Ask a mix of people to name private schools and generally you would probably get a list which starts with Eton and Harrow and maybe a school local to the individual, but then the list would quickly fade out. In truth there are very many private schools and many variations of education are provided. Most people want the very best for their children, and a good education is usually high on the list.

Most private schools provide a good education in the usual subjects, with all the advantages of smaller class sizes being expected and ‘low take-up’ subjects available. If your child has a learning difficulty of some sort then there are specialised schools available, where the disadvantaged child with hearing or vision problems etc. will receive the specific education which they need.

Conversely, gifted children can be ‘brought out’ at private schools which cater for their particular strengths, which are developed whilst general educational subjects are also taught. So it follows that few parents could honestly claim that private schooling is not a requirement of theirs. If the fees can be afforded then a child is likely to benefit in the jobs market for the whole of their working life.

It would appear that education in state schools is regarded by many parents as failing the pupils and private school education is becoming more popular but also, by the rules of supply and demand, much more expensive. Over the last seven years, figures show that fees have increased by 50%, with the result that the cost of a senior boarding school is now likely to be over £20,000 per year. Non boarding could reduce the direct cost to around half these figures, but remember that ‘boarding at home’ also has a cost!

The possibility of scholarship for a gifted child could be a lifeline which most private schools have available. Alternatively, bursaries are available in cases of low family income, although these are means tested and priority is given to pupils already at the school where the parents are in ‘reduced circumstances’. According to the Independent Schools Council, assistance is currently given to around 30% of pupils. More details are available online at www.isc.co.uk.

Parents in the armed forces, the clergy and some who are employed abroad may find that some or all of the fees are paid for them. Try asking – you may be pleasantly surprised! On the other hand, if a change of occupation was to bring an end to the perk, the disruption to the child’s education could be serious.

So how much are you looking for in total funds? If your child’s education is to be totally at private schools from the age of 4 through to 16 or older, you are going to have to provide £200,000 or more; if you opt for boarding school the figure will be very much higher. This figure drops to around £14,000 if you opt for state school education, on the very reasonable grounds that the private school costs sound too much like your phone number! You thought that state schools were free? Yes they are, but you still have to pay for food, transport, clothing, books etc.

If you opt for state schooling for your child until they reach 11 years old, you could probably get away with a non-boarding cost of around £50,000 over a 5 year period, although don’t forget to ask about scholarships or bursaries. You could find that your total costs are reduced to somewhere between £38,000 and nil!

No scholarship and no bursary? It is still possible if you are determined. If you start soon enough you may be able to fund the 5 year private education option by saving £100 a month into a high interest fund, especially if you are prepared to take a low risk option (rather than no-risk) to increase the interest rate. This would probably be feasible over a ten year period, bearing in mind that you would still need to be saving the same amount whilst your child is receiving the private education.

With less time available you would need to look at alternatives. Saving the taxation costs by going for ISAs or the appropriate National Savings schemes could be a wise move which would give the apparent interest rate a significant boost. Maybe couple these funds with a remortgage to ensure that you can cover the school fees

It’s the old story. Do your homework, trawl the internet, and make sure that you have got the best deal which you can find. You are using your money to ensure that your child’s prospects are as good as you can make them – use that money wisely.

A final cautionary word. All the figures quoted above are for one child only. If you have 2, 3 or 4 children (or worse still twins, triplets or quadruplets who will all start school together) then you have a few problems and the writers sympathy.

Author: Catriona Singfield

Chronic Fatigue Syndrome, also known as ME and stigmatised as ‘Yuppie flu’ in the 80s, has now been recognised as a proper, and serious, life-damaging illness. Unfortunately for sufferers, some major insurance companies are behind the times, as Miss A found out.

Diagnosed eight years ago, Miss A suffers from a virulent form of ME that has left her wracked with pain and totally unable to complete a normal day’s work, let alone hold down a job. With just £180 a week in benefits – which has to cover all her expenses, including assistance with the illness – she depends on the support and care of her boyfriend and family. Yet with a good, permanent health insurance policy in place, Miss A believed that she would be protected from this tragic situation

Miss A’s former employers believed that they were providing the best health insurance for their workers, with a policy from Swiss Life providing a permanent income in the event of a claim of 75% of final salary. But, after initially agreeing to pay out, insurance firm Swiss Life decided to drop Miss A’s claim. For the last five years, they have refused to pay her the money she is owed, and she has lost £40,000 so far.

Surely, you might think, we should hear Swiss Life’s side of the story? It’s certainly worth reading …

Disregarding personal privacy, as well as the debilitating disease and its effect on Miss A’s life, the insurance company set up a spying programme to capture evidence of her activities on video. They then used this to claim that she was leading a fit and active lifestyle, well able to work for a living and support herself. For example, footage of Miss A making a visit to her Mother’s house after attending a doctor’s appointment was used to suggest that she was perfectly healthy.

As both laymen and medical experts know, ME sufferers may be flat out in bed one day, and able to rise and perform light tasks the next, while being forced to rest yet again a few days later. Thus video evidence of Miss A simply out and about would not suggest to any medical professional that she had recovered.

Swiss Life have also criticised Miss A for providing them with evidence of long-term illness that they find insufficient. In 2002, she started a course of restorative treatment designed to get her back on her feet, but sadly she was unable to finish the course before a relapse hit her. Swiss Life claim that this is evidence not of Miss A taking steps to get well and being knocked back, but avoiding treatment.

You might think that the findings of a respected Harley Street ME specialist might be enough to pacify the insurers. But even with this assessment, Swiss Life are denying Miss A her rightful payments.

Swiss Life are a subsidiary of a company called Resolution, who have said that if Miss A wishes to take her claim to the Financial Ombudsman, then they will not try to prevent her case from being heard. But as Ombudsman compensation is limited to £100,000, Miss A is understandably reluctant to take this route. She does not know how long the condition will persist, and has little reason to trust Swiss life after her treatment so far!

Miss A, and others like her, are being hit by the same prejudice – the idea that such conditions as ME are merely ‘designer diseases’, excuses for the sufferer to get sympathy and avoid a day’s work. This could not be farther from the truth, as any doctor will agree. Real people are suffering real illnesses, and being denied payments that are rightfully theirs.

Until unscrupulous insurers are brought to heel, what can you do to prevent this from happening to you? Your first port of call should be a good online insurance broker. They will search policies for you, to your specific requirements, comparing companies and quotes. Make sure that they are aware of your concerns, and they will be able to help you find an insurance company that has a sympathetic, up-to-date attitude to conditions like ME. Not only that, but they may be able to hunt down an online bargain too!

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Author: Catriona Singfield

In the UK, as with the rest of Europe, we are now living longer than at any time in the past – and the figure is rising. The average lifespan for a British man is now 76.2 years, with a woman living even longer at 80.7 years. This is excellent news, but sadly there is a downside – we may be living longer, but we’re not as healthy as our fellow Europeans.

According to an EU survey on the subject, conducted over a sample of 60,000 people, longevity is not the only index of old age we should be paying attention to. The survey made a study of age of death, sickness and overall health. Healthy life years, the amount of time we can expect to enjoy an active, able old age, are just not matching up to lifespan.

Out of a average life of 76.2 years, a British man can expect to enjoy only 61.5 years in good physical condition. In the European league table of health, we are fifth from the bottom.

However, it is important not to jump to conclusions too early because as yet, no-one is sure exactly why the study has come up with these findings. There are wide variations across Europe, with cardiovascular disease being far more of a risk the further north you live. According to action group Help the Aged, we are putting ourselves at risk because we do not take one simple factor as seriously as we should - the cold. Failure to wrap up can lead to thickening of the blood, perhaps even a fatal clot. Surely an incentive to keep warm!

The healthiest Europeans are the Italians, with an average of 70.9 healthy life years over a total lifespan of 76.8 years. It’s well known that in Italy, the national diet includes a lot of vegetables and fish, with few saturated fats, which may be one reason why the Italians are living more healthily for longer. Again according to Help the Aged, these differences could be caused by several factors: better diet, the quality of the Health Service, the weather, and prevalence of smoking.

Indeed, in a recent league table comparing healthy life years and lifespan, Italy is number one. Next come Spain, Germany, Poland, the Netherlands, and the UK, followed by France, Hungary, Portugal and Finland.

The figures are interesting. For example, a Finnish woman can expect to live for 81.8 years, but only 56.5 years will be free from ill health, defined in the study as a disabling condition.

Taken together, all these factors point to one conclusion: the average man or woman would be well advised to look for good critical illness cover, not only life insurance. Consider this sobering fact: the average age of retirement now comes after the average age at which ill health sets in – by between three and a half and eight and a half years. The recent rise in official retirement age is matched by many people’s expectations of being not just available, but able to work into their 70s.

So what is critical illness cover? Briefly, this is insurance that pays out if you are diagnosed with a serious condition, for example cancer, a stroke, or heart disease. Be sure to check the policy carefully, as not all policies cover the same conditions. Consider that such an illness can affect your entire lifestyle. You may need to change or even give up your work, or alter your house or car. If you have good critical illness cover in place, at least you can be sure that your needs can be met financially.

If you have a family, you may like to consider what the effect would be were you not there for them. No-one likes to think of the worst happening, but it is only sensible to take a careful look at your life insurance options.

Fortunately, it’s easy to find out good information on these types of insurance, for both cost and cover. Go online and find an Internet insurance broker, who will be able to search for you to find the most competitive quote.

Once you have your plans in place, there’s only one more thing to do – beat those tables and enjoy your old age!

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Author: Catriona Singfield

Searching for mortgage information these days has never been easier – if all you are looking for is another advert promising you the best, simplest, cheapest, most wonderful product ever! How do you unravel the meaning from all these fantastic claims?

Not to worry – help is at hand! Here we sort out the different mortgage types from each other, and offer some advice on choosing the best one for your needs.

We begin with that first-time favourite, the discount variable rate deal. The good side is that this mortgage has an interest rate tied to follow the company’s standard variable rate, and also offers a cost reduction. The downside of this particular variable version is just that: it varies and may therefore rise unexpectedly.

A slightly different type, the tracker variable rate, is also tied in but this time to the base rate. Tracker rates change only when the base rate changes – and this rate is set by the Bank of England, which may give more stability. Trackers are a friendly face in the mortgage jungle, being simple in concept and easy to understand. They are also available in two variants, short term and lifetime.

A common way to try to make sure you stay with the best rate out there is to re-mortgage after a favourable deal ends. This is a sound idea, as long as you manage the all-important timing just right. You also need to find a new deal that matches (or betters) your old one. If you don’t make the change fast enough, you can end up paying the lender’s standard variable rate instead. It can be a useful strategy, but you’ll want to remain open to switching to a good longer term deal if one comes around.

Speaking of long term, it isn’t necessarily the case that a longer duration means a worse rate. Look into your options carefully. Additionally, some borrowers actually prefer to have a longer term plan in place, especially if they were used to making regular rent payments of a fixed amount.

Longer term mortgages can be worthwhile too if you are considering a repayment mortgage. This type reduces the capital you owe over time, as you make payments. If you find the inconvenience of searching around for a good mortgage deal every couple of years troublesome, then investing in a sound long term package could be your answer. And the amount you’d save by changing is often not that large.

Another mortgage sweetener often used to attract new buyers is the cashback mortgage. It can seem tempting to have a cash-in-hand sum, especially when there are a host of things you’d like to do to get your new home just as you’d like it. But beware! Just like many welcome gifts, it often comes with a less impressive interest rate attached. There is a longer tie-in period too – the length of time before you can change to another mortgage without paying a fee. Worst of all, if you do switch, your cashback may have to be repaid!

There are low-fee deals on offer. These may come with no arrangement fee, but with a correspondingly higher interest rate. Consider if over time, it would work out cheaper for you to pay the fee. Remember: there are no free features with a mortgage! It’s also quite possible that the fee can be added to the mortgage total anyway, softening the blow.

It’s a slightly different case if you are offered a free valuation, or free legal work, as these are incentives which will actually reduce costs you’d otherwise have to pay. But as always, check the interest rates carefully. These are the main feature of any mortgage.

So what’s your best avenue for up to date market advice and tips? An online broker is trained to look for exactly what you need, and can match your requirements with the very latest and most economical deals. They can also sometimes find special discount mortgages that are only available via the Internet.

It makes sense to look at the ever-changing mortgage market from all angles. Your knowledgeable broker is your best ally, so make sure they work for you and find that fantastic new deal!

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Author: Richard Norfolk

Mobility in the jobs market can be vital for progress in your career, but the costs incurred can be considerable if you move any distance and moving home becomes necessary. If it can be helped, these should not be allowed to affect your decision to live nearer to your new employment, but you need to ensure that you are aware of the likely total cost.

A report quotes a cost of over £5,500 to move house, based on the current average property price, so you may need to temper that enthusiasm for a grand mansion with a little realism regarding affordability. There will be several different companies who want to have a share of your hard earned cash, and of course the government will also want to profit by your move.

Your first investigation should be into the new mortgage which you will need. You may not have moved home for some time, but even so it is likely that you will have a reasonably up to date picture of the way that property prices have moved – if not, you are in for a shock! First of all you should look at the basics of the mortgage market to see the different types available, and what repayments will be required. Armed with this knowledge, you will be able to start looking for suitable properties, being careful to bear in mind that your costs will not start and end with mortgage repayments.

The governments share in your endeavours will be in the form of stamp duty, which does not seem to have any particular purpose except to enrich the treasury. Currently this cost comes into play on properties where the price exceeds £125,000, which in many parts of the country means that most if not all will carry the 1% additional cost on amounts above this figure.

The next threshold is at £250,000, above which stamp duty climbs steeply to 3%; this on-cost is now reaching very significant proportions and must be taken into consideration. It is worth noting however that if a property is priced by the sellers at a level just above a stamp duty threshold, they will be fully expecting strong negotiations aimed at bringing the price down to the lower level.

The treasury is taking stamp duty at the rate of £5 million per annum – don’t encourage them by unnecessary additions to this sum!

Whilst searching for suitable property you could spend some time in lining up a solicitor and also take an initial look at the mortgage market. You can expect the solicitor’s services to cost in the region of £500; set this money aside along with an additional £900 if you are going to require a full structural survey, which is usually advisable.

When you have a reasonable idea of the type of property which will meet your needs, your investigations into the many types of mortgage available can move on in greater detail. If you have a mortgage on your present property you need to be aware that you could face having to pay early repayment charges or ERCs. At this point you should talk to your current mortgage provider, as they may waive these charges if your new mortgage is to be with them.

If you are likely to have to move home again you could check the future situation – will you be charged ERCs next time? You will need to shop around and do your sums. Another penalty which could be applied if you are well into repayments on your existing mortgage is exit fees, also known as deeds release or admin costs (or whatever other name your provider chooses).

The only purpose for these seems to be to extract funds from a departing customer, although mortgage providers would argue that competition has forced prices down to the point where any loss of revenue has to be dealt with. The amount involved is not great but even £300 or so is a cost to avoid if possible. Ask your current provider about ERCs or exit charges applying if you stay with them.

A lender may adjust his risk assessment applying to your new mortgage if you can only pay a small deposit, and higher lending charges may be incurred by you. On the other hand competition for your business is having an effect on some of these extraneous charges, and more companies are accepting that lack of a lump sum deposit does not necessarily indicate inability to meet regular payments; loans of 100% are no longer rare.

The moral is to keep checking and keep adding up the extras as well as the large mortgage payments because they are all costs which have to be met. After all, even the furniture removers need to be considered. They will not work without payment and you literally will not get far without them.

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Author: Richard Norfolk

The time was when you started to pay your mortgage off whilst relatively young, perhaps 25 or 30. This meant that with the usual 25 year mortgage it was fully paid up at 50 or 55, and the problems of old age could be approached without the distraction of those monthly payments.

O.K., you now owned your own house and had to face the cost of maintenance, but somehow it was easier to bear. You also had a fairly accurate idea of what your pension would be worth, and if you had also paid for a company pension you had a reasonable idea of what your retirement income would be.

Sadly that accuracy is now largely a thing of the past. Government pension increases have fallen well short of matching inflation for a long time now, so the value of that pension has been steadily eroded. Many company pensions have hit difficulties and in some cases they have vanished altogether. And then there is your house – at what age will you cease to pay for it?

Currently, well over half a million pensioners still have outstanding amounts to pay on their mortgages, and it is not always the last few payments which are facing them. Figures indicate that over 20,000 of those still paying are over the age of 80; in terms of monthly payments, that is 180 or more made since they became pensioners, and they are still paying.

This situation has arisen because some have gone in for improvements to their home, or have decided to move house as retirement approaches, or in too many cases because of an endowment mortgage shortfall.

Prudential have researched the situation, and they reveal that almost 25% of pensioners are not in a position to find the funds necessary for a worry-free retirement. There is a major problem here which needs to be faced, and the fixed income which most pensioners have to cope with is only likely to exacerbate the difficulty of finding a solution.

Some people are now planning their lifestyle to ensure that property ownership will fund a part of their pension, with 13 million intending to take that route. Over 1½ million are banking on it providing in excess of half their retirement income. This is perhaps a reasonable approach if you have been able to plan for this nest egg, but if you are approaching retirement with only your home as security, you will need to hold off booking that world cruise for the foreseeable future.

Equity release is one possible solution, making use of your home’s locked in value. It is possible to obtain equity release on a home which still has a small outstanding mortgage balance, but expect to be required to use the funds released to pay this off. You will find that you must exceed a minimum age and your house must meet a minimum value before you can be accepted – the older you are, the larger the sum which you may borrow. Repayment of the loan plus interest charges will be required when the last occupier (of a maximum of 2) leaves the property, if necessary this repayment will be funded by the sale of the property.

Another approach which 1 in 6 pensioners are prepared to consider is to rent a room to a lodger. This is not a route to be taken lightly. Adapting to having a stranger moving in could be very difficult for many people, and in addition the financial implications need to be examined.

First you must get approval for the idea from anyone who has a financial interest in your home. Your insurer and any mortgage provider must give it their blessing, and it would be wise to talk to your tax office; they will give you a clear picture of what you need to consider from an earnings point of view. In this context you need to check the possible effect on any benefits which you currently receive.

Another route is to look at a the possibility of a re-mortgage but you are unlikely to obtain this if you are over 75, and the interest rates may be prohibitive. You would almost certainly have to use your home for security on the loan which, to put it simply, means that if anything goes wrong you could lose your home.

If you feel that you are too young for this situation to concern you, think again. The younger you are when you make your pension arrangements, the cheaper they will be. Wait 10 years and you may find that the payments for the pension you want have moved beyond your ability to pay

Shakespeare said ‘all the world’s a stage’, so act now!

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