Mar 30, 2010

Millions Face Mortgage Misery As Endowment Policies Fall Short

Many homeowners are being caught in the worsening endowment mortgage scandal. Figures from the insurance industry show that for the first time, the majority of endowment backed mortgage holders are being warned they will probably not be able to fully repay the mortgage they took out.

The proportion expected to fall short has soared from 46 per cent to 60 per cent in just two years, dragging in an estimated 4.5million householders into the red. Endowment policies were heavily marketed by insurance salesmen back in the 1980s with promises that the policy payouts would repay their mortgage and probably leave a tidy surplus on top.

Endowment policies were supposed to work by investing part of each monthly payment into bonds and stocks. But as we all know now, stock market falls have created a black hole in insurance backed funds estimated at around 60 billion pounds. Holders of 12 million policies - some investors have more than one - are now facing an average shortfall of 10,000 pounds below even the original home loan, never mind the promised surplus!

This means that hopes of a retirement nest egg have been shattered and some elderly homeowners could even be forced to sell their homes in order to repay their mortgage. The insurance industry expects to send out over 3 million letters to investors warning that they may almost certainly need to find more money to repay their mortgage when the time comes.

Consumer groups described this situation as 'heartbreaking' and 'scandalous' and advised people who receive warning letters to immediately seek independent advice. Possible action includes partly or fully converting the existing mortgage into a repayment mortgage or taking out an additional savings plan but with interest rates so low, the repayment mortgage option is likely to be the most popular option.

The scale of the problem has been demonstrated by cuts in endowment valuations from two of Britain's largest insurance companies. A 25-year endowment from Friends Provident taken out by a 29 year old male paying 50 pounds a month should now have a maturity value of 77,096 pounds compared to 106,188 pounds only four years ago. On a similar Scottish Life policy the forecast payout has been cut by 10,479 pounds from 94,738 pounds last year to just 84,259 now. And Standard Life has admitted that 800,000 policy holders, that's half its total, could be in trouble.

The Consumers' Association and MPs believe that the insurance industry should do far more to protect customers by taking cash out of 'orphan assets' to boost endowment policies. These orphan assets were largely built accumulated in boom years, when customers' money was making good returns.

Millions of endowment mortgages were sold on rosy promises by commission hungry salesmen with forecasts based on a booming stock market. And by 1988, 84 per cent of all home loans were backed by endowment policies. But how things have changed! As the unfolding scandal has emerged, negative publicity has largely forced most insurance companies to abandon them. Endowment mortgages now account for less than ten per cent of new mortgages.

Unsupportable promises have led to many leading insurers being fined millions of pounds by city watchdogs and ordered to pay compensation to thousands of policyholders who were duped into buying the policies on false promises.

Indeed, the Financial Services Authority has issued leaflets advising policy holders how to complain about endowment sales.
During the credit crunch it has been difficult to obtain a Loan Are you waiting to buy a new house? Visit Loan Agreement to get a quote for a Secured Loan.

Article Source:

Feb 14, 2009

The payday loans: A quick solution to your financial problems

Loans have become very popular means, for financial resorts, in times of monetary crunch. In an era of economic fluctuations, loans are getting some additional advantages also, which help the needy people to overcome their financial imbalances due to several factors.

At times, we have to deal with some unexpected financial expenses, but during that time, we are not financially stable to cope with them. On the other hand, we know how frustrating and embarrassing it would be, to borrow money from our relatives and friends. Sometimes, it may even destroy our relationships. In such situations, loans can prove to be a great support. A payday loan is termed as a short term loan, which is taken to plug off the short term financial needs. With the help of such types of loan, you can easily pay your monthly installments such as electricity bill, or purchasing home accessories and many more things. Payday loans are of many types, which are available in the market from a large number of leading lenders in UK.

With the advent of quick payday loans, faxless payloans, can be availed within few minutes. Some of the payday loans demand prior submission of documents for the sake of security on the borrowed amount. Furthermore, under the quick payday loans, faxless payloans, can be easily availed without submitting any documents. You have to just fill up a simple application form, that should be backed up by employment details and resident proofs. Thus, you need not restrain your whims and desires because of financial constraints anymore. It is also recommended that one should browse the Internet to find out the most befitting loan, which would suit you the most. Moreover, it is known to everybody, that there are numerous lenders who provide such loans with different propositions so as to attract the customers. Hence, be judicious and smart while laying your hands on the best loan of the market.


Bad credit loan shows way to pay off all your debts

Due to the development of the UK's loan market, now, getting loan has become easy for the borrowers, who have bad credit history. To help these type of people, most of the money lenders and banks in UK have started offering bad credit loans. These loans can be taken by anyone, who are suffering with financial problems like bad credit history, bankruptcy,country court judgement and are failed to repay the loan amount in time.

It is quite simple to apply for this loan. Without any hassles, now the borrowers can avail these loans as many of the lenders are offering services via Internet. Over the Internet, there are some reliable websites, that allow you to find all the information regarding these loans. You can find the quotes of all the major lenders in UK. These websites allow you to compare the interest rates of all the lenders at one place. Before going to take from a particular lender, who offers loan at low interest rates, you should look at the effective rate of interest. Because, some of the lenders offer bad credit loans at low interest rates, but cover that amount by collecting hidden charges from you. One more point that have to keep it in mind, before going to apply for this loan is that you should select the lenders, who sanctions you loan without any obligations. So, loan with bad credit help you a lot to come out of the quagmire of debts. Some of the lenders provide the bad credit loan without demanding any collateral from the borrowers as a security against loan.


Student Loans Come in a Variety of Types and Payment Schedules

There are a number of different types of student loans. They are all created to help students and parents discover the right choice for their respective situation. The overall cost of both private and public colleges are steadily increasing and students need to find the means for funding their education. Deciding which student loan, whether a private or federal student loan, is a very important decision. You will eventually be responsible for paying it back, so research all of your options.

What is a Student Loan?

If you are a student who is preparing to borrow money as part of a student loan, prepare to learn all that you can about what a student loan is and why you need it. It is meant to help you as you pursue your collegiate education. Because the cost of education is continually rising, student loans give you more opportunity to go to the school of your choice. Be prepared to begin repaying of the loan a short time after you have finished your education.

Types of Student Loans

There are three primary types of student loans available, a federal student loan, a private student loan or a parent loan. Two of the most common federal loans used by students are Stafford loans and Perkins loans. What is beneficial behind a federal student loan is that federal laws regulate the interest rates charged for these programs. A lender has to offer a federal loan at the specified interest rate, which is usually lower than the national interest rate. A federal student loan can also be consolidated after the student graduates, allowing the student loan repayment plan to fall under one large umbrella.

Private student loans are different from federal loans, and students applying for these don't have to fill out federal forms. Private lenders offer these loans, making them cost more because there is no legal requirement to stay within a certain interest rate. Private loans also require a student to submit their credit history, and the interest and fees paid on the student loans are based upon the student's credit score. Parents may be required to co-sign for a private student loan, making them responsible if the student has to defer payments at any time.

A parent loan, or the Parent Loan for Undergraduate Students (PLUS), is a type of student loan parents apply for to encompass any additional cost their child's financial aid or student loans won't cover. PLUS loans, like other federal loans, come with a fixed interest rate. These loans can also be consolidated, like the Stafford and Perkins loans, and parents are fully responsible for repaying PLUS loans to the lender after they are distributed.

Finding student loans that are right for you doesn't have to be a difficult task. It just takes a little time and research before making a final decision. Talking with your college's financial advisor can help you go down the right path when choosing a loan. It is important to go over all the student loan repayment options when choosing a loan program from a lender because you will be financially responsible after graduation. Deciding upon the right loan can help you achieve your dreams of higher education. Read More..

Jan 27, 2009

Student Loan BII

A joint facility between BII, Sampoerna Foundation,and International Finance Corporation by providing financial support for educational at Sampoerna SBM-ITB.

Easy and Surely!
• Surely prepared education financing.
• Application can be easily get from university*, Sampoerna Foundation, and BII branches nearest.
• Easy access to well known university* across Indonesia
• Simple requirement
• Maximum credit facility up to IDR 200 million

Plenty of Advantages!
• No Collateral Credit Facility
• Administration Fee is Free
• Credit Provision Fee is Free
• Flexible Credit Tenor that is 6, 12, 18, 24, 30, 36, and 60 months
• The debtor can be Students or Parents/ Kin/ Uncle/Auntie/ Spouse/ Parents In-law
• Very Competitive Interest Rate
• Well known participating university* across Indonesia.

Conditions to be met by applicants:
• Indonesian citizen (WNI) who is law literate.
• Minimum age of applicant is 21 years old, maximum is 60 years old by the time the credit ends.
• Minimum net income must be IDR 30 million per year.
• Work experience must be at least 1 year for employees and 2 years for professional and    entrepreneurs.

Document Requirement for Employees:
• Original Application Form
• Copy of ID (KTP or Passport)
• Original Salary Slip and original Work Reference Letter
• Original of Offering Letter from University for Student

Additional for Professionals:
• Original Application Form
• Copy of ID (KTP or Passport)
• Copy of current/savings account for the last 3 months
• Original of Offering Letter from University for Student
• Copy of SIUP/ SITU/ TDP/ TDI or Letter of Practice Permission

Additional for Credit Cards Holders:
• Original Application Form
• Copy of ID (KTP or Passport)
• Original of Offering Letter from University for Student
• Copy of (only the front of) your Credit Card


1. Personal NPWP is a must if credit >= IDR 50 million.
2. Copy of NPWP could be replaced with SPT PPh21
3. Wives might use spouse's NPWP along with copy of Kartu Keluarga or marriage certificate
4. For joint income debitor, spouse's documents are cumpolsory
5. Salary Slip or Work Reference Letter is valid for a maximum of 2 months since application date.For uncarbonized Salary Slip issued by companies which are not multinational/ go public/ banks/five stars hotel/ BUMN, reference letter from company is required

For more details, please feel free to contact BII Student Loan with:
Ms. Nuraida Fitriani 081321965321.