But the chances of you working your entire career for one employer have diminished
But the chances of you working your entire career for one employer have diminished and are still diminishing Even civil servants no longer have a job for life. If your employer has a company pension scheme and you expect to stay with him, join it ASAP. If in doubt join it any way, because it is the only way you will get your employer to contribute to your pension fund. Employers usually at least match the contribution you make to the company scheme. You may well also be able to make additional voluntary contributions at little or no administrative cost.Remember an employer is not obliged to contribute to a portable pension plan, and few do.
It might also be worth investing in a modern car alarm or immobiliser system, and having you door and window locks checked out and replaced if necessary.But do check what happens if you need to claim. Many cut price policies are not as comprehensive as they sound, or leave big compulsory excesses for you to pay.While you are about it, check your life and health insurance and see if you can get a cheaper quote for your life assurance policies.Time to look at the pension scene yet again Pension contributions can be offset against tax. Most mortgage protection plans will only pay you for around 12 months, but they will give you vital time to find another job, or failing that a buyer for the property who will pay you a proper price because you are not absolutely desperate to sell.Household and motor insurance should be easier to find, thanks mainly to lower claims, helped by the milder winters and by the continued undercutting of premium rates by the direct sales organisations. Most special offers now lock you in for five years, so a switch has to be a one-off move.Check your insurances, and that nowadays includes a mortgage protection plan in case you can no longer earn the wherewithal to service your mortgage. Northern Rock is offering a 6 per cent discount on its standard rate for a year, the Greenwich is offering 3.5 per cent off its standard rate for two years or 2.5 per cent off for three years. Hinckley Building Society offers a 0.5 per cent fixed rate until January 1997, First Mortgage Securities is offering 4.2 per cent fixed until 1998, and Yorkshire Building Society 6.25 per cent fixed for three years and Cheshire 7.49 per cent fixed until the year 2001.Choose a fixed rate mortgage if you think rates are likely to go up, and a discount rate if you think they will be steady or fall. In doing your calculations don’t forget to take account of any redemption fees your existing lender may charge, the costs of making a switch which can include a reservation fee for the new mortgage, a survey fee, a search fee and a solicitor’s fee for the legal work, and last but not least the penalty fees if you sign up and opt out early.
Most lenders are still offering special deals to tempt first- time buyers and existing borrowers who move over and remortgage their existing properties with a new lender. No-one is predicting a runaway rise in prices, but residential property is now cheap on most historical assumptions. Prices, relative to income, and mortgage rates are both at their lowest levels for 30 years.Even if you are staying put, review your mortgage closely. Variable mortgage rates are still falling and Bank of Scotland Mortgages Direct has loans at 6.99 per cent for up to 85 per cent of the property’s valuation.
