Isle of Man Bank is sponsoring the Young Achiever awards at this year’s Isle of Man Newspapers’ Awards for Excellence, just one of the ways they are supporting young people in the Isle of Man.
Whether it’s helping to fund studies or providing a first mortgage, Isle of Man Bank is assisting young people to secure the future they are working for.
‘We are open for business and here to lend money to local customers and we have qualified professionals who can take you through the process. We offer an island-wide service from eleven locations,’ says Associate Director of Premium Banking and Local Mortgages, Ian Perry.
This service begins early, with the bank’s award-winning MoneySense for Schools programme, which aims to give youngsters the information and skills they need to manage their money:
‘Isle of Man Bank has an important role to play in supporting young people to become informed and financially capable within our communities. Our MoneySense for Schools programme is just one of the ways we do this.
‘The aim of the programme is to increase financial education and financial inclusion. These are key issues under our sustainability theme of Fair Banking,’ explains Ian.
Isle of Man Bank is the main sponsor of Isle of Man College of Further and Higher Education, a collaboration that brings significant benefits to students, particularly those who choose to continue their education on-island.
The bank is also the sole provider of the Postgraduate Loan Scheme: these loans are guaranteed by the government to the maximum of five thousand pounds to assist with tuition fees.
Most importantly for many young people, is working towards owing their own home one day and it doesn’t have to be an impossible dream. The key is to begin developing a relationship with your bank as soon as possible.
As Mortgage Centre Manager Nicki McMullin explains, this is the first step in a five-step plan developed by Isle of Man Bank to help young people:
‘Initially, we want to understand a customer’s financial position, to establish that they are able to meet repayments prior to granting a mortgage.
‘We will help them to compile a monthly budget planner showing surplus income over expenditure, from which we can assess whether the surplus will meet a monthly mortgage payment, taking into account that some funds may need to be set aside for unforeseen costs and interest rate rises.’
The next step is to save for a deposit, generally 10 per cent of the total to be borrowed for first-time buyers, and 15% for all other borrowers. Some first-time buyers may rely on funds from parents or relatives, but repayments still need to be affordable.
The bank also needs to see a solid employment status: ‘We are looking for a continuous employment history for a minimum of six months for employed customers, and 12 months for contract workers, with a further 12 month contract secured. Those who are self-employed are expected to provide financial accounts and tax returns confirming their income,’ explains Nicki.
The next step is to ensure that you are prepared to meet all the costs that buying a property entails: advocates’ fees, a valuation report and building insurance.
It is also strongly recommended that borrowers take out life insurance to cover the cost of the mortgage and other insurances designed to support them should circumstances arise that prevent earning a salary, such as long-term illness.
The final step is to keep open the dialogue with the bank: ‘Even if you know that you are unlikely to meet all these criteria at present, do not be disheartened,’ says Nicki.
‘We recommend you talk to your lender, as they can assist in getting your finances into good shape.
‘If you visit Isle of Man Bank, you will find we support you in trying to arrange a mortgage for you, but we are equally concerned that making this major financial commitment is affordable and avoids financial difficulties.’
Ian Perry agrees: ‘The key for young people looking for their first mortgage is to begin saving as soon as they can and to show that they can afford the repayments.
‘We are open and willing to help customers so come and talk to us.’
Last year’s winner was Alex Wilson, recognised for her amazing fundraising efforts on behalf of the charity Crossroads Care.
Looking back on her win she says: ‘After the awards, a lot of people saw it and recognised it which gave a lot more kudos and publicity about Crossroads.
‘I think it also looks really good on a CV. It’s something standout and I think there’s so much competition for roles nowadays, you need something standout to get you noticed.’
Entries are now being invited for this year’s Awards for Excellence. There are 16 award categories which include the Isle of Man Bank sponsored Young Achiever Award.
This year’s Awards night takes place on November 21.
The event will be compered by Hugh Dennis, star of the hit TV comedy ‘Outnumbered’, and screened live via the web to a worldwide audience.
Entries close tomorrow (Friday).
You can download entry forms at www.iomtoday.co.im/afe