DEAR TRICIA
QOne of our tenants left a few months ago and we’re now getting post for them that looks like it could be unpaid bills. We have no forwarding address and we’re worried this might mean our address gets blacklisted. Is it illegal to open the post and contact the sender?
AI understand that, under the Postal Services Act 2000, opening someone else’s mail is allowed in certain circumstances such as this. However, it is an offence if you open someone else’s mail “without reasonable excuse” or if you “intend to act to another’s
detriment”. The credit score and record of an ex tenant will not mean your address gets blacklisted. This is a myth. Your address is used as a way to confirm your identity, not to calculate your credit score. Credit scores are mainly based on how an individual manages credit – ie paying bills on time, repaying loans etc and not missing repayments.
QI’m thinking of putting some of my savings into a peer-to-peer lender as the rates they say they can get you on your cash are much higher than savings rates. Are they risky as I can’t afford to lose any money?
APeer-to-peer lending is not the same as putting your cash into a savings account where the first £85,000 is protected under the Financial Services Compensation Scheme. While you can get a higher return there are risks, as with any investment, and you might not get all, or any, of your money back. The various P2P sites have their own ways of minimising this risk with slush funds to fall back on in case of default from borrowers. But it’s not a 100% guarantee.
QI’ve got a year left on a five-year mortgage deal. I’ve found a deal that is 1% lower than I’m paying now
and I’m thinking of switching. Will it cost me a lot of money to get out of my current mortgage?
AIf it’s a fixed-rate deal then there is usually an early redemption charge (ERC). Check your key features’ document which will detail any early exit penalties. Or call your mortgage lender to find out how much it may cost you to repay the balance earlier.
QHow long does it take to set up an ISA account? I’m thinking of moving some bonds that are about to mature into such an account.
ASetting up an ISA is quite simple really. You can do this in branch or online yourself quite quickly, or do it through a financial adviser, which will usually take a week or so.
QI’m a stepmum and want to start putting money away towards the children’s futures. Am I able to open accounts in their names?
AAs a guardian you can. There are numerous different accounts to choose from, such as simple bank or building society accounts through to Junior ISAs.