Brits ‘worth more than they think’

Most Britons have possessions in their home worth considerably more than they realise, a study claims.

The average 40-year-old thinks their possessions are worth about £29,000 but in actual fact the true value of their possessions is over £40,000, according to the research from More Th>n insurance.

It is 46-year-olds who were found to have the highest value possessions in their homes of any age group, with an average figure of £40,919.

More Th>n product director Dowshan Humzah suggested the findings add weight to the old adage that life begins at 40 but expressed concern at how little thought people seem to be giving to the total value of their possessions.

“Brits work hard enough to buy things but by not keeping track of what they own, they run the risk of being under-insured.”

Meanwhile, research from Sainsbury’s Bank has suggested that British consumers are to spend £7.89 billion in the summer sales this year.

Tags: average figure, Sainsbury's Bank, realise, director, old adage, Humzah, product, age group

Insure your garden, says expert

With the summer months coming up and people spending more time outside, many homeowners may not realise that their sheds and gardens might be at risk of being burgled as they forget to lock them properly, an expert has advised.

According to Simon Lamble, product director at Confused.com, people tend to be less stringent with the security of their garden equipment during the summer and this leads to a ’significant’ increase in the number of shed burglaries.

Research from the company found that the average cost garden equipment is around £800, although not all home insurance policies will pay out for losses of more than £1,000.

“It is imperative that, when taking out home insurance policies, homeowners consider the contents of their sheds, garages and any other outbuildings, and insure them accordingly,” Mr Lamble commented.

Meanwhile, Tescocompare.com has found that Brits fooling around at home cause 25 per cent of damages to their houses.

Tags: shed, director, Financial economics, insurance policies, Tescocompare, Business Finance, security

Demand for five-year fixed-rates ‘rises’

Demand has increased for fixed-rate mortgages lasting five years for the third month in a row, according to figures newly released by Abbey. Read more

Tags: Mortgages, director, mortgage, Institution, fixed rate mortgages, base rate, bank's latest mortgage, periods

Calculis: “No such thing as common law marriage”

Calculis, the independent financial advisory, has said today that the idea of a common law marriage is a myth as it is not legally recognised, as many people believe.

Director of Calculis Alex Pegley said that many people who live together think they have the same rights as a married couple but don’t realise they could be subject to things such as inheritance tax.

According to Advicenow, most people think that they become law husband and wife with the same rights as a married couple after they have been living together for a few years.

However, in reality such couples have hardly any rights compared with married or civil partners but they often only find out this is the case when they separate or when one partner dies.

To avoid being stung by inheritance tax, Mr Pegly advises couple to talk to a financial advisor, saying: “It doesn’t have to mean giving assets away; have a chat see what you can do without losing access to your capital.”

Tags: Mr Pegly, Relationships, Marriage, husband and wife, law husband, director, law, alex

Smokers face double the life insurance premium

Smokers may be faced with life insurance premiums that are twice as high as those for non-smokers, says an expert.

In particular, older people who smoke can expect a large reduction in the price of their life insurance if they quit, according to Life Direct.

Kieran Platt, director of the insurance information provider, said: “If you smoke it can double your premium quite easily. Smoking massively affects life cover premiums and that affects our lifestyle.”

A survey by Norwich Union from March 2008 found that 37 per cent of people without life insurance said that they either had not considered it or were intending to buy it eventually.

Ten per cent of respondents said they had no dependents and therefore felt no need for insurance, while as many as 44 per cent decided to buy cover after they bought their first home.

Mr Platt also said that taking part in clinical trials may impact the cost of life insurance, particularly if they are for an untested drug as companies are unlikely to be willing to pay insurance in that situation.

Tags: home.mr platt, director, cost, insurance information provider, Insurance, lifestyle."A survey, life, information

Expats should have “a realistic financial plan,” says expert

Expatriates should ideally have a “realistic financial plan in place” and take into consideration the cost of the move before relocating, says expatriate and international lifestyle magazine Shelter Offshore.

Director Rhiannon Davies warns that the biggest reason that people “fail to make a go of a new life abroad” is due to financial problems.

A recent survey by NatWest found that the average wage for expatriates working abroad is currently £67,000 compared to the UK average of £47,000, with the United Arab Emirates ranking as the top location in terms of expat earnings.

“Getting financial advice before you go is a good idea,” commented Ms Davies, adding that people who are relocating abroad should seek financial advice since “certain expats can take good advantage of the wealth of offshore savings and investment schemes that there are available”.

Tags: director, ms davies, expert, GBP, united arab emirates, expatriate, good idea, Website

Online sales helped by the credit crunch

As the effects of the credit crunch take hold consumers are increasingly looking to the internet for bargains, one financial expert has said.

Shopsafe.co.uk said that the current trend for consumer bargain hunting was related to the tightening of purse strings brought on by the effects of the credit crunch.

Simon Crisp, director of Shopsafe.co.uk, stated that the future of online shopping was viewed to be strong with fashion and household goods being the main sectors benefiting from the increase in online spending.

“This year certainly people are looking for bargains online; they’re looking to squeeze every penny out of their budget,” he continued.

In a report from the IMRG Capgemini e-retail sales index, online sales in February were up 46 per cent on the same point last year to a record high of £4.2 billion.

Meanwhile, Marks and Spencer announced in November 2007 that their re-branded M & S Direct site has seen online sales increase by 60 per cent.

Tags: director, record high, tightening, Household, financial expert, main sectors, Simon Crisp, retail

Mortgage borrowers urged to “think carefully”

Following the Bank of England’s decision to keep the base rate of interest on hold, one expert has advised borrowers to consider the possible downsides of taking out a variable-rate mortgage.

Mark Blackwell, director of intermediary sales at Alliance & Leicester, said that while those with variable-rate mortgages may have “benefited” from the rate cut announced last month, further rate reductions may not be so forthcoming.

According to Mr Blackwell, under present conditions borrowers ought to “think carefully” about the negative aspects of “locking” into a variable-rate product, particularly as the Bank may choose to tackle rising inflation with a rate hike.

“Fixed-rate products continue to remain a wise choice for first time buyers, people moving house or refinancing,” he said.

As 1.4 million borrowers are likely to come to the end of their fixed-rate deals this year, a similar product may “help to manage the impact of higher monthly payments”, he added.

The Bank chose to maintain the base rate at 5.25 per cent yesterday, having reduced from 5.5 per cent a month earlier.

Tags: decision, yesterday, people moving house, base rate, mortgage

Store cards ‘most expensive form of credit’

Store cards are probably “the most expensive form of credit that anyone can consider, claim debt experts.

Thomas Charles said that if consumers do decide to take a store card out, they should think very carefully about how they intend to pay the balance off.

James Falla, managing director of Thomas Charles, said: “My advice 100 per cent is don’t take out a store card full stop.”

He stated that this is because the average store card is 29 per cent APR, a rate which is “very, very high”.

Mr Falla also added that the credit crunch has resulted in credit criteria being tightened with some consumers claiming their limits are being reduced.

According to recent research by comparison site uSwitch, shoppers with store cards are paying an average of 62 per cent more interest than those using credit cards.

The average store card APR is 26 per cent – a figure ten per cent higher than the average credit card at 16 per cent APR.

Tags: falla, Payment systems, figure, director, average store card, anyone, United States

Insurance industry improved customer experience, says survey

Up to 85 per cent of consumers claim that their insurance provider ‘treats customers fairly’, according to a new survey.

Findings from a customer impact survey from the Association of British Insurers (ABI) shows that 53 per cent of respondents agreed that the insurance industry has an excellent reputation, a figure up from 48 per cent last year.

Maggie Craig, the ABI’s director of Life and Savings, said that the results show that the insurance industry is making improvements in its treatment of customers, despite the overall dip in customer confidence due to recent economic uncertainty.

“The industry recognises that the customer impact scheme is a long-term undertaking and that it will take time for the full effect of the industry’s work to be seen,” she added.

However, she also stated that the survey showed that there is still room for improvement, particularly in the handling of complaints.

Only three per cent of respondents had reason to complain to their provider, but 57 per cent felt their complaints had been handled poorly.

Meanwhile, the ABI has warned that tougher planning controls need to be in place for new homes.

Tags: Association, tougher planning controls, respondents, scheme, uncertainty

Men ‘take care of finances during move’

Nearly half of men in a relationship will manage the finances for moving compared with 34 per cent of women, according to a new survey.

The findings from Halifax show that 65 per cent of couples will make a joint decision when to move or sell their property while couples are less likely to consult with each other the older they get.

Up to 72 per cent of those aged between 16 and 24 consult each other while only 58 per cent of the over-65s will involve their spouse in a decision surrounding moving house.

Gordon Edwards, managing director, Halifax Estate Agents, said: “Buying a house is the biggest purchase most of us are likely to make.”

“If you are deciding to sell your home, purchase a new property or sorting the finances for a move, it’s important to involve your partner in the decision-making process,” he said.

Meanwhile, more research from Halifax shows that County Armagh has the fastest house price growth in the UK with a rise of 331 per cent over the past ten years.

Tags: cent, director, finance, Estate agent, house price, relationship, new property, decision-making

Insurance can play ‘important role’ in protecting finances

Insurance can play an important role in helping consumer meet their financial commitments, one expert has claimed.

The Association of British Insurers (ABI) has said that taking out insurance can significantly improve a situation when household experiences financial difficulties due to unemployment, illness or loss of life.

Nick Starling, the ABI’s Director of General Insurance and Health said: “It is important when people are taking out a loan or a mortgage that they think about how they would meet repayments should they fall ill or become unemployed.”

Statistics show that 23 per cent of people will be jobless at one stage in their lives while more than one in three could be out of work for more than a year.

The most vulnerable groups who have no insurance or coping strategies in place include single income families, single parent families, larger families and single women aged between 18 and 35.

Meanwhile, earlier in the month the ABI has made a commitment to ensure claims are assessed fairly and paid “without fuss”.

Tags: Single-parent, director, Insurance, commitment, Association

“Incredibly important” for debtors to be aware of solutions

It’s “incredibly important” that those seeking debt help are made aware of all solutions available to them, says a debt advice service.

Debt Help UK said that being aware of all the solutions that are available can make the difference between finding an appropriate solution and having a solution forced upon her.

Iain Wrenshall, director of Debt Help UK, said: “As your situation degrades, then your options generally become narrower and, ultimately, your creditors have the sanction to make that choice for you.”

“It is important that people don’t bury their heads in the sand, but look for free advice which is going to help them understand the solutions and the options open to them,” he concluded.

According to research from uSwitch.com, almost one in four UK adults are finding debts unmanageable – 9.5 million have maxed out on one form of credit in the last six months and 38 per cent have had a credit card application rejected.

Tags: free advice, director, Debt Help UK, uswitch, United Kingdom, Insolvency law

Millions to be reliant on credit in 2007 say Post Office

New research from the Post Office has shown that one in four of credit card holders will be starting the New Year more dependent on credit than in 2007.

Up to 41 per cent of consumers are expected to be reliant upon their credit cards for day to day living costs.

Gary Fitton, Post Office director of lending, said: “Typically January is the time of year when people struggle with their money the most.”

“Many people have over-stretched themselves over the Christmas period and have little choice but to use their credit card in the New Year,” he added.

The findings also revealed that half of card holders are intending to use their cards in the January sales while almost a third of respondents said they are expecting to make bigger purchases, such as holidays, using credit.

The Post Office is urging consumers to get their debts in control as up 53 per cent of card holders do not pay their card bills off in full each month.

Meanwhile, the Post Office has predicted that costs for holiday makers in Malta and Cyprus, the newest members of the Eurozone are set to increase next year.

Tags: time of year, New, cyprus, New Year, office director, period, little choice, director

Nearly all Brits need a financial workout

Almost all of Britons would benefit from a financial workout, according to the results of a latest survey.

The findings from Abbey show that only one in every 100 Brits manages the various aspects of their personal finance well.

With a higher score indicating the greater the room for improvement in their personal financial management, the average score for the UK population was 43.

Steve Shore, Abbey director of banking, said: “Less than a third of people score less than 30 which suggests that the majority of the population could do with a financial workout.”

Women scored 46 compared with 41 for men and Wales and the South West were the most financially fit.

The research looked at the financial behaviour of British consumers and gave them a score according to the products they held, the competitiveness of these products and how often they shopped around for better deals.

Meanwhile, recent research from Abbey has revealed that the odd jobs economy for children is worth an estimated £696 million.

Tags: director, Wales, steve shore, uk population, british consumers

New Year is “absolutely the right time” to manage debt

The New Year is “absolutely the right time” for consumers to start managing their debt and personal finances, according to a debt consultancy firm.

Thomas Charles has said that while taking control of money worries is difficult in December, the New Year is a good time to turn over a new leaf when it comes to saving.

James Falla, director of Thomas Charles, said: “The first thing people have to do is to understand their budget.”

“It’s quite a simple thing but understand what money is coming in and what money is coming out, so you can work out yourself what you should be spending,” he advised.

The latest research from the firm, which was carried out in conjunction with YouGov, revealed that 15 per cent of Britons are in ’serious’ debt to the tune of £10,000.

Men are thought to be more in debt than women although this is an attitude which is changing.

Tags: thing, finance, conjunction, control, consumers, research, time

Taxation benefits for married couples

Married couples receive financial benefits when both partners have savings in place, claim financial experts.

MDM Associates has said there are possible higher tax allowances on pensions and potential inheritance tax advantages from joint savings.

Lisanne Mealing, director for MDM Associates, said: “With investing in pensions, you’re losing out on some pretty good tax allowances if you only fund on one [partner's] side and not the other.”

She added that in terms of income payments, “it’s easier to have the income split in retirement; because, again, you’re going to pay less tax… You’re taking full advantage”.

Ms Mealing also said that women’s income is usually spent on household items, incidentals and holidays whereas the husband’s earnings will be used for financial planning.

However, a recent report from the Fawcett Society warned that women are likely to struggle financially for a longer period following a divorce than a man, as women are less likely to have savings in place.

Tags: good tax allowances, pensions, earnings, director, Taxation benefits, inheritance tax advantages, retirement, financial planning

People need to review life insurance requirements

Many people “are running around uninsured” as a result of neglecting to change their insurance policies to reflect changes in their circumstances, says an industry expert.

Life Direct said it is “extremely important” for people to review their life insurance policy whenever their circumstances change.

Keiran Platt, director and financial adviser at the broker, said that people should not be put off by looking at life cover options, as it need not be that expensive.

He said: “The cost of life cover has been reducing a lot over the last few years – so it may be that they can cover their new circumstances and not be paying much more.”

Mr Platt added that a lot of people cover their mortgage but do not think about protecting their family as well.

According to estimates from the Association of British Insurers, one in three Britons maybe underinsured as a result of not renewing their life insurance cover in five years.

Tags: Insurance, expert, financial adviser, broker, life cover options, Association of British Insurers, director, looking at life

Debt becomes ‘norm’ for Brits

Getting into debt is now accepted as normal and in many cases necessary, an industry expert has said.

Alastair Mathews, director of policy educational charity pfeg, explained that if people wish to go to university or buy a house, most will rely on loans to do so and will thus not be able to avoid getting into debt.

With credit easily available to those needing it over the past few years, it has been easier than ever to build up considerable debt.

“We have almost officially built debt in to the system now,” said Mr Mathews.

He continued: “We have a changing culture from the traditional British attitude of wanting something and saving for it – where maybe you waited for half a lifetime for it – to now, where the feeling is ‘if I want something, I’ll have it’.”

According to statistics from Credit Action published this month, total personal debt in Britain stands at £1,380 billion. This figure has gone up by an impressive £120 billion (10 per cent) in the past twelve months.

Tags: business, figure, attitude, director, industry expert, cent, Britain

AHIPP: Hips will benefit first-time buyers

The advent of home information packs (Hips) will offer many benefits to first-time buyers, according to the Association of Home Information Pack Providers (AHIPP).

Recently the Royal Institution of Chartered Surveyors claimed that Hips would end up making things more difficult for first-time buyers.

But AHIPPS has maintained that actually Hips and the Energy Performance Certificate included in it, will save first-time buyers time and money.

Paul Broadhead, the deputy director general of AHIPP, said: “The latest Hips allegations from RICS appear to have disregarded the many benefits that the packs will offer first time buyers – the most vulnerable of buying groups.

“With more information upfront and the costs incurred in gathering and providing information such as searches transferred to the seller, first time buyers will find their first step onto the housing ladder a more affordable.”

Because it is the seller of the house that must pay for the Hip, many expenses for the actual buyer will be discounted, Mr Broadhead added.

Hips became required for homes with three bedrooms or more on September 10th this year.

Tags: Home Information Pack, advent, house, Chartered, paul broadhead, gathering, director

Three million use credit cards ‘every day’

Three million people in the UK use their credit cards every single day, it was claimed this week.

That amounts to nearly one in every ten of the UK’s 34 million credit card holders.

54 per cent were found to use their cards once a week, while 35 per cent use them once a month or less frequently.

The research was carried out by Abbey, itself a provider of credit cards.

Online shopping was found to be the most widespread use to which credit cards are put, with 20 million flexing their plastic over the internet.

Surprisingly, high street shopping proved to be less popular, with only 19 million spending on credit cards in real-world shops.

The research found that 57 per cent pay off their credit card bills every month in full, while only 3 per cent admit to having difficulties making regular payments.

Roger Lovering, managing director of Abbey Credit Cards, said: “There is no one way that people use their credit card and we see as many different spending patterns as there are people.”

Tags: provider, cent, Center for Responsible Lending, cent admit, online shopping

Mortgage holders told credit cards ‘not necessarily a bad thing’

People with mortgages who use credit cards to make sure they meet repayments are not necessarily doing the wrong thing.

According to the director of Debt Advice Bureau, Stephen Rose, some people have more or less paid for a house with the help of a credit card and “they’ve done very well”.

“If somebody is paying considerably less on their credit card than they are on their mortgage then it’s a good thing, but if they are paying more on their credit card than they are on their mortgage then it’s a bad thing,” he said.

A recent survey published by Shelter magazine ROOF showed that over a million people have used a credit card to pay off their mortgage or rent in the last year. This figure represents six percent of the population repaying mortgage loans or rent.

The Debt Advice Bureau is a not-for-profit organisation that gives information to residents in the UK concerning their debt issues.

The bureau sees around 4,000 people every month, giving them impartial advice on their problems relating to debt.

Tags: debt advice, debt issues, Stoozing, population, shelter, director, organisation

UK’s south east is credit card central

The south east of Britain has been found to have the greatest number of credit card holders per capita than any other region.

A recent survey by the UK payments association, APACS, has revealed the payment habits of people and how they vary from region to region.

Results revealed that 75 per cent of adults in the south east have credit cards compared with the national total of 67 per cent.

Furthermore, it found, people in the north east are less likely to regularly use cheques than anywhere else while in the North West, people make more regular visits to cash machines, withdrawing £5,355 more than anywhere else in the UK.

Sandra Quinn, director of communications at APACS, said: “Different parts of Britain have long been associated with certain payment stereotypes – whether those are about being overly careful with spending or flash with the cash – and these guides – drawn from the UK’s ongoing largest study of payments behaviour – offer a revealing and interesting look behind the statistics.”

She added that although the majority of people are happy with the payment methods available, managing finances can be made easier and more convenient by “taking advantage” of the various options.

The regional comparisons were based on a survey of 4046 adults representing the most comprehensive ongoing survey of its kind.

Tags: region, managing finances, Association, UK payments association, director, payment, finances, Standing order

Market volatility increases attractiveness of buy-to-let

The recent fluctuations in the UK stock markets have caused a lot of financial concerns among investors.

Originally caused by the meltdown of the US sub-prime mortgage sector, the current turbulence in credit markets might lead some to look elsewhere to grow their assets.

Mortgage Trust commented today that some landlords are finding safer bets in the buy-to-let market.

According to their research, 32 per cent of new landlords have cited control over their investment was a major factor behind their decision to enter the market.

This represents a four per cent rise over the same question asked by the company in January.

Managing director at Mortgage Trust John Heron commented: “When investing in stocks and shares, your only option if you don’t like the way an investment in a fund or company is performing, is to sell.

“With buy-to-let, landlords are in the driving seat. As financial markets become increasingly volatile, this level of control will become more attractive to investors.”

Mr Heron also claimed that the spiralling base rate of interest – which the Bank of England has raised five times in the last year – had also led investors to become “increasingly risk averse”.

Tags: buy-to-let, fund, director, Trust, stocks and shares, United Kingdom, way, bank of england

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, ISAs, ISA, government, cash, avoiding capital gains, director, government reforms

Online banking offers greater flexibility, according to BBA

A top banking association has hailed the advance of internet banking as providing greater flexibility and convenience for customers.

According to the British Bankers’ Association (BBA), which represents around 200 banks across the UK, the service is especially liked by holidaymakers, who can access their accounts just by going online without needing to be near a branch of the bank.

According to communications director at the BBA Lesley McLeod, “you can do it from an internet cafe when you’re sitting in Rome so people like that flexibility.

“People who travel a lot like [online banking] as it gives them access without having to bother whether they can get to their branch and people quite like that aspect of it.”

Ms McLeod said that the company detected an overall bias towards the under-50s to the online service, although it was by no means exclusively used by the young.

Figures from Apacs payment association testify to the popularity of internet banking, showing that 24 million adults used the service in 2006. It predicts that two in three adults will use remote banking by 2014.

Tags: director, 50s, banking association, BBA Lesley McLeod, bank, Association, access

FSA forces change on online PPI sales

The Financial Services Authority (FSA) has announced that customers are to receive protection over how they are sold payment protection insurance (PPI) over the internet.

Some online insurance providers were adjudged to have been railroading customers into taking out PPI along with their loan purchase, using techniques such as a pre-ticked box committing them to the cover at point of purchase.

While PPI might prove a safety net against consumer debt, the FSA’s concern was with customers’ being offered an optional service, which costs extra money, as the ‘default’ choice.

Vernon Everitt, a director at the FSA, said: “Naturally, many customers are focussed on getting the loan itself, but it is just as important that they also think about whether or not they want to protect their loan repayments by taking out PPI cover.

“This change means that it will be up to the customer to actively choose to buy PPI rather than it being sold automatically.”

PPI provides insurance for customers taking out credit cards, loans and mortgages, which covers monthly payments should the customer be unable to work at one point of the repayment schedule.

Tags: choice, payment, internet, hsbc, repayment schedule

Isa investments hit highest level

The last tax year saw the highest number of subscriptions to Individual Savings Accounts (Isas).

Figures from the Tax Incentivised Savings Association (TISA) show that £33 billion was invested in Isas in the year 2006/07.

The total number of people now investing in Isas has reached 20 million, with £300 billion earning interest with tax breaks.

Tony Vine-Lott, director general of the TISA, said that the figures put paid to scare mongering about a lack of people saving.

“While there are headlines claiming the savings ratio is at its lowest ebb, we can see from official HMRC [HM Revenue & Customs] figures that Isas are booming.

“The 2006/07 tax year was a record – showing that tax incentivised savings remain hugely popular with millions of people.

“TISA will be looking to ensure the popularity of Isas remains high on the public policy agenda,” he added.

Isas can only be invested in ahead of the tax year beginning, so savers will have to wait until April next year to qualify for the next round.

Tags: Lott, director, vine, savings, round, tax, individual savings accounts

Medical insurance popular with Brits

More and more of us are choosing to take out private medical insurance (PMI).

The latest figures from the Association of British Insurers (ABI) show that 2006 saw a 1.8 per cent increase in PMI subscriptions compared to the year before.

In 2005, 1,012,000 people signed up to PMI, while in 2006 this number jumped to 1,030,000.

The ABI points out that this means 5.9 million adults and children in the UK are now covered by PMI and says that the benefits are clear to see.

“Private medical insurance offers people greater choice of treatment and other services for a wide range of medical conditions and injuries,” said Nick Starling, director of general health and insurance at the ABI.

“It also takes pressure off the NHS, so by buying PMI, people are effectively reducing the burden on Britain’s hard-pressed health service.

“It is encouraging that more individuals are choosing to buy PMI for themselves and their families. PMI bought by companies on behalf of their employees has continued to increase in popularity too, helping to ensure that people can get back to work sooner after illness or injury,” he added.

Tags: subscriptions, range, Insurance, director, United States, greater choice, increase, PMI subscriptions

Bleak retirement picture

Most of us will be unable to retire at the age we want to, will rely on our parents for financial support and will endure a reduced standard of living once we do.

That is how the majority of independent financial advisers (IFAs) see the future as saving and banking properly become less common in the UK.

Insurance firm Aegon gauged the opinions of 100 IFAs on issues surrounding retirement and they painted a fairly bleak picture.

A total of 88 per cent predicted that the average retirement age will increase in the next ten years, with the same number believing that most people will not be able to retire at the age they want to.

Eight out of ten IFAs say that parents now have to support their children for longer than ever before and 74 per cent think that we all receive less inheritance.

Perhaps the most worrying finding for some people is that 71 per cent of IFAs believe that most people are resigned to seeing their standard of living reduce significantly once they retire.

“The third wave of the Aegon IFA Insights survey reveals that the IFA community expects those planning for retirement to face increasing pressures from all sides,” commented Graham Dumble, director of risk and regulation at the firm.

“So it’s not surprising they expect the British public will have to work longer into their retirement years or accept a lower standard of living in retirement.”

Tags: Aegon UK, IFAs, director, inheritance, future, retirement age, House Targaryen, retirement

Hips divide industry figures

Home Information Packs (Hips) have won the first round of debates which could see their introduction on June 1st postponed.

The packs were given the go-ahead following a House of Commons vote but now they face a challenge in the House of Lords.

The housing market has been responding to the victory in the Commons, with the Association of Home Information Pack Providers (Ahipp) saying that it is good news for the environment.

“Yet again, government has demonstrated its commitment to reducing the carbon emissions of our housing stock and to improving the house buying and selling process for consumers across England and Wales, through the implementation of Home Information Packs,” said Mike Ockenden, director general at Ahipp.

“Industry is ready to deliver Hips and the benefits that the packs will offer to both consumers and the environment.”

The same view is not shared by the Royal Institute of Chartered Surveyors (Rics) however, which has commenced Judicial Review proceedings against the government over the introduction of Hips.

It has called upon the government to take “action” and postpone their roll out on June 1st.

“The introduction of Hips will have few benefits to the consumer and adversely affect the housing market and the wider economy,” said Jeremy Leaf from Rics.

“The government should be brave and postpone their flawed plans for home buying reform. By preventing this potentially damaging and chaotic policy Gordon Brown could give substance to his claim to lead a listening government.”

Tags: Jeremy Leaf, hips, director, england, carbon, reform, gordon brown, Politics

Insurers expect surge in DIY claims

The May Day Bank Holiday is expected to have led to a surge in insurance claims as the UK went DIY crazy.

Bank Holidays are traditionally a time when homeowners decide to carry out some work on their house and this one has been no different.

Lloyds TSB Insurance says that it is expecting the number of calls it receives to surge by around 60 per cent in the coming days.

The firm has revealed that it saw calls rise by 56 per cent following the 2006 May Day Bank Holiday and it predicts that accidental damage claims will also rise.

“May Day Bank Holiday can spell disaster for DIYers,” explained Phil Loney, managing director at Lloyds TSB Insurance.

“We’re urging anyone who’s getting out a paintbrush, drill or stepladder to be extremely careful. Unfortunately, sometimes accidents do happen and it’s then that having the right insurance cover can prove invaluable.”

The firm says that their have been some quite interesting claims made in recent years. Among them is a toddler who wanted to follow his dad’s DIY lead and painted a newly-laid carpet.

One man accidentally drilled through a gas pipe and caused a leak, while another crashed through his ceiling as he tried to repair some floorboards.

Tags: toddler, damage, Lloyds TSB Insurance, time, director

Garden items may not be covered

As the Bank Holiday weekend approaches, Nationwide is warning homeowners to ensure that their home insurance covers the theft of garden contents.

Not all policies cover items which are kept in the garden and people need to be sure that they are covered.

The firm points to the fact that evenings are getting longer and many people will be spending more time in their gardens as a result.

This inevitably leads to lawnmowers and garden furniture being brought out and often left in the garden over night.

Nationwide warns that these products become easy pickings for thieves and says that simply being certain that your home insurance covers garden contents can save you a lot of money.

“As we move further into spring we begin to see an increase in the number of home insurance claims we receive for items being stolen from gardens or vandalised, with garden furniture being the most popular item claimed for,” said Robin Bailey, Nationwide’s insurance director.

“Unfortunately we cannot secure our gardens as easily as our homes but, by finding a provider which offers garden cover as standard, people can help protect themselves should they ever need to make a claim.”

According to the firm, the most popular claims received for items stolen or damaged in gardens include furniture, bicycles, ornaments and children’s toys.

Tags: director, home insurance claims, result, home insurance covers, provider, Nationwide's insurance, spring, Insurance

Savers have changed attitude

The way we approach banking has changed in recent years, with new research showing that more of us are opening instant access savings accounts.

A study by Birmingham Midshires shows that 51 per cent of people who opened a savings account in the last three months opted for the instant access option.

This is in stark contrast to the number who chose to make their money slightly harder to get to, with only 16 per cent keeping it out of reach.

Birmingham Midshires says that this trend is all part of the ‘have-it-now’ culture of Britons in the early 21st century and the firm says that consumption of goods figures back this claim.

The Office of National Statistics recently published these statistics, showing that we consumed 73 per cent more goods in 2005 than we did in 1991.

Experts at Birmingham Midshires say that it appears to be the case that many Brits are saving in order to spend.

“Instant access accounts are an excellent way of saving for short term needs, however, we would encourage savers to also remember the long term and make adequate provisions,” said Jason Robinson, director of savings operations at the company.

“It is worth considering a number of savings pots for different purposes which can nowadays be very easily managed online.”

There is nothing wrong with saving money for a big purchase, however, it is also advisable to make sure that you have money put aside to help you through an unforeseen change in circumstances.

Tags: jason robinson, number, option, three months, online

Homeowner demographics are changing

The UK’s demographics are changing and as a result our living habits are developing too.

According to new research by Alliance and Leicester in conjunction with the think tank Centre of Future Studies, our changing social landscape means that people are staying at certain life stages longer than before.

A decreasing rate of mortality and fertility have changed the way we pigeonhole people and the study says that most of us live in more houses in our life times than we would have in previous years.

The report suggests that the adkid demographic will be prevalent in the coming years, with around 80 per cent of people falling into the category by 2026.

This points to people who prolong the length of time they spend living with their parents, therefore gaining the title of adult children (adkid).

Adkids are said to be more susceptible to having a Peter Pan attitude – the desire to not grow up – and according to the report means that leaving home, getting married and having children are put off until later in life.

Overall, the study predicts that household numbers will increase in the future with a number of factors having an impact.

It anticipates that more people will live alone due to increased divorce rates, while marital homes will become less common.

“Changing demographics and social attitudes will inevitably have an effect on the housing market in the future, for example, the number of times that people move in their lifetime, or the increase or decrease in the type of household they live in,” commented director of mortgages at Alliance and Leicester Stephen Leonard.

“These trends are predicted to change dramatically in the next 20 years.”

Tags: before.A decreasing rate, report, number, leaving home, alliance, uk, attitude

Carbon neutral targets looking ambitious

The government’s plans to make all new homes carbon neutral by 2016 have been given a huge vote of no confidence.

A survey of mortgage intermediaries, published by UCB Home Loans, has found that two thirds believe the target will not be achieved.

With just nine years remaining until the government’s target has to be achieved, the intermediaries pointed to the fact that fewer than 30 homes in the UK are currently carbon neutral.

This makes the 2016 target seem laughable and intermediaries were just as damming when asked if they thought the country would reach its carbon emission targets.

The government has set itself the task of reducing emissions by 60 per cent by the year 2050 but 44 per cent of intermediaries think that a target of 50 per cent would be ambitious.

“The views of intermediaries are important, because they are responsible for arranging a large proportion of all home loans – including new build developments,” said Keith Astill, managing director of UCB Homes Loans. “They deal directly with homebuyers and so are ideally placed to make a judgment.

“Whilst part of the reduction in carbon emissions will need to come from industry, the research indicates that most people are not yet aware of the actions that they will need to take if the UK is to meet its targets on carbon emissions.”

The research found that 98 per cent of intermediaries believe homeowners do not know the size of their carbon footprint even though the 21 million homes in the UK are responsible for 27 per cent of the country’s emissions.

Tags: environment, director, footprint, Climatology, carbon emissions, ucb homes, nine years, country

Mortgage lending remains “robust” in 2007

Mortgage lending remained robust in January 2007, according to data released by the Council of Mortgage Lenders (CML).

The CML’s figures show that some £26.8 billion was taken on by borrowers during the month.

Although this was six per cent less than the £28.5 billion lent in December 2006, it compares favourably with the £23 billion borrowed during January 2006.

Michael Coogan, director general of the CML, said that the “robust” start to the mortgage-lending market was set to continue over the next few months.

However, Mr Coogan also indicated that there was a certain degree of uncertainty because of the expectation that there would be a further quarter point interest rate rise during 2007.

“Because of this uncertainty, it would be surprising if some home buyers did not review the timing of their decision now,” he added.

Figures released by the British Insurance Brokers’ Association also showed a slight downturn, with the group saying mortgage lending amounted to £5.6 billion last month, compared to 5.7 billion in December 2006.

Tags: degree of uncertainty, timing, expectation, insurance brokers association, home

Rushed car loan choice can be costly

Motorists have been warned that making the wrong choice in regard to their car credit could leave them at a significant financial disadvantage.

A study by price comparison site uSwitch.com has revealed that around 187,000 of the cars sold in March will be purchased with the help of showroom finance.

Such practices will result in around £228 million being wasted on charges for the year, the company states, explaining that the average showroom loan offers 10.12 per cent APR, a staggering 4.22 per cent higher than the best regular loan on the market.

“A rushed decision or just taking the finance deal offered by the car dealer could turn out to be a long term financial burden,” explained Nick White, the director of financial services at uSwitch.com.

“Paying too much for car finance is really easy to avoid,” he added, before suggesting that a comparison website might be a good place to start.

Opting for the best loan available could save a motorist around £1,200 over the loan’s term when compared with showroom finance, the company said.

Tags: loan, uSwitch.com, site, Recreation and Sports, term, director, apr

ID theft warnings ignored

Too many Britons are still bypassing advice on how to protect themselves against identity theft, credit reference agency Callcredit has warned.

A third of Britons continue to throw away documents such as bank statements and receipts, which contain vital personal information, without shredding them first, a study from the Information Commissioner’s Office found this week.

Meanwhile, as many as a quarter of people would be oblivious if they were targeted by identity fraudsters – since they do not check their bank statements.

Customers should work these small but important habits into their financial routine, stressed Callcredit’s director of industry relations Melanie Mitchley: “Personal data is the lifeblood of identity thieves and they are gorging themselves on people’s complacency.”

“Remembering to destroy personal documents such as bills and statements before throwing them away would go a long way to starving ID fraudsters of opportunities,” she added.

Amid growing concerns about hi-tech online identity fraud, it’s important to keep your PC or laptop updated with anti-virus and firewall software to exclude hackers.

According to the UK fraud protection service, CIFAS, the number of victims of identity impersonation rose 19.91 per cent last year compared to 2005 levels.

Tags: callcredit, director, credit card fraud, year, identity theft, Personal computer

Anti loan shark scheme welcomed

A new scheme to tackle loans sharks has been welcomed by the National Consumer Council (NCC).

The organisation is hopeful that by introducing the project, around 200,000 of the UK’s poorest people will receive help.

Hopes have been raised that some of the most vulnerable people will now be able to escape the vice-like grip of illegal lenders.

“Removing illegal lenders from these communities not only frees their victims from threats and intimidation, but can help people find ways to borrow more cheaply,” said Claire Whyley, deputy director of policy at NCC.

“It’s vital, though, that these new projects are supported by efforts to make more affordable credit widely accessible in poor communities.”

Large numbers of people turn to loan sharks because they have such a bad credit rating that they feel they will not be given a loan by a reputable lender.

However, loan sharks are not restricted by regulation and often charge extortionately high interest rates.

As a result, many borrowers find themselves in an even worse financial situation than before they borrowed the money.

Tags: finance, regulation, vice-like grip, lenders, scheme, loan, director, rating

First-time buyers face unaffordable homes

First-time buyers were faced with the least affordable homes ever during November 2006.

That is according to the Council of Mortgage Lenders (CML), which has compiled data showing that the average homes cost 3.29 times the combined income of the buyers.

These figures represent the situation before the recent interest rate rises, meaning the market is likely to become even harder to get on to.

During November, the average mortgage for a first-time buyer was £113,877, with analysts saying that the recent interest rate rises will add a further £200 per year to the average mortgage.

“Month-on-month we see affordability constraints becoming more pronounced for first-time buyers, and last week’s interest rate rise will increase these pressures,” said Michael Coogan, CML director general.

Homeowners are now spending a record-breaking 17.8 per cent of their income on mortgage interest payments, but this has not stopped people from entering the market.

CML data shows that the number of first-time buyers is steadily increasing. In total, 37,000 people bought their first home in November, up from 35,300 in October.

“First-time buyers are clearly still keen to get on to the property ladder despite the growing financial hurdles, and it is essential that anyone wanting to buy their first home should look carefully at their finances and take a realistic view as to whether they can afford the costs of home-ownership if rates continue to rise,” added Mr Coogan.

Tags: director, Mr Coogan, mortgage interest payments, rate rise, anyone

Fraud warning not being heeded

Millions of credit card holders in the UK are leaving themselves open to fraud.

Despite continual warnings about the dangers of identity theft, many people are not heeding the advice, says Morgan Stanley Consumer Banking.

The most common mistake made by British people is failing to shred documents such as credit card statements when throwing them away.

Figures from Morgan Stanley show that 40 per cent of people fail to do this, with that number rising to 59 per cent among people under 30.

Another risk taken by many people (27 per cent) is using the same pin number for a variety of different cards and accounts, while the third most common (12 per cent) is storing pins on personal computers or laptops.

“The findings fuel concerns that Britons are not taking heed of warnings to protect themselves,” said Patrick Muir, marketing director at Morgan Stanley Consumer Banking.

“There has been a lot of attention placed on the issue of ID theft but, worryingly, many people still don’t believe it could happen to them.”

Morgan Stanley found that younger people (under thirties) are the least likely to be aware that they are the victim of ID theft as 45 per cent do not check their statements.

Tags: identity theft, director, Stanley Consumer Banking.The, Marketing, cards, Caterpillar, Financial economics, continual warnings

Brits urged to borrow sensibly

British consumers are being encouraged to make sure that they only borrow what they can reasonably pay back.

Debt advice firm Thomas Charles is calling upon Britons to take control of their finances following the expensive Christmas period.

The company says January and February are some of the worst months for consumers when it comes to falling into debt.

This is put down to over spending during the festive season and often results in people borrowing more money to see them through the difficult period.

James Falla, director of Thomas Charles, says consumers need to ensure that they are only borrowing money which they can afford to repay.

“If you are taking a loan, then you should know full well that you have to pay back an amount every month,” he said.

Consumers are also advised to take a proper look into the best ways of borrowing money and see which method is best suited to their circumstances.

Tags: month, debt advice, circumstances, James Falla, control