Nationwide cuts fixed-rate mortgages

Nationwide, the UK’s third largest mortgage lender, has announced it is cutting interest rates on some of its fixed-rate mortgages by 0.3 per cent. Read more

Tags: credit, trend, com, fixed rate mortgages, building societies, market, global credit crunch, interest

Home insurance is an “important consideration”

Home insurance may seem expensive for low-income households, however it should be an “important consideration,” according to insurance comparison website Confused.com.

Weekly payment schemes such as the one recently launched by Zurich Municipal can make home insurance more accessible to those on a low income, Debra Williams, managing director at the website commented.

Zurich Municipal launched a new scheme to help increase access to home contents insurance for social housing residents by helping them to insure based on what they need rather than what they can afford.

“We would hope the ability to spread the cost will encourage people to consider home contents insurance as a way of protecting their treasured possessions,” Ms Williams said.

The latest AA British Insurance Premium Index reveals that the widely-predicted price increases in home insurance following last year’s flooding are not being realised.

Andrew Strong of the AA said this could be explained by a rise in the number of risks not being quoted by some insurers, indicating a sensitivity to the risk of floods.

Tags: possessions, ms williams, Types of insurance, finance, aa, Weekly, com, Managing director

One million Brits cannot claim as they did not read the small print

Up to one million Brits have not been able to claim on a travel, home or car insurance policy in the last year because they weren’t covered, despite believing that they were shows new research.

According to findings from Tescocompare.com, neglecting to check the small print has cost UK consumers up to £736.

Of these, 82 per cent say it has altered the way they will go about dealing with this sort of purchase in the future.

Paul Baxter of Tescocompare.com, said insurance policies are complicated and “it is not surprising that so many people find themselves in a situation where they thought they were covered when in fact they weren’t”.

Meanwhile, when it comes to understanding what they are purchasing women are much more aware of what it is, claims a new study.

Further findings from Tescocompare.com shows that female consumers are much more likely to have read the description and detail of what it is they are buying, with the exception of traditional male items such as cars.

Tags: business, print, Business and Economy, description, com, findings, traditional male items, Paul Baxter

Additional insurance fees cost drivers £333m

Motorists are being charged an average fee of £22 for amending simple details on their car insurance policy, according to new research.

Findings from uSwitch showed that with 14 million consumers making changes every year, drivers are collectively £333 million out of pocket each year.

The company states there is no legislation in place to protect consumers from excessive charges and fees, something which it says needs rectifying.

Ashton Berkhauer, insurance expert at uSwitch.com, said that consumers need to know where they stand and the easiest way to do this is for the amount providers charge to be consistent across the insurance industry.

“This would make it clearer for consumers and bring transparency to the market. Currently, making an adjustment to your policy can cost you from £0 to £25 and the price for cancelling a policy mid-term can be unlimited,” he continued.

Meanwhile, further research from the company shows that extending insurance to cover the duration of a trip abroad can cost motorists up to £510.

Tags: fee, car insurance policy, additional insurance, com, amount, excessive charges, trip, Ashton Berkhauer

Up to five out of six UK consumers fear for their finances

Up to 30 per cent of British spenders do not think they can cope much longer when it comes to managing the pressures surrounding their finances, according to new research.

Findings from a survey conducted by moneysupermarket.com during the budget week reveal that only 84 per cent of those questioned said they had no financial worries.

Additional research showed that Brits owe more than £1.3 trillion on loans, credit cards and overdrafts.

Tim Moss, head of loans and debt at moneysupermarket.com, said he was surprised by the levels of financial worry among UK consumers.

“There is little doubt many Brits will find their annual road tax as high as the value of their car as from next year, creating a massive headache for people who are really struggling,” he continued.

Moneysupermarket.com added that those spenders who are worried about their spending habits should take action rather than burying their head in the sand.

The firm recently said that consumers are becoming increasingly aware of having a good credit rating with more and more checking their financial status.

Tags: com, research, new research, sand, loan, credit rating, GBP, budget

InterRailers should take out adequate travel insurance

InterRailers should ensure they have adequate travel insurance when exploring Europe, an financial expert has warned.

STA Travel said that insurance should be part of the essential preparation a traveller undertakes before setting out on an interRailing trip.

A spokesperson for the company said: “Take insurance. With all your possessions in one bag, it is advisory to take adequate travel insurance. Also, make sure your insurance also covers the loss/theft of your InterRail pass.”

She added that those embarking on a journey could save themselves money by booking accommodation in advance of arriving at their destination, or travelling by night which could completely remove the cost of hotels.

Recent statistics from gapyear.com showed that a quarter of young travellers go abroad uninsured or underinsured, which puts their parents’ homes and financial security at risk.

According to an article on guardian.co.uk, the number of people taking a gap year continues to rise.

The market was last valued at £5 billion in a Mintel report of 2005, but is predicted to rise to £20 billion by 2010.

Tags: gapyear, journey, parents, risk, finance, taking a gap year, europe, com

Switching loans could save consumers money

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

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

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

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

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

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

Tags: GBP, finance, Switching, debt, com, personal finance expert

People advised not to rely on loans for Christmas

Consumers are advised not to take out elf”>loans in order to “make Christmas happen”, an industry expert has said.

According to Steven Baillie, head of loans at Sainsbury’s Bank, using a personal loan purely to fund Christmas is not recommendable, as it may take a few years to pay off.

“If you’ve got to carry that forward for another 12, 24, 36 months … Christmas comes round two or three times before you’ve paid off the first one. So it’s not something I would, as a responsible lending organisation, expect customers to do,” he said.

Research by MoneyExpert.com on Christmas spending reveals that over a million bills were neglected in January this year as a result of excessive spending over the festive season.

Meanwhile, Credit Action found that there were 669 million credit card transactions made in December 2006, up six per cent on the previous year and equating to 250 transactions per second throughout the month.

Tags: Sainsbury, head of loans, result, round, responsible lending organisation, com, organisation, previous year

Caution advised for first-time buyers looking overseas

As recent studies reveal more and more first-time buyers are looking to make their first steps on the property ladder overseas, it is important they are aware of the possible pitfalls.

A report from UK National Savings & Investments discovered 84 per cent of 18- to 30-year-olds believe buying property abroad is a more feasible option than buying in the UK.

But some industry insiders have been quick to point out that the situation for first-time buyers looking to invest overseas is generally similar to that in the UK.

Helen Adams, managing director of FirstRungNow.com, warned: “People aren’t going to be giving really big mortgages to people who are … renting in the UK.”

She added that “the best thing to do is to find out where you’re interested in buying and then speak to a mortgage specialist in that field”.

The warning comes as the major political parties look to bring the issue facing first-time-buyers to the forefront of the political agenda ahead of a possible election.

The Conservatives pledged recently to remove stamp duty for houses valued between £125,000 and £250,000, which currently stands at one per cent.

Tags: com, Economy of the Republic of Ireland, first time buyers, economics, cent, thing, political agenda, possible election.the conservatives

Gapyear travellers “don’t understand insurance”

People taking a gap year do not understand travel insurance and see taking it out as an obligation, according to one industry figure.

Tony Griffiths, the founder of gapyear.com, states that although gapyear travellers are becoming more aware of the importance of taking out insurance, they do not understand “what it is or what it does”.

Mr Griffiths also said that some travellers feed they are “indestructible”, particularly males who are aged between 18 and 24. He also added that many people have a “it won’t happen to me” attitude.

“The reality is most of the claims are for things like people falling off a curb. We had an example of someone who fell off a curb in Barcelona and broke their ankle.”

Gapyear.com is part of the Gapyear Company, which is an organisation that provides free information and advice to people considering taking a year out.

It states that 25 per cent of people on a gapyear have either no or inadequate insurance, and that the average spend of 18 to 24-year-olds while travelling is between £3,000 and £4,000.

Tags: cent, Financial economics, advice, Gap, Australia, figure, reality, com

NatWest overseas card hike

NatWest has hiked the cost of using their debit card abroad by two-thirds.

From June 5th, anyone using a NatWest debit card will be charged £1.25 rather than 75p for each transaction, while the maximum charge incurred for a cash machine withdrawal has been raised from £4 to £5.

“This is the latest in a long line of fees that banks are now charging to try to squeeze more money from their loyal customers. It follows closely after the RBS group’s decision to charge credit card customers £12 if they move house and do not update address details,” commented Nick White, director of financial services at price comparison website uSwitch.com.

“We estimate that this move could rake in an extra £10.18 million for the bank – a savvy move by NatWest.”

Many people prefer to use their credit card instead to make transactions as charges can be less, although withdrawing cash on credit can incur large fees.

However, NatWest said that as it had lowered its cash withdrawal fee from 2.25 per cent to two per cent, although on a £100 transaction this will only save 5p.

Tags: loyal customers, Debit cards, cent, com, National Westminster Bank, withdrawal fee, cash withdrawal fee, transaction

New car? New insurance

A new year brings a new set of registration plates and quite often a new car.

However, insuarncewide.com is warning drivers not to get too caught up in the excitement of buying a new car that they forget all about insurance.

The firm says that simply transferring your previous insurance policy could leave you out of pocket and it is always worth shopping around.

“Think new car, new policy, or at least do your research online to check whether you could get a better deal than your existing policy offers,” said James Harrison, chief executive of insurancewide.com.

“A driver’s profile will constantly change. Your age, occupation, address and type of car all affect your premium and the type of insurer capable of offering the most competitive product and price.”

Mr Harrison went on to say that it may be worth talking to your dealer to see if there is a period of free insurance on offer when buying the vehicle.

He also pointed out that many discounts are available online, before adding that those seeking insurance need to have their wits about them.

“Finally, don’t be misled by insurers’ advertising campaigns that don’t tell the whole story or that don’t really apply to you,” added Mr Harrison.

“Decide what cover you need for your own circumstances, then look for it.”

Tags: profile, insurance policy, com, economics, Mr Harrison, story, new insurance, don't tell

Banks’ January sales scam

Consumers are being warned that banks are trying to fool them with so-called new year sales, says an industry expert.

A number of high street banks have launched special deals this week, claiming to offer consumers attractive rates on a number of products.

However, consumer campaigner and founder of moneysavingexpert.com Martin Lewis says the sales are nothing more than a “great scam”.

“I have not seen anything I would describe as a sale,” said Mr Lewis. “A sale is a period when you get better deals. This is a bank promotion to look like a shop sale.

“What you are actually seeing is the big four high street banks, who are hideously overpriced normally, doing some price reduction so that they are now only over priced.”

Mr Lewis went on to say that consumers should give most of the banks’ sale items a miss and aired his anger at the behaviour of some of the leading banks.

“It is a great scam. You are more expensive than the market place, so you reduce prices and call it a sale,” he added.

Tags: bank, street, industry expert, price, behaviour, com, consumers attractive rates, january sales