Student debt “unlikely” to affect first time buyers

Having a student debt is “unlikely” to restrict students’ abilities to make their first steps onto the UK property market, one expert claims.

Financial solutions specialist Firstrung said that despite recent reports that student loans will be incorporated into people’s credit files, this is not likely to result in loans being turned down.

Paul Holmes, chief executive officer with company, said: “It’s unlikely to hamper students’ ability to buy, and secondly, I think quite frankly a lender would dismiss that kind of commitment in a month.”

He added that despite the figures the “media often likes to paint and shock and bore us with”, the reality of student debt is quite low when they come out of university.

However, although students’ ability to buy property is unlikely to be hampered, Firstrung expect finances to be “raked over a lot more intensely” due to the current economic climate.

Last week, mortgage company mform.co.uk warned that that more first-time buyers will be turned down for loans as student loans will be incorporated into people’s credit files.

Tags: market, Firstrung expect finances, mortgage, lot, week, student debt, shock, debt consolidation

Shopping around can improve “financial fitness”

Consumers can improve their “financial fitness” by shopping around for the best deals on mortgages, credit cards and insurance, claims one financial expert.

Abbey said that there is certainly more that most consumers could do to ensure their finances could be improved and looking around for a better deal could make a big difference to the amount of money paid out.

Nici Audhlam-Gardiner, head of mortgages with the company, said: “It’s all about discipline, in the same way that you can be physically disciplined if you decide to get physically fit.”

She added that it is unlikely that someone who set up a bank account ten years ago is still receiving the best interest rate on the same deal.

Looking around for different offers can make a “big difference on your month by month basis, in terms of how much you’re earning”.

According to research conducted by ICM for Abbey, 21 per cent of people renewed their home insurance without shopping around and four per cent do not have any home insurance at all.

Tags: credit, best interest, Financial economics, Nici Audhlam Gardiner, expert

Nearly 2m pet insurance claims made by consumers

Up to 1.8 million pet insurance claims are made per year by owners according to research from Sainsbury’s Bank.

A further 18,000 claims are made for reasons including when a pet is lost or stolen.

Sainsbury’s warns that as many as 75 per cent of cats and dogs are not insured and as a result estimates that 5.5 million treatments are paid for by owners.

Claire Moyles, pet insurance manager at Sainsbury’s said: “The pet insurance industry not only deals with a huge volume of cat and dog claims every year, it deals with a staggering breadth of ailments and problems.”

She added that insurance can be more useful than expected as events when you need to claim could be “more common than you wish to consider”.

The estimated cost of owning a cat and a dog is £7,200 and £9,000 respectively while vet fees make up 19 per cent of the annual spend on dogs and 21 per cent for cats.

Meanwhile, Sainsbury’s Bank has also reported that the UK has seen an upsurge in the number of property damage claims in the wake of the recent bad weather.

Tags: Nectar loyalty card, cent, result, United Kingdom, insurance claims, cat, sainsburys, annual spend

Brits increase savings 39 fold

British consumers have increased the amount they save by 39-fold since the early 1960s and by 31 per cent since 2000, according to new research.

Findings from the National Savings and Investments’ (NS&S’) Century of Saving report predicted that the savings ratio will rise in the years ahead.

However, it could be at least fifty years before the majority of Brits become regular savers.

The research also showed that gross savings have risen significantly from just £1.1billion in 1957 to £43.9 billion in 2007.

Dax Harkins, NS& I’s senior savings strategist, said: “Advances in technology, over the last half century such as telephone and internet banking, have made it easier for savers.”

He added that future developments such as Apple’s iPhone will play a part in boosting the future savings ratio by making new products possible and providing new ways from which to access them.

According to research from the Lincoln Financial Group, more than 1.8 consumers are risking their retirement savings on the stock market.

Tags: apple, regular savers, 1960s, Dax, fifty, new products, amount, National

Failing to take out insurance puts homes at risk

Failing to take out building insurance can put your home at “real risk”, according to one expert.

Nationwide said that consumers avoided building and home contents insurance due to the supposed ‘complexity’ involved in the contracts, but stated that it is not complicated at all.

Charlotte Sjoberg, campaigns manager for Nationwide, said the need for insurance had not necessarily increased since the spate of bad weather.

“Whether you are in a flood risk area or not, it is really important to protect your home against unexpected events. You really don’t know what could happen,” she said.

She also said that is it important for homeowners to have the right amount of insurance cover and to be aware that home contents and building insurance protect consumers in different ways.

Research conducted by the building society has found that one in five of home owners do not have buildings insurance, and that one in four do not know what is included in their policy.

Furthermore, 14 per cent of those surveyed had also failed to take out home contents insurance.

Tags: real risk, manager, weather, insurance policy, building and home contents insurance, flood risk, Financial services, Title insurance in the United States

Bridging loans “should not be employed”

Bridging loans should not be employed “unless absolutely unavoidable” claim a legal body.

AA Legal Services said that although broken property chains remain, they should never be considered a routine factor and if one is obtained as a last resort, it should only be used where the period is limited.

James Molloy, product manager for AA Legal Services, said that the market will never be rid of aborted transactions and broken chains.

“Certainly not without reform around making the commitment to proceed legally binding earlier in the process – as in the Scottish process,” he added.

However, in all cases, and with all financial products appropriate advice in individual circumstances is essential.”

Research from the Times estimated that one in three property chains is broken.

According to new research from Hometrack, house prices dipped for the fourth month running while the average time it takes to sell a property is on the rise.

Tags: Anthropology, Mortgage loan, rise, month, chains, house prices, research, manager for AA Legal Services

One in 20 do not tell the truth in insurance applications

One in 20 consumers admit to having lied when filling out a life insurance application, according to new research.

Findings from a survey by Friends Provident showed that 95 per cent of people said they always tell the truth when completing forms for insurance.

Mark Jones, protection products and actuarial manager at Friends Provident, said: “It’s good to see many people recognise the importance of advice when buying insurance, and they take the time to answer all questions truthfully when applying for insurance.”

Over half of the respondents said that those who did not tell the truth deliberately on the forms should be punished by not being allowed any benefits

Under half said they would do research online before taking out insurance while 20 per cent would take advice from a financial expert and a further 15 per cent would rely on information from family and friends.

A further one in five admit to not reading the terms and conditions in a policy before signing up.

Meanwhile, research from Nationwide has revealed that a fifth of homeowners do not have buildings insurance.

Tags: Provident, respondents, Types of insurance, family, actuarial manager, Financial services

Switching loans could save consumers money

Consumers with unsecured personal loans could save up to £1.25 billion in interest by switching to a different provider, according to new research.

Findings from uSwitch.com reveals that those borrowers with an £8,000 loan over five years could save £166 by switching to the current best buy interest rate of 6.5 per cent.

Mike Naylor, personal finance expert at uSwitch.com, blamed “confusion and apathy” for holding consumers back from making savings on their existing loans.

“2.5 million people think the savings from switching a loan mid-term are too small. 1.6 million loan customers said it’s too much hassle and the most the discouraging news is that 14 per cent wouldn’t even consider doing it,” he said.

uSwitch urged consumers to consider changing their loan provider while they still can as many providers are now operating personal pricing, an option which prevents customers comparing prices.

Meanwhile, figures from the Office of National Statistics revealed that disposable income is at its lowest level in a decade.

Tags: best buy, GBP, personal finance expert, debt, com, finance, current best buy, Switching

“Imperative” for travellers to get the right insurance

It is “imperative” for travellers to ensure they have the correct insurance cover for their trip say experts.

STA travel said that every level of travel insurance is different offering various degrees of inclusion and levels of cover.

A spokesperson for the company said there is also a ‘no-one-size-fits all’ approach to purchasing travel insurance.

With adventure holidays and long-haul trips there are increased levels of risk which must be taken into account when selecting insurance cover.

“It may not be the most exciting, but travel insurance is probably the most important purchase you’ll make for your trip,” she said.

It will help you enjoy your trip, offering you protection “against the unexpected” she added.

According to figures from the Mintel Gap Year report, predictions are that the global gap year market will be worth £11 billion by 2010.

The research showed that the market demographic is split into those travelling before, during and after university, as well as those taking a ‘career gap’ and the post-retirement travellers.

Tags: gap year, cover.A spokesperson, global gap, Oceania, risk, travel, protection, research

Homeowners ‘do not have adequate insurance’

Up to one in five of Brits have no home insurance while a quarter do not know what their policy covers, according to a recent poll.

Findings from the Nationwide showed that many respondents are at the risk of being underinsured with 14 per cent of people admit to not have any contents insurance.

This is despite the average homeowner having home contents worth between £14,000 and £21,000.

Nationwide’s insurance director, Robin Bailey, said: “It is surprising that so many people are prepared to take such a gamble on their homes and personal belongings when you consider how much time and money we all invest in our homes.

He added that as consumers never know “what is round the corner”, they would benefit from being prepared by having adequate insurance.

However, the survey also showed that those aged 45 and over are more likely to have both buildings and contents insurance and claim to possess full knowledge of what is covered.

Meanwhile increasing numbers of homes are at risk from dangerous weather, Abbey Home Insurance has stated.

Tags: Windloss Inspection, Financial services, home contents, Insurance, contents insurance, Brits, covered.Meanwhile increasing numbers

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