Savings and loan associations are financial institutions that offer loans and mortgages and accept deposits. They are often called credit unions and offer a variety of banking services.
Financial Services
These institutions offer investment products, credit cards, checking accounts, offshore accounts, and others. Some entities also sell insurance products and provide savings accounts, auto loans, and more. Only some credit unions offer current accounts. Some of them offer business current accounts to local businesses. With others, there are no restrictions, but debit cards are not issued to companies. Customers can choose from different credit cards with perks such as commission-free allowance, zero percent on purchases for 6 or 12 months, cashback, fraud guarantee, affordable interest rates, and others. Investment services are also offered in the form of share dealing and annuities. Customers are given the opportunity to invest in stocks of domestic and foreign companies. They are free to create their own investment portfolio and choose from a variety of best-performing funds. Customers also benefit from inheritance tax planning and advice.
Mortgages
First-time buyer and commercial property mortgages are also offered. Customers apply for home loans to finance the purchase of apartments, maisonettes, new condos, etc. The requirements vary from one institution to another. Customers are typically asked to present their bank statements, two recent pay slips, proof of address and identity such as armed forces ID, signed employer ID, passport, or another document. The requirements differ for self-employed applicants and non-salaried and salaried directors. Self-employed applicants must present their bank statements, latest revenue acknowledgement or tax calculation summary or a letter from a recognized accountant. The letter includes information such as net profit, finalized turnover, and others. Recognized accountants are members of institutions such as the Association of Chartered Accountants in the United States. The mortgage amount depends on factors such as expected retirement age, number of dependents, number of applicants, and whether the borrower is an existing or new customer or first time buyer. The requirements are different for new customers who are remortgaging. Lenders feature standard valuation and legal fees. Customers are allowed to borrow up to 85 percent of their home’s value.
Fees and Charges
Those moving home pay legal and valuation fees, telegraphic transfer and product fees, early repayment charges, and booking fees. If you want to borrow more, you will pay product fees only. Arrear fees include charges such as property valuation fees, referral to solicitor, possession fee, cancelled eviction, default notice, as well as monthly arrears. Once the customer’s account is open, he may be asked to pay additional interest rate, letting fee and early repayment charges, unpaid items fees, and arrears fees. Other charges include unpaid items fees, statement projection, and release of part of the land or property.
Other Services
Credit unions offer services such as foreign money transfers, transaction confirmation service, payments to and from customers’ accounts, conveyancing, share plans, and many others.
Comments on this entry are closed.