This international women's day we spread awareness for those who work in the financial and business sectors where they suffer from inequality at work.
As one of the top business and financial regions, London is on top in many areas with booming business and advances in investments and more. Despite this city’s success it is greatly behind in it’s diversity and equality movements.
Bloomberg’s report from 40 women across banking, insurance and asset management in Britain have describe diversity and inclusion initiatives as ‘tokenistic’ and lacking any real change in the industry.
Many believe we won’t reach gender pay equality until at least 2050 or later.
Change is moving too slowly to make a real impact in the long run and many are worried how long it will take to reach gender impunity.
The UK parliament released a report on the Treasury Committee’s urge for action on tackling sexism in the city.
The trade union Unite explained:
“We lose good people [ … ] at menopause, when you have qualified, capable women choose to leave their roles due to the lack of understanding and willingness to work through the issues and keep that good person in role.”
The Financial and Business sector needs to do more to improve it’s equality and diversity stand point. This will widen their talent pool and improve the skill shortage problem in addition to encouraging more women to take on senior positions as well as enter into the industry to begin with.
If you are trying to save, learn more about finances or want to take on some new techniques for your money then reading from those who have done it or are experts in the field could help you.
There is so much advise out there it can become overwhelming, when finding the book for you make sure it contains what you are looking for and won’t make it more complicated than necessary.
Below is a short list of books which could help you to invest, save, learn about finances and help you build better habits. Pick up one of these helpful reads for world book day and learn more about your finances.
House prices are falling and many believe they will continue on this path through 2024.
This sounds like good news, however for those selling their properties, this means they are having to reduce their asking price. Also, with high and rising mortgage rates, many people still can’t afford to buy.
Despite house prices falling they are still far above the rates of pre-pandemic house prices due to inflation and high mortgage rates. People can no longer afford to borrow the money necessary to buy a house meaning fewer houses are being bought. Even if people have saved for a deposit paying back the mortgage loan creates a heavy financial burden.
The Bank of England has held the base rate at 5.25% and as a result the average mortgage rates have shot up.
With mortgage rates rising, less people are able to afford to take out the loan, pay the deposit and it is harder to prove you can afford the high rates.
This means buyer demand has decreased across the property market forcing those selling property to keep the prices low.
Zoopla has found that areas in Essex, Kent, Norfolk and Suffolk have seen the greatest price decreases.
Colchester in Essex has seen a 3.7% decrease with the average house price at £303,500.
Even in popular cities house prices are slowly falling such as, Manchester, Liverpool and Edinburgh.
Rightmove found that houses in Greater Manchester have an overall average price of £253,806 with most sales being for semi-detached houses with a 1% fall in average prices in this area.
The Financial times reports that commercial property investors are on the prowl for cheap deals as rising interest rates force many to sell their property in an inability to refinance. Many are having to sell this year and are forced to keep the asking prices low to match the demand, this means investors could very well find a great deal this year.
When Mortgage rates begin to decline, the hope is that more buyers will flock to the property market as more people will be able to afford the loans.
Buying a house when the prices are falling would give you a great chance for a better return in a few years when the house prices rise once again meaning you could make a bigger profit when you sell.
In areas listed above, the house prices are falling significantly allowing you to find a great deal on your home in these locations.
As well as areas with falling prices, Move IQ has comprised a list of areas where house prices are the cheapest including Bradford (BD1) being the lowest with an average house selling for £69,939 in 2023.
If you can match the costs of mortgage rates and afford the deposit then this year could be yours to take the first step onto the property ladder at a lower cost.
In the Spring Budget Jeremy Hunt, the Chancellor Exchequer has been hinting that there could be tax cuts coming up.
Income tax is the tax you have to pay on your annual earnings or, if you’re self-employed, any profit you make. Depending on how much you earn determines how much income tax you pay. So, the more you earn, the more money you are paying in tax.
Income Tax is used to pay for public services and is the main source of income for the Government. The NHS, railway systems, education and more is paid for using income tax.
You are placed in band based off of what you earn, decided by HMRC, who collects the tax and the higher you earn, the higher your band, the more you pay and so the amount is as fair as possible.
The band you are in decides your tax code and therefore how much you can earn tax-free before you begin paying taxes on your earnings so, you could earn up to £12,570 before being taxed if your tax code is 1257L.
The government wants to cut taxes to relieve financial burdens across the UK however it has been suggested that there may not be enough money to do this.
With the elections coming up this year, the government is eager to make decision which will increase their poll numbers. As the UK entered a recession, the conservatives are under pressure to alleviate the financial pressures on the public.
If Hunt decides to cut income taxes then there will be the question of, what will pay for the public sector such as, the NHS? This could be spending cuts or using alternative funds.
If income tax is cut this will mean you will keep more of what you earn and be better off financially.
A tax cut will mean a decrease of how much you pay and will not altogether abolish income tax, they have been hinting at a 1p cut which could be beneficial to many.
On March 6th the Spring budget will be announced and we will find out what plans the government have made.
As the higher cost of living has continued to stretch household budgets, the flexibility for consumers of buy now pay later (BNPL) deals has become increasingly attractive.
Recent research carried out by the Financial Conduct Authority (FCA) last October, found that around 27% of UK adults has turned to BNPL in the six months to January last year.
This was a significant 17% higher than for the 12 month up to May 2022.
If you are looking to buy an item using BNPL there are plenty of issues to consider, alongside potential pitfalls over failing to make payments.
It’s also important to remember that BNPL is a way of borrowing so its best to ensure that you have a repayment plan in place.
The one obvious benefit of BNPL services is that buying any priced item is more manageable, as payments can be spread out into smaller amounts.
Payments are allowed over the course of weeks or even months depending on the terms and conditions from a BNPL provider.
For example with Klarna you can pay for your item in three instalments, where the first payment is made at the point of purchase, with the outstanding instalments to be made every 30 days.
Typically any purchase that is made through BNPL is interest free, so zero per cent financing is a draw.
Increasingly consumers are also able to use BNPL services in store as well as online if a retailer is signed up to a BNPL provider in the same way that you are, details such as email addresses and phone numbers would need to be provided to confirm payment.
While it is probable that a credit check will be performed when applying for BNPL, it is not likely to be a rigorous assessment of your finances and will nor be viewed by other lenders.
Of course there are downsides to this and make sure that you do not believe that this is easy money and any debt will have to be paid back, as the credit checks are softer you may be approved for BNPL without being able to afford it.
Yet some BNPL providers do go the full distance and proceed with a full examination of your finances, this can potentially lead to your credit score being damaged if for example a deadline payment is missed if it cannot be covered.
The lack of regulation over the BNPL sector is a concern, and its important to be aware that any agreement that lasts a shorter period than 12 months is not regulated by the FCA.
This means that if there area any disputes over unfair treatment then there is no consumer protection in place.
If you make a BNPL payment with a credit card it means that you are not covered by section 75, which allows you to ask for a refund if there is a problem with an item that costs between £100 and 330,000 where you have paid by credit card.
A penalty fee can be charged if repayments are missed, where potentially debt collections agencies can be called in, depending on the approach from a BNPL provider.
Some providers may try and work out an alternative repayment schedule, such as rolling on a payment over to the next instalment deadline.
That is why it is so important to fully check what the penalties are from providers.
Klarna will try on two occasions to take the first payment, if it cannot be covered it will be pushed back to over to the second instalment.
If after two more attempts on the second payment that the costs still cannot be met, then it will be rolled on to the final payment.
At that point if the payments can’t be made then the debt collection agency is called in.
There is also a risk of being banned from using Klarna if payments are missed.
Clearpay say that late fees will be charged, but late payments will also be capped to help people recover and get back on track.
While Laybuy will take a considered approach where the circumstances over late payments will be taken into account, and look to find a solution by determining what payments can be made in the meantime.
If the situation continues for an unspecified period of time, then debt agencies are brought in.
More positively Paypal have a Buy now and Pay in 3 offer to consumers, and it makes it clear that there are no late fees involved if payments are missed.
ISA stands for Individual Savings Account and allows you to save whilst earning interest and is tax-free. You can save up to £20,000 in a tax year tax-free. Having an ISA helps people to save for things like a house deposit as this a great, money-efficient way to save large amounts.
This is similar to your regular current accounts as you are paid interest on your balance in the account. This is a simple way to save tax-free in a secure account for your money.
Cash ISA’s have interest rates of 5% or more currently.
Those over 16 can set up a cash ISA.
You can save up to £20,000 tax-free each year and your money is invested into various stocks and shares. This could help your account grow however there is a chance the value can go down as well. You can either choose where you money is invested or the bank will randomly invest your money into different stocks.
Only once you are 18 can you set up a stock and shares ISA.
These are used to help you pay for your first house or alternatively to save for retirement.
This can be in the form of a Cash ISA or a Stocks and Shares ISA where you can save up to £4000 a year tax-free. The government will then add a 25% bonus which has to be used to help you buy a house such as pay for a deposit or for a retirement fund only. If you use this account to pay for anything else then there will be a 25% penalty rather than a reward at the time of withdrawal.
Only those between 18-39 are eligible for a lifetime ISA.
Your ISA will have certain rules regarding when you can withdraw as this is an account specifically for saving.
If you have an instant access Cash ISA you will be able to withdraw money at any time without any changes to your tax-free balance as this account will be for short-term savings.
If you have a fixed rate Cash ISA this will lock the money for a certain length of time and usually the interest rate for these accounts will be higher.
Then, there is the flexible Cash ISA here you will be able to make a limited number of withdrawals without losing any benefits of the ISA.
For the Stocks and Shares ISA you will usually be able to withdraw money at any time as long as you have cash in the account. If you want to withdraw money and you have no cash then you will have to sell shares at the current market price meaning you be losing money.
If you are saving for something in particular and can afford to have savings which are in effect untouchable then having an ISA will be very beneficial to you. The money in your ISA should be separate from your personal savings in order for your ISA to be saved for your first home or retirement fund and to reap all the benefits.
With an ISA you are saving more with less.
From the 3rd of March we can expect a 4.9% increase in the price of rail fares across the UK.
This has been capped by the Department for Transport (DfT) to try and keep the prices as fair as they can. The increase in ‘regulated’ rail fares is linked to the annual July retail prices index (RPI) measure of Inflation, which was 9% in 2023.
Millions of commuters will feel the hit of this price increase in their everyday life and with mass cancellations and delays some are calling this an insult to the public.
The Trades Union Congress (TUC) called the rise "excessive" given "widespread cancellations and delays" across the network and called for rail to be brought back into public ownership.
The ownership and operation of the railways in Britain were passed from government control into private hands, this process began in 1994 and was completed in 1997.
Now, Railway companies and stations are owned by various private companies.
Any train tickets you buy which are regulated will be affected by the increase of 4.9%.
If you buy these tickets they will not be affected by the upcoming price increases.
You want to get on the property ladder but don’t know where to start? You aren’t alone, thousands of people in the UK struggle to make the leap due to rising prices.
When you decide you want to buy a house have a good credit card score is important with little to no debt. If you do have credit card debt it would be best to start paying that off now.
The deposit is the money you will pay upfront towards the total cost of the house, this does not come from your Mortgage loan.
The minimum deposit you will have to pay is 5% of the total price of the property which could be offered from banks such as Natwest. This means if the property was valued at £300,000 then you would have to pay £15,000 for the deposit. This is the amount you have to save yourself, without the help of a loan.
However, 5% deposits are not always available and 10% or more is more common. Even though this means you will have to save more, you will often be paying lower interest rates and so in the long-term paying less on your loan.
The bigger deposit you pay the smaller the loan you will have to pay back which cold reduce financial pressure.
Paying a 10% deposit on a property worth £300,000 means you should save £30,000 before you can buy.
Saving for a house can be stressful and long-winded, you can take the first step today by following these steps.
For parents in the UK paying for everything your child needs as prices continually rise across the country is a difficult and stressful task. This scheme aims to ease one aspect of this for parents as childcare creates a huge financial stress. As reports come out that 6 weeks of child care in summer clubs will cost £1045, a rise of 6% across the UK. It is harder than ever to find childcare for children, especially for those on a low income or with a child with a disability.
This scheme creates another great way to be able to start saving and eases your personal finances.
The Charity, Coram reported that the average cost of full time (50 hours per week) nursery for under 2 year olds was estimated to cost £15,000 per year.
The price of childcare is often more than half of a parents salary making it impossible to afford.
If your child or children are 3-4 years old you could receive 30 hours of free childcare which is already available to claim.
If your child is 2 years old you could get 15 hours of free childcare a week from April.
If your child is 9 months old you could get 15 hours of free childcare from September 2024.
From September 2025 under 5’s can get 30 hours of free childcare a week.
Make sure to apply in advance of the term beginning to ensure your child can start their free term from the beginning.
To apply you must;
You will need;
It can take up to 7 days to find out if you are eligible and you will be given a code to provide your officially registered childcare provider with. You will have to confirm your eligibility every 3 months to continue on the scheme.
If your fixed rate term is coming to and end in 2024 you could be affected by the rising interest rates. You will have to remortgage or you will be placed on your lender’s standard variable rate which is often expensive. When you remortgage the interest rate will now be higher for the new term.
If you are unsure about what’s to come with the rising rates you should discuss the options with your lender and they should be able to inform you about your existing plan as well as how you can navigate through the changes.
If you want to know why interest rates are rising and if you will be affected you can find out here.
With your monthly payments increasing you should make sure you can financially support the new bill. You may have to figure out where to cut costs so you can make the new payments, or there may be alternative plans you can take on.
Once you have determined what your mortgage lender is offering for your new term it is important to figure out what else is out there. Banks will have various offers and rates so choosing the right one for your situation is vital.
It may be helpful to seek out a financial advisor as they will be able to give you choices from across the market and advise you on the best for your personal situation. This could make the process a lot less stressful for you.
If you decide to take on another fixed term loan then consider only choosing a two year plan so you can review the situation again when it ends to make the best financial choices. If you take out a longer term you could be stuck with high rates even if they fall in the next couple of years.
What are the different types of Mortgages?
The rates are often changing and many predict they will decrease towards the end of 2024 so it could be beneficial to not commit yourself to a lengthy term with the current rates.
We have recently seen lenders hike up the prices for mortgage funds causing millions of people a much higher rate on their mortgage bills with some at a staggering 7%.
The BBC informs us that banks such as HSBC, NatWest and Virgin Money are all increasing the cost of new deals.
Interest rates continually change to help control inflation and ease the cost-of-living crisis.
The Bank of England sets the base rate, currently at 5.25% which is what it costs lenders to borrow the money to then lend out to customers.
If inflation is going up then interest rates will often follow to try and dissuade people from spending and lowering the demand.
If your mortgage term is set to expire this year then the higher rates could affect you when you remortgage. An estimated 1.6 million deals will expire in 2024, according to Banking Trade Body UK Finance and these will be affected by the change in interest rates.
Those on a fixed rate mortgage will not be affected as the rate was agreed at the beginning of the term and remains the same throughout.
If you are on a Tracker or standard variable mortgage then your monthly payments could rise substantially.
Find out What the Different Types of Mortgages are.
Ofgem has announced that from April 2024 the energy price cap is going to be reduced to £1,690 per year for a typical household. This will be £238 lower than the cap they set in January 2024 which was, £1928.
The price cap is the maximum amount energy suppliers are able to charge for each unit of energy.
You will be covered if you pay by, Direct debit, Standard credit, repayment meter and Economy 7 Meter.
The price cap covers 29 million households in England, Wales and Scotland stated by the BBC.
The price cap is based on a typical household which pays their bills by direct debit using gas and electricity. However, If you pay every three months by cash and cheque the price cap falling will not affect you and you will be charged more in April 2024.
Every three months Ofgem reviews the price cap and so in June 2024 the price cap could alter again.
Analysts at Cornwall Insight predict the price cap will see a small fall in July and then increase in October
This is the energy regulator for Great Britain which works to uphold energy regulations. They review the situation every three months and set price caps which energy suppliers must follow.
