not replace


the car, but if they cannot find a car similar to what they had, it


will be a real problem. That is all from the programme this


week. The pages on the BBC website, all the news about the money in your


wallet. And you can get updates by following our social media, on


Twitter. We will have more next week, goodbye.


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