| 125 per cent mortgage welcomed by consumer website
A leading consumer website has welcomed Alliance & Leicester's decision to launch a 125 per cent mortgage, saying that it will help first-time buyers get on the property ladder.Recently, Alliance & Leicester said that it would offer people a 125 per cent PlusMortgage, which combines a mortgage with an unsecured personal loan.While Citizens Advice Bureau and the National Debtline have criticised the lender for offering people a deal that means that are reduced to negative equity from the start, moneysupermarket.com has welcomed the move."I believe A&L is acting with full responsibility in bringing this product to market," said Louise Cuming, the head of mortgages at the price comparison website."It's not surprising to see another lender join the 100 per cent plus market when first-time buyers continue to find it increasingly tough to get a foot on the housing ladder."Ms Cuming explained that the deal was not encouraging people to take on more debt that was appropriate, as it will "be sold via brokers and therefore borrowers can only access [the mortgage deal] after a stringent advice process."She added: "A&L is only targeting people with the propensity to take on this large amount of debt – and, in fact, lenders have historically seen lower percentage arrears in the 100 per cent plus market versus the 95 per cent sector."A recent report from Nationwide suggested that first-time buyers now have to spend £120 a month more to pay for their mortgage than they did a year ago.
New Tax Year - Good time to review your personal finances
Good Friday, 6 April, will be the first day of the new 2007/08 tax year and with less than a month to go, PricewaterhouseCoopers LLP is offering five top tips for getting taxpayers' financial affairs in order and making the most of the tax advantages available. Make use of tax free Individual Savings Account (ISA) allowances. The maximum investment limit for ISAs remains £7,000 for 2007/08. Of this, up to £3,000 can be invested in a cash mini-ISA, or the whole £7,000 in a maxi-stocks and shares ISA. The maxi-ISA invests in the stock market, so should be invested in for at least a five year period. Capital Gains Tax (CGT). If assets are disposed of, such as shares or a second property, and they make a profit, they may be liable for a CGT charge. However, gains may be reduced by taper relief, which reduces the rate of CGT the longer the asset has been held, from a maximum of 40% down to 10% in some circumstances.
Twits and wits: Malawian bloggers on new technologies, nature ...
Since the last Malawi roundup, the Malawian blogosphere has continued to be abuzz with posts announcing new technologies, news on Internet-based radios, existing radio stations going online, stories about farming initiatives, as well as reflections on nature and Malawian places of mythical, if not mysterious, interest. There have also been entries on the situation in Zimbabwe, politics in Malawi, and the hard work ethic that Malawians espouse when outside the country, among numerous other topics. Here with it all: Twitter and new technologies Malawian blogger, Soyapi Mumba, writes about Twitter, a cutting edge technological innovation that enables users to update others on what they are doing at a particular moment. According to Soyapi, because of its adaptability between SMS function in cell phones, IM messaging, and webpages, twitter has a much greater potential in Africa, where there are much more cell phone users than Internet users: So the launching of Twitter provides a good alternative considering that the use of mobile phones is much higher than that of computers.
RBA's Big Stability Tick
Sydney, Mar 27, 2007 (ACN Newswire) - According to the Reserve Bank, Australians appear to have their finances in good order, the banks have low levels of problem loans while, as we know, the economy is going very well.Good enough to put interest rates up next week after the April board meeting if need be.And while there are some areas where there are problems, the overwhelming story from the latest RBA look at the stability of the country's financial system is of no deep concerns.In fact when read with stats like retail sales, employment, housing finance and the national accounts, the economy and the financial system are almost in tandem.The only black mark is the unacceptably high level of foreign debt (mostly private) which is driving the current account deficit (AKA the yawning black hole).But looking at the benign commentary in the latest RBA Review (and it is no rosy coloured glasses stuff), you can well understand how retailing is doing well, the banks are doing well: why some sector are not doing well but not causing concerns.
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