2008 set to be ‘a tough year financially’

2008 is “going to be a bit of a shock” and a “tough year financially” for consumers, according to a financial expert.

The end of fixed rate mortgages and the rising price of gas and electric bills both contribute to the more pessimistic financial outlook for next year, says AWD Chase de Vere.

Susan Hannums, savings manager for AWD Chase de Vere, said: “I think it is going to be harder to save, but the thing we need to drum in more than anything else is that we’ve got to start paying off and get away from using credit all the time.”

She added that borrowing “is really what got us here in the first place”.

Consumers need to think of other methods of saving to “turn things around”, concluded Ms Hannums.

Research from Credit Action earlier in the year revealed that total personal debt in the UK has reached £1.25 trillion.

Tags: concluded ms hannums, Economic history, Vere, manager, anything, year

Mortgage lenders ‘targeting better qualified people’

The mortgage crunch has prompted mortgage lenders to target “better qualified people and lower risk people”, according to industry experts.

FirstRungNow.com said that products such as guarantor, professional, joint and graduate mortgages are now “coming to the fore”, as market conditions has made lenders keen to use these services.

Helen Adams, director of FirstRungNow.com, said: “The lenders aren’t necessarily put off by people being credit averse or being in debt despite the market conditions.”

Lenders have confidence that graduates and professionals will be able to pay their mortgages off, she said.

Ms Adams stated that lenders take a “holistic view” about earning versus debts and “won’t lend unless they think that the risk is reasonable to them.”

Scottish Widows, one of the leading banks in the graduate mortgage market, currently offers a 102 per cent mortgage to graduates.

This is open to all graduates of recognized universities under the age of 40.

Tags: graduate mortgage, guarantor, mortgage, view, averse, age

Borrowing from friends affects both young and old

Both young and old are liable to borrow money from other people says a financial expert.

Research from online company Paypal reveals that “the person we turn to most for borrowing money is our mother”, while 16 per cent of UK consumers have fallen out with family members after lending money to them.

The findings also showed that there is “a huge chunk of us” that go to our friends to borrow money. This means the closer a person is to someone the more likely they are to borrow from them, claims Paypal.

Cristina Hoole, a spokesperson for PayPal, said: “The key thing is that if you do borrow money or if you lend money, that shouldn’t affect the relationship that you have with that person.”

“So make sure you don’t create a risk, especially over money, it’s not really worth it,” she concluded.

Research from YouGov showed that the average amount people in the UK have lent to friends and family in the last 12 months is £898.52.

Tags: spokesperson, cristina, thing, Paypal, 12 months, family, bank account, huge chunk

Frost increases theft as cars left unattended

“When the icy mornings start” theft claims increase, as drivers leave their cars unattended while defrosting, say insurance experts.

The British Insurance Brokers’ Association (BIBA) says that car owners should stay with their vehicles to avoid becoming victims of this new type of car theft – “frosting”.

Graeme Trudgill, technical and corporate affairs executive at BIBA, said: “Unfortunately, gone are the days when you can leave your door open…and the same goes with your car. You do need to take security measures there.”

He added that drivers are being sensible by defrosting in the first place, as it would be dangerous to drive with only a small gap in the windscreen through which to see.

However, it could be contentious when making an insurance claim in a situation where a driver has left a vehicle unattended as insurers will argue “you haven’t taken reasonable care,” warned Mr Trudgill.

In January 2007, Sainsbury’s Bank estimated that between 2000 and 2005 as many as 121,730 households may have become victims of “frosting”.

Tags: January, Sainsbury, Financial services, corporate affairs executive, theft claims, theft, Insurance

Winter is a good time to make improvements to home insurance

“Winter is an ideal time to consider making improvements to home security”, claim leading insurance experts.

Halifax Home Insurance has said burglars are more likely to target those properties which are easiest to get into and has issued a series of tips to help deter any potential thieves.

David Rochester, head of underwriting for Halifax Home Insurance, said: “Darker nights provide cover for criminals looking to break into homes, and the rich pickings available to burglars in the form of presents under the tree can prove all too tempting for the opportunist burglar.”

The advice includes fitting visible key-operated locks to the windows, especially on the ground floor, and security lights

He also said that expensive items such as mp3 players, jewellery, mobile phones and car keys can act as an “open invitation to burglars” if left on full view near a window.

Recent research by Liverpool Victoria revealed that burglary and theft accounts for 36 per cent of crime in the UK and costs the nation an estimated £2.8 billion a year.

Tags: lightsHe, home, expensive items, Insurance, ground floor, insurance experts.halifax home, invitation, Mp3 players

Extra home insurance needed during Christmas

Consumers need to make sure they have adequate home insurance cover to protect them from theft as well as damage during the festive period, warns Bradford and Bingley.

With 76,000 homes the target of unwelcome intruders, the bank has said that shoppers need to ensure they have enough insurance cover taken out to protect Christmas gifts.

Dave Foyle, head of general insurance at Bradford and Bingley, said: “With so much money and effort invested in the Christmas period, people should make sure that they don’t overlook the necessity of protecting their home and its contents from unwanted visitors.”

He added that by making sure adequate home insurance cover is in place consumers can make the most of the “fun time” which is Christmas.

The Deloitte Christmas Retail Survey for 2007 revealed that consumers were set to spend seven per cent more on Christmas this year, with the total average spending now at £706 compared with £662 in 2006.

The total predicted spend for this Christmas is £33.6 billion.

Tags: fun time, average, adequate home insurance, christmas, home insurance, extra, place, unwelcome intruders

Children lost millions through misbehaviour

Misbehaving boys and girls missed out on millions of pounds in pocket money this year, according to research from Abbey Banking.

Over 40 per cent of Britain’s 11 to 15-year-olds had their pocket money docked at some point during 2007.

The research showed that parents took £40 million worth of their children’s pocket money.

Steve Shore, head of banking at Abbey, said: “Parents have long since wielded pocket money as a powerful weapon with which to influence their children’s conduct.

“Being on their best behaviour can clearly pay real financial dividends for Britain’s money motivated minors.”

According to the findings, Britain’s naughtiest children can be found in the north where 45 per cent aged between 11 and 15 had their pocket money stopped during the year.

The best behaved children could be found in the midlands where only one in three had their money stopped.

More research from Abbey Banking revealed that two thirds of people have a bar strategy when drinking with friends.

Almost a quarter of British drinkers confess to buying early in order to maximise financial returns from friends.

Tags: worth, bank, Farm, Children lost millions, maximise, Grupo Santander, Banking

Divorcing couples need a ‘clean, simple solution’

Couples going through a divorce should list their combined assets and agree on how to split them to ease problems and conflict, say leading financial advisers.

Lowland Financial said couples should look for the most straightforward way of splitting assets in order to “find a clean, simple solution”.

Graeme Mitchell, managing director of Lowland Financial, said: “An awful lot depends on how they [people] react – often what you find is when people first part, they say: ‘We’re going to try to deal with this amicably’. Then as time goes on they get more and more bitter and twisted.”

He said that couples should start by listing all their assets which were already in place, then those which were accumulated while they were together.

According to the most recent government statistics, the UK’s divorce rate was 12.2 divorces per 1,000 marriages in 2006 following two consecutive years of falls.

The divorce rate is now at its lowest level since 1984.

Tags: lot, law, Christian, place, couples, Lowland, Social Issues, United Kingdom

Tracker mortgages ‘coming into their own’

Tracker mortgages are now “really coming into their own,” according to a leading mortgage adviser.

Ray Boulger, senior technical director and spokesperson for John Charcol, has said that, “providing the starting point is good”, a tracker nearly always gets you better value than a fixed rate mortgage.

He said: “We’ve been recommending tracker mortgages for those people who want a variable mortgage for a long time.”

A tracker ensures a consumer’s interest rate on a mortgage moves in line with the Bank of England’s rate. This does not leave home owners “at the mercy of your lender”.

There are a “proportion of lenders” that do not move their standard variable rates and associated discount rates in line with the Bank’s rate.

Mr Boulger added that “availability is not a problem” for tracker deals.

While Nationwide, Abbey and Halifax have all lowered their rates, following the Bank of England’s reduction in its base rate by a quarter of a per cent, the Press Association reports that they are three of only eight of the 120 or so mortgage lenders in the UK to have done so.

Tags: john charcol, mortgage lenders, tracker deals.While, loan, value, tracker, variable rates, senior technical director and spokesperson

Young women can save and still ‘have a good time’

With careful budgeting young women can “have a good time and still plan for the future” says an industry expert.

Young women think that saving for the future will mean they have to cut back on spending in the present.

However, MDM Associates claims that if they work out what their outgoings are then this may not necessarily be the case.

Lisanne Mealing, director for MDM Associates, said: “You know you’re going to go out, you know you’re going to spend money on clothes: budget for it, so that you have a clear indication at the end of the day of how much you can afford to save.”

She added that an Isa is “definitely the best place to start” when it comes to saving due to the flexibility of access and use that it offers.

Research from online bank Egg found that one in five women earn more than their partner – a rise from one in ten in 2002.

Tags: rise, work out, use, time, industry expert

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