Making sure that you have adequate mortgage protection cover

Recent surveys carried out in the latter part of 2006 seemed to indicate that many homeowners in the UK had failed to take out adequate mortgage protection insurance, and experts warned consumers to make sure that they looked into the type and level of insurance cover that they had for their mortgages. For most people in the UK a mortgage is a long term financial commitment and property purchasing is one of the most costly and important investments that they will make, which is why protecting both is so important.

Most people don’t think about the possibility of not being able to meet repayments on the mortgage when they first take out this loan, but there are many unexpected situations that can arise, which can render is unable to keep up with repayments. For instance, sickness, accidents, and redundancy could leave us unable to earn an income for a certain period of time, which would leave most people struggling to repay the mortgage. Being diagnosed with terminal illness or a critical illness could mean that you can no longer work or earn an income. And if you were to die your family may be left struggling to meet repayments without your income to keep them going. All of these circumstances could result in the loss of your home.

There are different mortgage protection plans available on the UK market these days, and consumers should ensure that they have as comprehensive a plan as possible in place in order to enjoy full peace of mind. Mortgage life insurance is a type of cover that decreases over the term and will ensure that your mortgage is repaid in full in the event of terminal illness, critical illness, or death. Mortgage repayment protection will cover your repayments for a specified period if you are unable to work due to redundancy, sickness, or injury, giving you time to get back on your feet and start work again without worrying about your mortgage.

Consumers could accrue bank charges over the Christmas and New Year period

According to recent data released by the consumer group Which? a large percentage of consumers in the UK could be at risk of accruing hefty bank charges by using their overdraft facilities to fund the expense of the Christmas and New Year period. Read more

The Pros And Cons Of Payment Protection Insurance

Lenders are always eager to convince borrowers to protect their repayments for loans, credit cards, store cards, mortgages and other financial products. And they have a point. People in the UK are saving less and borrowing more, with a high rate of debt. Read more

Find the right savings account for your holiday savings

As the festive period disappears and Spring approaches many people in the UK start thinking about saving towards their summer holidays. If you are looking to start putting some money aside to fund your annual holiday in 2007, it could really pay to shop around a little and find a savings account that will make your money work harder for you. There are many different savings accounts available these days, and the interest rates on offer can vary dramatically. Depending on how much you will be saving this could make a big difference to the amount that you earn in interest.

The type of saving account that you opt for will depend on a number of factors, such as the initial deposit that you can make, the amount that you intend to put in each month, and the level of access that you require to your savings. You will find a choice of savings accounts, some of which require a certain period of notice in order to make a withdrawal without penalty and others that offer instance access. Some require a minimum initial deposit of just one pound whereas others require more, and some want to see a regular minimum amount going in each month, whereas others will accept deposits as and when you can afford them.

Amongst one of the highest savings account interest rates on offer is the Alliance & Leicester savings account, which offers twelve percent AER on its regular savings account. Choosing the right savings account for regular savings can make a big difference to the amount you make on your deposits, and consumers can quickly and easily compare the different savings accounts available, along with their interest rates and terms by going online. This is the easiest and most convenient way to see at a glance which of the UK’s savings accounts will best suit your needs and give you the best return on your deposits.

Finance management skills being taught to your students

With many adults and households now struggling to keep up with debt repayments, a high number of people struggling to manage their finances effectively, and a record number of bankruptcy and IVA applications being filed, schools in the UK are trying to address the issue of consumers debt at its roots by educating youngsters in how to manage finances. At present, children aged just eleven and upwards are being taught about effective financing, which should give them valuable skills and knowledge for the future and could help them to avoid the levels of debt that many of today’s adults are having to deal with.

One school in Pickering, Yorkshire is already enjoying the benefits of this addition to the curriculum, and students seem to find it very useful. The school is working with the Personal Finance Education Group, which aims to bring a better grasp of personal finance into the national curriculum, aided by fifteen million pounds in funding from the Financial Services Authority.

The Regional Director of the Personal Finance Education Group stated: “It’s helping them understand what financial information they need and then how to apply it. If you look what the financial situation looks like for the under-40s it is very different to the way it was some twenty or thirty years ago. A young person aged 18 can clock up credit cards at an alarming rate without much reference to their financial situation and
the important thing is to let people know how to manage their financial situation.”

The children at the school have had some very positive things to say about the new aspect of education that they are receiving, and many are already aware of how this type of additional education could help them in the future.

Only quarter of Brits have adequate insurance cover against loss of income

A recent study carried out has shown the low level of insurance protection cover amongst Brits against loss of income in comparison to the reliance of British households on more than one income. According to the study almost fifty percent of households in the UK rely on more than one income in order to cover living costs, spending, and expenses. However, only a quarter of Brits seems to have adequate insurance cover to protect against the loss of their income.

The data comes from the Scottish Widows Protection Report. The information from the report showed the low level of protection amongst Brits when it comes to insuring themselves against loss of income due to situations such as illness or death. The report also showed that the majority of Brits had less than two months salary in savings to cover them in the event that they ended up losing an essential income.

According to the report: “These findings show that if a breadwinner becomes long-term ill – or dies – the average household in the UK does not even have their essential expenditure covered – let alone enough money for those little luxuries.” The report also indicated that even those with over thirty thousand pounds in savings shouldn’t get too complacent about how they would manage in the event of a loss of income: “Many people aspire to do more than just ‘survive’ a crisis – they wish to maintain their current lifestyle.”

A spokesperson from Scottish Widows stated: “The majority of the population is walking a financial high wire without a safety net. Nobody knows what is around the corner, but we have to accept that all too often illness does strike and accidents do happen. If people don’t start to take responsibility for their own financial futures then they could be left in a position where they can’t even cover the essential expenditure in their lives.”

Motor insurance set to rocket in the UK

Motorists in the UK are set to face huge increases in motor insurance over the next year according to recent reports relating to some of the larger motor insurance companies in the UK. It has been reported that the biggest motor insurer in the UK could be whacking up the cost of premiums in 2007, increasing the gap even further between the prices from some major insurers and some of the cheaper motor insurance companies.

Unfortunately, the large rise in premiums could mean that those companies currently seen as budget insurance companies, which are able to offer huge discounts, could also be forced to push up premiums, making it even more costly to own and drive a car in the UK. Norwich Union has already raised premiums by up to forty percent over the past few months, and other major players are set to follow.

The largest motor vehicle insurer, the Royal Bank of Scotland, is now set to follow suit and push up its insurance premium rates, and smaller companies could follow. One spokesperson from the Admiral Group stated: ‘We believe Royal Bank of Scotland Insurance is the decisive factor in taking the market up in price. If it were to sustain a series of increases over the next 12 to 18 months, that would take rates up substantially.’

According to statistics forthcoming rises could push up an average insurance premium of around seven hundred and fifty pounds to around nine hundred pounds. Officials from the Royal Bank of Scotland Insurance stated that the rises were largely due to the heft cost of claims that had been made over recent years. An AA spokesperson also spoke about the rises, stating: ‘You will find people will shop around even more now. The market is going to be even more polarised between the highest and lowest prices.’

Content insurance claims due to rocket in January

Barclays Home Insurance experts have warned that the level and cost of contents insurance claims in January is likely to rocket compared to claims made over the rest of the year, following a similar trend to recent years. Barclays state that this is due to the increase in thefts and burglaries in homes over the festive period, where thieves target homes because of potential rich pickings in the way of gifts, as well as the increased likelihood of homes being empty due to homeowners being out at parties or visiting relations.

According to Barclays Insurance the number of claims during the month of January can rise by around fourteen percent, and based on last year’s figures the cost of claims could shoot up again this year. In January 2006 there was a rise of fifteen hundred pounds compared to the amount claimed throughout the rest of 2005. Barclays experts state that consumers need to take care to minimize the chances of theft.

Barclays also advise customers to ensure that they have adequate cover in place in order to protect themselves during this higher risk period.

One official stated: “The least you can do to make sure your Christmas doesn’t get spoilt by burglars, is to ensure you have sufficient cover in place as part of your home insurance policy. While your insurance won’t be able to compensate you for the distress a burglary can cause, it will allow you to replace all of your stolen items, so that your Christmas doesn’t have to end in a bitter disappointment.”

Consumers are also advised not to leave present on show, and to ensure that there is someone to look after the home in the event that they have to go out for a long period or are away visiting relations.

The Barclays spokesperson added: “Christmas should be the time of fun and happiness but it has unfortunately also become a time of year where more thefts and burglaries are occurring. Nowadays many presents are high in value but also light and portable, such as laptops, jewellery, gadgets like iPods and BlackBerrys or the latest games console – making them ideal targets for burglars. ”

8000% Rise In Internet Banking Fraud

Many banks have started to offer online banking facilities in the UK, and some banks even operate exclusively online.  Although consumers seem to be growing increasingly confidence with regards to conducting their banking online, the alarming figures indicate that perhaps further information needs to be made available to consumers with regards to Internet banking fraud and how it works.

It seems that the main culprit in the rise of Internet banking fraud is a process known as phishing, and this is where fraudster set up fake website or send out fake emails in a bid to obtain the account details of consumers. Many consumers that are used to banking online don’t think twice about providing their details, but banks have already stated that they do not send out emails to account holders asking them to enter their account details.

Colin Whittaker, Head of Security for APACS, stated: “The rate of growth in phishing is down to a number of factors not least that they have been able to industrialize the process by which they are launching attacks. It seems people are falling victim to phishing attacks less often, which is one of the reasons there has been an increase in the volume of phishing emails.”

According to officials and watchdogs in the UK, millions of pounds have been swindled from unsuspecting consumers, who assume that any emails that they receive with the name of their bank on it must in fact be from the bank. However, consumers that receive such emails should never provide their account details, and should instead report the incident to their bank. 

Will Barclays going to be taken over by Bank of America?

Speculation is rife over whether the Bank of America may be planning to put in a bid for the UK bank Barclays, which is a household name in banking in the UK. Analysts at Merrill Lynch have voiced suspicions that this bid seems imminent based on recent goings on and speculation. By market capitalization, Barclays is the third largest bank in the UK and the Bank of America the second largest in the world.

According to Merrill Lynch: “Bank of America has previously indicated that the next phase of its expansion is to become a leading global commercial and investment bank. In order to achieve that goal, we believe Bank of America is very interested in acquiring Barclays.” The analyst added: “We think Barclays is the perfect fit for Bank of America, given our understanding of Bank of America’s international aspirations.”

So far this appears to be simply speculation, and officials from Barclays and from he Bank of America have refused to make any comment regarding the situation. However, according to Merrill Lynch the recent resignation of the Chief Financial Officer at the Bank of America is a little suspicious: “While we believe de Molina resigned of his own accord to pursue a CEO role at another company, or a more entrepreneurial career, the timing of his resignation is suspect to us.”

Furthermore analysts predict that the takeover could save the Bank of America around one and a half billion pounds due to reduced corporate and staffing costs, as well as increasing chare prices to generate more in the way of profit. The analysts added: “Furthermore, we think the acquisition of Barclays would enhance Bank of America’s long-term growth rate because it would provide numerous avenues for Bank of America to continue to grow on an international scale.”

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