Subsidence risk for 100,000 Londoners

Around 100,000 homes in London face an increased risk of subsidence due to the growing trend of turning front gardens into driveways.

That is according to esure home insurance, which carried out research including a report from the British Geological Society.

The report details how driveways cause rainfall to run off into drains rather than filtering down to the soil where tree roots lay waiting.

As the roots receive no water they move to seek some out, leading to changes in soil moisture beneath foundations.

“It is very appealing for homeowners in busy streets to create a bespoke parking space for their property,” said Nikki Sellers, head of home insurance at esure.

“Unfortunately, for houses with a street tree or large front garden tree nearby this can significantly increase the risk of subsidence.

“A dedicated space may increase the value of your home but subsidence damage will do quite the reverse,” she added.

Homeowners are being warned to do their research before installing a driveway or patio and are advised to take out adequate insurance if they are concerned about subsidence.

Tags: bespoke, head, business, property, Insurance, soil moisture

Lenders responding well to exit fees ruling

Mortgage lenders have responded positively to a Financial Services Authority (FSA) ruling that borrowers should be told more clearly about the cost of exit fees.

That is according to the ifs School of Finance, which says many lenders have removed or reduced the fees on their mortgages.

A number of banks and building societies have made “encouraging steps” to reduce exit fees since the FSA ruling was made public, with Barclays, Kent Reliance and Portman all named as firms that have announced changes.

The ifs School of Finance also points to a “general willingness” among lenders to ensure that customers are being treated fairly when it comes to exit fees.

This too follows a statement from the FSA which said that some customers are being left in the dark over specific issues with their mortgage.

“Banks and building societies have proved very responsive to the FSA’s recent announcement,” said David Fields, head of banking at the ifs School of Finance.

“However, it remains imperative that customers should consider the overall cost of a mortgage, ie; administration and exit fees as well as the interest repayments, before they make what is likely to be the biggest financial decision of their lives.”

Those of you considering getting a mortgage should make sure that you have done your research and are completely aware of any potential costs which are not immediately apparent.

Tags: ruling, number, overall cost, exit fees, FSA ruling, general willingness, bank, Mortgages

Travel insurance shake-up receives backing

A proposed shake-up in the way that travel insurance is sold to holidaymakers is being backed by a large majority of us.

That is according to the British Insurance Brokers’ Association (Biba), which published a survey on the subject.

Government proposals to revolutionise the market will focus on protecting consumers from travel agents who fail to explain the full details of the policies they sell.

According to the survey, 72 per cent of travel insurance customers were not advised whether terrorism cover was included in their policy.

It is situations like this that have led to widespread support for the government’s plans, with 97 per cent of those asked saying that they agree completely with the proposed crackdown.

“It is essential that consumers are fully protected,” said Biba chief executive Eric Galbraith.

“Travel insurance is vital when we jet off on our holidays and it is the role of the provider to ensure that consumers are both fully covered and understand the limits of their policies.

“Biba brokers and the rest of the regulated industry have been fulfilling this commitment for years and the government’s proposals would ensure that travel agents and tour operators fall into line,” he added.

The research also found that 56 per cent of agents failed to inform customers of how to make a complaint, while only 47 per cent of customers said that they read the small print on their policies.

If you are taking out travel insurance make sure that you take the time to read the small print and ask for clarification on anything which you are unsure of.

Tags: government, Travel insurance shake-up, Financial economics, Fashion, british insurance, revolutionise, executive, Eric Galbraith

Rics urges Hips postponement

The Royal Institution of Chartered Surveyors (Rics) has called for the introduction of home information packs (Hips) to be postponed.

The information packs, due to launch in 100 days, will give future buyers information estate agents might not see fit to disclose at the point of sale, such as local searches, sales statements and leasehold documentation as well as an energy performance certificate revealing their future home’s level of energy efficiency.

They are intended to encourage greater transparency in the selling process and slash the high number of sales which fall through each year.

Under current government plans, the information packs will become mandatory from June.

But Rics spokesman Jeremy Leaf insists comprehensive reform measures are needed to “sweep up all the problems with home buying and selling”, not just stop-gap solutions.

More seriously, Hips in their current form are irredeemably “depleted”, with “most of the stuffing removed”, he claims.

Meanwhile, the director general of the Association of Home Information Pack Providers (AHIPP) Mike Ockenden has staunchly defended the information packs, arguing that they would “greatly reduce the needless stress associated with buying and selling homes in this country”.

Tags: point, home buying, sale, country, buying, year.Under current government, government, future buyers information

Bank was split over rate rise

The recent freezing of interest rates caused a split within the Bank of England, with two Monetary Policy Committee (MPC) members voting in favour of a rise.

Minutes of the meeting in February have revealed that the vote was split 7-2 in favour of freezing rates but the divide means that the future for borrowers remains uncertain.

Those with a mortgage, credit card or loan could still see interest rates rise, with many people likely to suffer as a result if they do not have the financial clout to withstand another increase.

MPC members decided to wait and see what effect the previous three rate rises would have before moving ahead with another.

“It would take some time for the full effects of the past tightening to be seen. It was difficult to judge whether, and if so by how much, policy might need to be further tightened to keep inflation on track to meet the target,” the minutes read.

The previous rises came in quick succession, with rates jumping from 4.5 per cent in August to 5.25 per cent in January.

It appears that interest rates are likely to rise again in the coming months as the MPC attempts to bring down inflation which is currently running well above the government’s target of two per cent.

Tags: interest, RPIX, Consumer Price Index, rates, succession, clout

Defaqto: ‘2yrs of free banking left’

The end of free banking could be upon us within just two years, according to leading research firm Defaqto.

According to the company, the backlash from increased pressure on banks to reduce penalty charges could see consumers being charged a tariff for their bank accounts.

Defaqto says that this could rear its head as either a monthly fee or a pay-as-you-go system, which would see customers charged in relation to how often they use their account.

Any system like the latter could leave vulnerable people in a worse situation than they are currently in, especially if additional charges are added for the processing of things like cheques or discounts are offered to those using other bank services.

The UK has enjoyed free banking for 23 years, but Defaqto warns that the banks have to make up the money in some way.

“I will be very surprised if free banking is universally available in two years time,” said David Black, head of banking at Defaqto.

“The first major provider to introduce charges for all customers is going to take a lot of flak but it is likely that the majority of the main providers will then follow the lead.

“I would then expect to see a significant increase in account switching as well as many people closing their secondary accounts,” he added.

The UK is currently internationally unique in not charging customers for current accounts.

Tags: customer, free banking, relation, provider, research firm, vulnerable people, leading research

£300m cost of severe weather

The extreme weather we have been experiencing here in the UK in recent months is estimated to have cost us a whopping £300 million.

Damage suffered by our homes during the severe storms has left many people counting the cost of repairs, particularly if they do not have home insurance.

Barclays Insurance has revealed that the number of households suffering storm damage increased by 158 per cent in January 2007, compared to the same period last year.

The bank has revealed that 60 per cent of all home insurance claims currently being logged are weather-related, with the average claim being for around £500.

Although people with insurance have to endure going through the process of having their house repaired, the real victims are those who are not insured and must fork out for repairs themselves.

“This [storm damage] is devastating enough for a family so it is some comfort to know that they have adequate insurance and will get the assistance they need to get things repaired and back to normal as quickly as possible,” said Mark Till from Barclays Insurance.

“The extremes we have experienced in the last two months have kept everyone on their toes. From an unseasonably mild Christmas to snow across the country in the last few weeks and everything in between… it’s no surprise that we have seen a huge increase in the number of claims being made for weather-related damage.”

It seems that the severe weather we have been seeing lately may become a part of life in the UK in future years so taking out a home insurance policy may be a wise move.

Tags: barclays, policy, country, Mark Till, Mark, surprise, Vehicle insurance, betweenâ

100 days until mandatory Hips

People considering taking out a mortgage on a home are eagerly awaiting the introduction of a law which makes the provision of Home Information Packs (Hips) mandatory.

It is now just 100 days until the law comes into effect and, although the road to this point has not been smooth, it is hoped that the buying and selling process will be revolutionised.

The Association of Home Information Pack Providers (AHIPP) believes that around £1 million will be saved every day as a result of Hips.

This is due to the extra information meaning that the number of transactions which fail to go through each year should fall.

“Hips are being introduced to help improve the house buying and selling process for all involved – bringing more information about a property to the front of the process, allowing buyers to make more informed decisions,” said Mike Ockenden, director general of AHIPP.

“In the locations where packs are being rolled out already we have received a positive response from industry, with many agents taking the opportunity to ensure they are prepared for when packs become mandatory.”

Hips are due to become mandatory from June 1st 2007, with anyone who intends to sell a property on or after that date required to get a pack before advertising the property.

Tags: Mike Ockenden, Home Information Pack, positive response, house, opportunity, General

Third of Brits move home to improve lifestyle

Around a third of us have moved house in the last five years to seek a better quality of life.

That is according to research by Abbey, which says around 18.8 million of us were prepared to get a new mortgage to ensure we moved away from negative factors such as crime and unruly neighbours.

According to the research, almost 5.3 million people decided to move because crime levels in their previous area were too high.

In addition, 4.5 million people revealed that they moved to get away from irritating or annoying neighbours, while 2.6 million people wanted to live within a better school catchment area.

“When buying a home people have more to consider than just the building itself,” said Nici Audhlam Gardiner from Abbey.

“People spend a lot of time looking not only for what they want in a home, but for what they need in the area they live in, and more often than not, these requirements are for the greater good of the family.

“Crime and family safety is clearly a top priority for most buyers, but moving to get the right school for your children or to avoid unruly neighbours also have an important impact on the selection of a home,” she added.

The survey found that people in Wales are the most likely to move home in search of a better quality of life, with the majority of people moving to the south-west.

Tags: Brits, previous area, home, life, crime, Wales

Mortgage lending remains “robust” in 2007

Mortgage lending remained robust in January 2007, according to data released by the Council of Mortgage Lenders (CML).

The CML’s figures show that some £26.8 billion was taken on by borrowers during the month.

Although this was six per cent less than the £28.5 billion lent in December 2006, it compares favourably with the £23 billion borrowed during January 2006.

Michael Coogan, director general of the CML, said that the “robust” start to the mortgage-lending market was set to continue over the next few months.

However, Mr Coogan also indicated that there was a certain degree of uncertainty because of the expectation that there would be a further quarter point interest rate rise during 2007.

“Because of this uncertainty, it would be surprising if some home buyers did not review the timing of their decision now,” he added.

Figures released by the British Insurance Brokers’ Association also showed a slight downturn, with the group saying mortgage lending amounted to £5.6 billion last month, compared to 5.7 billion in December 2006.

Tags: insurance brokers association, timing, home, Business Finance, degree of uncertainty, mortgage lenders

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