Planet Sillicon

Safe as houses?

By blog on Feb. 22, 2010.

That adage is being tested these days, with repossessions still going on.

My last post on UK’s debt issues put me in mind of this. My SO told me the other day – after chatting with one of the neighbourhood’s friendly gossips – that two more houses in the nearby streets had been repossessed. We were shocked, as we live in a fairly well off area, so the idea of people in our situation losing their house is pretty surprising and a little scary.

We’re very comfortable in that sense, with no chance whatsoever of losing our house, but still, it pays to be cautious with how things are. Perhaps I”m just dour after talking about all this financial crap, but nonetheless, I’ll devote one more post to giving the small amount of advice I can for those out there possibly facing repossession.

There are some mind boggling mortgage deals out there at the moment, with up to 90% loans for houses, but those sorts of loans are what caused the financial crisis in the first place and shouldn’t be entered into without a heck of a lot of prior knowledge and a very, very stable income. But with housing prices still falling, they are very tempting for many, many Brits. I think those same people who are interested in these types of loans should perhaps do some research into repossession news, though those sorts of sites are great for anyone looking to avoid or stop repossessions.

I’m not saying that for sure if you get a large mortgage loan you’re sure to lose your house, but what I am saying is that many Brits are facing serious repossession problems at the moment, and that could be avoided with more insight into the current market, and more information on what to expect from the market in the coming months.

It’s not a situation for leaps of faith, but more a studied search over the edge of the cliff to see just how far you’ve got to go before you can land on solid ground again.

Car insruance keeps climbing

By blog on Feb. 15, 2010.

It’s no wonder why, either, with news stories about like the one I read the other day.

I was wandering around the web viewing all sorts of finance news articles. It’s amazing how much you can learn by reading an article, following a link to a related article, then reading that, then following a link to a related article, and so on and so forth. Anyway, during one of these meanderings I came across this news article about why our car insurance premiums keep going up here in the UK.

Surprisingly it’s because of the greater amount of money each insurance company is having to spend in order to cover their clients against lawsuits. This surge in personal injury claims derives from insurance companies sending their clients onto lawyers who specialise in this field, who then try to extract money from the opposing insurance company representing the other person involved in the initial car accident. The reason the insurance companies are sending their clients onto the lawyers – and the same deal applies with car rental companies – is because then those companies will pay the insurance company a referral fee, which can be up to £900.

Ironically, what started out as yet another way for insurance companies to try to get more money for themselves has actually ended up costing them more per year than it nets them, because of all the injury claims made against them. What this does me, though, is that the clients of these insurance companies are paying more every year to try to cover the cost of how much insurance companies are spending on pay-outs each year. Daft, I know.

I think people need to settle down a little here. If you are actually injured by the negligence of another driver, and you can’t work for a while, then sure, you’ve a right to be compensated. If it’s more serious than that, you’ve a right to be greatly compensated. But if you’ve got a bit of a sore neck and use it as an excuse to take three days off work, don’t try to take the person who gave you a tiny bump due to slippery conditions to court just because you checked some bloody personal injury calculator and figured out you could get some cash.

That’s not what the legal profession is there for, so stop abusing the system and hopefully your next car insurance quote won’t turn quite so many of your hairs grey.

Housing market still down in the dumps

By blog on Jan. 28, 2010.

You’d think by now it would be better, but alas, it isn’t.

Basically, I’m still noticing a lot of bad news regarding the housing market. Property prices in 2010 still expected to drop, somewhere between 10 and 40 per cent for the year, and that the little rays of sunshine in the market will die out as quickly as they came on.

House prices seem to be something that, if you’re interested in buying, it’s best to look into on a very regular basis. Small fluctuations in the market can make a pretty big difference for the average house buyer, because if you find a slump week – which could be a blip on the national financial radar – you could save yourself thousands of pounds. I also recommend looking into blogs these days, I’m not talking any old blogs, but there are some really comprehensive economy blogs around that can help you predict when you’ll be able to buy, and what sort of price is fair for what you’re looking at.

The market may have a bit of hope with the recent interest from property investors due to the poor results in the stock market last year, but there’s always the ubiquitous property and home buyers, those eternally searching for just the right house or property, but who never seem to find it.

I still see a lot of homes up for sale in my area, but every time I hear what one of those properties went for I’m a little surprised at just how much value has been lost from the housing market here. Mortgage rates are alright I suppose, but I’m shocked and irritated to see banks offering 90% mortgages again, so soon after the financial collapse brought on by 100% mortgage loans… what are they thinking? It’s such a shockingly stupid lack of hindsight in my opinion… shouldn’t they actually learn from the lessons at hand? It’d be nice, wouldn’t it.

Isn’t this how we got here?

By blog on Sep. 18, 2009.

I say that in reference to the financial crisis the world economy is still trying to pull itself out of and the prolific amount of fast loan places that are popping back up.

You see, what really sparked this entire collapse was a few people in the U.S. deciding it would be a grand idea if they gave people large loans, we’re talking house loans here, with no down payment. That’s right, loaning the full 100% of the total amount for a house. This of course lead to many people being the horrible situation of having a home and a home loan, but loan repayments too hefty to keep up with. They are referred to as high-risk loans. What then happened is other financial establishment went and bought those loans from the banks and so forth who originally issued them. Now, on the books, this looks like the company has a certain amount of assets, but if the person defaults, if they can’t keep up with their payments, that company that thought they had a few hundred thousand in assets suddenly has to write that off. Completely.

This is just one of the causes of the current financial instability – which seems to be somewhat on the mend – but it was a major factor in why so many companies lost so much money in such a short amount of time.

Anyway, what bothers me is that I feel people should have learned that quick credit, fast cash, short-term loans, all have a nasty way of coming back and biting you. I know it’s a pretty damn difficult time for most people, at the moment, but if they continue to buy into the cycle of loans, and then paying back at a minimum 20% – though you’d probably find it’s much more if you cared to check it on one of those loan calculator things – more than they borrowed, it’s going to be very difficult to break out of.

I suppose I also feel a sense of frustration with these loan brokers, that they are so happy to cash in, in spite of how it effects people. Bah! Anyway, if you are considering one of those short-term loans, please don’t if you can avoid it in any way!

An ISA savings account

By blog on Sep. 10, 2009.

If you want to save in a tax-free way, you’ll need an ISA savings account, but as with any account, you’ll need to shop around for the right one for you. In my case, I need to find one that suits me better than the one I currently have.

Lately I’ve mentioned that my SO is experiencing back pain, which means that she cannot sleep much longer each night than six or so hours. Sometimes this is more like four, and very rarely it’s been seven. I naturally like to sleep about eight hours a night, but can manage on a lot less. I don’t like sending my SO off to fend for herself with backpain, so each morning I get up with her, and do what I can. This means that for the last three weeks or so I’ve been getting not enough sleep each and every night.

Now, I’ve been unhappy with my cash ISA savings account for a little while now, and I want to get that sorted out ASAP. But it’s difficult to concentrate on banking figures and bonuses and extras when your brain capacity is that of a person who’s mildly intoxicated. Also, please don’t confuse the ISA with an ISA savings fund, the two are wildly different, and it’s just an odd coincidence that the acronyms are the same. An ISA account allows you to take a certain portion of your tax and put it into a savings account. You don’t get the money if you don’t have one of these accounts, that’s the way it is, so if you don’t have a specific ISA account to place to put it, each year you’re just throwing away thousands of pounds. You can also invest your ISA into fixed rates bonds, but I prefer the cash method.

There are services out there to help you find the best ISA, and that can make a huge difference. The internet is really a fantastic resource in banking, because there are so many unaffiliated sites, you get the real deal, so to speak. They aren’t – the honestly unaffiliated ones, anyway – trying to push one particular bank or account on you.

I’ve been thinking about one with Manchester, because at the moment there’s is the highest for interest rates, but still I’m not sure. These things need to be looked through thoroughly, not just a superficial inspection.

Food for thought

By blog on Sep. 6, 2009.

I wrote a comment the other day in one of my entries about home owners selling their homes and renting them back. There are companies who offer this, trying to sell themselves as a saving grace, a better prospect than foreclosure. I’ve thought about this and it just seems very unsavoury to me.

With the housing market not only taking a nose dive, but them trying to dig through the earth, people got very concerned about what would happen to them as a result. Most of us have felt some differences, even if it’s just noticing how much produce has gone up at markets. I think because this financial crisis started with houses, it’s been the housing markets and mortgage rates that people have paid avid attention to, and that’s understandable.

What bothers me though, is the scaremongering going on from those who benefit from those nasty sell for cash quickly or those ‘home buyer’ schemes. These companies are all over the place now, if you Google them you will find a smorgasbord of options, and most of them here in the UK. I feel like the common Brit really needs to arm themselves with better information, more mortgage news, because these companies are doing this because they are making a rather substantial profit from it, not to help people.

I know these companies aren’t evil, I’m not saying that, what I am saying is that these schemes are so very close to how this whole mess started in the first place, that it’s a little baffling how it’s happening this way now. I’m hoping to see a stronger upswing in the housing market, and hoping to see these companies slowly but surely move onto less exploitative endeavours!

Still very busy

By blog on Aug. 30, 2009.

And I’m not fond of it! I want more relax time, but there always seems to be more that needs my attention before I can relax.

For instance, I had a friend approach me to help them with some finance stuff, because they were looking to create an investment portfolio and they knew that I was interested in that sort of thing. I think basically he wanted to have some idea before he met with an accountant so he could sound the guy out. By no means am I an expert, but when you have friends that can tell you anything about something as… open to misuse by others, as money, then you make use of their expertise when you can!

I pointed him in the direction of a few good sites and said I would help more when I had the time, or he could go ahead and investigate all this himself. I wanted to help, but I didn’t have the time to sit down and help properly, and I didn’t want to help half-assedly. He came back to me today to say that he had found a good offshore financial service, and that he was going to be investigating it further. He offered to pass along what he found, too.

I found it really refreshing to see someone really doing their homework before investing anywhere, especially as, like me, the guy is busy! If everyone was as careful with where they put their money, then I think a lot of people would be a lot less worried in general life. That’s just the way it seems to me, anyway. There are things that are way beyond our control, like what happened to the international finance markets, and that is always going to be the case, but if we are careful with what we do have control over, then I’m guessing we would be able to accept easier those situations that weren’t our faults, and have a lot less situations where we could have done something differently to gain a better outcome. I’m rambling now, I know it. That’s it then, enough.

Unusual Finance Market

By blog on Aug. 23, 2009.

This last month has been an unusual one in the Finance Markets, with inflation rates pausing in their decent, in spite of predictions that it would continue to fall through July.

I’m not disappointed in that, to be honest, because I’m enjoying seeing the banks scramble to see who has the best interest rates on whichever of their account types. It’s enjoyable to see because banks pretty much got us into the global financial crisis – okay, mostly a few very selfish bastards associated with a couple of banks – and it’s nice to be aware that the common man isn’t the only one taking the fall out of those people’s choices.

I’ve often looked into savings rates, because it’s always important to ensure you’ve got the best deal you possibly can… a good savings account can be the difference in retiring a few years earlier or not… and I like to stay aware of the more relevant news, like this article here, for instance, I really like the fact that they are listing which bank is offering what rate, currently. I’ve noticed that foreign currency bank accounts are still offering good interest, too, which is nice.

It seems to me that banks are trying really hard to bring in cash again, and that’s understandable given everything that has happened. They really seemed to have taken on at least a modicum of a lesson about what not to do in the future, and I hope that lesson really does become ingrained in the global banking system. It has been a shocking reminder of what can occur if people aren’t responsible with the power they’re given.

Personally, I’m in agreement with the international banking reforms which have been suggested, I think this event proves that such action is not without warrant, nor is it over the top. If a small handful of people can wreak this kind of damage, then it seems it is an industry which deserves closer monitoring.

Poor Conversationalist

By blog on Aug. 22, 2009.

Today I found myself in one of those conversations where you just wished very sincerely that it would be over. Now. Right now. But I was stuck talking to a poor conversationalist.

Today I attended an IT conference, I know, that really is boring. It was alright, quite interesting, but there’s nothing like an IT lecture to put one in the mood for a nap, but I managed to force myself to stay awake through both the presentations in the morning, and then bolted out into the fresh air at lunch. I was sitting in the sun for about ten minutes when I realised I had nothing to do for the next hour. Presentations recommenced at that time, but it wasn’t long enough for me to go into the city and do anything, and my SO was at work, so I couldn’t talk to her, and I’d stupidly not brought anything to entertain myself during such a lull because I had driven to the conference instead of taking the bus like I normally did to work.

I saw a bunch of people sitting round a table having lunch, and I knew some of them from work, so I decided to go and sit and join them. With twelve people sitting round a table at an IT conference, it really was no surprise that they were talking of IT stuff. People’s favourites for PHPBB themes for forums, other people’s intentions to modify their websites with new Web 2.0 technology, and then there was one lady, the lady I was sitting next to, an innocuous, slightly older than you’d expect to still be working, especially in IT, she was talking about whatever and whenever. I could be following the conversation that the whole table was having, and then this little grandmotherly like lady would start talking to me about why her son remortgages his house every so often, and how mortgage news was actually an interesting topic.

I’m sorry, but it’s not, and your a very uninteresting conversationalist, even though you seem like a nice person. You can’t say that, of course, unless you have some sort of disorder of the mind, but hey, it’s nice to imagine such things which would of course lead to an offended lady leaving the table, and I could get some relief of normal conversation before I go back in for another round of IT presentation… Or not.

Thankful for the weekend

By blog on Aug. 15, 2009.

I am so thankful for the weekend right now, because it has felt like a mammoth week and I am exhausted!

Most of this comes from the severe lack of sleep I’ve had, due in large part to my sympathy towards an ailment my SO is currently suffering from. She has a back issue, currently, so she can’t sleep properly, and keeps waking up with severe pain somewhere between four-and-a-half to six, very occasionally seven, hours after going to bed. Now, I like a good eight hours, but when I see her getting up, I can’t let her go off to deal with it by herself, I want to help, so I get up with her and help her any way that I can.

That’s fine, that’s part of a relationship, and I know she’d do the same for me. I’m happy to help her whenever I can. The issue arose this week, however, of a colleague from work asking for my assistance to open a bank account specifically for offshore finance investments and the like. He’s heard me talking about such things in the past, and thought of me when he decided to get into that sort of thing.

Normally I wouldn’t mind helping him out, but it would mean doing it on the weekend, and I think this weekend I want to do little apart from sleeping and playing Plants vs Zombies. So I set him on the right path, at least, and told him he can either go ahead with it whilst I’m finding the right time to help him out, or he can investigate banks by himself and go ahead on his own steam.

Thankfully he understood that I’m not intending to be rude or mean or such, but that I’m really just suffering, like my SO, after a week of very little sleep! Alright, now I’m off for a kip, then I’m going to play more of that addictive little game. I can’t get that song out of my head, either… I may be starting to lose it.