Scotland Claims Resource: A Complete Guide to Claims Coverage

August 16, 2014 by thesugar | Comments Off | Filed in PPI Claims Latest News

Getting into an accident can be harsh thing to experience especially when confirming your Scotland claims. With the maintenance and separation of the Scots law, this became a part of the claims in Scotland. This means that legally qualified individuals and solicitors should be qualified under the English law. Moreover, they should be sufficiently qualified in order to practice law in this country. In reading this article, you will be guided accordingly on how Scotland claims are processed legally.

Defining Small Scotland Claims

The small claims are made for less formal and convenient way of representation in the sheriff court. This can be used whenever your claim is above 3000 Euros. Some instances may not be applicable in this procedure especially if the claim value is lower than what is specified by the law. For instance, recovering possession of any inheritable property is covered especially damages incur from the personal accidents. In these instances, the summary procedure will be used and hold 5000 Euros along with the ordinary cause procedure.

How to Receive Compensation with Scottish Claims

Some people perceive that they will not acquire any amount or compensation following an accident. Of course, a person may be blamed in any kind of accident. For you to be able to determine your right in filing a claim, it is important to seek a personal injury solicitor. Having a credible and qualified personal injury specialist will guide you on the process of Accident Claims. Some agencies work with no fees without claims basis. They also have employed lawyers to attend to the varying needs of their clients.

Types of Claims

In calculating your claim compensation, it is important to consider different factors. These involve the severity and nature of injuries along with the quantifiable and financial losses. To guide you on different Scotland claims, here are some of their descriptions:

  • Medical negligence. Compensation claimed depends on the injury you’ve acquired from the failure of the healthcare professional taking care of you.
  • Occupational injuries. These are based in a factory or office setting. This category relies on the instance that you acquired the injury while performing a task under your job description.
  • Industrial illnesses. This compensation claim refers to exposure on toxic or hazardous materials found at your occupation.
  • Trips, falls, and slips. Claim compensation in this type refers to personal injury proven to come from another party’s wrongful action or negligence especially in hospital or nursing home setting.

Consulting injury lawyers will help in fighting cases for the highest amount of compensation on any given injury. It is also important to consider the exact cause or situation why the injury happens for it to be classified as an accident claim. Each claim is unique from the other needing highly qualified lawyers to get the best results. Moreover, a personal solicitor will provide an easier time for the reasonable estimate of the compensation. Opinions of medical experts are also involved in this matter especially if you are still on treatment while acquiring for Scotland claims. https://personal-injury-scotland.co.uk

What to Do When Suffering From Mis sold Pension Mortgage

July 21, 2014 by thesugar | Comments Off | Filed in PPI Claims Latest News

Taking hold of the future can be easily done if you have already prepared yourself for retirement. Instead of worrying about the money you will spend in order to compensate for your family’s financial commitments, you have committed to a pension mortgage plan. The plan makes you feel at ease and this gives you the confidence that your children’s education and family’s expenses will never be troubles anymore. However, have you been advised to transfer your pension mortgage to a personal scheme? If yes, then you should look over what mis sold pension mortgage is for your benefits may be at risk.

What Is Pension Mortgage?

Before you proceed with understanding mis sold pension mortgage, you should also define what pension mortgage really is. Basically, the term comes from two independent aspects, which are pension and mortgage. In general sense, the compound plan is known for reducing your tax issues in building up a plan through your post-retirement scheme to pay off your mortgage. The plan is different from the annuity mortgage for in this policy, there is no tax on the growth of the fund and lump sum. Also, there is a great relief from tax in terms of contributions.

Have You Mis Sold Your Pension Mortgage?

If you are asking yourself the big question whether you have mis sold pension mortgage or not, then you should look back on what happened when you were advised to tie up your plan in a personal scheme. Other than, you should also remember whether you were advised with the risks associated with the process or not. If not, you are likely at peril of losing almost all your benefits. Though you have been recommended to have an alternative product for your pension mortgage, it seems that you are not well aware of how the transference will be done.

What You Can Do Now

Either you have lost almost all your benefits or not, you have the right to complain about your mis sold pension mortgage. This is due to the fact that you are wrongfully advised on how to take care of your investment. As you claimed it, there is no overview of risks even given to you. In other words, even your incapability to understand all financial matters has not been considered by your advisor. You should complain still for your investment has performed badly and you just need proofs to do this.

Act Quickly by Coordinating With Your Provider

You should start checking out all the possible support or proof that will strengthen your complain. Make it possible to focus on documents presented by your advisor. Also, stick to the facts you just have claimed so that your complaint will be straightforward and reliable.

An Ombudsman on Act

If you complaint to your advisor has been disregarded, you may proceed to an ombudsman to carry on the investigation. However, take note that you may only complain if you have noticed that something is wrong with your investment three years after the mis sold pension mortgage incident. Be aware of the time limit to avoid wastage of time.

https://mis-soldpension.com

Guidelines to Remember While in Search of Whole of Life Quotes

July 4, 2014 by thesugar | Comments Off | Filed in PPI Claims Latest News

Obtaining the best whole of life quotes for a whole life insurance could become a daunting task for anyone. This is because of the availability of various product providers. Thus, it is always important to shop for rates and compare the services of different insurance companies. It is also crucial to identify the specific need or purpose of getting a whole life insurance policy.

Purpose of Whole Life Insurance

The purpose of a whole life insurance is basically to cover funeral costs when the policy holder dies. It can also be used in ensuring an inheritance tax bill for the family who were left behind. In fact, it is known as death cover, assuring that the policy will pay out an amount to cover necessary expenses during and after death. Primarily, people can choose from different whole of life quotes in order to guarantee their death expenses. In the United Kingdom, the whole of life insurance has become very popular, making it the top policy for death cover.

Comparison Between Term Life and Whole Life Insurance

People can choose between two types of life insurance plans. The whole life insurance is more expensive than the term life insurance. Individuals with a specific goal often look for the whole of life quotes, although the term life insurance is more affordable. A term life insurance can be purchased for ten to thirty-year terms. The named beneficiary will be provided with death benefits during the policy term. But, when it expires, death benefits will also do the same. On the other hand, the death benefits of a whole life policy can extend throughout a lifetime, making it the universal life insurance.

Major Benefits of Whole Life Policy

There are several benefits of getting a whole life insurance policy. One of its major advantages is the continuation of the policy, even if the insured passes away. These insurance policies are able to accumulate cash value eventually. On that note, whole life insurance policies are considered to be financial assets. This is the main reason why many people look for the best whole of life quotes to purchase. If the policy holders opt to discontinue their death benefits from their policies, they can also cash out their policies in the future. Policy holders can also borrow against the cash value of their policies, providing low interest loans.

When to Purchase Whole Life Insurance

It is ideal to purchase a whole life insurance early in life. This is done in order to maximize or take advantage of its benefits. Considering an early time of purchase, the amount of cash value of such policy could become very significant. Also, the rates of these policies are believed to be more affordable when purchased during younger years.

Choosing the Insurance Company

After understanding the two major insurance policies, it is crucial to find the best insurance company. Talking to qualified financial advisers is also ideal prior to any purchase. Whole life insurance policies are still preferred by many individuals due to its several and long-term benefits. But, it is also important to find a reliable insurance company that can provide reasonable whole of life quotes in order to make the most of these policies. https://www.wholeoflifequotes.co.uk

 

Investing a Retirement Money While Generating Income

June 15, 2014 by thesugar | Comments Off | Filed in PPI Claims Latest News

Many people who are able to receive their retirement money mostly go through a difficult decision. Where to put their retirement funds? With the various ways and options, people have difficulties and doubts about where to invest their retirement funds, and choosing the safest one would be a daunting task. Financial advisors and other experts would try to recommend a certain option. However, individuals should be cautious enough on which one to pick.

Fixed Interest Investments

Fixed interest investment is one of the several ways to put one’s retirement money. This could represent the safest place of such retirement funds. Such insured financial products include life insurance, types of bonds, fixed annuities, and many more. These types of investments can guarantee the return of money plus interest because the funds are invested into profit-producing assets. These investments are guaranteed either by a bank, a government, or an insurance company.

Key Benefits

There is a main benefit in a fixed interest investment. Investors are guaranteed with the return of their retirement money. Hence, there is no way of losing their savings and have a probable rate of return. The earnings of such investments can be predicted from ten to thirty years in the future. However, this type of investment could be the lowest-paying type. This is because the investor is not taking any risks compared to other investment types such as equity mutual funds and growth stocks.

Other Ways of Investment

Besides retirement funds, there are other ways on how people can live a comfortable retirement. As early as possible, they should start saving money from the first day of their jobs. Savings come in very handy in times of emergencies, hospitalization, medical care, and other necessities. This is a very good way of accumulating wealth over time. At time of retirement, savings can also be converted into an investment.

Seek for Alternatives

Receiving retirement money or funds does not protect anyone financially. There are several things to consider as the demands of life are consistently increasing. Having retirement funds can not cover all the necessities that life may demand. That is why seeking alternative investments is important in order to generate a consistent income by making use of the retirement funds. Saving funds and investing them are equally vital. Hence, investing a portion of the retirement funds, while safeguarding the rest, is similarly important.

Early Retirement and Disability Retirement

People who tend to leave their workplace before the age of fifty is most likely referred to as early retirement. If they can afford to leave their jobs early, they will do so. Early retirees make use of the retirement money in other endeavors such as enjoying life, travelling, engaging in a different profession, or perhaps establishing their own businesses. On the other hand, disability retirement involves those who are unable to go back to work. This is primarily caused by an injury in the workplace, resulting in the inability to work and medical limitations. Depending on the individual’s circumstance, either of the retiring type may be applied. Nowadays, many people still consider working another year or two even though they are at their retirement age, maximizing their income while saving money at the same time.

Choosing the Right Investment

Regardless the source and the amount of the retirement funds, people should keep in mind a good and income-generating investment. Choosing the right investment is possible by doing a thorough research. Individuals are also advised to seek for assistance from professionals such as financial advisors. It is always essential to find a safe investment while generating income, instead of simply parking a retirement money in a plain savings account.

https://mis-soldpension.com

 

How to Find the Best Mortgage Broker That Will Assist You?

May 26, 2014 by thesugar | Comments Off | Filed in PPI Claims Latest News

Are you in need of a mortgage broker? If you are planning on taking out mortgage loans to acquire your dream house, there is no mistake that you definitely need a broker that will help you get the amount of money you need for the payment of the real estate property you are eyeing. Know how to choose the best broker to deal with by reading this entire article.

 

What Is a Mortgage Broker?

 

Mortgage brokers are the person or the company that serves as the intermediary between the client and the bank or any financial institution. In other terms, it is the one that brings the mortgage lender and the mortgage borrowers to come up with a deal. The task of mortgage brokers is to gather paperwork from the mortgage borrower. After that, the broker will pass the paperwork to the lender for assessment and approval. Once the paperwork is approved, the mortgage fund will then be lent under the name of the lender. The broker receives compensation from the lender for as the broker’s service fee.

 

How to Choose the Best Mortgage Broker?

 

There are many mortgage brokers out there. It might be tough for someone, especially for someone who does not have any single idea on what to look for, to find the best mortgage broker that will assist him in applying for the mortgage loan. Here are some ideas that will help you find the best broker:

 

1.)    Ask a friend.

It will never hurt you to ask a recommendation from a friend or from someone you know. They might know a trustworthy broker that might help you. If your friend trusts a broker, then that broker might also be worthy of your trust. Do not hesitate to check his trustworthiness by asking feedback from his previous clients as well.

 

2.)    Do your own research.

If your friends do not know any broker, then it is time for you to rely on your own researching skills. Use the internet and the telephone to find out details regarding different mortgage brokers.

 

3.)    Ask about their deals.

If there are mortgage brokers who are offering you a deal, ask about their deals. Ask about their conditions and everything you can think of. How they answer your questions will give you a hint on how they handle their clients and how good their services are.

 

4.)    Browse the internet and never settle immediately.

Finding mortgage brokers in the internet is just an easy task. Almost all mortgage brokers already advertise and market themselves through the internet. Never ever settle with the first broker you found in the internet. Always gather a pool of contacts and choose who among them offers you the best deal.

 

Never ever be hasty in choosing your mortgage broker. Remember that a broker’s role in your mortgage loan application is very important. You cannot afford to let just anyone handle it. Always choose the best. Always guarantee that your broker will be able to handle all the required transactions and processes without any hassle.

https://www.90mortgagesuk.co.uk

The Things You Will Be Asked in Whole of Life Insurance Quotes

May 7, 2014 by thesugar | Comments Off | Filed in PPI Claims Latest News

The desire of protecting loved ones is a universal longing, this means that no matter who you are and where you are, you will need whole of life insurance quote. The whole life insurance quotes are easy a very much convenient.

This is in fact the simplest way to bring peace of mind to you and your family when you are gone, but picking one whole of life insurance quote that you can trust today online is very hard and challenging.

The internet has been filled with too many frauds and frauds that one does not seem different from the other. You will have to know which one to neglect and which one to entertain.

There are a number of factors to be considered in getting a life plan quote, but before taking up these factors and checking them one by one, you have to know the inclusions of a whole of life insurance quote.

You will only be able to do that when you already have ideas on the type of life insurance that you want to get. This is why you need to get acquainted with the policies first. If you already have an idea in mind, you can go on with the process of getting a life quote.

Questions That You Will Be Asked

Do not hesitate. This is a rule when you are asked questions in getting a life quote. It is very much normal to be asked a dozen of questions or so because these data are needed in order for them to figure out the best plan fitting for your finance, some of these questions may include your medical history, the usual queries like sex and age, marriage status and the number of children you have. Every policy requires a different set of questions, this means that the list of questions varies according to your choice of life policy.

Whole Of Life Insurance Quote And Medical Health Exams

While some others do not need medical exam results, as have been mentioned, there are a few who do. Although answering many questions may appeal tiresome, it is better to pick a policy that asks for medical questions. These health queries can begin from simple questions like if you have had a smoking history not to the more comprehensive questions. The more and deeper the questions are, the more assured you are on benefits of the policy.

You Need Not Worry

 

You may be worried with letting other people knowing almost everything about your medical conditions and what not or strangers knowing the private information about your life, but do remember that the questions are designed in order for you to get the insurance you need. It is not the goal of the company to get information from their client and use it in vain or against them. Their ultimate goal is for your benefit. In addition, all the answer that you will be giving them are disclosed and protected by laws. Rest assured, you would be getting a whole life insurance quote that you would be able to take full advantage from.

 

 

Knowing And Understanding The Different Mortgage Product Types

December 17, 2013 by thesugar | Comments Off | Filed in PPI Advice

There are different mortgage product types available in the market. The different types of mortgage products are determined on its repayment method. Each has their own pros and cons. Your loan provider will assist you in determining which type of mortgage loan is best for you.

 

To provide you some background on the major mortgage product types available, below are the quick summaries:

 

Conventional Mortgage

 

One of the most common mortgage product types is the conventional mortgage. This term is used for a mortgage that meets the credit standards and guidelines on maximum loan amount of Freddie Mac and Fannie Mae. Both of which are the largest mortgage agencies that set the standards. Their standards are usually followed by most lending agencies. Conventional loans offer a maximum amount of $417,000.00. Though, this amount can be adjusted annually. Loans can be used for refinances or purchases, and both adjustable and fixed rate loans are available.  Most often, conventional mortgage loans have lower rates, compare to other mortgage products.

 

Jumbo Mortgages

 

A Jumbo mortgage is used to refer mortgage product types which surpass the maximum loan amounts for conventional loans.  According to the note written on January 1, 2006, a jumbo loan comes with a one-unit property of the mortgage which exceeds approximately $417,000.  The interest rates of Jumbo loans are generally higher than the mortgages on lower loan amounts. In a real sense, you may find that breaking mortgage transactions into a first mortgage does not exceed the maximum amount of conventional loan, and a second mortgage for the remaining amount required, may be more lucrative than a jumbo loan. Both adjustable and fixed rate loans are available.

 

FHA Mortgages

 

From the word FHA, the FHA Mortgage is insured by the Federal Housing Administration.  Generally, these mortgage product types are designed to make your purchasing easier for first time buyers with less stringent credits and lower down payments than conventional loans. While the expenditures of an FHA mortgage are often higher than a conventional mortgage, they are a good option for first time home buyers, high debt loads buyers, or those who have some credit issues. This “streamlined” features faster processing time and reduced paperwork. Both adjustable and fixed rate loans are available. These loans are subject to limitations of maximum loan amount based on the vicinity in which you are refinancing and purchasing a.

 

 

VA Mortgages

 

VA Mortgage is a mortgage available to former and current members of the United States armed forces. It does not need any down payment with easier credit requirements, and can also be used as an excellent option for those who qualify.

 

Subprime Mortgages

 

One thing good about subprime mortgage is the blemished credit being offered to individuals.  While these mortgage product may be suitable in certain situations, it is your best interest not to be certain that you will not qualify for other financing types such as FHA loan before you accept any subprime financing. The interest fees and rates are generally higher than other mortgage product types. The adjustable rate loans are offered to make the initial payment appear lower, but rates may increase quickly after the first 6 months.

Fixed Rate Mortgage

 

Throughout the entire term of the loan, the interest rates on fixed rate mortgages do not change. While your total mortgage payment may slightly change based on changes in the homeowner’s insurance components and property tax on your mortgage payment, the interest and principal portion of your payment remains unchanged. The amount of your mortgage payment is highly predictable with this type of loan.  While the rates are higher than the rates on adjustable mortgages, you may be interested in a fixed rate loan for smaller loan balances. A fixed rate mortgage can be obtained as a jumbo, conventional, VA, FHA, or even subprime loan.

 

Variable or Adjustable Rate Mortgages (ARM)

 

The interest rate of an ARM can change over time, with the interest and principal portion of your mortgage payment fluctuating up and down in response to changes. The initial interest rate on an ARM is lower than a fixed rate mortgage, resulting in lower monthly payments.  The interest rate is fixed for a certain period – one, three, five, seven or even ten years - before the rate starts to adjust annually. If you have a higher loan amount, an ARM is worth considering. An ARM can be a jumbo, conventional, FHA, or subprime loan.

 

 

 

 

Frequent Matter And Factors To Ponder About PPI Claims History

December 17, 2013 by thesugar | Comments Off | Filed in PPI Advice

Payment Protection Insurance or PPI has been a controversy for the past years. Today, insurance and bank companies are assessing and are presently improving their process of PPI claims. At this point in time, before we continue to discuss the process of PPI claims, let us first discuss what a PPI is all about and what is the PPI claims history to have a clear picture.

PPI For Beginners

Before we tackle about how to make PPI claims, we need to understand PPI claim history for the starters to understand it better. Payment Protection Insurance is abbreviated as PPI. It is an insurance policy that is created specially to assist someone to maintain their payment or loan of their credit cards in the event when the person (who applies for PPI) cannot make payments as a result of misfortunes.

PPI Today

Too many people are requesting for PPI claims, but only a few were not actually prepared to get one, because most people did not browse or read the terms and conditions in it. In association, they know nothing about PPI claims history and how it will affect the process. If you are planning to provoke a PPI claim, it’s important that you first examine your personal factors to see if you are eligible for a claim. Personal factors include the age when your PPI was sold, your status in life and your health conditions.

Your Age When PPI Was Sold

PPI plans will be sold to people who are eighteen to 65. Therefore, when you are younger than eighteen, you may have a legitimate claim for missold PPI. Furthermore, there are PPI plans where the claim might not be created if you haven’t reached that age threshold. If in case you exceeded the required range of age, your PPI claims would be ineffective. So, make sure your age is qualified for an insurance policy.

Are You Retired, Self-Employed Or Unemployed?

You should know that according to PPI claims history, PPI is of no value once you had taken it out by the time you are already unemployed, self-used or retired. Those who are working on a 0.5-time would not be eligible for PPI. Furthermore, working people on a transient term contract to end up jobless in the future are not eligible for PPI conjointly.

Medical Drawbacks When PPI Was Sold 

If you signed the PPI and had health issues and some other qualifications that would possibly lead to termination of your current employment, then you had missold PPI. Reimbursement is acceptable; however, it would depend greatly on the type and kind of insurance company you are transacting with. So, this is another factor to consider. If you are planning to get a PPI claim and this has been confirmed true, then chances are you will not be permitted.

 

Solutions To Other Problems
If you are certain that you got an incorrect PPI insurance plan, lost the required papers, cannot recall the credit card or loaning corporation, you can still continue to file for a PPI claim as per PPI claims history. This can be done because your credit history can retrieve the data on the active loans or credits that for the previous 6 years. Six years is the amount of time that credit reporting agencies should keep details on their debtors. If you want to know your credit history, you can check out the businesses that provide reference information. Remember to file your claim within 6 years after you believe you have made your PPI insurance policy.
PPI claims history allows the lenders that have been cleared or were presented as defective PPI policies to be completely compensated, once verified that they were mis-sold. When filed correctly, the PPI claims can safeguard unsuspecting customers from paying what they owe to the loan companies, in cooperation with other financial institutions.

These are only some of the factors you want to consider. Understanding these terms and conditions can help you find out if you are qualified for insurance claim. If all things fail, remember that it’s not the end of the world. There are still factors to consider. So it’s extremely important to know the PPI claims history before applying for PPI.

To find out more on how your ppi claims made simple works please visit our dedicated website.

 

 

Find the best and cheapest buildings and contents insurance today

May 21, 2013 by thesugar | Comments Off | Filed in Insurance Advice

Buildings And Contents Insurance: You Just Need to Prepare for the Unexpected

When you talk about protection, it is not only the individual that needs protection but something more. If you own property you may need buildings and contents insurance. Even if you structure is situated in a safe area, you will never know when disaster will strike. This in essence is the rationale of buildings and contents insurance. You insure your building from fire, earthquake, floods and other acts of God. At the same time you insure the contents inside the building. All contents that are movable can be covered by the contents insurance.

There is cover for your Structure

The most important portion in buildings and contents insurance is protection for your structure. You building is generating income, in the case of commercial and industrial buildings. Even residential structures can generate income if they are being rented out. You need to purchase insurance equivalent to the value of the building as approved by an insurance appraiser. If you structure is burned down due to an accident, or destroyed by an earthquake or washed by flood, the insurance provider is liable to pay you the face value of the insurance.

There is cover for your Contents

In some cases, the contents inside the building may have more value than the building itself. It is always advisable to insure the contents. In buildings and contents insurance, both the building and the contents are insured. If the building meets a disaster and all the content gets destroyed, you can file for a claim with the insurance provider. You will be paid the amount of cover for the building and for the contents. These are separate amounts, so it is good to have separate insurance coverage. Some policies are integrated but the amount of cover for the building and its content are presented individually and clearly separate.

There is cover for most Disasters

The most common protection for buildings and contents insurance is fire protection. This means that if your structure is destroyed by fire, the insurance provider pays you a certain amount. Lately however, natural disasters called acts of God have become commonplace in many parts of the world. You still need to have protection from fire hazards but then you need to add flood protection, earthquake protection and even lighting protection. If you can have protection for all types of acts of God, then so much the better. As many financial experts say, it is better to have excess insurance cover than to be under-insured.

When you need to prepare for the unexpected, there is no other type of insurance that can give you such a protection. While this type of insurance is simple, there are inclusion and exclusion clauses, that you need to read before signing your name of the policy. Make sure that your intended protection is there and the corresponding policy value is also there. Only then should you sign your name on the dotted line. Separate protection for your building and its contents are essential. There may be instances when the contents can never be placed in safety. You need to invest in contents and buildings insurance.

The UK Banks have been caught again with the interest rate swap scandal

April 8, 2013 by thesugar | Comments Off | Filed in PPI News

Interest Rate Swap Scandal: How Banks Profited From It

Things are not going well for banks involved in theinterest rate swap scandal. Claims can reach to a billion Pounds if regulators decide in favor of claimants. How did the mis selling occur? How do banks profit from the rate swap deals? Rate swaps are simple transactions on the surface.  You protect your interest rate by from future increase by fixing the base rate of your loan. Swaps can be from fixed rate to variable or from variable to fixed depending on the complexity of the transaction. While swaps ought to benefit the customer, in many cases they do not.

They Will Recommend To You Lower Rates

The bank will always recommend to you lower rates, so it gives you an interest rate quotation for a specific term like 5 years. Unknown to you, the bank has been shopping on the interest swap market and has seen the rates, added an interest profit and offered you the loan. While the rate may seem low, in reality the bank has more to gain from the swap than the customer. The customer can only gain if interest rates remain high. If interest rates fall, the customer is left with high interest expenses.

They Will Sell Your Loan in the Swap Market

Since customers have no access to the interest swap market, you will never know that the bank will sell your loan. The longer the term of your loan, the higher the profit will be of the bank from the transaction. If you want lower rates from what the bank initially offered, they will tell you to make a hedge. They will tell you to lock the rates for a longer period but the interest rate will be lower. If you lock your loan to 10 years or even 30 years, the rates will be smaller but you put yourself at risk. You cannot withdraw from the deal without incurring penalties. This is what happens in interest rate swap scandal.

They Will Get the Profit by Longer Dated Swaps

Banks do not transact if they do not get a profit from it. The same is true in interest rate swap scandal. By convincing you to get a longer swap at a much smaller interest rate, the banks will immediately make a huge profit, once the deal is done. In a 5 year interest rate swap, banks can earn around 25,000 to 50,000 Pound for a 1 Million Pound loan. However, if the swap becomes longer dated, like 30 years, the interest rate may fall from 6.25 for a 5 year swap to 3.0 percent for a 30 year swap. This does not mean the customer gains but the customer loses in the long term.

Banks profit by trading your loan in the swap market. Customers often do not understand the complexities of the transaction and when they find that they got the lower rates, they approve the swap. Later on however, the customer realizes that he has been short-changed and want a way out but it does not come without the penalties. This is what it is in interest rate swap scandal.