Reducing car insurance costs

Recent reports and figures have recently shown how the cost of vehicle insurance cover in the UK is soaring, with premiums now thought to be a massive 30.8 percent higher than they were a year ago. This is especially troubling for drivers in the current climate because of the soaring cost of fuel, which is already financially crippling many drivers. The rocketing cost of insurance is an added problem to the many drivers who are now struggling to keep their cars on the road.

For many people these costs are unavoidable, because they need to use their cars to get to and from work in order to earn money but at the same time they are struggling to earn enough money to pay for the cost of running their cars. With many having their pay frozen and having to cope with other living cost increases too the financial pressure it getting too tough to handle.

For those that have seen their car insurance costs soar there are a number steps that they can take to try and reduce these costs. This includes:

Comparing cover: The key part of getting cheaper cover for your insurance is to compare cover from a range of providers as the cost of cover can vary from one provider to another. Get online and see what sorts of prices the different providers can offer – you can use an insurance price comparison site but do bear in mind that not all insurance providers will be included on these sites.

Drop you level cover: Of course you do need to have insurance cover in place in order to legally be able to drive your car on the road. However, there are different levels of cover available so you may want to consider dropping the level of cover that you have if there is a big difference between your current level of cover and the next one down.

Change your car: If you have a car that is eating petrol and costs more in tax then it may be worth considering changing your car to a more economical model to cut costs in a range of areas, which would include lower insurance bracket, less petrol, and lower tax. Some people have vehicles that are much larger than they actually need so now might be a good time to trade this in and opt for a cheaper, more economical model.

 

Tags: Vehicle insurance, Driving, vehicle, different levels, uk, order, part, big difference

Why you should be wary of low cost airlines

With the summer holiday season just around the corner there will be many people on the lookout for low cost flights and holidays so that they can get some time away without breaking the bank in the current climate. However, far too many people will be enticed by the remarkably low prices that are advertised by no frills budget airlines, little realising that once it comes to making the booking they could end up pay twice as much as they originally thought it would cost.

The problem with no frills airlines is that they appear to offer extremely good prices, which makes holidaymakers believe that they can get a really good deal. However, when you actually start making the booking you realise just how much more expensive it will be to travel compared to the amount you thought it would cost by the headline price. There are so many things that are added on as you go the cost can go up by double – in some cases even more.

This practice of adding on fees and charges as you go through the booking is known as price dripping and is a practice that no frills airlines are known for. Ryanair, for example, adds on all sorts of fees, from fees for checking in online, which you have to do anyway, to fees for baggage, priority boarding, and a hefty administration fee to top things off. What’s more these fees are all doubled because they are charged each way, so you could find that the price has suddenly shot up to two, three, five, or even ten times the amount you originally thought depending on what the original headline price was.

Many officials are concerned that these airlines are so shifty when it comes to the clarity of these charges. Whilst baggage and priority boarding are optional extras that the traveller can choose to add if they wish to do so other charges such as online check in fees and the administration fee is something that all customers will have to pay, so officials want to know why these charges are not just added onto the headline price. Many believe that these headline prices are misleading because they do not reflect other mandatory costs, which makes them look like they are a far better deal than they are.

One official said: “It’s ridiculous that a flight advertised at ten pounds can end up costing closer to a hundred. Even if the final cost represents a good deal, the customer still ends up feeling resentful when they come to hand their money over, especially when they’re charged again for the privilege of paying. Airlines shouldn’t be scared about being upfront with their prices.”

Tags: dripping, online check, administration fee, upfront, time, realising, traveller, climate

Are you considering a fixed rate mortgage?

There are many people at the moment who are considering switching to a fixed rate mortgage amidst fears that the base interest rate could increase over the next few months, leading to a rate rise on variable rate mortgages and resulting in higher mortgage repayments. Over recent months many homeowners have waited with bated breath each time a Monetary Policy Committee meeting takes place to see whether the base rate is set to increase.

The speculation with regards to whether the base rate will increase over the next few months has continued to increase. Many believe that the base rate will stay at its record low of 0.5 percent for some time to come because of concerns about the continued fragility of the UK economy. With the rate setters still having to consider the effects a rate increase could have on the economy at what is still a very difficult time some believe that it would be irresponsible for the MPC to increase the rate at this stage.

At the same time many believe that the fact that inflation has soared to way over the 2 percent target set by the government means that the MPC will have to increase the base rate in order to bring inflation down and then keep a lid on it. If this is the case then the base rate may increase sooner rather than later, which could result in homeowners with variable rate mortgages seeing their interest rates and repayments go up.

Anyone that is considering whether or not to switch to a fixed rate mortgage needs to do a little research. It is important to look at the fixed rates that lenders are offering to determine what sort of rate you will be able to get if you do decide to switch. It is also important to work out whether you would be able to afford any increases in repayments if the base rate was to rise.

In this particular climate, with so many differences in opinion with regards to future interest rate movement it is difficult for people to decide whether to switch to a fixed rate deal or just continue with a variable rate one and hope for the best. Some people have already taken action and switch to a fixed rate before the rates go any higher in anticipation of a base rate rise.

One official said: “The stand-out trend in the mortgage market at present is the increase in the number of rate-wary borrowers remortgaging onto fixed rates. People know that rate rises are coming and they are locking in now before fixed rates move higher. Essentially, borrowers are running for cover.”

Tags: fact, committee meeting, speculation, rate increase, increase, anyone

Don’t be frivolous with your credit card

Credit cards are something of a double edged sword to most people. On one hand they are able to help people out of money problems, providing a financial lifeline and helping them when they have severe cash flow problems. On the other hand they are the essence of temptation and can lead people into spiralling levels of debt that can result in financial disaster.

Many industry experts have urged consumers to learn how to use credit cards properly. There are many ways in which you can benefit from credit cards, such as being able to enjoy the convenience and ease of avoiding carrying cash, being able to pay for larger items and then repay the balance gradually, and being able to tide themselves over during difficult times.

However, there are many people that take out a credit card simply because they want to spend unnecessarily rather than for the convenience, ease, and flexibility that these cards offer. Many people that are approved for a credit card will go out of their way to spend on it and often buy things that they do not particularly want or need simply because they are able to do this.

This frivolous spending is partly what has landed the country in huge levels of personal debt, with consumers taking out loans and credit cards to buy all sorts of luxuries, pay for holidays that they cannot really afford, buy the latest gadgets and high tech devices at high prices, and even using their new found ‘wealth’ to treat other people to things. For many having a credit card only involves looking at how much they have to spend rather than how they will repay the money and how much they will have to pay because of interest.

A recent report has shown how many people that apply for credit cards are more concerned about how much money they will get in terms of their credit limit than how much they will be charged in interest. This is because so many people are planning to use their credit cards to spend, spend, spend, rather than use what they need to and then get it cleared quickly and at a low rate of interest. Many people spend on their cards needlessly even when they are paying high rates of interest, which is something that can quickly lead to spiralling debt levels that become impossible to manage.

Tags: Credit card, low rate, luxuries, consumer, sword, financial disaster, Credit Cards

First time buyers looking at a year’s salary for deposit

Before the global credit crisis made its way to the UK many first time buyers were blessed with the ability to be able to get not only a mortgage with ease but also a mortgage that did not require any deposit. In fact, many first time buyers were able to get a mortgage for more than the value of the home that they were buying, giving them enough cash left over to furnish or renovate the property.

However, over the past few years this has all changed, and first time buyers have found themselves in an increasingly difficult position, leaving many of them unable to consider getting onto the property market. Whist property prices may have come down they are still high enough to keep the average first time buyer off that first rung of the property ladder. Mortgages have become increasingly difficult to come by, as lenders exercise increased caution over who they are prepared to grant loans to. When it comes to deposits first time buyers have well and truly found themselves in a difficult position, with lenders demanding a large percentage by way of a deposit to consider the buyer for a mortgage.

In fact, the level of deposit has soared over recent years, and this is one of the main reasons why so many first time buyers are struggling to get onto the property ladder. In 2007, prior to the onset of the global financial crisis, the average deposit required by a first time buyer was £12700. However, this has now soared to £31,500, which means that the average first time buyers will need significantly more than a year’s salary to be able to put down a deposit.

The government is calling on various housing and lending bodies to help first time buyers, and the Housing Minister Grant Shapps has met with various bodies to discuss the problems that now face first time buyers. It is thought that around 1.4 million households are keen to own their own property but are affected by the squeeze on mortgages. Shapps spent time discussing issues such as new products that may be able to help first time buyers, specialist insurance for lenders, and shared equity schemes for first time buyers.

Shapps said: “I do not want to see the current generation completely locked out of the market. The pendulum has swung too far the other way, where even if you have a good salary and save to get a deposit, you still cannot get a deposit.”

Tags: grant shapps, home, generation, good salary, cash, time buyers

Are you looking to consolidate your debt?

The start of the year is a time when many people decide to try and sort out their finances, and this is because they want to look forward to the rest of the year without the burden of financial constraints hanging around their necks. By sorting through their finances households are able to cut back on their outgoings, leaving them with more disposable income for other things. Reducing outgoings has become especially important given the increases in living costs and VAT, which are set to put further strain on the finances of many households across the UK.

Many of those that will be facing further pressure on their finances are people that already have a number of outstanding debts such as unsecured loans, credit cards, and store finance. These repayments can be crippling at the best of times due to the high rates of interest that are often charged on them, but with the added pressure of the VAT hike and cost of living it could tip some people over the edge financially.

This is why it may be worth considering consolidation if you do have a number of outstanding debts that you are repaying, especially if they are high interest debts, which credit cards and store finance often are. A low rate consolidation loan could enable you to repay all of these higher interest debts, and then benefit from just one lower interest debt instead.

Whilst this will not reduce the amount that you owe what it can do is reduce the amount that you pay out each month. By finding a consolidation loan with a lower interest rate, taking it out over a longer period, and borrowing just enough to pay off your exiting debts rather than borrowing extra, you could dramatically reduce the amount that you owe each month, which means that you could effectively have more disposable income.

It is important to look around for the best deal on a consolidation loan. A number of lenders have been reducing the rates on their loans of between £5000 and £15,000, so this could be a good time to take advantage of lower rates. Consolidation will also provide you with increased convenience, as it means that you will only have one repayment and one creditor to deal with rather than dealing with a range of different payments, saving you both time and money.

Tags: rest, debt consolidation, period, interest, VAT hike, financial constraints, convenience, finance

How many people will switch to save this year?

Many people will be hoping that this year is going to be a little more financially stable than last year, as many people experienced huge difficulties in 2010 due to the difficult financial climate and job losses. However, with the start of a fresh new year there will be a huge number of households that will be planning to try and trim their outgoings in order to stabilise their finances, and this will mean going through their finances carefully to try and make cutbacks.

Switching services and utilities has become increasingly easy for people over recent years, largely because of their ability to do this via the Internet from the comfort and privacy of their own homes. With such a wide choice of deals and providers available online many people have been able to save money on their utilities and services, and with increased access and improved knowledge on how to make the most of the Internet for saving money a rising number of consumers are now putting in the time to research and compare different services and provider rather than just putting up with what they have.

It has already been revealed in a recent survey that around a third of broadband users are planning to switch their broadband provider over the course of this year, with many planning to do so within the first few months of the year. Whilst cost will often play a large part in this decision many also base it on other factors such as customer service levels, billing, and quality of service.

It is not just broadband customers that are planning to take action when it comes to finding a better, cheaper, and more suitable service. As most people know the cost of energy usage has soared once again, and some of the big energy giants have increased their prices by more than others. This is certain to encourage a rising number of energy customers to take action and look around for a more affordable provider so that they do not end up paying a fortune for their gas and electricity usage.

For those that do want to make savings spending just a couple of hours online can make a big difference, as it could give you the chance to switch all sorts of services from utilities and broadband to insurance and financial services.

Tags: fortune, stabilise, fresh, months of the year, number of households, quality of service, action

Make 2011 the time to get a better credit card deal

Whilst many people in the UK are on poor credit card deals, with high rates of interest and little to nothing in the way of benefits, many fail to take any action such as switching to a more favourable credit card. However, with 2011 almost upon us now could be the time to act, and by doing this cardholders could enjoy far greater benefits or could enjoy paying far less – or even nothing – in interest.

At the start of 2011 new regulations will come in, which will see credit card providers having to make a number of changes to the way in which they operate in order to benefit consumers. This will include a new minimum payment system, which will ensure that cardholders are not left festering in debt indefinitely because of minimum repayments, and more importantly the need for card providers to apply repayments to more expensive debt rather than the cheapest debt, which could save consumers a small fortune in interest.

However, there are fears that these changes, which are due to come in soon, could result in credit card provider trying to bring in sneaky new charges and increase interest rates in order to recoup their losses, and some credit card holders could find themselves paying even more for their borrowing as a result of this.

Rather than just putting up with the way that credit card providers decide to change the account many cardholders could find that they can benefit hugely in terms of their finances by taking the time to find a more competitive deal on their credit card, which will help them to start the New Year in the way that they mean to go on – with streamlined finances and in a better financial position.

Whilst credit cards are not as easy to get as they once were, prior to the onset of the global financial crisis, it is possible to get a good deal on a credit card if you have a decent credit rating. The easiest way to do this is to get online and find a credit card that suits your needs, but which offers far better value for money than your existing card. You can then save money on the amount of interest that you pay, or if you do not tend to spread your repayments you could even opt for a rewards based credit card.

Tags: favourable credit card, Business Finance, increase, Credit Cards, minimum payment, amount, personal finance, number

How you can save money in the New Year

At this time of year, with 2011 almost upon us, there will be many people working out what they want to do for their New Year’s resolution. Of course, there are some resolutions that are more common than others, and this includes saving money over the coming year. With finances tight for many people it is likely that a huge number of people will be making a promise to save money next year.

However, making a resolution to save money is easy enough but actually saving money is a different matter altogether. You need to be able to find the means to save cash, and this involves going through your income and outgoings to see where cutbacks can be made.

Often, people overlook the fact that they can quite easily cut back on the cost of their bills and shopping simply by making a few changes. With so many people in debt now officials are urging consumers to focus on putting any spare money towards paying off debts, and by cutting back on the amount that you spend you can get more disposable cash to put towards things like credit cards, catalogues, store cards, and other types of debt.

One thing that is well worth doing in the New Year is checking whether you can find better deals on services such as insurance, energy bills, and broadband. By seeking out more competitive deals you could save a fair amount of cash each month, which could be put to better use clearing off your debts – or if you are lucky enough not to have any debt to put into savings for emergencies or for a rainy day.

Going online and comparing prices of services such as these couldn’t be easier these days thanks to the Internet, and you will find that switching involves nothing more than the click of a button and maybe a phone call. Competition in the market means that you could get some great deals on your services, and you can compare them with ease when you go online.

Also, it is worth taking a look at your shopping habits to see if you can cut back on the amount that you spend. Resist the temptation to go shopping without a list, as otherwise you end up buying stuff you didn’t really need, and go a little further afield to find discount supermarkets that offer a range of goods at far lower prices than the supermarket giants. Also, consider shopping online – although there is a delivery charge you are less likely to start buying things randomly even though you don’t need them just because they are displayed temptingly in front of you.

Tags: store cards, disposable cash, Business Finance, money, saving, savings, New Year, outgoings

Don’t put up with the energy price increases

Many households have received something of a financial shock over recent weeks, with notifications from their energy suppliers that the cost of energy usage is set to increase. For those who have not yet been notified it is pretty much certain that they will soon be receiving their notifications, with gas and electricity prices being hiked up by a significant level for some customers.

However, officials are urging consumers not to simply accept the energy price increases, and instead to shop around for a better deal and leave their current supplier. More and more consumers are now said to be doing this, as they refuse to pay out more and more money each month in the current difficult climate. For many the effort of looking for another supplier is well worth it, as they can save a significant amount of money compared to what they would be paying if they went along with the price increases that their existing supplier is imposing.

Officials have said that if customers are now happy about the level by which their energy prices have increased they can contact their supplier and advise them that they do not wish to remain with them. Consumers will have to contact their suppliers within twenty days of the notification to advise them that they want to leave. The consumer then has fifteen days to find a new supplier, and during this time will remain with the existing provider and on the existing tariff.

Using a price comparison website you can browse and compare different suppliers in your area at a glance, so if you are informed by your existing supplier that your prices are going up, and you feel that you can get a better deal, it is well worth taking the time to compare different providers and deals to see whether you can get a better price on the cost of your energy usage.

If you are able to get a more affordable deal with a different provider you can then contact your existing provider, advise that you wish to leave, and you can then sign up to the cheaper provider, which means that your finances will not be hit so hard by energy price increases.

Many consumers are surprised by the amount that they are able to save on their gas and electricity bills each year by switching to another provider or deal, and this can sometimes amount to several hundred pounds a year.

Tags: cheaper provider, Dot-com, Smart grid, Scottish Power, GBP, happy, different suppliers, bills

Tighten your spending for next year

With all the uncertainty over the economy and job losses many people will be stressing over their finances and for many people sorting out their finances for the New Year will be a priority. It is always a good idea to start the New Year with a streamlined budget, as it means that you can focus on your finances and try to get them into some sort of order over the course of the year.

With this in mind it is a good idea to start now when it comes to trying to sort out your finances, and there are a few simple steps that you can take, which could help you to organise your finances more effectively, make your budget more manageable, and even reduce the amount of money that you pay each month.

The first step is to go through your finances with a fine toothcomb. You need to make a list of all of your income and all of your outgoings so that you know exactly what is going into your account and exactly what is coming out of it each month. This will allow you to see where you can make cutbacks and what changes you can make to benefit you in terms of your financial situation.

Many people have a variety of payment that they make for things that they do not even use, such as gym memberships even though they never get time to go, magazine subscriptions for magazines they no longer read, and various other payments that they may have forgotten about. Take the time to cancel anything like this, as it could mean big savings each month.

Once you have gone through your finances with a fine tooth comb it is time to see whether there is anything that you can reduce payments on by switching. Many people switch services such as their utilities, broadband, insurance, credit cards, and even mortgage in order to save money, and shopping around for a better deal could make a big difference to the amount that you have to pay out each month by reducing the cost.

Finally, look at any debt that you have and consider whether consolidation might reduce your repayments and get you a better deal. You could consolidate all of your debt such as credit cards, overdraft, and loans, into one, which would save you time and hassle each month and reduce your monthly repayment.

Tags: list, fine, amount, month, broadband, credit, overdraft, uncertainty

Personal loans – strike whilst the iron’s hot

Over recent years the cost of borrowing by way of a personal loan has been spiralling, and even though the base interest rate has been at a record low of 0.5 percent for the past two years personal loan rates have remained high, especially on loans of £5000 or less. However, recent reports have suggested that the cost of borrowing has been falling, which means that consumers may now be able to get a better deal on their borrowing.

However, some industry experts do not believe that the decreases in personal loan interest rates will continue, and that the trend could quickly reverse, with rates going back up again. It is therefore worth considering looking at personal loans now if you think that you may need to take out a loan over the coming months, as you may find that if you strike now you could get a fairly good deal but if you wait around loan rates may start to rise again.

It is especially important for consumers to compare personal loan rates now that the level of interest is said to be coming down, as it increases competition and boosts the chances of being able to get a loan that is competitive and affordable. However, if the base rate increases over the coming months or lenders start to put their rates up again due to the uncertain climate many could find that they have to pay far more for their borrowing.

The internet makes it easier to compare different loans and lenders, and this means that you won’t have to do to any unnecessary hassle in order to weed out the most competitive loans. You can browse and compare loans with ease via the Internet, and you will be able to see at a glance whether the loans available are affordable for you or not.

It is important to act quickly, as many experts think that loan rates will stop falling and could start rising again, which means that you could miss out on a far more competitive rate simply because you decided to wait a couple of months before looking for your personal loan.

The rates are said to have fallen in particular on loans of over £5000, so those considering taking out a larger loan could find that they can make a significant saving on repayments due to lower interest rates by looking for a loan now rather than later.

Tags: unnecessary hassle, finance, hassle, trend, base interest rate

Beat the VAT rise and pick up your big ticket items now

As outlined in the emergency budget earlier this year, which was delivered by the Chancellor of the Exchequer, George Osborne, VAT is set to increase from the start of next year, rising from 17.5 percent to 20 percent, as the coalition government strives to make more money to clear the huge public deficit.

This will come as bad news for the many cash strapped consumers who are already struggling to make ends meet, because it means that price on many things will soar even further. This is why many people are now rushing to make their purchases in the few weeks that they have left prior to the rate of VAT increasing.

The items that many people are rushing to buy include big ticket items such as electrical items like televisions, fridge freezers, washing machines, and the like. Many are also rushing to book holidays before the prices go up, as the effect of even a small 2.5 percent increase on the cost of more expensive items can make a big difference.

Bearing in mind that VAT is set to increase by 2.5 percent at the start of the year it is a good idea to determine whether you are going to be making any big ticket purchases in the early part of next year, and then bringing the purchase forward if possible. This could save you the cost of the additional 2.5 percent, which on higher priced items can make a difference.

If you time it right you could get a bargain on your big ticket items. Directly after Christmas the price of many items is slashed by retailers, and the VAT increase is not set to come in until the start of January. This means that if you purchase your items between Christmas and New Yearn you could benefit from the lower prices from the sale, and you can avoid the VAT hike, which means that you could get a bargain.

In order to make the biggest savings plan you sales shopping, and try and work out which retailers are holding sales between Christmas and New Year so that you can plan your sales shopping accordingly. You should also consider planning ahead, and if you are considering anything such as booking a holiday make the booking early to avoid the VAT increase so that you pay less for your holiday.

Tags: increase, consumers, chancellor of the exchequer, cash strapped consumers, time, budget, additional 2.5 percent, New Year's Day

Keeping friends and family entertained on the cheap

Christmas is fast approaching and after a particularly difficult year in terms of finances many of us are dreading the extortionate costs that tend to come with the festive season. Read more

Tags: little forward, Gift, christmas, food, example, cooking, thing

Reduce the cost of the Christmas food shop

The cost of Christmas can be high enough at the best of times, with households forking out for things like gifts and going out. However, the cost of food also adds to the financial burden over the festive season, and for bigger families in particular the amount being spent on food can quickly spiral out of control. With the cost of food having increased the situation will be even worse this year, and many families can ill afford to spend the amount that they will end up paying for food for Christmas.

There are some ways, however, in which consumers can try and reduce the amount that they spend on Christmas food, and in the current climate every bit helps, so it is worth making the effort now to reduce the cost of food shopping. One thing to remember is that a lot of the food people tend to buy for the festive season is not short life stuff – much of it can be frozen, such as party foods and buffet items, turkeys, ready made roasters, and frozen vegetables.

With this in mind it is a good idea to start looking out for special offers on the food items that you will need for Christmas now rather than leaving it until the last minute. By taking advantage of special deals as you see them, such as half price deals or two for one deals, you could dramatically reduce the amount that you spend on food overall for the festive season. It also means that you won’t have to worry about finding the money all at once to buy your Christmas food because you can buy it gradually between now and Christmas.

Another thing to consider is where you buy your food, as this can make a big difference to the amount that you spend. Many discount supermarkets that have sprung up over the past couple of years offer some good deals on many food items, and although most do not have the same special deals such as two for one deals on items the initial cost of the products is often considerably cheaper. When it comes to veggies for Christmas consider going to a market rather than buying from supermarkets if you want fresh vegetables, as this can often be cheaper as well as fresher.

Finally, resist the temptation to buy too much food for the Christmas period. Many people tend to forget that shops and supermarkets are only shut for one day, and they start stocking up for no reason with food that often ends up going to waste. Just buy what you need for the big day, and you can then determine whether you need to do another shop afterwards depending on what you have left.

Tags: last minute, short life stuff, food can, frozen vegetables, The cost, cost, discount supermarkets

Using comparison sites for insurance

The cost of home insurance and vehicle insurance can be very high these days, and for the many households that are already struggling to make ends meet financially it can be difficult to afford these rising costs. At the same time having this sort of insurance in place is important to ensure that the home or vehicle is protected, and of course in the case of vehicle insurance it is a legal requirement.

The rising cost of insurance has resulted in an increase in the number of people looking to switch their cover to another provider in order to reduce costs, and this has resulted in a myriad of insurance related price comparison sites springing up over the past couple of years. These sites can often provide consumers with ease, convenience, choice, and speed when it comes to switching their insurance cover.

So, just how effective are these price comparison sites? In actual fact they can be highly effective in helping consumers to find low cost insurance deals that suit their needs and reduce costs, and they are very easy and simple to use. Consumers are able to compare a wide range of insurance options all under one virtual roof with a price comparison site, and the process is quick, simple, and convenient.

In order to use these comparison sites consumers simply need to enter details of their insurance needs and some personal details onto the website, and this will then bring up a list of potentially suitable and affordable insurance plans and providers. The consumer can then simply compare the costs and features of the policies and decide which one best suits their needs and their budget. This enables the consumer to arrange a new insurance policy quickly and easily, and to browse the options and compare with minimal hassle.

However, there are also a couple of things to bear in mind when considering using these comparison sites to cut insurance costs. First of all not all insurance providers are available through comparison sites, so you need to bear in mind that you might still find a cheaper deal directly through an insurance company rather than through the comparison site, as these deals may be available through an insurance provider than does not operate through comparison sites.

Also, remember that there are now many comparison sites in operation, and it is worth checking at least a couple of sites before you make any commitment in order to ensure that you get the best possible deal.

Tags: low cost insurance deals, insurance needs, suits, budget, fact, suit, price, insurance deals

Is it time to switch your insurance provider?

A number of recent reports have shown how the cost of vehicle insurance in the UK has soared over the past year, and whilst the increase in cost is said to have slowed down it is still rising nevertheless. The cost of cover now is considerably higher than it was a year ago, and with petrol prices also sky high it has become very difficult for some drivers to keep their vehicles on the road due to the cost.

With this in mind it is important for anyone whose insurance is due for renewal to consider whether they should look for another provider –even those whose insurance cover is not yet up for renewal may find that they are better off paying any cancellation fees to their existing insurer and switching to another company that offers cheaper cover.

Whilst the cost of cover in general has been increasing it is important to remember that the cost of insurance can still vary from one provider to another. Therefore, it is vital to make sure that you look at cover from a number of different companies to see which one can offer the best value for money. The amount that you can save can be considerable, so this would be time well spent if you want to cut back on your outgoings.

In addition to switching your cover you may also want to consider whether it is worth downgrading the cover in order to save money. Obviously, if you have a pricey, new vehicle then it’s not worth taking the risk of downgrading. However, if you have an older vehicle and the cost of a downgraded policy is considerably lower then it may be something that you want to consider.

One thing to remember is that the world of vehicle insurance is still highly competitive, and your insurance company will want to retain your custom if possible. It is therefore worth speaking to your existing insurance firm and informing them that you are thinking of switching for financial reasons. In some cases the insurance firm will find a way to reduce the cost of your cover – sometimes without even changing or downgrading your policy.

Fortunately the internet makes it far easier to compare and find vehicle insurance cover, so if you do want to switch and save some money you won’t have to go to any undue hassle, and you could even use of the various insurance comparison sites in operation to speed things up.

Tags: General, finance, insurance comparison sites, Vehicle insurance, new vehicle, Insurance, insurance cover, vehicle insurance cover

Finding PPI to suit your pocket and needs

Many people have heard of Payment Protection Insurance, or PPI, these days, and not necessarily for the right reasons. This is a type of insurance typically taken out with various forms of credit such as credit cards and loans, but has been hitting the headlines with alarming regularity over the past couple of years due to claims that it has been widely mis-sold by banks and financial institutions.

PPI is a type of insurance that is designed to cover repayments on credit for a specified period of time if the policyholder cannot work due to sickness, accident, or redundancy, and the cover provides many people with peace of mind. However, the controversy has arisen because in many cases in the past the cover was sold to those that could not claim on it, was added to credit agreements without the prior knowledge or consent of the borrower, and was sold to consumers by giving them the impression that they had to take it out with the lender in order to get the finance that they needed.

However, it has now been announced that the Competition Commission in the UK is placing a ban on the sale of PPI at the same time as financial products by banks, and this means that consumers will no longer have to face the uncomfortable feeling of trying to squirm out of taking out the cover whilst the lender is trying to push it onto them relentlessly.

For those that do want to take out the cover for their own peace of mind it is important to shop around, as you can get this type of cover from a number of providers and the cost can vary from one provider to another. In addition to this it is also worth working out whether this is the best type of cover for you, or whether you might be better off with an alternative, such as income protection, which would cover your income as opposed to certain debts.

In addition to hunting around for the best price on PPI – which can be a costly form of cover – by comparing different policies and providers consumers should also ensure that they read the policy terms and conditions carefully to ensure that they are eligible to claim and familiarise themselves with any restrictions that are in place on the policy that they are considering.

Tags: ppi, Insurance, Competition Commission, finance, credit

Saving money on foreign currency

Whilst the traditional summer holiday period is now over there may be many people that are planning a winter break. For those that do not have children and do not have to take holidays at certain times of the year it is often cheaper and more relaxing to go away out of the typical summer months, and there are still some great places to go to get winter sun without the crowds.

Anyone that is thinking of going away over the colder months will need to get their finances sorted, and this includes ensuring that they have the currency that they need for when they go. These days there are many different ways in which to get foreign currency for your holiday, and it is important to try and get the most for your pound so that you have plenty of spending money whilst away.

There are now many ways in which you can get commission free foreign currency but the amount that you get per pound can vary depending on where you go. Often those with packaged bank accounts may find that they are able to get special deals on their foreign currency so it is always worth checking with your own bank to see what they can do for you.

The Internet provides a very effective way of finding the best deals on foreign currency as you can compare and browse the different rates paid from the comfort of your own home, and you can place your order online once you have decided which is the best deal for your needs. If you want the money delivered to your door you can often order it for delivery the next day if your order in time, but there is usually a delivery charge for this, although it will come by special delivery for your safety.

It is also advisable to purchase a combination of foreign currency and traveller cheques, especially if you are going away for more than a few days. Having traveller’s cheques will provide you with additional security in case your money goes missing, as you can get these replaced quickly and easily in most cases.

Some people leave getting their foreign currency until they get to the airport but this can be a costly mistake. If you want to collect it at the airport some foreign currency providers can arrange this, so you can order and pay in advance and collect when you get to your departure airport.

Tags: airport, money, travel, Currency, Numismatics, finance

Consumers fleeced over bill payment methods

Many people these days are keen to try and reduce their outgoings, and in the current financial climate with so many people struggling financially making cutbacks has become vital for some people. One of the ways in which many people try and cut back is through reducing their bills by doing thing such as switching providers, which can help to make significant savings.

However, one way in which many consumers are wasting millions of pounds a year between them on their bills is via their payment methods. Many people fail to realise that companies these days often charge a small fortune based on how the consumer pays their bills, and that by making a simple change to their bill payment methods they could make a significant saving.

Companies such as energy suppliers, home phone providers, and broadband providers often make additional charges to those that do not pay by direct debit. Most consumers have a number of choices when it comes to making payments on bills, such as direct debit, standing order, cheque, or in person at banks and post offices.

For those that do not pay by standing orders some companies such as broadband and utility providers apply an addition monthly or quarterly charge, which can really bump up the cost of services for the customer. For example, Virgin Media, which provides phone, television, and broadband services, will charge consumers an extra five pounds a month for failing to pay by direct debit, which equates to £60 a year. In addition to this the company charges extra when customers ask for paper bills to be sent to them.

In order to save more money on their bills consumers should set up direct debits wherever possible, as otherwise they can end up being charged a small fortune on the cost of their bills. There is also another benefit to setting up a direct debit for a bill payment, and this is because it can reduce the chance s of making a missed or late payment, which can also incur charges when the payment is on something such as a credit card or loan. These missed or late payments can also result in the consumer’s credit rating being affected, which can make it more difficult to get finance in the future and makes it more expensive to get credit due to higher interest rates charged.

Tags: Payment systems, Direct debit, finance, payment, way, Standing order, debit, loan

Finding a low cost winter break

At this time of year, when the nights start to draw in, the weather gets even colder and rainier than usual, and the prospect of the winter months brings on doom and gloom, many people start thinking about planning a winter break either before Christmas or afterwards, where they can soak up some sun, kick back and relax, and simply forget about their worries.

However, with Christmas coming up most people are on a budget when it comes to booking some time away, and most will be on the lookout for a bargain winter break. Getting away to the sun isn’t always cheap, but a number of steps can really slash the cost of a holiday, giving you something to look forward to without having to break the bank.

It is important to remember that the time of year that you book will affect the price you pay for your hotel as well as your flight. Holidays tend to be cheaper in the winter months, but can be more costly on certain weeks such as over the Christmas or New Year periods. Therefore you may find that going before Christmas such as late November or early December may be the best choice, or failing that waiting until after New Year, and jetting somewhere warm as others are heading back to work after the Christmas break.

In order to find the best price on a winter break you need to ensure that you compare prices on flights, hotels, or package holidays depending on your preferences. Many people these days prefer to book a package because of the number of small airlines and holiday firms that have gone bust, leaving many of those that booked separately unable to claim. However, if you do prefer to book your flight and hotel separately check and see whether you travel insurance policy will cover you, as some have now started to do, and ensure that you book with a credit card for extra protection under the Consumer Credit Act.

You should make sure that you also compare things such as travel insurance, airport parking, and if necessary car hire in order to get the best prices on these. Also, remember that whilst the headline prices on budget airline tickets may look cheap there are often additional extras that can really bump up the price, so you may end up paying far more.

Finally, do remember that you can often make a saving by booking your flight and hotel together, so it is worth comparing the cost of doing this against booking separately or a ready made package deal.

Tags: winter, extra protection, holiday, travel, christmas, worries, car hire, travel insurance

Is a ‘friends’ mortgage’ a good idea?

In the past most people that were buying a home either did so alone or with a partner/husband, which was the traditional way of getting a first home. However, things have really changed over recent years, and these days many people cannot afford to buy a home on their own.

This means that many have had to look at alternatives when it comes to moving out from their parents or from rented accommodation and trying to get their foot onto the property ladder, and things aren’t always easy, particularly given the difficulties that many face when it comes to raising a deposit and getting a mortgage in the current financial climate.

One of the solutions that some people have considered is to get a mortgage out with a friend, whereby both friends – or a group – are all in on the mortgage and they buy the property between them. This can certainly solve a few problems, such as being able to raise the amount needed for the deposit and being able to borrow the amount required for the property.

However, this can cause issues in the event that one of the friends involved wants to sell up and move on, as it means that they would have to get rid of their share of the mortgage. Another problem is if there is a falling out, and whilst most friends hope that they will never come to blows to a degree where things cannot be resolved this can happen.

Whilst a friends’ mortgage can be a good way of getting onto the property ladder in the current financial climate it is important for anyone getting involved to ensure that they consider both the pros and cons before making any firm decision or commitment, as things otherwise turn very sour very quickly – and it could end up being a costly mistake.

For those that do not really want to get involved in a mortgage with someone else but do want to get onto the property ladder another solution is to look at shared ownership, where only part of the property is purchased and the remainder is rented through a housing association and can be purchased in stages at a later date as and when the buyer is in a financial position to buy further shares in the home. The buyer then has the choice of buying the remainder of the home until it has all been purchased or remaining a part owner and selling their share when they decide to move on.

Tags: mortgage, Mortgage loan, friends, property, share

Making money from your home

These days many people are finding it difficult to sell their homes, largely because there is a shortage of buyers fuelled by lack of mortgage availability and low consumer confidence amongst would be buyers. The scrapping of the controversial Home Information Packs by the coalition government resulted in more people wanting to put their properties up for sale, but the low level of interest from buyers may have put many sellers in a difficult position.

Whilst it may be difficult for sellers to actually get their properties sold in the current climate there are ways in which it may be possible to make some money from the property if a decision is made to take it off the market until conditions improve. For some people this could be a viable way to clear some more of the mortgage whilst the property market improves.

Hiring out a room to a friend

Many people probably know of a friend, colleague, or even a family member who may be looking for a place to live, and offering a room out to such a person could help out the friend or family member and bring in some more money to pay the bills and mortgage. For many this is a great solution because they are sharing with someone that they know rather than a complete stranger but at the same time will still be able to make some money to make the mortgage and bill payments each month.

Taking in a lodger

In the current climate many people are struggling to afford a mortgage or even to rent a property of their own, and this has resulted in many looking for just a room to rent. If you do not have a problem offering up a room to someone that you do not know personally then taking in a lodger could be a good way to make money on your property. You could advertise your room, or you may find that there are people that place adverts to say that they are looking for a room.

Look at local amenities

It is a good idea to look at local amenities in your area, as you may find that there are colleges, universities, schools, or hospitals nearby where students, teachers, or doctors and nurses may be looking for local accommodation close to their work. Again, it may be a good idea to advertise if you are willing to rent out a room or you may find that those looking for accommodation place adverts themselves, enabling you to contact them.

Tags: room, property, month, scrapping, mortgage

Bank account options for consumers

Although the banking industry in the UK has taken quite a bit of flack over recent years the various High Street banks do offer plenty of choice when it comes to bank accounts to suit different needs. There are many different consumers with banking needs, and their different circumstances and statuses determine which bank account is going to be best suited to their needs.

One of the accounts that most High Street banks offer are basic bank accounts, and these are ideal for some people such as those on low incomes or with bad credit ratings who might otherwise struggle to get a current account. Whilst there are some restrictions with basic bank accounts, such as no debit cards or cheque books with many as well as no overdraft facility, they do offer the ability for accountholders to effectively manage and run their finances, pay bills, get money paid in, and other basic banking functions.

Standard current accounts are what most people have, and these are accounts that enable consumers to run their day to day finances. They are very similar to basic bank accounts in that you can set up standing orders and direct debits, transfer money, pay money in, make withdrawals, etc. However, many bank accounts also come with additional perks such as debit cards and overdraft facilities.

Another type of bank account that is available from many banks these days is the packaged bank account, and these accounts are fee charging accounts with fees that vary from one bank to another. The reason for the fee on these packages accounts is that they offer a package of benefits to the accountholder, which could save them money depending on how many of the services they use. Some of the benefits that come with the package include travel insurance, pet insurance, mobile phone cover, breakdown cover, and more. However, consumers should ensure that they are getting value for money and would not be better off paying for the benefits that they use on the open market rather than paying a fee for the account.

By choosing the right bank account and the right bank for your needs you can ensure that you can manage your finances more easily and conveniently, and with so many different banks and account to choose from it should be relatively easy to find one that is going to suit your needs and circumstances.

Tags: bank accounts, that enable consumers, finance, direct debits, Banking, bank, cheque, phone

What to look for with a personal loan

Whilst credit conditions have undoubtedly been strained over the past couple of years many believe that things are now easing up in the financial markets, and whilst lenders have not gone back to the days of easy credit the availability of loans and finance does appear to be easing up to some degree.

With this in mind many people may now start to think about taking out a personal loan for a variety of purchases, and with things easing up in the financial markets the choice of personal loans is greater than before, and there are some pretty good deals available for those that have a decent credit history and score.

There are many lenders that offer personal loans, and which cater for the needs of a wide range of people and needs. It is important for those that are looking for a personal loan to do some research and familiarise themselves with the different loans and deals available so that they can make a more informed choice when it comes to deciding which of these loans to opt for.

It is easiest to use the internet to browse and compare the different personal loans available, as this will allow you to quickly see which loans fit in with your needs and your budget without having to deal with any pushy sales people or feel embarrassed about going through your finances with someone on the phone or in person.

There are a number of key areas that you need to look at when browsing personal loans with a view to taking one of these loans out. The interest rate that you will be charged is a very important consideration, so this is something that you need to compare. However, do bear in mind that if a lender advertises a typical APR this does not mean that you will necessarily get that rate of interest but that most of the lenders customers get that rate.

The repayment periods on personal loans can vary from one provider and loan to another, so this is something else that you need to look at when you are deciding which loan you should go for. If you want to keep your repayments down then you need longer repayments periods, so make sure that you know what’s on offer.

Other things that you need to look at include the overall monthly repayments to ensure that you can afford the repayments, the eligibility requirements, the terms and conditions of the loan, and the borrowing limits, although this will vary based on your financial status.

Tags: credit, interest, loan, consideration, personal finance

Getting better information on credit in current economic and financial climate

The global financial crisis and recession has had a profound impact on the lives of many people in terms of finances, and one of the areas that has been deeply affected by the economic and financial climate over the past couple of years is the financial sector. Read more

Tags: Credit history, finance, capital one, Credit score, debt, personal finance

Why first time buyers could benefit from shared ownership

Buying a property has become an almost impossible feat for many first time buyers in the UK these days, not least because getting a mortgage loan has become so difficult. Whilst property prices have fallen since their peak they are still very high in the UK, and with lenders demanding a large percentage of the property value by way of a deposit many first time buyers still find themselves priced out of the market.

In some cases lenders are demanding in excess of 15 percent of the property value by way of a deposit, and this is something that most first time buyers cannot manage, as they have no pervious property from which to take equity. As a result of this many first time buyers are having to move into rented accommodation, which makes it even more difficult to save a deposit to get themselves onto the property ladder.

However, there is another option that could prove ideal for many first time buyers in the UK and this is an option known as shared ownership. With a shared ownership property buyers only get a mortgage for a set percentage of the property value, and the they then pay rent on the remaining share to a housing association. Because they are only buying a share of the property initially they will need a lower mortgage and a lower deposit, but can still get themselves on the property ladder, albeit more gradually than in the traditional way.

The share of the property that first time buyers can get will vary based on the property and the housing association, and could be anything from between 25 percent and 75 percent. Often the houses that are sold as shared ownership are new build, which means that buyers can get their hands on a brand new property without having to find a huge mortgage and deposit upfront.

The great thing about shared ownership is that you will not have to rent the remaining share of the property forever, as you can ‘staircase’. This means that over time you can buy additional shares of the property as and when finances allow until eventually you own 100 percent of the home. Alternatively you may wish to continue on a shared ownership basis and then sell your share of the home to another person that wants shared ownership when you want to move on.

A number of housing associations deal with shared ownership properties, and there are both new build properties available as well as resales from those that want to sell their own shares in these properties. Whilst there may not be a huge difference in the amount that you pay out monthly with shared ownership compared to getting an outright mortgage (although it is generally cheaper) the key advantage is that you will not need a huge mortgage or deposit to start off with and can buy the remainder of the home as and when it is viable for you.

Tags: property, property ladder, Equity sharing, first time buyer, mortgage

Cut back on your vehicle insurance costs

It was recently reported that the cost of car insurance in the UK has soared recently, with industry groups claiming that there has been a 14 percent rise in vehicle insurance related cost in the second quarter of this year. These increases are something that most drivers can ill afford, particularly considering the financial strains that most people are under due to the difficult financial climate, the after-effects of the recession, and the high price of essentials such as petrol and food.

Of course, having insurance cover in place is a legal requirement for drivers, and no driver should be on the road without having some form of cover in place. However, it is important to remember that there are different levels of insurance cover to choose from, and you may find that the vehicle that you have does not require the more comprehensive and costly cover.

If you have an older car that is not worth much in terms of monetary value there is little point opting for the fully comprehensive cover, as this will work out more expensive and you will get very little back for your car in the event that it is written off in an accident because of its low value. On the other hand if you have a newer, higher value vehicle it is best to opt for comprehensive cover as otherwise you would be shelling out a fortune in the event that you had an accident that was your fault.

It is also important to remember that the excess levels that you choose will affect the cost of your cover. This is the amount that you have to pay from your own pocket in the event of a claim, and insurance firms tend to offer a number of choices. If you go for the lower excess then you will not pay as much yourself in the event of a claim, but with the higher excess you can take a risk and cut the cost of the cover.

Comparing deals is vital in order to reduce the cost of your vehicle insurance, and this is something that can be quickly and easily done these days using the various comparison websites available online. You will be surprised at how much you can save simply by comparing deals. In some cases you can even reduce your insurance costs by phoning your insurance company and stating that you are considering going elsewhere. The competition amongst insurers is stiff, and many will negotiate a discount in order to keep your custom.

Tags: Insurance, insurance costs, Vehicle insurance, car insurance, insurance cover

Exercise caution when looking for a non-traditional loan

These days many people are looking to get finance or credit of some sort, but because of the difficult financial climate and the increased caution being exercised by lenders many are finding it increasingly difficult to get the finance that they need.

As a result of this there are many borrowers that are turning to less traditional means of getting credit or raising finance, and whilst some of these options can prove useful and helpful for consumers industry officials have warned that caution should always be exercised to ensure that the deals that are available are fair and affordable.

There are a number of options available to those that need to get money but cannot afford to get credit from traditional lenders. However, before jumping in and taking up one of these options it is important for consumers to consider the cons as well as the pros, and to ensure that they are not getting ripped off as a result of the transaction.

One of the options that people might use when they are unable to get traditional finance is a payday loans company, which offer short term loans to tide borrowers over until payday. The APR charged on these loans can be very high. However, most will charge a fixed fee such as £10 per £100 borrowed and if you are only borrowing over a short period this may be an affordable option. Most do not carry out credit checks either, although proof of income must be provided. If you are considering a payday loan make sure that you check a few and compare the fees and charges so that you can get the best deal.

Another option that many people might look at is to get cash for gold, with a plethora of advertisements trying to tempt consumers to send in their gold jewellery in exchange for cash. However, many reports have claimed that the consumer often only gets a fraction of the value of the jewellery when doing this so you need to make sure that this is a viable option for you and don’t let yourself get ripped off over how much you are paid for your jewellery.

Finally, many people that cannot get mainstream finance may be tempted by doorstep lenders, and more worryingly loan sharks. You should bear in mind that with doorstep lenders you may be charged an extortionate rate of interest, which could be financially crippling. When it comes to loan sharks you should always avoid them and look at alternatives, as these are unregulated and often unscrupulous lenders, and you could end up in very hot water by borrowing through them.

Tags: personal finance, difficult financial climate, credit, mainstream finance, Payday loan, rate, finance, traditional finance

Keeping insurance costs down

For most people having insurance cover in place is a way to provide a financial safeguard against a plethora of possibilities, from the chances of having a car accident to the chances of being burgled or falling ill. There are many different types of insurance policy available these days, with cover to protect against a wide range of events and possibilities, and having this cover in place can provide consumers with real peace of mind.

 The cost of cover can vary depending on a number of factors, such as the type of cover being taken out, the level of cover, and any past claims made, amongst other things. However, the insurance market has become incredibly competitive with a wide range of companies vying for the business of consumers, and this has resulted in some very competitive deals being made available for consumers.

 In this day and age, with many people still reeling from the recession and the global credit crisis, it is vital to try and keep costs down, and therefore it is important to ensure that you get the best deal on your insurance cover no matter what type of policy you are looking for. There are plenty of deals available these days offering all sorts of incentives from cut price protection to several months of free cover.

 Some people have decided to cut back by cancelling their insurance policies altogether, but this can work out to be very costly in the long run if something goes wrong. An alternative is to try and reduce the level of cover to one that you can comfortably afford, although you should make sure that you do not under-insure yourself otherwise you may still face financial difficulties if something goes wrong.

 Another important thing to consider is the importance of comparing policies from a wide range of providers, as there can be a big difference in price and you could find that you are paying far less with one company for the same level of cover than with another. There are various price comparison sites now available that will allow you to compare different insurance policies and companies with ease and speed, and you can really save time by using these. However, do bear in mind that not all insurance firms operate through these price comparison sites, so it may be worth checking on individual insurance firms’ sites to try and get the best deal.

Tags: insurance policies, Types of insurance, insurance firms, insurance policy, Insurance

Using a financial advisor to get a mortgage

There is little doubt that getting a mortgage these days has become increasingly difficult, and with this in mind many people may end up making the wrong choice when it comes to determining which is the right mortgage product for them. First time buyers in particular could experience difficulties when it comes to getting a mortgage, and in many cases could really do with some professional and independent assistance from an expert in the field.

Most estate agents will have someone at the branch that can offer assistance with getting a mortgage, and this is something that many people looking for help with finding a mortgage opt for. However, it is important to remember that the selection of lenders that these advisors have on their books will be limited, which means that you could effectively miss out on a better offer.

There are also many independent financial advisors in operation that offer advice and assistance on finding mortgages without charging any upfront fee to the buyer, as these advisors get their payments from the mortgage lender that they refer the borrower to. However, whilst the choice of lenders that these independent financial advisors have is generally quite good there is always a danger that you could be hooked up with a mortgage based on the amount of commission that the lender is going to pay the advisor.

With advisors that are being paid by the lender rather than by the borrower it can be difficult to determine whether the advisor truly has the best interests of the borrower at heart. This is why more and more people that want help with getting a mortgage are opting for an independent financial advisor that they pay themselves rather than one that is paid by the lender.

The benefit to choosing a paid independent financial advisor is that this means that the advisor will truly have your best interests at heart, as he or she will not be working on the basis of how much any particular lender will pay them in commission. This gives buyers the peace of mind that they need, as they know that the advisor will be looking for the best deal possible for them having no financial reason to do anything other than this.

There are a number of different financial advisors available that offer assistance with mortgages and other financial products. It is a good idea to check on the fees charged by each of these advisors and also check on their experience and testimonials wherever possible.

Tags: mortgage, finance, Mortgage loan, advisor, financial advisors

Boost your chances of getting a mortgage as a first time buyer

As many people are already aware getting a mortgage can be difficult for anyone these days, with the banks exercising extreme caution over who they lend to and putting a range of restrictions in place with regards to mortgage loans. However, one of the groups most likely to experience difficulties when it comes to mortgage loans is first time buyers.

There are many first time buyers that are desperate to get onto the property ladder, and have been for some time. However, for many years these potential buyers have faced difficulties when it comes to getting a property. Until the global credit crisis swept the nation first time buyers could get mortgages without even having to put down a deposit in most cases, but many could not afford the extortionate house prices that resulted from the many years of house price inflation.

Once the credit crunch hit property prices began to tumble, which is what many first time buyers may have been waiting for. However, at the same time as this the banks started to really rein in their lending, wiping out the 0 percent deposit that so many first time buyers had come to rely on and demanding huge sums up money upfront before even considering granting a mortgage loan. This has left first time buyers out in the cold once again, albeit for different reasons.

Whilst there is no doubt that first time buyers still face many challenges when it comes to getting a property there are some steps that they can take to try and improve the chances of getting onto the property ladder. One important thing to remember is that lenders are being very cautious over who they lend to, so it is advisable for first time buyers to be prepared and be aware of their credit rating. Before applying for a mortgage buyers are advised to order a copy of their credit report and check how good the rating is, as this will provide an idea of how likely it is that a mortgage will be granted.

Another think to consider is the level of deposit that the lender will want. Before wasting time looking at properties and applying for mortgages first time buyers should plan their budgets and spend time saving as much as possible, as the higher the deposit the more likely it is that an affordable mortgage will be granted by lenders.

Finally, more and more first time buyers are now turning to shared equity schemes, where they get a mortgage out to purchase a percentage of a property and rent the remainder from a housing association until they can also afford to buy the remaining share, which can be done in stages. This is a more effective and affordable way for first time buyers to get onto the property ladder these days, and it is possible to get a brand new house without having to take out a huge mortgage by using this option.

Tags: potential buyers, Mortgage loan, first time buyer, money, finance, mortgage, ladder

Choose the right bank account for your needs

These days there are a number of bank account available for consumers to choose from based on their needs and circumstances, and it is important that you choose the right bank account so that you have the facilities and benefits that you need to deal with your day to day financial transactions.

Choosing the right bank account can make a big difference to how easily you manage your financial transactions, and most of the major banks these days offer three choices when it comes to bank accounts. This includes the basic bank account, current accounts, and packaged current accounts.

It is a good idea to look into the different features and benefits of these individual bank accounts so that you can better determine which of these is the right one for your needs, as this will help you to make a more informed decision.

The basic bank account is one that is designed for basic day to day financial management, and is somewhat limited compared to the standard current account in that it does not come with facilities such as a debit card or cheque book. These accounts allow you to set up direct debits and standing orders, and also come with a cash card so that you can take money out from a cash point. However, there is no overdraft facility with the basic bank account, and they are often made available to those on low incomes or credit history problems.

Current accounts offer slightly more than the basic bank account, and the additional features that may be available with these accounts include an overdraft facility (subject to status), a cheque book, and a debit card. These accounts, like the basic bank accounts, are ideal for having money paid in and out and for managing your day to day finances.

Over recent years more and more banks have been offering packaged bank accounts, and these are fee charging accounts with the monthly charge varying from one bank to another. The packaged back account allows you the same facilities and benefits as a current account. However, it also comes with a package of benefits, which often includes benefits such as travel insurance cover, preferential borrowing rates, car breakdown cover, discounts off various services and from a variety of retailers, mobile phone protection, etc. You should always check the benefits package to determine whether you will use the services and products offered, as otherwise it will not be worth you paying the monthly fee for the account.

Tags: basic bank accounts, Banking, bank, bank account, finance

Are you protected if your airline goes bust?

Over the past couple of years the news has been filled with stories about airlines and holiday firms going bust, and whereas in the past many people would simply book the cheapest airline or holiday it has now become necessary to consider whether the airline or holiday company will survive as long as your holiday. Read more

Tags: Aviation in the United Kingdom, travel industry, travel insurance, Package holiday, consumer protection, airline going bust, travel, Air Travel Organisers' Licensing, airline

Getting a good deal on a personal loan

Over the past couple of years the availability of personal loans has become somewhat restricted, and the global financial crisis and recession have made it difficult for many people to get a good deal on personal finance. However, the market is now starting to ease, and this means that whilst personal loans are by no means being dished out like smarties, as they were in the days before the credit crisis, it is a little easier to come by a good deal on a personal loan than it may have been a year or so ago.

These days people use personal loans for all sorts of purposes, and if you get the right loan this can be a great way to fund a range of things that you may want. Whilst the use of personal loans for debt consolidation has fallen over recent years many people use these loans for things such as improving their homes, buying a new vehicle, paying for a wedding, or even funding a dream holiday.

Your ability to get a low cost personal loan will depend on a number of factors, including your credit history and rating. Those with good or excellent credit should be able to find a low rate personal loan without any problem, whilst those with a tarnished credit history may find it difficult to get a personal loan or may have to pay a higher rate of interest because of the increased risk they pose to the lender.

In order to get the best deal on a personal loan you need to make sure that you compare the deals on offer, as this will boost your chances of finding a loan that comes with affordable repayments. You can compare loans quickly and easily online, and using a comparison site could help to save you time as you can check out a range of personal loans and providers at a glance.

When you are comparing personal loans there are a number of things that you need to look at to check the suitability of the loans. You should check out the interest rate on the loans, as this will determine how much you repay on the loan. Also, compare the repayment periods available, as this will give you an idea of how much you need to repay each month. Always ready the terms and conditions of the loans to check on any penalties or extra charges.

Tags: finance, loan, Unsecured loan, personal finance, credit

Be savvy when you shop online

These days a rising number of people are doing their shopping online, with many different people purchasing their groceries and household goods via the Internet. With so many shoppers trying to cope with various other commitments such as work and family getting the time to go to the supermarket and queue up can be very difficult. However, the Internet has given busy people an opportunity to get their shopping from the comfort of their own homes with the touch of a button and get it all conveniently delivered to the door.

There are a number of benefits available for those that do their grocery shop online. The first is that they can do their shop at any time of the day or night without even having to leave their home, providing total convenience. The second is that they can get their groceries delivered conveniently to the door at a time to suit. Finally, there is plenty of choice available online, so shoppers can quickly find what they want without having to wander around the supermarket scouring the shelves.

There are also some other very important benefit to doing grocery shopping online, and one of the most important is that potentially shoppers could make a fairly sizeable saving compared to going to the supermarket to make their purchases. There are a number of ways in which consumers may be able to save money when shopping online.

Firstly, those that shop online are less likely to be without a list or be shopping on an empty stomach, and both of these things can increase the likelihood of impulse shopping, which can really add to the final bill. Another thing to bear in mind is that there are often special offers for online customers, which can be taken advantage off to boost savings even further.

Whilst there is generally a delivery charge to have your shopping brought to the doorstep the time of day that delivery is arranged for can affect the price. Shoppers should therefore aim for off peak hours if possible so that the delivery charge is lower.

Finally, shoppers can use sites such as mysupermarket.com where it is possible to do your shopping online and then see which of the major supermarkets offers you the shop for the least amount of money, which means even greater savings for the shopper. The site also allows shoppers to switch branded items to cheaper one with the click of a button, making this a fast and easy way to make savings.

Tags: online shopping, shopping online, Shoppers Drug Mart, supermarket, likelihood, saving, Retailing, shopping

OFT tackles irresponsible lending

Over the course of the decade leading up to the global financial crisis there was a period of easy credit in the UK, and lenders were throwing cash at people and businesses hand over fist in a bid to get their custom. Even those with damaged credit usually had no problem getting a loan or mortgage during this time. However, when the credit crunch swept the nation things came to a head, and over the coming months the banking industry was brought to its knees bringing with it the worst financial crisis in recent history.

Whilst things have improved and the financial sector is slowly getting back on its feet the days of easy credit are definitely gone, and lenders are being far more stringent about who they lend to. One of the main causes attributed to the financial crisis was irresponsible lending from banks and financial institutions, which had been eager to lend money to people without even running checks on whether they could afford to repay it in many cases.

Of course, the financial crisis is something that the UK does not want to see repeated, and with this in mind banks are now being discouraged from falling back into their old ways of lending to anyone. The Office of Fair Trading has recently produced guidance for banks, a requirement of which is aimed at ending the days of irresponsible lending.

The OFT has told the banking industry that it must not mislead consumers when it comes to providing finance, and that stringent checks must be carried out before any finance is agreed to ensure that the consumer is in a financial position to afford the credit being taken out. The OFT sad that is fully expected the industry to comply with this.

An official from the trade association, the Finance and Leasing Association, said that the new regulation would help to protect consumers, ensure that people did not get stuck with debt that they could not afford to take on, and would help to weed out unscrupulous lenders.

The new regulation has also been welcomed by the Citizen’s Advice Bureau, which tackles many cases relating to debt that consumers cannot afford to repay.

An official from the charity said: “Irresponsible lending plays a significant part in many of the debt problems we see in Citizens Advice Bureaux. The focus on getting firms’ practices and procedures right is a big step towards ensuring consumers are treated fairly and not encouraged into taking out unaffordable and unsustainable credit that lands them deep in debt.”

Tags: debt, Fair Trading, nation things, Banking, finance, lending, new regulation, credit

Cutting back on mobile phone costs

Cutting back on a variety of costs has become a part of everyday life for many people in the current financial climate, as many are keen to try and save money on their outgoings because of financial difficulties and the risk of job losses. Read more

Tags: mobile phones, Wireless, Technology, Mobile telecommunications, Mobile phone, t-mobile, Mobile telephony, Subscriber Identity Module

Packages bank accounts could be mis-sold

Over recent years many people in the UK have upgraded their current accounts with their banks, and have signed up to a packages bank account. Read more

Tags: packaged bank accounts, Insurance, regular bank account, packages bank account, Financial Services Authority

Are we home and dry when it comes to repossessions?

The UK, like many other countries, has been through a tough time over the past couple of years in terms of finances, and one of the side effects of the financial crisis has been the soaring level of repossessions that have taken place. Read more

Tags: financial crisis, personal finance, mortgage, repossession, homeowners, Financial Services Authority

Elderly not always getting best deal on insurance cover

Many older consumers in the UK opt for insurance services that cater specifically for the elderly, and in most cases they believe that they are getting a great deal on their cover. Read more

Tags: insurance cover, insurance services, cheaper motor insurance cover, Types of insurance, health insurance, British Insurance Brokers Association, Insurance

What to consider when you take out home insurance

Every year many people renew or take out new home insurance policies to protect their belongings against theft and damage, but a recent report has highlighted how many of these people overlook necessities when taking out home insurance cover and forget to take into consideration basic needs that could end up costing them big time in terms of their finances. Read more

Tags: home insurance, Types of insurance, home insurance policies, Insurance, garden tools, home insurance cover, Garden furniture

Exercising safety when shopping online

As many people will already know the Internet is home to a myriad of bargain covering a vast range of products and services. Whilst many consumers make the majority of their purchases via the Internet there are others that refuse to shop online because they are fearful about things such as security breaches and card fraud. Read more

Tags: price comparison site, Paypal, Technology, clone site, Internet shopping sites, Internet offers, Password, internet

Are you looking to switch broadband?

Switching utilities and services has become a part of every day life for many households these days, particularly given the financial restrictions that many households are facing. It has become increasingly important for consumers to save as much money as possible on the cost of their services. Read more

Tags: Broadband Internet access, speed online, thinking, broadband services, broadband provider, bear, broadband, ease

Can comparison sites be trusted?

In the past anyone that wanted to look at finding cheaper prices on various products or services had to go to the hassle of ringing around or trawling the shops to try and get a better deal, which was quite frankly an inconvenience that put many people off trying to get a better deal. Read more

Tags: which, mobile phones, uswitch, compare products, Information technology management, Price comparison services, money expert

Do you want faster payments from your bank?

For many people that amount of time that their bank takes to transfer money from one bank account to another can be a real problem, and whilst banks are supposed to adhere to regulations that have been formed by the UK Payments Council there are many banks that still do not carry out the same day transfers in line with the Faster Payments Scheme, which was brought in back in May of 2008. Read more

Tags: bank account, Payment systems, cheque, bank, finance

Is the recession finally over?

To many people it may feel as though the UK has been stuck in recession forever, and the recent recession has resulted in many businesses and consumers suffering hugely as a result of job losses, plummeting sales and profits, and financial and economic chaos. Read more

Tags: economics, Macroeconomics, Economic history, Economy of the United Kingdom, Late-2000s recession, recessions

Tips to make 2010 a money saving year

If you are one of the many people that have decided that their New Year’s resolution involves cutting back on costs and saving money then you may still be thinking of ways in which you can achieve your goal. Saving money and cutting back on your outgoings isn’t always easy, and you may have to think carefully about the different areas in which you can make cutbacks. However, there are actually a number of ways in which you can save money, and some of these are outlined below. Read more

Tags: Direct debit, insurance policies, finance, debt consolidation, insurance market

FSA cracks down on sale and rent back schemes

Over the past few years an increasing number of people have had to turn to sale and rent back companies to try and get themselves out of a sticky situation with their homes. Read more

Tags: finance, Real property law, mortgage, home insurance, Renting, Real estate

Stick to your New Year’s resolution to save money on your insurance costs

At the start of every year millions of people make New Year’s resolutions, which at the time they fully intend to stick to. Of course, as most of us know these resolutions simply melt away into nothing within a few weeks for many of us but there are the determine few that are able to stick out their resolutions. Read more

Tags: health insurance, new year resolution, life insurance, Insurance, finance

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