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, generation, United Kingdom, cash, home, difficult position, time buyers, good salary

Consumers could be paying for their banking services

One consumer watchdog official has recently said that the idea of free banking in the UK is nothing more than an illusion, and that more and more of us are ending up paying for our banking services in one way or another. The spokesperson, Oliver Morgans, who is from Consumer Focus, said that banks were managing to extract money from current account customers in one way or another, so even if the account is advertised as being a fee free account the average consumer will still end up paying.

Morgans said that in addition to having to pay for our current accounts in one way or another, consumers in the UK were also putting up with poor service and performance standards. He said that whilst people liked the idea of getting something for nothing, most were not getting this, and were in fact compromising on the service that they were receiving to boot.

A number of practices have been highlighted as providing banks with the ability to make cash from their customers for having a credit account. Overdraft charges are one way in which banks are making their money, and many charge huge fees when the accountholder goes over the limit. Another way in which banks make money from current account holders includes having a packaged account, which can be quite expensive each month.

Another consideration that consumers will have think about is interest on their current accounts – or lack thereof. A rising number of banks have now stopped paying interest on debit balances for accountholders, and this means that accountholders are missing out on this money.

Figures have shown that in the last four or five years the interest on overdraft charges has increase, the number of packaged accounts that are active has doubled, and a rising number of banks now pay nothing at all in interest on customers’ current accounts.

Tags: cash, poor service, uk, credit account, huge fees, official, money figures, consumer watchdog official

John Lewis Store opening sees massive turnout

Whilst there is still a great deal of gloomy news relating to the recession, the economy, and lack of spending on the High Street, a recent store opening in Dorset saw a massive turnout, with more than a thousand customers pouring through the doors to enjoy the opening of the flagship store. Read more

Tags: National, cash, john lewis, High Street, Poole, shopping, experience, dorset john lewis

Rising costs for BA travellers

Whilst British Airways is the epitome of Britain when it comes to air travel it seems that for those that want to fly BA will have to pay over the odds, as the airline brings in a variety of new regulations to try and help it cope with rising costs and increased financial losses. Read more

Tags: reserve seats, BA, low cost airlines, british airways, flights, part, cash, Ryanair-style

Slowdown in rate of firms going bust

A recently released report has shown that the rate of firms that are going bust in the UK has been slowing down. Read more

Tags: credit, british companies, company liquidations, uk, crisis, cash, company, level

Information about the Car Scrapping Scheme

The 2009 budget announced an initiative by the government to get as many old cars off the roads and highways of the UK in what they termed a car scrapping scheme. In this plan, anyone who trades in an older model car and purchases a new one could receive a £2000 discount towards the purchase. This “bangers for cars” scheme, as it has been called, is an attempt to bolster the ailing automotive industry that has been hit with heavy losses in the recession. Read more

Tags: age, discounts, government car scrap, beat, car scrapping, cash

Some savings accounts increase interest rates

Some savers in the UK are set to benefit from increased interest rates on their savings, with a number of financial institutions increasing the rates that they will pay savers even though the base interest rate has remained static at 0.5 percent, which is its lowest level in the three hundred and fifteen year history of the Bank of England. Read more

Tags: high, largest competitor, cash, year, uk, savings accounts, high interest debt, good news

Offspring claim financial independence whilst taking cash from parents

A recent study has found that there are many young adults in the UK who class themselves as being financially independent, yet they are still taking money from their parents to help fund a wide variety of things. Read more

Tags: future, cash, help, class, financial future, financial independence

Banks leaving many high and dry by taking money from their accounts

A number of banks have been accused of taking money from consumers’ accounts by stealth, with officials stating that this practice is leaving many people high and dry, with no cash left with which to make essential payments such as pay bills, rent, and mortgage. Read more

Tags: british bankers association, advice bureau, Citizen Advice Bureau, cash, payment, banks, climate, Business Finance

Getting your dream home whilst house prices are down

For most homeowners the fact that property prices have been plummeting over the past year is not good news, as many people who saw the value of their homes rocket in the past decade have now seen equity levels coming back down by significant levels as house prices have spiralled downwards. However, the house price falls are not bad news for everyone, as those looking to purchase a property can now get their dream home for far less than they would have paid last year, making tens of thousands of pounds difference in some cases, and with higher priced properties even more. Read more

Tags: industry, point, cash, freefall, house prices, Barnes

Claims that energy firms are ripping off consumers

Further claims have been made recently that the UK’s energy giants are continuing to rip off consumers, and as many households struggle to keep up with bills and payments on their homes, he energy giants are said to be sitting on billions of pounds worth of consumers many. The claims come amidst controversy that British Gas, one of the UK’s major suppliers, has been increasing the direct debits of customers by 50% or more over the winter, even in cases where the customer’s account is in credit. Read more

Tags: Utilities, lib, government official, something, consumer, Direct debit

First-time buyers face bigger deposits

First-time buyers are now having to stump up bigger deposits than before to buy their first home, even though property prices have been falling in recent months, it has been reported. Read more

Tags: first time buyers, Mortgages, belts, first time buyer, mortgage deposits, property, home, cash

Consumers must curb borrowing, says Osborne

The shadow chancellor George Osborne has said that people need to make an effort to curb their borrowing and take out fewer loans.

Speaking on Channel 4’s ‘News at Noon’, Mr Osborne said that in order to get inflation under control, people must cut their spending.

“People have to be cautious about entering into long-term financial commitments. For example, looking at how much they’re borrowing and watching the pennies basically,” he commented.

This comes just as MGM Advantage has revealed that 55 per cent of Brits are putting their money into savings accounts, although one in five of those in debt still prefer to keep their money at home than in the bank.

According to a recent survey by the company, at the other end of the scale, one in four of those who have more than £1 million in assets also shun savings accounts in favour of stashing their cash at home.

Tags: finance, shun, Business Finance, inflation, cash, Brits, channel, borrowing

Smart saving with a regular savings account

We all know how difficult it can be to get into the habit of putting a little money aside each month for a rainy day or even for emergencies, and even with the best of intentions many of us never get round to transferring that cash into our savings account, finding other ways to spend it instead. And when a special occasion comes around or we need some extra cash to fund a special purchase it can be very disappointing to look at our savings account balance and realize that there is very little there to rely on. Read more

Tags: best of intentions, month, offer, extra cash, cash

Savers should look at alternative accounts, says expert

People who have a lot of money tied up in savings accounts may not be getting the best interest rates and should look at alternative options, a financial expert has said.

Kevin Mountford, head of savings and current accounts at Moneysupermarket.com, said that although there are a lot of good deals available at the moment, many people are probably “not getting their just returns” on their savings.

Mr Mountford warned that consumers often forget that “with most tax payers that rate of interest is subject to tax at either a standard or higher rate so the net return they are getting often is even less than the RPI at the moment”.

According to the Telegraph, many savings accounts have interest rates of around seven per cent, even thought the Bank of England base rate is five per cent.

The newspaper says that the credit crunch is largely responsible for banks being more cautious with their money and seeking alternative sources of funding through higher rates on savings accounts, which give them a ready supply of cash.

Mr Mountford warned that consumers often forget that “with most tax payers that rate of interest is subject to tax at either a standard or higher rate so the net return they are getting often is even less than the retail prices index at the moment”.

Tags: head of savings, cent, mountford, tax payers, financial expert, cash

Cash lump sum still needed for overseas mortgages

First-time buyers looking to invest in property outside of the UK will still need a cash lump sum to get an overseas mortgage approved, a property advisor has warned.

BuyAssociation said that it was “quite possible” for consumers to get a mortgage approved on a property abroad, a tactic which can help build up equity quickly.

However, Paul Collins, property editor for BuyAssociation, said that these forms of purchase arrangements can often make getting a mortgage more time consuming, particularly in emerging markets.

“And you will find in a lot of these markets that you won’t be able to get 100 per cent mortgages, so again there is still the issue that you will need some form of cash deposit to be able to actually do that, ” he explained.

A recent study published by UK National Savings & Investments found that 84 per cent of 18 to 30-year-olds believe buying property abroad is a more viable option than buying in Britain.

Tags: tactic, Mortgages, Subprime mortgage crisis, first time buyers, cash

Up to 70% of credit card holders did not shop around, says report

A new report has revealed that up to 70 per cent of credit card holders did not shop around before selecting their current card.

The findings from the Office of Fair Trading (OFT) indicate that this could put these spenders at a financial disadvantage.

Research for the report looked at issues surrounding the comparative costs of using various cards for purchases, cash advances, introductory offers and payment allocation.

John Fingleton, OFT chief executive, said: “No-one wants to throw money away, but consumers who don’t shop around for credit cards are doing just that.”

He added that it is essential that consumers are now given the right tools to make comparisons between credit cards more easily.

The report recommended that an independent comparison tool for credit cards needs to be introduced by the Financial Services Authority as well as improvements in how card providers show how information to consumers.

Meanwhile, Reuters has reported that the OFT is considering launching an enquiry into internet bank, Egg.

The news comes following the company writing to 161,000 customers to cancel their credit cards.

Tags: internet, fair, Fair Trading, finance, John Fingleton

‘Unattractive’ interest rates increase premium bond popularity

Unattractive interest rates are responsible for the increase in the popularity of premium bonds, claims an asset management company.

Mark Dampier, head of research at Hargreaves Lansdown, said the tax free returns from premium bonds have also helped make them more attractive.

“It is based partly on the fact that interest rates had gone down so far that people stared to think: ‘Why not have a bet in the premium bonds’?” he said.

He added that premium bonds are popular with self-employed people started to take advantage of the tax free benefits.

“If you are lucky enough have quite a lot of money, premium bonds are often a port of call. You don’t have to put them on an income tax return form,” added Mr Dampier

From August 1st 2005 there were two £1 million jackpots drawn each month and, at the current odds, over a million other cash prizes. The winning bond numbers are selected at random each month.

Tags: odds, month, head of research, Business Finance, lot, cash, Lansdown, advantage

Organising your spending money when going abroad

When you are jetting off abroad there is a great deal to try and think about and organise – it can be easy to forget about something as simple yet important as sorting out your spending money.

However, it is important to organise your spending money properly when going abroad, otherwise you could face security issues or costly charges that could put the dampeners on your holiday. It is best not to rely on any one particular source for your spending, and there are a number of options that you should look at to fund your spending whilst on holiday.

Most people benefit from taking a combination of cash and traveller’s cheques when going on holiday in order to ensure that they increase security for themselves. It is a good idea to take a credit card along as well for emergencies. If you take just cash on holiday with you and your money then gets lost or stolen, you could find yourself without any comeback, and you could be stranded without any money of means of paying for anything. This is why it is important to take a smaller amount of cash rather than relying solely on cash for your holiday spending.

Of course it is important to take a small amount of cash. This includes English currency for when you are travelling to and from the airport or departure point, and for any purchases you may want to make whilst at the airport/ferry port/departure point. You should also take a small amount of cash in the currency used in the destination to which you are travelling for things such as cab fares when you arrive and any smaller purchases you may wish to make on your first day before you have got yourself organized.

Most people prefer to take the bulk of their spending money in the form of traveller’s cheques, which are available from banks, post offices, and other foreign currency providers. You can get traveller’s cheques in Sterling as well as in other currencies. Although it can take a little longer to make a purchase using a traveller’s cheque instead of cash, you have the added security that you can quickly get your cheques replaced in the event that they are stolen or lost, although you should remember to note down the cheque numbers and the contact details for replacement sot that you have these details to hand whilst you are away.

Taking a credit card along for emergencies is another good idea. However, if possible you should avoid using your card unless you really have to, as you could find that the charges imposed by credit card companies for each transaction made can quickly add up, and you could have a shock when your statement comes through. In particular you should avoid using your card to make cash withdrawals whilst abroad, as the combined charges for making even one withdrawal a day can be very high.

Be careful about becoming the victim of credit card or debit card fraud whilst abroad, as recent reports have suggested that Brits have seen a rise in card fraud whilst abroad. Always be vigilant when you do use your card, and if your card goes missing make sure that you report it right away so that the account can be frozen to minimise on any fraudulent transactions or theft carried out using your card.

Tags: cash, abroad, money, cards, transactions, credit, travel

Savings could hit one trillion in five years

According to a recent report the level of cash savings in the UK could hit £1 trillion by 2012 based on current savings trends.

According to the Alliance and Leicester the level of cash savings has grown five times faster than unsecured borrowing over the past seven years, and if this keeps up cash savings could hit £1 trillion within the next five years. There are have been many concerns raised in recent years over the high level of consumer debt in the UK as well as about lack of savings.

The research also showed that there was an ever widening gap between those with liquid assets and those without, and those that move money from investments into cash accounts. Since 2000 the level of cash savings has nearly doubled, and has increased by £426 billion to £876 billion. In contrast, unsecured borrowing has gone up by £79 billion in the same period, taking it to £214 billion.

In a recent poll conducted by the Alliance and Leicester amongst two thousand respondents, over one third stated that they planned to increase their cash savings over the next few years. Based on this the Alliance and Leicester has stated that cash savings could indeed hit £1 trillion. According to one industry official part of the reason for the rise in cash savings is consumers recycling money from pensions and long term investments.

He stated: “We have a savings paradox. Households appear to be stretching themselves to meet increased taxation and a general rise in the cost of living. However, perhaps surprisingly, overall savings balances have continued to increase. It seems that the pressure has fallen on pension contributions: evidence suggests that people in their prime years are saving more cash with a view to funding their retirement.”

Tom Smith
8th November 2007

Tags: Banking, savings, interest, accounts, earn, cash

Contactless credit cards set for launch

A contact and cash free payment method is set to sweep the UK as a new kind of credit card is launched by some of the nation’s largest providers.

MasterCard has already launched it PayPass system in London and intends to introduce it to the rest of the country in due course.

The system allows consumers to pay for items costing £10 or under by simply swiping their card over a reader.

It is hoped that removing the need to enter a pin number or have cash available will be more convenient for shoppers and also reduce queues.

After a certain amount of transactions the cardholder will be asked to enter their pin number, as part of a measure intended to limit the amount spent on stolen cards.

The system is currently being used in 19 countries, with terminals installed in more than 50,000 retail outlets.

“Led by Londoners using MasterCard PayPass or Maestro PayPass cards from this month, we believe UK consumers will also welcome the arrival of a new way to pay,” said John Bushby, MasterCard Northern Europe’s general manager.

Tags: nation, nation's largest providers.MasterCard, london, Northern Europe, queues, United States, Maestro

ISA reforms to allow customers to “mix and match”

Proposed government reforms to ISAs will encourage more people to save, financial experts said today.

A director at Tax Incentivised Savings Association (TISA), a trade association representing the financial services industry, added that customers would now be able to “mix and match” their ISAs, under the reforms announced last month.

The government will set new limits for cash ISAs at £3,600 and stocks and shares ISAs at £7,200, effective from next April.

Peter Shipp, technical director of TISA, said: “If [customers] have a cash ISA with the bank or building society and they have a stocks and shares ISA with another firm, they can mix and match as long as they don’t go over £7,200 overall.”

He recommended that savers take out ISAs, as they “encourage…people to save” and that people “will get their interest without a deduction of tax” by using them, unlike ordinary savings accounts which deduct the basic rate.

Stocks and shares ISAs were also a good way of avoiding capital gains tax if shares go up, he added.

Around 18 million Britons currently hold ISAs, with Mr Shipp confirming that latest statistics showed uptake levels at their “highest ever”.

Tags: building, government reforms, cash, director, ISAs, avoiding capital gains, ISA, government

International medical insurance growing

Demand for international medical insurance is strengthening, according to the private healthcare company Bupa.

With more and more Brits flush with cash from selling their houses in the current UK house price boom and choosing to retire abroad, private healthcare can prove an affordable option for many.

Coupled with the growing number of “internationally mobile” employees working for businesses relocating to the strengthening economies of Russia and India, for example, the market is expanding.

Bupa spokesperson Thomas Flygare said: “We have done research that shows that the number of internationally mobile employees will continue to grow over the next five years. Add to this an extra 2.3 million Brits who are set to retire abroad and by 2020, one in five older people who will be living outside the UK.

“So, naturally the number of companies providing international medical insurance has increased.”

He also advised that customers research the market place to find the insurance that best meets their needs.

“Experience has shown that peace of mind wins when choosing a provider”, Mr Flygare concluded.

Tags: finance, affordable option, demand, Russia, house, choosing

Man bag risk

An increasing number of men are carrying ‘man bags’ around with them on a daily basis and may be running the risk of losing a host of valuable items.

Women are regularly warned about the dangers of carrying too much in their hand bags and not being insured but it seems that men are taking an even greater risk.

Research by LV= General Insurance shows that the average ‘man bag’ carrier has more valuable items on him than a woman with a hand bag does.

Men’s bags tend to hold contents worth over £60 more than the average hand bag and this could prove costly if the items are not properly insured.

“Man-bags have quickly become a mainstream accessory, helping men lug around their ever more valuable stash of gadgets and personal effects,” said Andrew Beard from LV=.

“British men and women now routinely carry around more than £10 billion worth of possessions – not to mention the cost of the bags themselves and any cash carried – so failure to insure your bag and its contents away from home could prove a costly oversight.”

Around 13.8 million British men now regularly carry a ‘man bag’, along with contents worth an estimated £4.4 billion.

Tags: LV= General, failure, cash, carrier, Bag, Mobile phone, basis, personal effects

Hips lead to property boom

The introduction of Home Information Packs (Hips) has led to an increase in the number of properties on the market.

Property website Rightmove has revealed that the number of homes on the market swelled by ten per cent in June as homeowners scrambled to avoid the August 1st deadline.

The site says that around 200,000 new homes were put on the market in June, signalling the largest monthly stock rise for nearly three years.

Rightmove says that the increase is undoubtedly related to the introduction of Hips which will initially affect homes with four or more bedrooms.

“The rush to beat the impending Hips deadline appears to have attracted some poorly motivated sellers to the market,” commented Miles Shipside, commercial director at Rightmove.

“They are chancing their arm at some fairly bullish prices considering there is now a lot of property up for sale.

“Their main motivation will have been to save some money avoiding a Hip, rather than being realistic on price because they had seen a property they desperately wanted to buy,” he added.

Mr Shipside went on to point out that those who have put their home on the market in order to save cash by not getting a Hip may have actually cost themselves money.

He said that with the market currently flooded, many homeowners are being forced to drop the price of their home to make a sale.

Tags: cash, property boom, market.property website rightmove, homeowners, motivation, deadline.The site, hips, Website

Debt considered acceptable because of student loans

According to a recent report the popularity of student loans has made debt in the UK seem even more acceptable.

According to the financial education charity Credit Action student loans have become such a norm that being in debt has become something of a fact of life. And according to officials from Credit Action these student loans have nothing to do with a need for money, but more to do with the easy access to student loans.

One official from Credit Action described student loans as ‘government endorsed debt on a massive scale’. Of course, students can find themselves in need of financial aid at some point during their education, but the easy access to student loans has resulted in many students just taking out loans for the sake of it rather than through real need, placing them on a downward debt spiral that could lead to problems later in life.

According to Chris Tapp from Credit Action there is not enough caution exercised with student loans, and the easy access to this type of finance has made debt appear to be acceptable even for the younger generation. With consumers levels in the UK at sky high levels this has raised concern amongst some charities and campaign groups, as those in their late teens and early twenties begin a debt ridden life before they have even completed their education.

According to Mr Tapp student loans enable students to live lifestyles that are beyond their means – something that they then become used to, and something that many have to continue funding through further finance, as their initial jobs after leaving college or university is unlikely to be a high paying one.

Tom Smith
17th June 2007

Tags: action, cash, Loans, student, debt, rate, cheap, credit

Credit Card Deals In Different Categories

Looking for a credit card?
What deal are you looking for?
Here are the best three deals in certain categories, depending upon what you are looking for.

These are some of the best balance transfer credit card rates currently available.

Mint Credit card
This has a free interest balance transfer until 1 August 2008, and a 2.5% transfer fee. There is zero percent on purchases until 1 January 2008, and another six months at zero percent for balance transfers made in October 2008. The interest free period works out at 54 days. The APR on purchases is 14.9%. The transfer or handling fee is one of the lowest at 2.5% and over a year at zero percent on balance transfers. That’s a good period, and with zero percent on purchases till January you have a long period of free money – just be careful to tie things up before you go onto regular interest rates.

Capital One Platinum card
This has a 3% handling fee and zero percent interest on balance transfer until 1 July 2008. The APR on purchases works out to 15.9% and the interest free period is 54 days at maximum. The card also comes with three months worth of free credit on purchases. This has a shorter period than the Mint and a shorter period for both the balance at zero percent and for purchases.

Barclaycard Premium
The zero percent interest on balance transfers lasts until 1 July 2008 with a 2.9% fee. The interest free period works out at 56 days maximum. The APR on purchases is 14.9%. The card comes with various insurance protection deals and three months of free interest on purchases. This has a similar period to the Capital One Platinum but a slightly lower handling fee.
Of the three Mint looks the best.

What about the best life of balance rates? These are rates for borrowers who are fed up of continually transferring their balances.

M&S &More card
The life of balance interest rate is 4.9%, and there are no fees. The APR on purchases works out at 19.9% with a maximum interest free period of 59 days. The card also has zero interest on purchases until 31 January 2008 and &More reward points on purchases. The zero percent interest on purchase makes this attractive.

Citibank Platinum Mastercard
The life of balance interest rate is 4.9%, and there is a fee of 2.5%, which is capped at £75. The APR on purchases works out at 16.9%. The card also has 0.5% cash back on all purchases and comes with Identity Theft protection. The cap at £75 only kicks in if you have a balance greater than £3000, but the cash back could make this seem tempting. Apply now

Sainsbury’s Bank Platinum card
This has life of balance interest rate of 5.9% no transfer fee. The APR on purchases works out to 15.9. The card comes with ten months free credit on purchases. The free credit on purchase make this card look a good bet, as the ten months will take you further than the M&S option. M&S’s reward points might swing it for you.

Now onto those cards with the best APR rates on the market? This is for steady card owners who don’t want to switch, but want a good interest rate.

Barclaycard Simplicity
This has an APR of just 6.8%. There is no balance transfer available. The maximum interest free period is 56 days. The card comes with various insurance products, but these may of limited use to you. The low APR may be the key.

Egg Money
The APR is 7.9%, with no balance transfer available. The maximum interest free period is 50 days. The card has one percent cashback on all purchases. The APR is attractively low, and the cashback may make this a good bet for you.

Intelligent Finance Flat Rate
This has an APR of 8.9%, with no balance transfer available. The interest free period is up to 59 days, and the card comes with no extras. Compared to Barclaycard’s Simplicity and Egg’s card this has no frills and a higher APR, so the other look to give a better deal.

Finally here are the top three card for cashback deals. Here card holders earn cashback on their spending.

American Express Platinum card
The cashback offer is 3% for the first three months, followed by 1.5% on balances over £10,000. The APR on purchases works out at 14.9%. There is no balance transfer offer and the interest free period is 56 days. The card has online fraud and purchase protection benefits. If you’re after a cashback deal, then three percent is the best you can get, but you’ll need to have no need of a balance transfer. The other benefits are probably of limited value. Apply now

Egg Money
The card has one percent cashback on all purchases. Selected dealers have a higher cashback rate, e.g. electrical goods from Dixons.co.uk earn 5% cashback. The APR is 7.9%, with no balance transfer available. The maximum interest free period is 50 days. The card has one percent cashback on all purchases. If you think you’ll be buying a lot of electrical goods from Dixons, then this card will probably come out as better than the American Express option. But overall the Amex card has a wider appeal.

CitiBank Online Platinum card
The cashback offer is 0.5% up to £3,000 per month. The APR works out at 16.9%. There is a balance transfer offer of 4.9% for the life of the balance. The interest free period is 56 days, and there are no additional benefits. This is third best on cashback – by quite a way. Apply now

It is best for you to understand your requirements and look at your outstanding balance and future spending before you choose yourself a card. Getting a particular card for your specific requirements can work for a set period.

Tom Smith
13th June 2007

Tags: deals, current, balance, credit, cards, transfers, cash

Brits losing a fortune by failing to put their cash in savings accounts

In the olden days stashing your money in various cunning locations around the house seemed to be the norm, as many people did not have access to savings accounts as they do today.

However, according to a recent survey there are still an alarming number of Brits that insist on keeping their cash in the house, which not only raises security issues but also means that collectively Brits could be losing out on millions of pounds worth of interest from banks and building societies each and every year.

A recent survey was carried out by Virgin Money, and according to the result of the survey around one in every six adults in Britain are still keeping cash in the home rather than opting to place it in a savings account. The results indicate that if these people were to put the cash that they have kept in the house into an average Internet savings account they could be accruing around £174 million each year in interest collectively. Instead, this money simply sits around earning nothing for them, and increased the risk of financial losses through theft in the event that the cash is stolen by a visitor or the house is burgled.

The survey showed that one percent of Brits that were surveyed admitted to having up to one thousand pounds in the home, whereas two percent of Brits stated that they had up to five thousand stashed in the home. Experts warn that since inflation has been on the rise, and the money is simply lying around failing to accrue any interest, it is in danger of losing its purchasing power, so consumers are doing nothing to help themselves by leaving it in the home.

Industry professional add that there is around three and a half billion pounds in total that is lying around the homes of Brits rather than being placed into savings account, and that this amount could depreciate by two hundred million pounds within the next three years.

Tom Smith
10th June 2007

Tags: bank, cash, safe, value, savings

The changes brought about by debit cards

The debit card turned 20 on June 3rd and the banking industry has been looking back at how our lives have changed as a result.

Apacs, the UK payments association, has released a report called 20 Years of the Debit Card and it highlights how the cards have allowed our lives to alter in the past two decades.

Barclays was the first UK bank to provide customers with a debit card back in 1987 and 20 years on, 84 per cent of the adult population now owns one.

A total of 41 million people hold a debit card, a massive increase on the 27.8 million who had one in 1996.

The popularity of debit cards continues to grow, with Brits spending £194.9 billion on their cards in 2006, five times what we spent on them in 1996.

“It’s hard now for most of us to remember what life was like before the debit card, as it’s become one of those things we’re unlikely to leave home without,” said Jemma Smith from Apacs.

“Before 1987, most of us were totally reliant on cash or cheques, and although credit cards were used in supermarkets at that time, they only made up six per cent of transactions.

“Today, cards account for 66 per cent of supermarket spending, and most of this is on debit cards. In fact, over a third of all debit card transactions are made at the checkout,” she added.

It seems that debit cards will continue to be popular among consumers in the years to come, with spending on them expected to reach £400 billion by 2016.

Tags: massive increase, Electronic commerce, MasterCard, payment, apacs, life, Jemma Smith, cash

Over one fifth of Brits do not save

Over twenty percent of Brits do not put aside any money in the form of savings according to a recent report. Research has shown that twenty one percent of Brits fail to put aside any money in savings.

The savings survey was carried out by Nationwide in a bid to try and determine how best to tempt consumers into opening and running a savings account. The survey also showed other facts and figures relating to Brits and the way that they save – if at all.

According to the survey, over one in five Brits saved nothing at all. However, the results also showed that thirty five percent of Brits do save money on a regular basis. In addition to this the survey revealed that nearly forty five percent of Brits tended to save on an ‘as and when’ basis, putting money aside into savings whenever they had some spare but otherwise using it for day to day cost of living.

Seventy seven percent of those interviewed as part of the survey stated that their most important consideration when it came to a savings account was a good, long term interest rate. Eight four percent also stated that the account needed to allow withdrawals without any form of penalty being imposed. Nearly sixty percent stated that they would only open a savings account with a well known provider.

Shockingly, the survey also showed that some people still use the most primitive methods of trying to save money, such as stashing their cash in various places around the home – including under the mattress. Those interested in savings accounts are advised to shop around and find an account that offers a good interest rate that reflects the rising interest rate in the UK.

Tom Smith
26th May 2007

Tags: accounts, interest, uk, money, britons, income, cash, earn, bank

Hips to benefit new buyers

The controversial introduction of Home Information Packs (Hips) to the home-selling process is just days away and the row over them continues.

Hips are due to be introduced on June 1st but they face a last-ditch attempt at derailment in the House of Lords tomorrow (May 23rd).

In light of this, the Association of Home Information Pack Providers (Ahipp) has been singing their praises, particularly the help they will offer first-time buyers.

Ahipp points to the current process which sees first-time buyers forking out for surveys and other extras once a price has been agreed.

This can cost thousands of pounds and often highlights problems which force the buyers to withdraw their offer, essentially wasting much-needed cash.

Added to this, another buyer might come in for the same property afterwards and go through exactly the sae process.

Ahipp argues that with the introduction of Hips, this process will be eliminated, saving money for buyers and ensuring that there is a steady supply of first-time buyers.

“A fluid influx of first time buyers underpins the house buying market and brings vital buoyancy to the wider UK economy,” said Paul Broadhead from Ahipp.

“The introduction of the Hip will greatly benefit this vulnerable group of soon to be home owners.

“As the vendor will be responsible for acquiring the Hip, duplicated costs will be eliminated, buyers will be able to make a more informed decision on the purchase from the offset and they will avoid the initial costs of commissioning searches,” he added.

Although Hips have been a hot topic for those with or considering getting a mortgage, it seems they mean nothing to some.

Property firm fish4homes recently carried out a survey which found that one in ten UK adults believe Hips is a sexually transmitted disease.

Tags: Information Pack Providers, House of Lords, survey, wasting, cash, tomorrow, Association, influx

£54k spent in lifetime of moving home

We each spend £54,400 on moving home in our lifetime, with much of the money going to third parties.

According to Abbey Mortgages, the average Briton will move home between three or four times in their lifetime and will spend around 2.3 years’ worth of the average person’s salary.

The mortgage lender points out that this money could buy you a brand new one bedroom apartment in Bordeaux but what will grate most for consumers is the fact that a lot of the money does not go towards the property.

In fact, Abbey says that most of us will fork out around £16,000 on one move with the cash going to lawyers, estate agents, financial advisers, removal firms and stamp duty, as well as bringing the property up to a “saleable condition”.

“It’s no secret that moving home is an expensive business – in fact, I’m sure it’s one of the reasons why people don’t move that often. But it’s astounding when you consider just how much it amounts to over a lifetime,” said Nici Audhlam-Gardiner, head of mortgages at Abbey.

“With the average Briton expecting to spend over two years’ annual average salary just meeting the costs of professional fees and stamp duty of their three or four moves, homeowners clearly need all the help they can get.”

If you are considering moving home it is worth shopping around for the best mortgage deal that suits your needs.

Tags: annual average salary, person's salary.The mortgage, cash, mortgage, average briton, third parties

Are You Paying For Your Cash Back Credit Card?

The offer seems to be too good to be true.  Spend money on your credit card and your provider will give you cash back on the card as part of your credit card loyalty program.  The more you spend, the more cash back you become entitled to. This all sounds well and good, but if you’re not careful you may very well find out that it is you who are paying for the cash back bonus you’re getting, not your UK credit card provider.

In order for your cash back reward program to work in your favor you need to be a disciplined credit card user.  This does not mean that you should not use your credit card, or only use it in certain circumstances.  In fact, you really should be using the card as often and as much as you can if you want to take the full benefit of the loyalty program.  What it does mean, however, is that you need to make sure that you clear your credit card balance at the end of each credit card statement billing date.  If you fail to clear your credit card balance on the statement due date, and you carry-over your credit card balance to the next month, then you start to become the person paying for your cash back rewards, not your credit card provider.

The reason why it is so important that you do not carry over a credit card balance to the next payment statement date is because you need to avoid incurring any interest or fees if you want to benefit from the cash back loyalty program.  As soon as you lose this, any benefit you would have got from your cash back credit card loyalty program will be cancelled out by the interest and fees you need to pay for carrying over a balance on the card.  Indeed, you may well find that the interest and fees you pay each month for carrying over the balance on your credit card will exceed any cash back you would be entitled to.  Unfortunately, this aspect of cash back credit cards is something that UK credit card providers are relying on in order to fund the cash back they’re offering you in the first place.

Consequently, if you are the type of UK credit card user who pays off their credit card statement balance at the end of each billing cycle, then having a cash back credit card loyalty program can prove to be very lucrative for you.  However, if like 60% or so of the other users of UK credit cards you are a borrower on your credit card, then it is very likely that you should look for some form of alternative loyalty program or, more importantly, a credit card that offers you a lower monthly interest rate than your current card provider offers, as, in the long run, this is very likely going to save you more money.

If you are in any doubt as to whether or not a UK cash back credit card is for you, be honest with yourself and ask yourself whether or not you have the discipline to pay off your credit card statement each month.  If the answer to this question is yes, then this card is working for you.  If the answer is no, you are paying for your credit card cash back loyalty program offer – and then some.

Richard Smith
13th May 2007

More Information:

• Cash Back or Rewards – What’s Your Preference?
• Available Types Of Credit Cards
• Credit Card Charges

External Links:

• More cash back credit card offers from CardGuide.co.uk
• Cash Back or Rewards – You Choose
  Not sure which would be the best for your spending levels? This article discusses the advantages and limitations of bothtype of credit card offers

Tags: costs, spend, charges, credit, back, interest

Safe packing ahead of holiday

The holiday season is fast approaching and many of us will soon be packing our bags and heading off to warmer climates.

However, travellers are being warned that they must take out insurance before setting off or potentially face a disaster.

As more and more people can afford to fly and more flights are taking to the air than ever before, Swiftcover.com says that the chances of an airline loosing your luggage have increased.

Figures from the insurer show that around 22 per cent of UK holidaymakers have arrived at their destination only to find that their luggage has not made it.

Over half of these people have had to wait over 24 hours for their bags to be returned, while six per cent did not see their possessions again during the trip.

Travellers are being warned that they should pack valuables such as travellers cheques, cash and jewellery in their hand luggage as these items are often not covered if they are checked into the hold.

“As long as you have adequate travel insurance, losing your suitcase should not hit you in the pocket, but, for the majority of people, it’s often the sentimental value of personal belongings and the lost time on holiday trying to locate your bags that cannot be replaced,” said Craig Staniland from Swiftcover.com.

Tags: Jewellery, season, Hand luggage, cash, cent

RBS customers face new charge

The backlash from the Office of Fair Trading’s (OFT’s) crackdown on bank charges is beginning to be felt.

After the organisation announced that banks should reduce the amount they charge customers when it comes to penalty fees, it became apparent that banks would look for other ways to make their money.

Now Royal Bank of Scotland (RBS) has announced that it is making some changes to the way that it operates.

The bank has revealed that customers who change address must inform RBS before two statements are sent to the previous property or they will be hit with a £12 fine.

In addition, RBS has plans to change the way it treats card purchases of items such as gift vouchers and betting slips.

The bank wants these “cash equivalent products” to be charged in the same way as cash advances, meaning customers will incur a higher rate of interest.

RBS is not the first bank to announce changes to its operations since the OFT crackdown.

A number of firms have increased interest rates, while some are charging customers for failing to use their card on a regular basis.

Tags: cash, bank, card purchases, backlash, Fair Trading, way, amount

Annual fee imposed by Morgan Stanley

Customers using the Black cash back credit card with Morgan Stanley have been hit with a £20 annual fee. The Black credit card is offered to customers that have been turned down for the platinum card with Morgan Stanley, although it is not actively marketed by the company.

The cash back levels on the Black card are 1% for the first £2000 worth of purchases in the year, and 0.5% thereafter. However, the cost of the annual fee means that those spending less that £2000 on their cards will effectively have their benefits offset, which means that the card is not really providing any reward at all, despite being a cash back card.

According to officials from Morgan Stanley not all customers using the Black cash back credit card will be charged the annual fee.

One Morgan Stanley spokesperson stated: ‘We have received the spending patterns and repayment history of customers and as a result we have imposed the fee for a number of customers.’

However, some cardholders are annoyed by the charge, and feel that it is unjustified and unwarranted.

One Black cardholder stated: ‘I spend around £300 a month on the card and clear the balance by direct debit at the end of each month. I’ve never missed a payment and I suppose I’m one of those customers that doesn’t actually make the credit card company any money. I liked the cashback aspect of the card, but this fee doesn’t make it worthwhile now.’

The annual charges are due to come into force in June of this year, and consumers that want to avoid having to pay an annual fee should start looking for an alternative credit card before this time. As with many other card companies, it is thought that this annual fee could be a way for the card company to recoup some of the revenue losses that resulted from financial regulators placing a ceiling limit on penalty charged last year.

Tags: stanley, fee, credit, morgan, annual

Start saving early, warns Saga

Young people are being encouraged to start banking their pensions early or risk a tough time when they hit retirement.

Over-50s advisor Saga says that youngsters should be putting money aside as soon as possible by using tax-efficient savings tools and watch what they spend.

Spokesperson Steve Ashton said the sooner people begin saving their money for retirement, the less pressure they will have on them to put cash away in later in life.

He added that it would leave people less likely to get into financial difficulties, such as having to re-mortgage their home.

“Everybody ought to every year be trying to put as much money as possible into the basic tax-efficient savings vehicles, such as your annual ISA allowance,” he said.

“[It's] all very straightforward stuff, but if you are putting a few thousand pounds every year for a number of years into an ISA, then that over ten, twenty years can really start to ramp up and make a significant difference to your retirement income.”

Tags: sooner people, cash, youngsters, Business Finance, time, individual savings account, financial difficulties, saga

Parents turn to kids for cash

It used to be the case that children went to the bank of mum and dad to help them out of sticky financial situations.

However, new research suggests that the trend is reversing, with mum and dad now beginning to turn to the bank of son and daughter in order to live comfortably during retirement.

Yorkshire Bank looked into the financial relationship between children and their parents and found that 27 per cent of people with children are hoping that their offspring will help them out when they retire if need be.

That would seem to be likely considering that 40 per cent of those asked said that they have no real savings for when they retire.

A total of 60 per cent of these people say that they know they should be saving but just cannot afford to as the cost of living continues to rise.

“By not saving for the future, parents appear to be aware they’re storing up hardship for themselves,” commented Gary Lumby, head of retail at Yorkshire Bank.

“Many are already presuming their children… might be the answer to all their financial problems. However, the easiest solution is to start saving now.”

Mr Lumby went on to say that people approaching their 30s should be thinking about putting ten per cent of their income into a pension so that they can live comfortably in retirement.

Tags: finance, answer, retirement, cash, dad, business, percentage, financial situations

Yuppies spending cash on collectables

Today’s young professionals are choosing to invest their money in collectables rather than splashing out on flashy items.

That is according to research by Zurich Insurance which has found fewer people are spending money on expensive cars and champagne.

Its study found that the majority of us prefer to spend our cash on items such as books, comics, paintings, vinyl records and football programmes.

One in six collectors are said to do so purely for financial gain, waiting a few years before seeing their item increase in value.

The average collector has spent around £2,000 on their classic stash in the last five years, with men being the most likely to invest.

“It seems that old valuables are the new investments for modern professionals these days,” said Martin Hall from Zurich.

“Our research shows they’re more interested in and profiting more from antiques and collectibles than any other generation before them.”

Zurich has, however, highlighted that very few people (60 per cent) have taken the time to get their collectables insured, meaning a financial and personal disaster could be just around the corner.

Tags: item increase, valuables, yuppies, cash, Today's young professionals, Insurance, collector

Put credit card fraud into perspective

As Christmas approaches many consumers in the UK have started to worry about the risk of Internet fraud, and although buying gifts and other related items online has become hugely popular over the years many are still worried about the possibility of becoming the victims of credit card fraud. This worry is further reinforced through the various warnings that always come out at around this time of year, warning consumers to beware of credit card fraudsters.

However, some new advice has now been issued by a company that works to protect both retailers and consumers from this type of crime. The 3rd Man has advised consumers not to listen to ‘scaremongers’, and has urged retailers to put this type of criminal activity into perspective. The 3rd Man wants more emphasis put on the fact that by and large Internet shopping is safe, and this is because most reputable retailers use secure software to ensure that the consumer’s financial and personal data is not compromised.

Each year billions of pounds is spent on Internet shopping by consumers in the UK, but the many stories about the risk of online shopping and credit card fraud could result in a drop in consumer confidence. The 3rd Man does advise consumers to ensure that the site that they are using is a secure one, and providing that this is the case there should be no need to worry.

The CEO of the company stated: “Every day there is a story about fraudsters cheating their way into our pockets. The introduction of Chip and PIN has made a massive impact on fraud, reducing crime in stores. It has also persuaded many fraudsters to target ‘card not present’ environments such as Internet shopping, but equally many retailers have recognised this and put in place proper systems to combat the criminals. If people wish to shop on the Internet they should be confident that it is fundamentally safe. It is the safest way to shop!”

More Info:

• Identity Theft

Tags: bank, cash, fraud, credit, thief