Month: December 2018

Why Negative Equity Has Hit Home Buyers

One of the biggest sectors which was badly hit when the credit crunch started was that of property. In places like the US and the UK there were many thousands of homes which fell in price by huge amounts as some owners could no longer afford to repay their loans, and the glut in available properties kept the prices low.

Other parts of Europe, such as Spain, have seen an unprecedented volume of homes for sale, many eventually selling for up to one half of their valuations from just a few years ago.

It is getting harder for first time buyers to get on the property ladder, and if plans by the Bank of England are enforced it will mean an even bigger struggle to take that first step.

Some countries like the UK have traditionally loaned higher proportions of the value of homes, when compared to some other countries – France and Germany for example. This has resulted in there being less equity in the home, and it’s this that can land the buyer in trouble during the hard times.

Under the Bank’s plans, buyers won’t be allowed to take out a 100% mortgage. Instead prospective buyers would have to put down between 10 per cent and 25 per cent of a property’s purchase price as a deposit before being able to get a loan. Some financial institutions have in the past lent as much as 125 per cent of their property’s value. When prices crashed the result was thousands of home owners stuck in negative equity.

It has become clear that what many would see as irresponsible lending in both the US and the UK has had disastrous consequences for millions, not just homeowners either. Subprime mortgages have been part of the root of the world’s financial woes, and most of us are still living with the effects, which includes higher unemployment, higher taxes, bank bailouts, difficulty in obtaining loans – even for those individuals and businesses which are credit worthy. And it has to stop somewhere.

And in the long term putting down a decent size deposit makes sense. It means that the repayments each month should be lower, thus making it more likely they will remain affordable, even if and when interest rates rise.… Read More

Finance Interview Questions For Investment Banking Sector – How to Prepare For the Big Day?

When you are appearing before an interview board, be it for investment banking or finance or for some other subject, you have to prepare yourself fully in order to crack the exam. In the investment banking and finance sector, there are several posts and designations for which you can apply such as banking finance controller, banking finance investment executive and banking finance auditor.

The type of questions you might be asked by the interview board will now depend on the kind of position you are applying for. You ought to prepare answering specific questions in front of the mirror before you appear for your big interview.

This will give you that much needed confidence and polish that will help you beat competition and get an edge over other candidates who are vying for that lucrative job.

If you are applying for the banking finance auditor post, then you might face the following issues. You will first be asked about your level of experience in this field. Then you will be asked about the degree of responsibility you had to take while holding your last position. Then the interview board will ask you about the results of the auditing reports done by you.

You will have to describe a few of your successful achievements to the interview board. You will also be asked to describe your responsibilities regarding the submission of audit reports for state or federal authorities in full details perhaps.

Those who are appearing for the banking finance investment executive post will face the following volley of questions. You will be asked to recount your experience regarding financial institutions and inter relating investments.

Be prepared to face the question regarding your previous experiences in different types of investment operations in your previous company. You might also be grilled about the relationship between this position you are seeking and your investment experience.

All these items will be written in your CV, but the interview board will expect you to elucidate in full details on your portfolios and management of investment funds and other such stuff pertaining to your experience range.

And now for the questions that you might face if you appear for interview for the post of banking finance controller. The 1st question you will face will be centered on your finance management experience and skills. You will also be grilled about your track record regarding the taking of sound financial decisions that increased the company’s revenue earnings and profitability. This pertains to your previous job.

You will also be asked to elucidate upon your responsibilities, duties and corporate interface regarding internal accounting management, cost accounting management and executive management.… Read More