Single parents struggle to save for kids

Single parents are finding it difficult to manage their banking, meaning that few are able to put money aside for their children.

According to Engage Mutual Assurance, only one in six lone parents make regular payments into a savings account for their children.

A study carried out by the firm found that married couples are much more likely to save for their child’s future, with 42 per cent making regular payments compared to just 17 per cent of single parents.

This is despite increased child benefit and child tax credit which were announced during the last Budget.

“Rising childcare and education costs, along with increases in the cost of living, mean that today’s parents are feeling growing financial pressures in bringing up children,” said Engage spokesman Karl Elliott.

“For lone parents, living on a single income, these pressures may be especially hard to deal with.

“However, parents should not despair of saving for their children’s future. Tax exempt child savings plans and Child Trust Funds provide simple and affordable means to saving for children,” he added.

Parents are advised to put at least some money aside on a regular basis to help pay for their child’s education and perhaps give them a starting point as they try to make their way onto the property ladder.

Tags: way, today, starting, Trust, property ladder, child, Child care, exempt child savings

Landlords rely on mortgage advisers

Landlords in the UK rely heavily on mortgage advisers when it comes to investing in a property.

That is according to the latest research from Alliance & Leicester which found that 74 per cent of landlords seek advice.

In total, 28 per cent admitted to relying on an adviser “a great deal”, while 46 per cent use them “a fair amount”.

The buy-to-let market is seemingly dominated by landlords who use an adviser, with 55 per cent admitting to relying on one to make them aware of new deals and arranging the actual mortgage.

“From our research, it is clear that advice plays an important part for buy-to-let investors,” said Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester.

“Landlords need their advisers to obtain information that they can’t easily get hold of themselves as well as helping them get the best mortgage product for their needs.

“The fact that half of landlords taking advice (49 per cent) remain loyal to one adviser shows just how much they really do value this relationship,” he added.

The research also found that over a third (40 per cent) of landlords meet with their mortgage broker every month, while nine per cent meet with them on a weekly basis.

Tags: landlord, landlords taking advice, information, weekly basis, mortgage advisers, use, deal

First ever 25-yr fixed-rate mortgage

A new mortgage has been launched that could help first-time buyers get onto the property ladder.

Nationwide Building Society is offering a 25-year fixed-rate mortgage which will see buyers protected from future interest rate rises.

The firm has announced that the mortgage comes with a 5.49 per cent fixed interest rate and borrowers can opt out of the mortgage after ten years without having to pay a penalty fee.

Nationwide is promoting the new deal to everyone but first-time buyers are likely to see the biggest benefits.

“At Nationwide we are totally committed to our members because we have no shareholders to please,” commented Stuart Bernau, executive director at Nationwide.

“Our new 25-year fixed-rate mortgage is a clear demonstration of this. It not only offers long-term good value to borrowers looking for the security of fixed payments but also the flexibility of a ten-year deal.

“This is the latest in a series of initiatives that have been designed to complement our existing mortgage product range,” he added.

The new mortgage has been welcomed by many people although some argue that better deals are still available, with many shorter-term loans offering better rates.

If you are considering getting a mortgage make sure you seriously consider which deal is best for you.

Tags: term loans, new deal, year, penalty fee.Nationwide, shareholders, Interest-only loan

Critical illness payouts grow

The number of critical illness claims that were rejected by a leading insurer fell dramatically between 2006 and 2007.

Legal & General has revealed that the rejection rate for critical illness claims was down 19 per cent on the previous year, something the firm says is good for consumers and the industry as a whole.

The reasons behind the falling rejection rate are varied but Legal & General believes that a number of key factors have had the largest impact.

Tele-medical interviewing, which sees a nurse or underwriter speaking to the customer about their medical history, is said to have gone a long way to reducing the number of claims which are thrown out for non-disclosure.

Figures for 2006 show that claims declined for non-disclosure fell by 15 per cent, with the insurance firm paying out £92.1 million in critical illness claims in that time.

“We didn’t go into the business of critical illness to reject claims and so our latest experience is good for customers and good for the industry as a whole,” said Russell Whitworth from Legal & General. “It shows that people can have confidence in critical illness cover.

“Our claims figures demonstrate that the time and effort that we have invested in our underwriting systems to reduce non-disclosure and improve the clarity of policy definitions is paying off.”

Critical illness insurance is designed to help people financially if they are struck down with a life-changing illness or disability.

Tags: way, disclosure, critical illness, cover, policy definitions, cent

‘Review home insurance after wedding’

The British Insurance Brokers’ Association (Biba) has today revealed that re-thinking home insurance after a wedding is vital.

According to Biba, couples are putting many items at risk by not ensuring that they are properly covered and that newlyweds should consider getting in touch with an independent financial advisor.

Wedding presents are becoming more and more valuable and friends and family lavish gifts on their loved ones – making it all the more vital to ensure items have home insurance policies.

Graeme Trudgill, manager of technical services at Biba, said: “The key thing here is to make sure that all your items are covered.

“Before you got married, you probably had £20,000 worth of stuff and one toaster. But after you get married you receive lots of wedding presents, jewellery, and seven toasters, so it’s very likely that you’ll just need to review what cover you have.”

His comment come as research from Direct Line Home Insurance has revealed that same-sex couples have paid out more than £62 million on civil partnership ceremonies in the UK since they became available in December 2005.

Tags: today, financial advisor.Wedding presents, newlyweds, family, same-sex couples, Financial services, british insurance

Start saving early, warns Saga

Young people are being encouraged to start banking their pensions early or risk a tough time when they hit retirement.

Over-50s advisor Saga says that youngsters should be putting money aside as soon as possible by using tax-efficient savings tools and watch what they spend.

Spokesperson Steve Ashton said the sooner people begin saving their money for retirement, the less pressure they will have on them to put cash away in later in life.

He added that it would leave people less likely to get into financial difficulties, such as having to re-mortgage their home.

“Everybody ought to every year be trying to put as much money as possible into the basic tax-efficient savings vehicles, such as your annual ISA allowance,” he said.

“[It's] all very straightforward stuff, but if you are putting a few thousand pounds every year for a number of years into an ISA, then that over ten, twenty years can really start to ramp up and make a significant difference to your retirement income.”

Tags: time, cash, individual savings account, youngsters, Business Finance

64% of Brits won’t reclaim bank charges

Despite headlines that Brits can reclaim bank charges, many are failing to do so for fear for being rejected by their bank or having their accounts closed.

Many consumer struggle with banking charges which mean a penalty is put upon on those who spend more than their overdraft limit and many people are now due a refund.

But a survey by Which? shows that up to 64 per cent of Britons are delaying approaching their banks.

Over one-fifth told the consumer group that they had not written to their bank or asked them about the fees because they “fear how their bank would react”.

Emma Bandey, Which? personal finance campaigner, said: “It can’t be good for the banks’ image that so many people found them less than helpful.”

Recent figures show that 85 per cent of those who have launched a claim against their banks have been successful in reclaiming at least a part of their fee.

Those banks which are most feared in terms of reprisals such as closing bank accounts are said to be Nationwide, HSBC, Alliance & Leciester and Abbey.

Tags: bank charges, helpful."Recent figures, Brits won't reclaim, fee.Those banks, Brits, headlines, Bank charge, image

Millions not claiming unfair charges

Millions of people who have been stung by unfair bank charges are yet to claim their money back.

That is according to Which? after it carried out research that found almost two thirds of people have not even tried to get their hands on the money which is rightfully theirs.

Which? asked 2,200 consumers if they had attempted to claim the money back and many said they had not, however, of those who did, a massive 85 per cent said that they were successful.

The consumer champion reckons that this figure would be closer to 100 per cent if people were more persistent after initially being denied a reimbursement by their bank.

“Claiming back unfair bank charges is a simple process that won’t take up hours of your time,” claimed Emma Bandey, personal finance campaigner for Which?

“If your bank does not co-operate, you should refer the case to the Financial Ombudsman Service (FOS) as so far the banks have chosen to settle all cases referred to FOS.”

The most popular reason for not claiming back the charges is fear of what the bank’s reaction may be.

Many consumers are concerned that their bank may close their account and demand full repayment of any overdraft or loan.

A large number of those who have claimed their money back have not been pleased with their bank’s attitude.

In total, 25 per cent of those asked said that their bank was unhelpful and unresponsive with many having to chase them for a response.

Tags: response, money back.That, consumer, unfair bank charges, Financial Services Authority

February increases saving mood

We all begin February with a good financial attitude, a desire to carry out sensible banking and a mood to save.

That is according to Legal & General which has published its Money Mood Survey for 2007.

In it, the firm tries to gauge the mood of the nation when it comes to saving and 2007 has proved to be the third year of growth.

According to Legal & General, 64 per cent of British adults were in the mood to save at the end of February.

This signals a rise of eight per cent compared to the same period in 2005. In addition, the mood to spend has fallen.

The study claims that 2007 saw the lowest mood to spend in February figures ever, with just 24 per cent of adults wanting to splash the cash.

“These latest figures show the Money Mood of the nation is firmly in save mode as we enter the Isa market this year,” remarked Claire Stacey, director of Legal & General.

“Money Mood also found that the percentage of households who said they have money to spend after paying bills and debt payments has not changed over the three years.

“That’s good news as it shows that the majority of households (58 per cent) are in a position to save rather than struggling to make ends meet,” she added.

This year’s Isa deadline is April 5th so if you are considering saving your money in a high-interest account you had better hurry.

Tags: sensible banking, year, fallen.The study, money, firm, growth, ISA, addition

Stamp duty is “big financial barrier”

The tax man is expected to reap the rewards of Gordon Brown’s final Budget with an additional £1.4 billion expected to enter his coffers as a result of stamp duty alone.

It comes as the Chancellor failed to raise stamp duty thresholds despite the average house price soaring in recent years.

The higher thresholds have been in place since 1997 yet in that time the average house price has rocketed by 175 per cent.

It means that more and more people are now expected to pay the tax, with first-time buyers being hit hardest as they struggle to get a mortgage and take their first steps onto the property ladder.

Homebuyers are required to pay one per cent stamp duty on a property which costs up to £125,000, three per cent for a £250,000 property and four per cent for one valued at £500,000.

The problem is that an estimated 3.5 million homes in England and Wales are now valued at more than £250,000.

“Stamp duty should be indexed in line with house prices and inflation,” said the Council of Mortgage Lenders’ Christopher Dean. “It is a big financial barrier.”

The Treasury has admitted that two fifths of homebuyers in the country will now be required to pay stamp duty.

Tags: budget, finance, treasury, Herald Sun, Victoria, 000, tax, house

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