Homeowners need to set aside 20% of income to pay stamp duty, say experts

The average home buyer in nearly one in three of local authorities needs to set aside over 20 per cent of their average income to pay the stamp duty bill associated with buying a new home, according to mortgage experts.

Research from Halifax reveals that in 2002 the average stamp duty bill was equivalent to more than 20 per cent of average annual full-time earnings in only one in 20 of local authorities.

Martin Ellis, chief economist at Halifax, said: “A growing number of home buyers are paying the equivalent of more than 20 per cent of local average annual earnings in residential stamp duty.

“This trend is most prevalent in the south of England. But, other parts of the country are being affected as well,” he added.

The average homebuyer in South Buckinghamshire paid stamp duty of £21,241 in 2007, equal to 49 per cent of average annual full-time earnings in the area – the highest proportion in the country.

Meanwhile, recent research from Halifax has shown that the number of owner-occupied households in England fell by 83,000 between 2006 and 2007.

Tags: cent, trend, south buckinghamshire, Buckinghamshire paid stamp, average home buyer

Brits to miss out on tax free savings

Many Brits will miss out on significant tax free savings this year, according to research from financial experts.

Findings from moneysupermarket.com have shown that while only 32 per cent of Brits plan to invest in an individual savings accounts (Isas) this year, only 27 per cent know the allowance for these tax free investments will be increased from £3,000 to £3,600 per year as of April 5th.

Kevin Mountford, head of savings at moneysupermarket.com, said: “It is disappointing so many Brits won’t take advantage of this excellent savings vehicle.”

“With just a third of people looking to utilise their tax free Isa allowance it looks like many people will miss out,” he added.

According to moneysupermarket.com, cash is the most popular option for those planning to invest in an Isa with 73 per cent saying this is where they will put their money.

Meanwhile, the finance experts recently said that savings providers are introducing more online products due to the increase in the number of ’silver-surfers’.

Tags: tax free savings, savings providers, free isa allowance, Driving, finance experts, advantage, online products, cent

Savers not taking full advantage of Isas

Up to one in three savers are not taking advantage of their tax-free allowance with their individual savings accounts, according to new research.

Findings from Marks and Spencers Money shows that by not saving the maximum of £3,000 in current and previous tax years, savers could have lost out on £35 per head in tax free interest.

The firm said that this means savers could have lost a potential £23 million per year.

Brendan Cook, chief executive of M&S Money, said: “With an estimated 2million new Cash Isas to be opened in the current tax year, savers could be losing out on a huge amount of tax free interest.”

He urged savers to “take more interest in their savings”, and make full use of their Isa allowance, especially when the allowance increases from April 6th.

Last week, Adrian Lowcock of Bestinvest said that one way to get good value on an Isa was to search for a broker who only took a low rate of commission.

Tags: ISAs, Brendan Cook, individual savings accounts, tax, Marks, Last week, April

Single consumers better off than those in a couple

Single consumers are richer than those spenders in relationships to the tune of almost £4 million according to new research.

Findings from Fool.co.uk show that the average single Brit is better off by £255.42 per month.

The average Brit not in a couple spends £281 a month on rent and bills, compared with the £500 paid out by someone in a relationship – meaning £2,600 saving per year on rent alone.

David Kuo, head of personal finance at Fool.co.uk, said: ” Money can’t buy you love, but it can help to ease the burden as pay day gets further away and the bills start rolling in.”

He added that the firm were not suggesting that money will ever replace the warm glow felt from loved ones, “but if you can’t be with the one you love, then learn to love your wallet”.

The average Brit in a relationship spends £39.50 per month when dining with friends – compared with just £22.85 forked out by singletons.

Meanwhile, UK payments association APACS has said that changes to processes on cashing cheques mean they offer “more certainty” than before.

Tags: burden, rent, couple, United Kingdom, Numismatics

Bridging finance has an ‘important role’ when credit is hard to get

Bridging loans can play an “important role” during tough financial times, one financial expert has claimed.

Business Moneyfacts said that bridging finance is “ideal” for any situation where funds are required quickly and for short periods.

Bridging loans can benefit property professionals looking to acquire property quickly at a time when the number of repossessions is increasing due to the amount of properties going to auction, claims the firm.

Lee Tillcock, editor of Business Moneyfacts said: “Investors buying at auction have often used bridging because they are required to complete within a few weeks of a successful bid when conventional mortgages are sometimes unworkable.”

He added that in a financial environment where credit is difficult to secure, the bridging option can provide a short term solution while that “ever-more-elusive long-term mortgage” is finalised.

Meanwhile, figures recently released by the Council of Mortgage Lenders show that in 27,100 homes were repossessed last year.

This is the highest figure since 1999 and a 21 per cent increase on the number in 2006.

Tags: figure, loan, Council, Bridge loan, term mortgage, finance, personal finance, cent

Brits spend record amount of £4.5bn online

British consumers have broken the record for the amount spent over the internet in January – with £4.5 billion being used to purchase goods online.

Findings from the Interactive Media in Retail Group (IMRG) reveal that the figure was a 75 per cent increase on figures from last year’s January.

Anthoula Madden, vice president of consumer products and retail at Capgemini UK, said: “The index shows that January sales are as large a phenomenon online as they are on the high street, with the overall online market continuing to show strong growth.”

He added that the high growth in the sales of electrical goods and clothing suggests that consumers are treating themselves to items missed from Christmas stocking lists.

According to the results of the survey, consumers spent 38 per cent more on electrical goods over the internet last month compared to January 2007, while clothing figures increased by 32 per cent.

The figures from January contrast with findings from those compiled by the Office for National Statistics which showed that spending in December dropped by 0.4 per cent compared.

Tags: consumer, Brits spend record, month, record, Interactive, uk

Consumers favour cards over cheques

The use of cheques by consumers is being increasingly shunned due to the popularity of debit and credit cards, one financial expert has claimed.

According to the Association of Payment Clearing Services (APACS), while cheques are still popular for use with certain payments, such as paying the window cleaner and as birthday presents, cards are the most popular with increasing numbers of consumers using them every year.

A spokesperson for APACS (female), said: “Part of it is a generational thing. Many of the older generation continue to use cheques and are very used to them.”

She added that “the younger generation, particularly those under 20, probably don’t even bother carrying a cheque book around with them”.

Meanwhile, findings from the APACS, there were over 4.4 million business and personal cheques issued each day in 2007, compared with 11 million in the peak year for cheque volumes, 1990.

The body predicts that by 2016 there will be only 2.3 million cheques per day.

Tags: older generation, favour, personal cheques, payment, business, book

Rates for secured loans are becoming as competitive as unsecured deals

Homeowners looking for a significant cash advance can now choose from secured loan deals which are even more competitive than the average unsecured loan rate, financial experts have claimed.

According to Moneyexpert.com, the average APR on a £15,000 unsecured loan is an estimated 8.44 per cent.

However, borrowers with the option of securing the loan against their property have been able to get interest rates as low as 5.9 per cent, almost 2.5 percentage points cheaper than the average unsecured loan rate on the market for balances of £15,000.

Sean Gardner, chief executive of MoneyExpert.com, said: “Historically secured loans were seen as something of a product of last resort.”

“But these days they are far more attractive to homeowners who are looking for a competitive rate of interest,” he added.

Findings from MoneyExpert.com reveal that demand has increased for secured loans in the past six months with an 85 per cent rise in the number of applications seen in the last quarter ending in January 2008.

Meanwhile, further research from finance experts have shown that 1.39 million have switched mortgage provider for a better deal in the past six months.

Tags: cent rise, mortgage, finance experts, MoneyExpert.com reveal, Moneyexpert, Loans, loan, mortgage provider

‘Blase attitude’ to home insurance to blame for lack of cover

Consumers’ blase attitude to home insurance could be the motivation behind many consumers failing to take out cover, claim financial experts.

Norwich Union estimated that, out of the 25 per cent of home owners who are supposedly without contents insurance, more of them are to be found in larger cities and built up areas as opposed to rural communities.

Alison Palmer, household underwriting consultant for Norwich Union, said that many people take the view that “‘well, it’ll never happen to me. I’ll be alright, I haven’t got anything worth insuring anyway’”.

“As you’ve probably seen from the events that happened last summer it can happen easily. People lose everything and it’s a horrible thing,” she added.

The number of consumers without contents insurance has not changed in the past few years, concluded Ms Palmer.

New research from Legal & General, shows that Britons keep their most valuable personal possessions and documents in their kitchens.

According to reports, the UK insurance industry paid out £9 million to householders for property damage or loss of possessions in 2006.

Tags: lack, home, property damage, number, Household, norwich union

London’s size responsible for title of worst city for card fraud

The size of London and its population are the main reasons behind its recent labelling as the UK’s worst city for credit and debit card fraud, one financial expert claims.

According to payments association APACS, the fact that there are more cards in issue in London and therefore more transactions and more retail outlets are the reasons behind the city being crowned the UK’s “fraud hotspot”.

Mark Bowerman, a spokesperson for APACS, said that despite the difference between regions in the numbers of people, ways of consumers protecting themselves against card fraud are the same.

“As long as you are a cardholder who’s following common sense precautions you can minimise the chances of yourself becoming a victim; and [they are] the same steps to take whether you’re in London or in Yorkshire,” he added.

New research from the CPP Group revealed that London has overtaken Birmingham as the worst city for credit and debit card fraud.

In only a year, the capital city has risen from fifth to first position in the UK’s top ten of card fraud hotspots.

Tags: cpp group, economics, payments association, victim, issue, common sense, CPP

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