Homebuyers ‘prudent’ over mortgages

Homebuyers are increasingly prepared to take special measures to avoid getting a mortgage that will push them to their financial limits.

As the Bank of England continues to increase interest rates, many first-time buyers are cutting back on other expenses so that they will be in a better position to cope should rates rise further.

Research by Yorkshire Bank shows that 24 per cent of buyers are keen to avoid maxing out on a mortgage and this is leading to a change in lifestyle for many.

Almost a quarter of those asked said that owning their own home is so important to them that they are prepared to give up holidays, nice cars and cut back their social life to be able to afford one.

With 77 per cent of Brits apparently expecting further interest rate rises in the next year, it is little wonder that so many people are looking ahead and do not want to strain their finances too much.

“What our survey shows is prudence, not panic – all the signs are that the market will still remain strong,” commented Gary Lumby, head of retail at Yorkshire Bank.

“But with rises in the Bank of England’s base rate and with many economists predicting a further rise if not next month, then in the near future, it is inevitable that homebuyers will become a little more cautious with their borrowing.”

The research also found that 70 per cent of buyers expect house prices to increase in the next 12 months but only 17 per cent are prepared to offer the full asking price right away.

Tags: economics, retail, yorkshire, rate, rise

Drivers swapping points to avoid ban

British motorists are prepared to go to extreme lengths in order to avoid the possibility of losing their licence and paying higher car insurance premiums.

With more and more speed cameras cropping up across the UK, drivers are willingly swapping penalty points with their loved ones to avoid having ‘too many’ on one licence.

Insurance firm Churchill has found that 495,000 people have swapped points in the past and a further 9.5 million (29 per cent) would be prepared to do so.

Aside from having to pay increased car insurance premiums, most drivers admitted that they simply could not bear for their loved one to lose his or her licence.

The reasons for this vary, with 21 per cent claiming it would prevent their partner from working, nine per cent saying it would make getting the children to school too difficult and ten per cent not wanting to be the only driver in the house.

Most of the drivers questioned said that they were aware that swapping points is illegal but nine per cent think that it is acceptable.

“This research shows the lengths that some drivers will go to in order to stay on the roads despite committing driving offences such as speeding,” said Frances Browning from Churchill.

“Trying to escape convictions by swapping points with another person is highly illegal and can lead to prosecution. The way to avoid a speeding ban in the first place is simple – drive responsibly.”

Churchill has given its support to government proposals which would see driving convictions graduated, meaning someone who drives only a little over the speed limit receives fewer points than someone who drives well over the limit.

Tags: government, churchill, limit, uk drivers, uk, drivers, 5 million, car insurance premiums

Brits hide billions in the home

Millions of Brits are storing billions of pounds in their homes and missing out on the benefits of banking.

That is according to Virgin Money, which says we have a combined £3.5 billion worth of cash stashed away.

The firm has labelled it the ‘biscuit tin bank’ and says that we should all take that money and put it into a bank account as quickly as possible.

With the money just sitting in our homes, Virgin points out that we are missing out on interest which would be earned if it was in a bank account.

The £3.5 billion would earn a combined total of £174 million in interest every year if it was in an account and, based on future interest rates, our cash is set to lose £200 million in spending power by 2010.

Virgin discovered that 15 per cent of Brits have up to £1,000 in their home, while two per cent have around £5,000.

It may seem crazy to keep this amount of cash in the house but apparently we have our reasons.

Despite the massive risks associated, such as theft, six per cent say they keep the money in the house to hide it from their partner, four per cent do not trust banks and one per cent want to keep it tax-free.

Tags: Virgin, The, trust banks, future interest rates, power, Banks and Institutions, cent, total

Bank charge victory for Lloyds TSB

One of the UK’s banks has made history by being the first to have its banks charges upheld in the fight against unfair and unlawful bank charges.
Read more

Tags: bank charges, none, Business Finance, charge, bank fees, lloyds tsb, position, banks

Protect your expensive wedding gifts

A new report has highlighted the importance of home insurance for newly weds, citing the cost of ever extravagant wedding gifts as the main reason for needing to get home insurance cover pretty much right away following the wedding.

According to reports wedding gifts are getting more and more extravagant, and with gifts as expensive and luxurious as plasma screen TVs and the like being purchased as wedding gifts in some cases, home insurance cover is more important than ever for newly weds with thousands of pounds worth of presents.

Research was carried out by NFU Mutual, which showed that under ten percent of newlywed couples actually check their insurance policies immediately after the wedding, which means that millions of pounds worth of extravagant wedding gifts could be at risk, as it could be left in the new homes of newlyweds as they jet off to enjoy their honeymoon still caught up in the excitement of the wedding.

Research also showed that many newlyweds couldn’t remember whether they had checked their policies or not following the wedding. Officials reports that millions of pounds are spent on wedding gifts each year in the UK, and those gifts could be at risk from damage or theft – particularly if they are being left in the house whilst the couple go on honeymoon – which could mean huge financial losses for the newlyweds just as they embark upon their married life together.

One official from NFU Mutual stated: “There is a great deal of excitement in the run up to a wedding and naturally, the practicalities of checking your home insurance can sometimes be forgotten.”

Tom Smith
31st May 2007

Tags: target, gifts, theives, value, honeymoon, home

Neighbours cost homeowners £93.4m

Brits spend more than £93.4 million each year on damage caused by their neighbours.

New research by Abbey has found that around 543,000 of us have to endure household damage by our neighbours every year.

Londoners are the worst affected, with ten per cent encountering damage, while people in Wales are the least affected.

The average insurance claim made after a neighbour has caused damage is around £172 but one in twenty is hit for £1,000 or more.

“Not all damage caused to people’s homes by their neighbours is malicious. In many cases this type of damage is accidental. However there are often misconceptions about whose insurance is to be used to claim for it,” explained Prasad Shastri from Abbey.

“It is always the policy holder of the damaged home that will need to submit a claim. For example, if your neighbour was to cut down a tree that accidentally breaks a window, it is only you that can claim for damage to your property, not your neighbour, highlighting how important it is for you to make sure your insurance covers you against accidental damage caused to your property by other people.”

Homeowners are also warned by Abbey that buying insurance on price alone can be dangerous as it is important to make sure that you have adequate cover for your home and its contents.

Tags: abbey, Wales, window, accidental, Household, Insurance, misconceptions, price

Brits want to live in Oz

Many people in Britain would like to get a mortgage on a property abroad as house prices and the cost of living in the UK continue to grow.

Research by Bank of Scotland International shows that of all the destinations available for Brits, Australia is the place most would like to live.

It seems that younger people are keener on the idea of Australia than their older counterparts, with 59 per cent of those who chose the country being under 45.

When asked which country in Europe they would most like to live in, the majority of Brits chose France with older people this time proving keener.

There was an even divide between the ages when it came to those who do want to own a property abroad and those who do not.

Around 44 per cent of those who do were under 45, while 39 per cent were aged between 45 and 64.

Tony Wilcox, managing director at Bank of Scotland International, said it is important for people considering moving abroad to do their research first.

“Living, working or retiring abroad can mean a whole set of lifestyle changes, including an impact upon your financial affairs,” he commented.

“Expatriates have different financial requirements and when moving abroad it is important to have the right products and services in place.”

Tags: house, Abraham Lincoln, bank of scotland international, Impact, brits australia, brits chose france, younger people, different financial requirements

20yrs of debit cards

Barclays will soon be celebrating 20 years of debit cards after it launched the UK’s first on June 3rd 1987.

The bank broke the mould when it introduced the Barclays Connect card and changed the face of banking forever.

Within nine months of its launch, one million people had a Connect card in their pocket and the debit card has gone from strength to strength ever since.

Today, around 68 million debit cards are in circulation, with many people owning more than one.

A total of 143 debit card purchases are made every second, 6.8 billion transactions take place each year and debit cards out number credit cards.

“Plastic has revolutionised the way people spend money over the last 40 years,” said Brian Cunnington, head of debit cards at Barclays.

“Ever since Barclaycard became the first credit card in Europe in 1966 the nation’s spending habits have changed.

“The introduction of debit cards 20 years later gave consumers even more flexibility allowing them to withdraw cash from ATMs as well as to have payments deducted directly from their current accounts when they paid in shops,” he added.

Debit cards have remained popular through slight changes that keep them up to date, such as the introduction of Chip and PIN technology.

Tags: uk, banking forever.Within, money, Banking, Payment systems, pin technology, Product Release

Banks warned by judge over unreasonable behaviour

A judge in the UK has issued a warning to banks in relation to unreasonable behaviour in cases where consumers try to claim back charges that have been deemed unlawful and unfair.

Many consumers in the UK have made claims for bank charges going back up to six years, and although in all cases but one the claims have been successful a number of banks have been acting in a manner deemed unreasonable, using retaliatory measured such as account closures to get back at the consumer.

And another tactic being used by some banks is the pretence that they will be defending claims in court, when in actual fact they have no intention of doing this at all.

It is this tactic that is being objected to by the High Court judge, David Mackie, who claims that the banks are wasting court time and resources with this pretence. He further stated that he was looking into awarding damages against the banks if they continued to do this in instances where a consumer has filed a claim in court.

The London Mercantile Court has had hundreds of these bank charge cases referred through lower courts this year, and the hope is that at some point one of the cases will be heard, producing a test decision.

Judge Mackie stated: “If the banks had won, many fewer customers would have sued. If the banks had lost, the claims would have been much easier to sort out than they are now.”

With banks deciding to settle the claim at the last minute before a case is heard, the likelihood of a test decision is a slim one.

Judge Mackie added: “On the face of things each case raises serious issues which the court would permit to proceed to trial. But this is fantasy because, at least for the moment, we all know that there will be no trial.”

Tom Smith
30th May 2007

Tags: account, court, penalties, reclaim, judge

Millions suffer from Crashback

Having a car crash may have more of an effect on us than we think it will.

New research has highlighted a condition which has been labelled ‘Crashback’ and sees 85,000 people failing to get back behind the wheel six months after the accident.

More Than highlights that many drivers suffer from nightmares, panic attacks and flashbacks following a crash and this affects their future driving.

It could have a negative impact on insurance claims as well, as sufferers tend to lose confidence, become nervous motorists and are more prone to driving erratically – increasing the chances of having another accident.

The effects of Crashback can be felt for some time, with More Than discovering that almost 170,000 British motorists take more than six months to drive again.

An additional 85,000 people say they have not returned to their car since crashing and over three million admitted that they still thin about their accident every time they drive.

Marcia Chambers, from accident councillors FirstAssist Services, said help is at hand.

“Crashback is a very common condition amongst drivers who have been involved in an accident,” she commented. “Any car crash, no matter how small, can be traumatic, and there’s nothing unusual in feeling upset or anxious after a crash.

“An important part of the recovery process is talking about how you feel. Partners, family and friends are often willing to help, but there is also the option of speaking to a professional counselling service.”

Keeping an accident to yourself can prolong the recovery period, yet 1.5 million of those asked said that they have never told anyone about their crash.

Tags: panic, counselling service, Subaru, matter, feeling, Than, crash, recovery period

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