On brand
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Kuflink hires independent non-executive director
Kuflink Group PLC has appointed Nayan Kisnadwala to the board of directors as an independent non-executive director.
Top Tips for Affording University
Sending your children off to university is a proud moment for any parent, but the cost of helping them to study can be a real concern for families. Whilst it doesn’t necessarily have to cost you anything, most would like to be able to offer some financial support to survive, make the most of the opportunities that university offers and ease their transition into the adult world.
So, How Much Does University Cost?
Universities in the UK can charge up to £9,250 per year in tuition fees for an undergraduate degree; a staggering amount of money, but one that you don’t need to worry about just yet as it doesn’t need to be repaid until your child graduates and earns over the £25,000 threshold.
According to research by the Times, the total cost of accommodation, food and other essentials sits at £26,970 for standard 3-year course.
Teaching Your Child To Budget
The cost of day-to-day life for students can vary hugely; location, the type of degree and course are just some of the factors. Surrounded by new friends and more freedom than they’ve ever had before, it’s very easy to get caught up in a pattern of going out most nights and ending the evening with a takeaway or costly taxi home. Of course, nobody expects teenagers to miss out on the excitement of university, but it’s essential that you teach them how to manage their finances to avoid mid-term money worries.
The Essential University Survival Lessons
You can start with the basics – teaching them how to cook, setting up direct debits to make sure the rent is always covered and helping them to plan a monthly budget. Most students get freshers week out of the way and then set about finding a part-time job for some extra cash.
There are some great student discounts available with an NUS card, and through websites such as Unidays and Student Beans. These offers are a fantastic way of saving money on everything from broadband to burgers and in fact, if you’re willing to be flexible, there are very few things you can’t find a discount for!
How Much Can You Afford To Contribute?
Similarly, the key to working out how much you can afford to contribute lies in budgeting. You don’t have to plan drastic lifestyle changes or cutbacks, simply managing your money in a smarter way should be enough.
There are several ‘fast fixes’ to ensure you’re getting the most out of your money, from shopping around to find the best deals to re-assessing your savings approach. Spend a few hours going through your options and looking into new possibilities, such as short-term investments which could offer much higher returns than your savings account.
You may not earn thousands but with these simple tweaks, you should have more than enough spare cash to fill your car boot with goodies and head up or down to see your favourite student!
Top 5 Ways Brexit Will Affect Your Pocket
The Brexit vote may have happened way back in June 2016, but the debate rages on as fiercely as ever. Most of the narrative surrounding Brexit covers trade deals, Article 36H, immigration and other high-level topics but, more than two years on, what do we know about how leaving the EU is likely to affect us on a day-to-day basis?
Truthfully, the answer is that there is so much uncertainty surrounding Brexit that not even the most senior politicians or advisors could paint you an entirely accurate picture of what’s to come. However, using our in-house experts and the most up-to-date research, we explain how you can plan your personal finances around the likely impact on housing, groceries, utilities, investments and holidays.
Housing Market
The housing market is often the first place to be affected by economic uncertainty, with many buyers and sellers keen to ‘wait out’ the potential effects of Brexit before moving or investing. It’s likely that a lot of disruption will be due to this perceived uncertainty rather than by a direct, Brexit-led impact. So far, the property market is holding out extremely well and in many places, average house prices have risen substantially.
Interestingly, academics have suggested that new-build house prices may rise should post-Brexit immigration law make it harder for European builders to work in the UK, as labour from domestic firms is often more expensive.
Everyday Expenses
As one of our most regular expenses, it’s easy to use food prices as a measure for the economic impact of Brexit. Much of our food is imported from the EU, which means that we are likely to see a rise in prices, especially in the event of a ‘no deal’.
We should also bear in mind that Britain sources 12% of our gas and 5% of our electricity from the EU and, as such, households may end up paying more for their utilities after Brexit. We could even face energy shortages if the country is unable to reach a deal quickly enough.
Investments
Market fluctuations can affect volatile investments very rapidly, and it’s inevitable that in a time of uncertainty, some stocks and shares will dip in value. Whilst there was unease about the property market during the referendum campaign, the real Brexit effect has been much less dramatic. There has been a slowdown in the growth of property values, which now average around 5% per annum across the country, although this certainly isn’t the property crisis some had predicted and the market looks set to fare well throughout the rest of the leaving process.
If you’re concerned about the risk to your investment portfolio, then now is a great time to make sure that it’s as diverse as possible. Having a portfolio backed by a range of securities and investing across different channels is one of the best ways to ensure you’re prepared for all possibilities, however small you perceive the risks posed by Brexit to be.
Holidays
Many of us have fretted about the possibility of having to join the dreaded, hours long ‘Non-EU’ queue at passport control, but how else might our summer holidays be affected? We’re already getting less for our money at foreign exchange bureaus, mobile network roaming charges could be affected, and British citizens may lose our EHIC health insurance benefits. Holiday goers may also be expected to gain a visa before travelling to Europe, although the cost of this is likely to be nominal.
Planning Your Finances After Brexit
Whilst it’s easy to get bogged down in the potential ‘doom and gloom’, it’s more than likely that your finances will be absolutely fine in the long term. The key is to start planning as early as possible, work out where your current budget is being spent and consider how you could free up some extra funds if you feel you may need to.
ASTL appoints new executive committee members
“The appointments of Sarah, Narinder Khattoare, Anita and Jonathan will provide us with the skills and experience to ensure the continued growth of the ASTL membership and strengthen our position as a market-leading voice for the short-term lending sector.”
5 Key Points from the FCA P2P Review
At the end of July, the Financial Conduct Authority (FCA) published their proposals for P2P regulation following an investigation started in 2016. In general, these proposals will mean much more thorough regulation of the sector and aim to achieve greater protection for investors’ money. Kuflink achieved FCA authorisation in 2017 and have committed ourselves to market-leading due diligence, and providing a transparent approach to investing.
Just in case you missed it, here are 5 key points from the FCA review that all P2P investors need to know:
1. Managing Returns and Interest Rates
In order to make P2P investing more transparent for investors, the FCA have proposed a number of new regulations with regards to returns. These include making sure that target returns are achievable, that returns reflect risk, and that platforms fully understand and account for credit risk.
2. Extended Marketing Restrictions
In response to the sometimes complex risks posed by some loan-based investments, there are plans to implement a more extensive set of marketing regulations for P2P platforms.
3. Minimum Information Standards
Although many platforms go to great lengths to ensure sure their investors are well-informed about every opportunity, there are some firms that fail to provide much information. Under new rules, the FCA plan to implement minimum requirements to help investors make better decisions when it comes to managing their portfolios.
4. Strengthening Wind-Down Procedures
Regulated P2P firms are already required to have a wind-down procedure, but this currently doesn’t have to take certain practical challenges (such as the IT systems that underpin investments) into account. The FCA plan to make these considerations compulsory so that, should the worst happen, platforms are fully prepared and investors are protected as far as possible.
5. Additional Regulations for P2P Firms
As the sector has grown, business models have become increasingly more complex, and the current regulations do not fully account for this. The FCA plan to impose more general regulations that reflect the market as it currently is, and are adaptable to cover future innovations too.
You can read the report in full here
Last-Time Buyers: The Forgotten Housing Crisis
First-time buyers are central to the vast majority of discussions about the UK housing crisis, owing to a lack of affordable housing and the huge difficulties they face to take their first steps onto the property ladder. Much emphasis is placed on the need to build new homes for them to ease the dissonance between supply and demand, although research shows another promising solution; the so-called ‘last-time buyers’.
Last-time buyers are those of an older generation looking to move once and for all, usually to a smaller and more manageable property. They are mostly retired and struggling to keep up with the continuing demands of looking after a family home – research by Legal & General found that they hold more than one trillion in property wealth in the UK alone.
63% of those aged 55+ own their homes outright, which often means that the majority of their wealth is tied up in property. Making the decision to move to a new house not only frees up funds that can be used to enhance their golden years, but it also frees up properties for the abundance of first-time buyers struggling to find a family home.
However, a lack of properties suited to last-time buyers presents yet another stumbling block for the UK housing market. 26% of those aged 55+ reportedly considered downsizing in the past 5 years, yet only half of those went ahead with the move. So, why did half choose to stay in their current home despite having concerns over the size, cost and suitability of it?
Unsurprisingly, the answer is commonly that last-time buyers are unable to find the right property. Whilst for some this means a dedicated retirement community, for most it simply means a smaller house in an area close to their family and friends. It’s a relatively small ask, but one that virtually no-one is listening to.
Although last-time buyers are almost never mentioned in housing strategies, a greater focus on their needs would make a significant impact on availability and liquidity within the UK property market, not to mention a decreased reliance on strained resources such as care homes and hospitals.
Data taken from: https://www.legalandgeneralgroup.com/media/2437/30042018-lg-ltbs-draft-v9.pdf
