Cutbacks in mortgage benefits could pose risk to vulnerable homeowners

Industry groups and campaigners are expressing concern over the effect that mortgage benefit cutbacks by the government may have on vulnerable homeowners. There are concerns that some homeowners that are in a vulnerable position, such as disabled homeowners, could be at heightened risk of repossession because of the cutbacks put into place by the coalition government.

In its recent emergency budget the coalition government revealed the details of a range of cutbacks designed to cut public spending and bring the public deficit under control. This included a range of cutbacks to benefits and to various programmes that had been put into place such as mortgage schemes.

The National Housing Federation has launched a scathing attack, stating that there are now around 64,000 homeowners with disabilities that receive assistance through the Support for Mortgage Interest scheme, known as the SMI. However, many will experience difficulties if this assistance is reduced or cut.

According to reports the SMI is to be recalculated for thousands of people with disabilities, and officials believe that around five thousand people with serious mental and physical disabilities could end up financially worse off under the system, and could face difficulties in making repayments, which could mean an increased risk of repossession.

An official from the National Housing Federation said: “This policy will hit thousands of people with disabilities, cutting off many from the prospect of owning their own home. The fact that ministers have not carried out a comprehensive impact assessment into such a major decision is very disquieting.”

The Sheffield Centre for Independent Living added: “There’s an inconsistent response from different local authorities because there are no national guidelines on how payments are made. Now we have to help a lot of people who are finding it harder to get these grants as councils review spending.”

Tags: Government spending, Independent living, mortgage, emergency, National Housing Federation, homeowners, councils review spending, cutbacks

Needs of animals grow during recession

The ongoing recession is not only affecting millions of people in the UK, but is also having a negative effect on the lives of millions of pets, many of whom are finding themselves out on the streets because their owners cannot afford to feed and look after them any longer. Read more

Tags: animal welfare, animal help, Battersea Cats, emergency, dogs, pet cat, Battersea, pet

Make sure you have savings for an emergency

An independent financial advisor is urging consumers in the UK to make sure that they have some savings put aside to serve as a ‘financial cushion’, which can then be used in the case of emergencies.

The advisor, from Christie Scott, states that consumers should always have at least three months worth of wages put aside in savings to fall back on should the need arise. This is particularly important for the self employed, who may find that income for some months is far lower than for others, and therefore may need extra money to subsidise their income now and again.

The firm Christie Scott has pointed out that in order to ensure that there is money in the savings account for emergencies consumers will not necessarily have to dramatically cut down on their social life and spending. Simply making some basic cutbacks and reassessing expenditure could help to top up any savings in order to try and get the balance up to three months worth of salary. Consumers are urged to look through their monthly income and outgoings in order to try and direct some extra cash into savings each month.

The financial advisor stated that in some cases people believed that savings was only worth it if interest rates were high, but this was not necessarily the case.

She stated: “More people may be inclined to save when interest rates are higher. When rates are low some people see little point. Most don’t understand the concept of compound interest – meaning that even low interest rates added steadily over time will make a difference.”

Research has shown that in the second quarter of last year the average amount being saved was £1376 per person, and this has fallen to £910 per person for the second quarter of this year.

Tom Smith
1st October 2007

Tags: emergency, accounts, savings, interest, average, self employed, salary

Insurance ‘essential’ for even short trips

No matter how far they are planning to travel, anyone heading overseas should ensure they have adequate travel insurance.

That is according to a spokesperson for the Association of British Insurers, who said that regardless of where an individual is travelling to, they could end up needing medical help.

“Even if you’re only in France, there’s always the possibility that you may need emergency treatment,” the spokesperson said. “So it’s worth considering for that reason alone.”

A recent survey carried out by swiftcover and YouGov found that of more than 2,000 travellers, 37 per cent had been robbed in Spain, 19 per cent had something stolen in France and nine per cent experienced theft in the UK.

The ABI spokesperson pointed out that fans travelling to watch the Rugby World Cup in France ought to get cover, as losing personal effects “can ruin any holiday or any visit or any break. It doesn’t matter what you’re doing”.

Tags: swiftcover, Insurance, emergency, break, spain

Amex in strong travel insurance recommendation

Holidaymakers must take out travel insurance cover to feel safe during breaks, American Express said today.

Amex advised those who shopped around for travel cover – some 52 per cent, according to their own research – to concentrate on premium levels rather than simply the price.

Director at Amex Richard Mason said: “While holidaymakers might think nothing will happen to them while they are away, travel insurance is vital for claiming on cancellations, lost cash, public liability and providing emergency medical treatment.

“It gives you added peace of mind should anything go wrong.”

The credit card company’s insurance service also said that tourists must make sure that they keep within drink-drive limits if any alcohol-related claims are to be successful.

Attention was also drawn to the fact that insurers would closely monitor the circumstances of injuries received by claimants after alcohol was consumed.

Marketing manager Joanne Field said: “This is the acid test to determine whether an insurer will pay a claim for an accident or injury when the medical staff has advised that its causes have been alcohol related.”

Tags: amex, Director at Amex, Richard Mason, cancellations, claim, tourists, emergency, cover

Insurers warn of premiums rise due to floods

Home insurers warned yesterday that premiums might increase across the board due to their being hit by claims from the recent floods in the North.

People living in homes which have been flooded before will be hardest hit by the increases, although most will have to pay slightly more as the industry responds to the apparently quickening frequency of extreme weather in the UK.

The recent floods follow the flooding in Eastern England in 1998 and the deluge at Bocastle in the west country three years ago. Most policies are currently calculated on a once-in-75 year risk.

David Ross at Norwich Union said that “modest” premium increases would take effect, although he also pointed out that, in a competitive market, the cost of home insurance “has remained level” over the previous decade.

A spokesperson for the AA said that “extreme weather conditions” will “become more common” due to climate change.

A price comparison website reported earlier this week that the number of people taking out home insurance cover had risen by 300 per cent in flood-affected areas this summer.

The Association of British Insurers (ABI) also announced that it would work more closely with councils to help plan emergency responses to natural disasters in the UK and lobby for extra government money for flood defences.

Tags: flood defences, risk, home insurers, emergency, Insurance, home insurance cover, price comparison website

Life insurance costs can rocket if you are overweight or a smoker

Although it has long since been known that life and health insurance companies charge higher premiums to consumers that are considered a higher risk, such as those that are very overweight or those that smoke, recent data has shown just what a dramatic difference smoking and excess weight can have when it comes to increases in insurance premiums, with many insurance companies charging over fifty percent more on policies to smokers and the very overweight than on policies to non-smokers and those not overweight.

The data suggests that insurance companies are really cracking down when it comes to what they consider are high risk customers, protecting themselves against increased risk of financial losses through charging a lot more on the cost of the premiums. These insurance companies look at high risk factors such as obesity and smoking when working out a policy, and those that come under the category of obese or smokers are seen to be a higher risk because they are more likely to make a claim according to insurance companies.

A life insurance manager at Sainsbury’s stated: “Health risks associated with smoking can have a big effect on life cover costs. It is vital for those that have kicked the habit to review their policies.” However, a number of pro-smoking organizations have raised concerns about the way that insurers automatically charge more to smokers than non-smokers, stating that the risk of a smoker under forty dying is no higher than that of a non-smoker.

A recent comparison study was carried out and this showed that on average smokers were charged around fifty six percent more on these insurance policies than non-smokers. The study was carried out through sending applications from two men of the same age to a number of the UK’s top insurance companies, and seeing what the price difference was based on one being a smoker and the other a non-smoker.

Tags: claim, emergency, accident, premium, health

Is travel insurance more important than life cover?

Most Brits are well aware of the complications that can arise without the protection of life insurance cover. Nobody knows what lies around the corner, and an accident, sudden illness, or unexpected event could change everything in one fell swoop for our loved ones. Although nobody likes to dwell on the prospect of death it seems that many Brits are simply burying their heads in the sand when it comes to providing their loved ones with protection and peace of mind through life insurance cover, and a survey has revealed that an alarming percentage of Britons do not insure their lives.

A recent survey was carried out by Bright Grey, and a sample group of two thousand Brits was used in the survey in order to determine average figures relating to insurance cover. The results from the survey indicated that Britons considered life insurance cover to be the most important form of protective insurance, with thirty eight percent of those surveyed stating that they felt that it was most important to insure their lives. Home contents insurance and mortgage insurance cover were ranked next in line when it came to importance by the group surveyed.

However, despite the fact that the survey revealed the majority think that life insurance cover is the most important cover to have, it seems that Brits are more interested in protecting their travel than they are their lives. The most popular insurance cover, according to the report statistics, was home content cover, with seventy four percent of people having this type of protection. Hot on its heels was travel insurance cover, with sixty one percent taking out this type of policy.

According to the results of the survey life insurance cover came in third, with only fifty three percent enjoying the protection of this type of cover. Mortgage protection figures were also alarmingly low, with only twenty three percent having this type of cover. Bright Grey products director, Roger Edwards, stated: “This is a real worry. Less than a quarter of people protect their mortgage – over three times more people insure their home contents. And although people seem to know how important life insurance can be, many simply aren’t taking out cover.”

Tags: cover, life, premium, protection, claim, Insurance