6 Common Credit Card Mistakes

Borrowing money is a necessity for many people and credit cards are one of the most convenient ways to help you manage your money.

However, while there is no denying that life would be much harder without your flexible friend, there are also a number of traps that consumers fall into that can increase the amount they end up having to repay.

1. Failing to shop around. There are so many cards on the market now but most people do not take time to find the lender that offers the best deal for their circumstances. Comparison sites such as Money Supermarket mean it has never been easier to find out what is available. There really is no excuse for just grabbing the first card you see.

2. Being seduced by offers. The credit card which promises 0% interest may be tempting but before you sign on the dotted line, take a good look at the small print. There could be extra charges for balance transfers and the ‘normal’ interest rate once the introductory period expires might be far higher than you are paying now.

3. Deciding to apply because of the special offers. Many lenders offer additional benefits such as points schemes or cash-back which are designed to persuade consumers to choose their card. However, while you might be delighted with what’s on offer, check the terms and conditions first or else you may end up paying over the odds just for a few freebies.

4. Having too many cards. Having a new credit card ‘just in case’ might sound like a great idea but it can actually reduce your credit score, even if you haven’t used it. Lenders look at how much credit you can access and having lots of cards available to you will reduce the amount of finance you will be offered if you are trying to get a loan or a mortgage.

5. Missing payments or paying less than the minimum is a terrible idea. Not only will you get slapped with substantial charges from your credit-card provider, but a negative entry will also go on your credit record, meaning you could either get charged more to borrow money in the future or even be declined.

6. Feeling compelled to spend. Having plenty of free credit on your card can seem like an invitation to spend money. However, reminding yourself that it isn’t ‘your’ money and not carrying your credit card around all the time can help to reduce impulse buys.

Credit cards get a terrible press and are often blamed for causing debt. However, if they are used carefully and in the right way, they can actually help you to organise your finances better. By taking care to avoid common mistakes you can learn how to make your credit cards work for you.

Tags: number, loan, personal finance, mortgage, Credit Cards, credit crads

Rent increases tip renters over financial edge

According to recent reports many people who are in rented accommodation are being pushed over the financial edge as a result of not only huge rental increases but also the soaring cost of living, which has impacted hugely on their finances and their ability to keep up with rent payments. According to one leading debt charity the number of people seeking help with regards to their rent payments has soared since the onset of the recession, rising by a massive 84 percent.

National Debtline has stated that the number of people approaching debt charities and advisors for help with regards to rent arrears on their homes is continuing to increase.

One of the reasons behind the rising number of people struggling with their debt is the fact that so many more people are now being pushed towards renting due to problems getting a mortgage, which means that there are more people in a position to fall into arrears with their rent. According to figures the number of people renting in England has increased by 40 percent since 2005 and the rise in demand for rental homes has pushed rental prices up to record highs, leaving renters having to deal with crippling rents as well as soaring living costs.

One industry official said: ‘A few years ago many people in today’s rent market would be planning on buying their first home, but now it seems they are struggling to even pay the rent. On top of those people who call National Debtline with specific problems in affording the rent, there will be even more who are cutting back sharply elsewhere to make sure they can cover rent payments. This in turn can lead to other debt problems, with credit cards, overdrafts and loans being relied upon to pay for food and other essentials.’

Tags: number, fact, impacted, rental prices, Charitable organization, huge rental increases, accommodation, rent

Housing valuation activity levels increase in May

A recent report has shown that the level of mortgage valuation activity increased for the months of May, reflecting the sixth month in a row where this activity has seen an increase. The data was released by Connells Survey and Valuation, which recently released its Housing Market Activity report.

The report showed that when it came to mortgage valuations the month of April had seen activity remain largely flat. However, this changed in May with the number of mortgage valuations said to have increased by around 22 percent compared to the previous month. Compared to the same period last year, the number of valuations in May increased by 26 percent. This will most likely be taken as another positive sign of some level of recovery in the property market in the UK.

The data showed that one of the reasons behind the increase in activity was a marked increase in interest from first time buyers in the market. In total first time buyers made up 34 percent of all valuation activity according to the report. However, the figure was further boosted by existing homeowners who were looking to move home. There was an increase of around 11 percent on valuations for house movers for May compared to the previous month.

An official from Connells stated: “Housing market activity has resumed its slow and steady upwards trajectory, driven by an upturn at the lower end of the market. Many first-time buyers have been encouraged to enter the market by the uptick in the number of higher LTV products available recently. However, for the average first-time buyer, mortgage finance still presents a formidable challenge. The increasing variety of products is offset against comparatively high rates – alongside overly stringent criteria demanded by lenders.”

Tags: property market, variety, percent, number, Real estate

BBQ season could put homes at risk

Many people in the UK take out home insurance to protect both their belongings and their homes against damage, which can come in many different forms. One industry official has recently warned consumers to make sure that they stay safe when having barbeques at home, as there can be many dangers associated with this type of event.

With the lovely warm weather we have had recently and the summer season coming up there could be an increase in the number of people that are now having barbeques in their gardens and yards. These can be fun events for family and friends to enjoy but can also be fraught with danger, especially if there are kids around or a lot of people that are drinking at the BBQ.

Of course, consumers need to make sure that they do have adequate insurance in place to protect themselves financially in the event that something like this does happen during a barbeque. The Royal Society for the Prevention of Accidents has spoken out to urge consumers to be careful when they are holding a barbeque to ensure that they are taking precautions, having safety equipment at hand, and keep drinkers and children away from the barbeque to prevent any accidents that could damage the home and worse still cause serious injuries.

At this time of year the number of people having barbeques goes up and whilst this is great fun for those involved it does mean that danger levels also increase accordingly.

Sheila Merrill, RoSPA’s public health adviser, stated: “Hopefully, the good weather will continue throughout the summer and taking care with barbecues will mean that everyone stays safe to enjoy it.”

Tags: fraught with danger, accidents, Prevention, number, Hopefully, family and friends, adviser, home

Make 2011 the time to get a better credit card deal

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

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

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

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

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

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

How to save money on your Christmas gifts

Whilst Christmas is an exciting and fun-filled time of year for many people it can also fill many people with dread, particularly in the current climate where money has been really tight for so many households. Read more

Tags: scheme, day, special event, money saving tips, save money, number, christmas gifts

Warning over further job losses from Bank of England

The Bank of England has warned that the UK could be in line for another wave of job losses as a result of productivity falling faster than wages. The central bank claims that this could result in further job losses in the New Year, which would come as a huge blow given the many jobs that have already been lost during the recession. Read more

Tags: job losses, Confederation of British Industry, unemployment, bank of england, Labour, huge blow, number, central bank claims

What the economists think of the Quantitive Easing programme

The quantitative easing scheme is something that the government has been relying on to help pull the UK out of recession over the course of this year, but although the scheme has been extended on a number of occasions there are mixed reactions from industry officials with regards to just how well – if at all – this programme is working in terms of improvement to the economy. Read more

Tags: policy, Quantitive Easing, statement, Fiscal policy, stimulus effort, number, bank of england

Huge mortgage gap between those with big deposits and those with small ones

A recent report has highlighted the ever growing gap between mortgage borrowers that have a large deposit to put down compared to those that have only a 10 percent deposit. Read more

Tags: Mortgages, mortgage deposits, interest rate, housing, number, competitive rates, eighteen

Dixons tries new tactic to beat retail rivals

High Street retail giant Dixon’s has decided to try a new tactic when it comes to beating rival retailers in the run up to Christmas. The retail giant has realised that whilst consumers want to save money on the cost of their purchases in the current difficult financial climate they also don’t want to risk purchasing something that they know little or nothing about for the sake of saving a few pounds, as this could mean that they end up with a totally unsuitable product. Read more

Tags: Electronic commerce, Dixon's, anything, number, online shopping, Advertising Standards Authority, High Street, business

Poor results for equity release advisors

A recent study into the skills and knowledge possessed by equity released advisors has produced poor results according to a recent report, with many of the advisors that were tested showing a lack of knowledge and offering poor quality advice to the rising number of people that have expressed interest in equity release programmes. Read more

Tags: Knowledge, equity release advisors, equity release, Independent Financial Adviser, offering, benchmarks, number, fact

Air travel plummets in popularity due to credit crunch

According to a recent report the popularity of air travel amongst UK consumers has taken a real hit as a result of the global credit crunch, with fewer and fewer people able to manage holidays abroad. Read more

Tags: result, number, weakening, recession, air travel, credit crunch, overseas property ownership, difficult financial climate

Watchdog said regulators dithered over intervention

A consumer watchdog has recently claimed that regulators spent too much time dithering over intervention when it came to regulations, which resulted in failure to protect consumers when it came to sectors such as finance, food, energy, and water. Read more

Tags: report, Consumer Focus, regulation, Rating Regulators report, number, moment, finance, watchdog's head

How bleak is the future for the UK?

Many people were horrified to learn recently that whilst many major economies are going through a severe downturn and recession, the UK is expected to be the hardest hit of the major economies, which is of course bad news for UK consumers and businesses. Read more

Tags: British Chambers of Commerce, Late 2000s recession in Europe, twenty years, economic future, confidence levels, uk jobs, uk consumers, number

Five year fixed rate mortgage launched by Co-op

Consumers that are looking to take out or switch to a fixed rate mortgage may be interested to hear that the Co-op has launched a new mortgage product that is said to offer a highly competitive rate of interest.

The lender has launched a five year fixed rate mortgage deal that will be available to eligible and qualifying borrowers, and the rate set on the mortgage will be 4.49 percent.

The mortgage came onto the market in the middle of January, but in order to qualify borrowers must be able to put down a deposit of at least 40 percent. The five year fixed period means that consumers can safeguard themselves against rising interest rates for a number of years and can enjoy financial stability through having fixed repayments for a five year period.

However, with interest rates plummeting and set to fall further many may want to stick to a variable rate mortgage or wait to see if fixed rate deals come down further.

The benefits of the mortgage from the Co-op include flexibility, such as being able to overpay on your mortgage, underpay on the mortgage, or even take a payment holiday.

An official from Co-op said: “With base interest rates reaching an historic low and rates across the industry falling, this new mortgage offers customers the chance to fix in their mortgage payments at a low rate and have peace of mind that their payments will remain unchanged at this level for the next five years.”

Another industry official said: “If you’re lucky enough to have at least 40% equity in your home then this mortgage does offer a great opportunity to fix your interest rate at a low level. However, before deciding on a mortgage it’s essential to compare mortgages to find a good deal, and then speak to a mortgage broker for professional advice.”

Tags: new mortgage product, payments, Co-op include flexibility, five year fixed rate mortgage, order, January

2008 saw 30 percent drop in mortgages

Over the past twelve months mortgage lending has fallen by around 30 percent according to officials from the Council of Mortgage Lenders. This drop in mortgage lending has apparently resulted in lending falling to its lowest levels since 2002. Total mortgage lending last year fell to £256.4 billion, whereas the previous year mortgage lending levels came to £363.7 billion. Read more

Tags: interest, mortgage drop, percent drop, thing, credit crunch

How safe is your job?

Many of us thought that 2008 was a rocky year, but there is a lot of evidence pointing to the fact that this year could be even more turbulent, not least because of the number of jobs losses that are expected. Read more

Tags: official, unemployment, year, number, property sales, Economic history

Record lows on cost of life insurance

According to recent reports the cost of taking out life insurance are falling, and over the past decade has fallen by around 30 percent. Read more

Tags: past decade, best cover, lifesearch, number, smokers, independent broker lifesearch, Financial services, life insurance

Don’t be tempted to lie on your insurance application

Insurance is something that many of us take out to protect various aspects of our lives, from our pockets when taking our vehicles on the road and our belongings in our properties to our health and our loved ones in the event of unforeseen problems. Read more

Tags: insurance fraud, household budgets, insurance applications, basic cover, number, Cheating, way, pressure

Cutting your bills in the New Year

This year has been something of a volatile one for most of us, with the global credit crunch, rising unemployment, rocketing inflation, soaring bills, increasing food and petrol prices, and various other factors all adding to the financial strain that most of us have had to face. For many people this year has been a real struggle, and many have not been able to put any money aside in savings. In addition, interest rates, until quite recently, were still very high, which made things increasingly difficult for homeowners. Read more

Tags: different services, broadband, new year resolution, number, cost cutting, insurance car, various existing debts, product

Burglary levels set to rise

According to recent predictions the number of burglaries taking place across the UK is set to rise as a result of the economic downturn and reports show that burglary is set to become a growth industry in the current climate. Officials have said that during the last recession in the late 1980s and early 1990s the number of domestic burglaries increased by around a third, and figures suggest that by the end of this year the number of burglaries in the UK may have risen by 7 percent. Read more

Tags: comparison website, christmas, call, Financial services, growth

Government takes steps to help homeowners

The government has recently taken steps to try and help homeowners by changing court protocols in order to make it more difficult for lenders to take court action without taking other steps first in cases where homeowners have fallen behind with mortgage repayments.

It is hoped that this will help to reduce repossession levels, and lenders will be expected to follow guidelines and take a number of other steps before taking court action. The lenders will need to demonstrate that they have taken the necessary steps if the case does end up in the courts. Read more

Tags: housing minister, Council, government help, mortgage help, case, value, climate, number

Savers should act quickly to secure good interest rate on savings

According to many industry officials savers in the UK need to take action as soon as possible in order to secure a good rate of interest on their savings, as – whilst interest rates on many savings accounts is high at present – many lenders may start cutting savings interest rates as a result of anticipated cuts in the Bank of England base rate. Read more

Tags: interest rates, saving, view, past couple, savings accounts, rate falls, suitable fixed rate

Government suspends stamp duty on homes up to £175,000

Early last week the government announced that it was suspending stamp duty for twelve months on homes up to the value of £175,000. Stamp duty is not applicable on homes up to £125,000 anyway, but the recent move increased the threshold by £50,000 for twelve months in order to try and ease affordability issues for potential buyers. The announcement came after several weeks of speculation with regards to whether any action would be taken over stamp duty. Read more

Tags: Taxation in Hong Kong, Real estate economics, money, number, government, affordability problems, stamp duty, certain value

OFT wants review of bank accounts market

The government watchdog, the Office of Fair Trading, has been calling for a review of the bank account system in the UK, claiming that consumers are often getting a raw deal because arrangement that are currently in existence when it comes to the eight billion pound bank account market were simply not adequate. The OFT went on to state that banks were not clear enough about the charges that were applied to customers’ accounts, which makes things confusing for accountholders. Read more

Tags: year, rocket, bank fees, number, space, bank accounts, trading

Unions angry over insurance job cuts

Officials from unions have been angered by a decision by insurance giant Aviva to cut eighteen hundred jobs around the country. Just two years ago the company moved part of its operation to India, and ended up cutting around four thousand people from the workforce. This latest announcement has further angered union officials. Officials from Aviva say that the move is designed to improve service and cut costs, but this has not impressed unions. Read more

Tags: job cuts, unemployment, aviva, economics, Product Issues, Insurance, union officials, number

Mortgage approvals reach ‘record low’ in May

The number of mortgage approvals for house purchases reached a record low last month, according to an industry body.

Figures for May show that remortgaging levels held up, accounting for a record 53 per cent of all mortgages approved, reported the British Bankers’ Association (BBA).

It also found that consumers spent more on their credit cards last month but repayment levels on credit cards were lower.

BBA statistics director David Dooks suggested mortgage activity was lower in May as a result of tighter lending criteria and economic pressures on households.

He added: “Only remortgaging business is holding up, where people need or want to take advantage of deals with other lenders.”

Separate research released last week by the housing charity Shelter suggests that more than four million households used credit cards to help meet rent or mortgage costs in the past 12 months.

It also found that over two million households are spending in excess of half their income on rent or mortgage payments.

Tags: mortgage payments, economic pressures, finance, result, number, repayment, BBA

On yer bike for cheap insurance, says AA

AA Insurance has said that people can save money on their insurance premiums by switching from cars to motorbikes.

The insurer went on to say that using a motorbike “makes sense” for other reasons, such as being able to get around inner city areas more easily.

Bikers can also benefit from not having to pay the congestion charge in London and bikes are easier to park as well as being “somewhat cheaper to insure” than cars, according to AA Insurance public relations manager Ian Crowder.

The idea has already crossed some people’s minds, as 14 per cent of women have said they would consider swapping their car for a motorbike to save money, according to statistics released by the Post Office this month.

Almost a third of people (29 per cent) who ride motorcycles said they did so because it was cheaper than keeping a car.

However, Mr Crowder said he did not think there would be a vast increase in the number of bikes on the roads

“People aren’t abandoning cars in favour of bikes, what they are doing is perhaps getting a bike so they can commute because riding a motorbike is a solitary occupation.”

Tags: cars, london, office, Insurance, number, city, public relations

BIBA: Uninsured drivers are ‘a massive problem’

With around two million people driving without insurance in the UK, the issue is a “massive problem”, the British Insurance Brokers’ Association (BIBA) has said.

The organisation said it is working with the government to reduce the number of uninsured drivers because they are costing other motorists over £400 million each year.

Graeme Trudgill, technical and corporate affairs executive of BIBA, says that next year there will be a new drive towards making sure motorists have car insurance.

“It will compare the Vehicle Registration Database with the Motor Insurance Database and anyone that’s got a car and hasn’t got car insurance will get a penalty notice and if they don’t get insurance then they will have their car seized,” Mr Trudgill said.

According to recent figures from moneysupermarket.com, 15 per cent of UK drivers admitted to driving without insurance, while 23 per cent of people in their twenties have driven without cover.

Tags: number, uk drivers, Business Finance, notice, Mr Trudgill, motor, hasn, corporate affairs

Britannia: Beware headline-grabbing rates

Britannia building society has warned consumers to be wary of “headline-grabbing rates” on savings accounts as they may not be a good long-term option.

Jayne Dono, a spokesperson for Britannia, said that a number of organisations have been attracting new savers with high initial rates on their savings.

“There’s no doubt that there are some great deals available for savers at the moment, with organisations competing against each other for business,” said Ms Dono.

However, she warned that although people may benefit in the short term, “they should also be aware of the long-term prospects and whether these organisations really have their best interests at heart”.

Recent research from the Building Societies Association (BSA) shows that the majority of building society bosses are optimistic about the year ahead, despite the credit crunch.

Building societies have experienced record savings inflows over the last eight months and they expect the trend to continue as consumers seek safer saving options, according to the BSA.

Tags: building societies association, Business and Economy, year, crunch, new savers, number

Bank cuts base rate, but lenders raise mortgage rates

Yesterday’s cuts in the Bank of England’s base rate, intended to help prevent the slide towards recession, were immediately undermined as lenders increased mortgage rates.

The third cut in the base rate since December will bring relief to the estimated six million home owners with tracker and variable rate mortgages, helping them save more than £30 a month on a £200,000 mortgage.

However, those on cheap fixed-rate deals which are due to expire this year may face financial difficulties.

Nationwide and Alliance & Leicester are among a number of lenders who increased their fixed-rate offers by up to 0.35 per cent.

“Many lenders are yet to pass on the recent base rate reductions – instead they are busy increasing rates, demanding larger deposits, tightening lending criteria and, in some cases, withdrawing deals from the market altogether,” commented Ann Robinson, director of consumer policy at uSwitch.com.

However a number of big lenders including Halifax, Nationwide, the Woolwich, Cheltenham & Gloucester and First Direct announced within minutes of the Bank’s decision that they would cut their standard variable mortgage rates by 0.25 per cent.

Tags: home owners, woolwich, month, gloucester, bank's decision, year, number

Consumers in debt advised to maintain important insurances

As many homeowners’ fixed-rate mortgage deals expire this year and living expenses rise, leading debt management provider EuroDebt is advising individuals to maintain their insurance policies when tightening their budgets.

More than three million home owners may be forced to make higher mortgage repayments of anywhere between £30 and £300 each month as their fixed-rate deals come to the end and a number of banks continue to up their rates.

Kevin Still, director at EuroDebt, said: “The problem is that as soon as people start falling behind on their payments they look for the easiest way out,” according to Introducer Today.

However, he advised individuals against neglecting payments on items which they do not consider a priority, such as household contents insurance, life insurance, medical insurance and critical illness and payment protection policies.

Additional financial pressures may stem from increasing living costs, including a rise in council tax charges and home fuel prices.

David Kuo, head of personal finance at Fool.co.uk, commented yesterday that he believes it will be “later rather than sooner” before credit conditions improve.

Tags: policies.Additional financial pressures, number, Financial economics, Introducer, priority, life insurance, David Kuo

More consumers concerned about safety of personal details

More consumers are concerned about the safety and security of their personal details than ever before, an information body has claimed.

The Information Commissioner’s Office (ICO) said this fear of identity theft is driven by various factors including the recent data losses, particularly by the government, as well as the rise in the number of incidences of identity theft being recorded.

David Smith, deputy commissioner at the ICO, said: “As we all give more and more information out to all sorts of organisations, they build up bigger and bigger databases with pictures of our lives and the risks get greater all the time.”

He added that consumers should not panic, but should question organisations as to why they may need personal information.

Research carried out by consumer advisers CPP found that London is the top worst location for credit and debt card fraud theft, with 20 per cent of Londoners say that they have had their cards stolen before.

Tags: information, debt card, london, location, deputy commissioner, body, number

‘Blase attitude’ to home insurance to blame for lack of cover

Consumers’ blase attitude to home insurance could be the motivation behind many consumers failing to take out cover, claim financial experts.

Norwich Union estimated that, out of the 25 per cent of home owners who are supposedly without contents insurance, more of them are to be found in larger cities and built up areas as opposed to rural communities.

Alison Palmer, household underwriting consultant for Norwich Union, said that many people take the view that “‘well, it’ll never happen to me. I’ll be alright, I haven’t got anything worth insuring anyway’”.

“As you’ve probably seen from the events that happened last summer it can happen easily. People lose everything and it’s a horrible thing,” she added.

The number of consumers without contents insurance has not changed in the past few years, concluded Ms Palmer.

New research from Legal & General, shows that Britons keep their most valuable personal possessions and documents in their kitchens.

According to reports, the UK insurance industry paid out £9 million to householders for property damage or loss of possessions in 2006.

Tags: home insurance, property damage, number, claim financial experts, norwich union, home

Number of drivers caught without insurance ‘doubled’

The number of drivers caught behind the wheel without insurance has doubled over the last year, according one industry expert.

Graeme Trudgill, technical and corporate affairs executive for British Insurance Brokers Association, said in 2007, approximately 150,000 were seized by the police while in 2006 this number was 78,000.

Police now have access to the motor insurance database and the “power to seize uninsured vehicles”, which are both factors helping the authorities to solve other crimes.

“Usually criminals use a vehicle to aid in their criminal activity and it’s quite likely that, being the type of people that they are, they don’t bother to buy insurance, said Mr Trudgill.

According to the Motor Insurers’ Bureau, uninsured driving costs law-abiding motorists in excess of £500m each year or around £30 on their insurance premium.

Uninsured drivers are also responsible for causing an estimated 160 deaths on the road each year in the UK.

Tags: activity, Mr Trudgill, database, Uninsured in the United States, executive, number, Law Crime, Vehicle insurance

Impact of ‘housing slump’ on equity release customers

It is “too early” to predict the impact of the housing market’s current state on equity release customers claims a housing expert.

If house values for equity release customers do decrease, the distance between the amount the estate will eventually owe and the value of the house could be less

“But that’s only if it’s a really long term housing price reduction,” said Anthony Rafferty, head of marketing post retirement for Norwich Union.

He added: “We are a nation talking ourselves into a housing slump by using the word slump.”

The impact of the so-called housing slump has not been felt with equity releases as much as it has with mortgages, according to Mr Rafferty.

The BBC reported that a growing number of consumers are choosing to tap the value of their home through equity release schemes to enhance the funds.

Halifax’s November House Price Index found a 1.1 per cent monthly fall in house prices.

This is the third successive month it has reported falls, with the average UK house price now standing at £194,895.

Tags: number, current state, Pension, word slump."The impact, housing expert, equity release customers, Business Finance, equity release

Reduction in approvals ‘less dramatic than expected’

There has been a less substantial tightening in the mortgage market than was previously thought, according to the Council of Mortgage Lenders (CML).

In the Bank of England’s report today, the number of approved mortgages was shown to be steady, despite predictions that there would be a significant tightening of the market.

While there has been a slowdown, it is not unusual for the time of year and also reflects a slowdown in funding, explained Sue Anderson, head of member and external relations at the CML.

“To that extent this is pretty good news. It shows that the level of lending is looking as if it is holding up to a greater degree than some of the pessimists have been expecting,” she said.

The Bank of England report showed that net consumer credit in October this year was up on September as well as the average for the preceding six months.

Meanwhile, net credit card lending was up by £0.2 billion, which fell short of the net increase for September.

Tags: Offset mortgage, reduction, Real estate, number, increase, bank, lending, significant tightening

Brits turning on into small hours

A large proportion of the UK population are banking online late into the night, according to recent research.

With 17 per cent of respondents to a survey by Abbey putting banking off until bedtime, millions of Brits are literally losing sleep over their finances.

Meanwhile, it was found that over half of online bankers log on every other day or more to keep their finances in check, with 38 per cent believing they save more now that they can bank online.

Reza Attar-Zadeh, head of savings at Abbey, commented: “For a long time we’ve observed a growing preference for the online channel but for the first time we are seeing evidence that people really are enjoying the online banking experience and claiming that it makes them better with managing and saving money.

“There is real satisfaction in watching savings grow and the Internet enables us to do this with real ease.”

Furthermore, there has been a 39 per cent decrease in the number and frequency of people visiting their bank’s branches.

Tags: Abbey putting banking, Reza Attar-Zadeh, losing sleep, number, bedtime, saving money

Mortgage lenders try and pull in retail deposits

Mortgage lenders across the UK are trying to pull in deposits from savers after facing difficulties with borrowing money in the short term wholesale market.
Read more

Tags: Mortgages, Sage, number, Bond, Birmingham

Old people ’struggling’ to get insurance

Ageism is rife when it comes to f”>insurance, according to a spokesperson from Age Concern.

The spokesperson said that many people from the older generation who are still healthy are turned away by insurers.

She explained that one third of people have experiencing age discrimination from insurance companies, with 92 per cent of travel insurance policies imposing upper age limits.

“Someone’s age should not determine whether they are fit to travel. When older people themselves see no barriers to travelling and there are no relevant medical issues then companies should not restrict their activities,” she said.

Furthermore, she continued, insurance companies should be responsive to those who could negatively impact upon their business by looking elsewhere for cover.

Saga claims that the rise in the number of over-50s travelling is proven by the fact their long-haul business has doubled over the last 11 years.

Tags: business, cover, saga, third, age discrimination, finance

Independent school loss of earnings cover ‘not comprehensive’

Loss of earnings cover provided by independent schools may prove to be “value for money”, but they are often “very basic”, an industry expert has said.

According to Steve Danson, a chartered financial planner at Elementum, the insurance would not cover sickness absence or death in some cases.

“People should definitely get a plan for their particular circumstances, and quite often the plans we would recommend would be the same types of plans we would recommend to anyone with a big commitment,” he said.

He added that many companies will sell school fees insurance as a specialist product, when in fact it is a combination of normal insurance covers.

The Independent Schools Council (ISC) recently claimed that 620,000 children are educated in around 2,500 independent schools, which represents an estimated seven per cent of the total number of British schoolchildren.

Of the ISC’s member schools, 31.43 per cent of pupils received financial support with their fees this year, valued at a total of £300 million.

Tags: Wycombe Abbey, money, plan, combination, Financial economics

Happy couples warned over insurance

People in the UK are being urged to check their wedding insurance, as gifts they received on their happy day may not be covered after the cover period expires.

According to research by Abbey, 13 per cent of home contents insurance policies will not cover the value of wedding gifts temporarily.

And even if they do, this cover tends to only last a month – so the 28,000 happy couples married last month may need to move fast to ensure they are covered.

The report also revealed that many insurers limit their wedding cover. So, with the average amount spent on a present at £43, inviting more people could mean the limit is quickly exceeded.

“Sadly the amount of cover is often not enough to cover the number of gifts received by couples, and it only lasts for a month on average, potentially leaving newlyweds underinsured,” said Prasad Shastri from Abbey.

According to the study, newlyweds with temporary insurance of up to £1,000 would hit their limit after receiving gifts from on average 23 guests.

Tags: value, number, cent, amount, home contents insurance, insurance policy, limit, period

Online banking ‘good for all ages’

Online banking is for savers of all ages, according to a finance expert.

Nick Staib, a spokesperson for HSBC, said that age was no barrier to internet banking and revealed that internet banking was outstripping bank account sales.

UK payments association Apacs recently published figures that showed the number of adults using online banking had increased by 174 per cent from 6.2 million in 2001 to 17 million last year.

This figure included 350 per cent increase in use amongst the over 55s.

Mr Staib said that there was a steady growth in customers going online and added that while internet banking was readily adopted by young people, the older generations saw it as “natural” to bank online.

“There is no reason why people of any age can’t use the online banking, as long as they can send an email to somebody,” he said.

“If we didn’t [have internet access for banking] I don’t think we would be able to sell hardly any bank accounts at all.”

Tags: use, access, number, finance expert, young people, apacs, payments association apacs, bank account

House of Lords report slams internet security

The internet was branded as a “playground for criminals”, in a hard hitting House of Lords report published today.

Science and Technology Committee members from the chamber also branded the world wide web as being like the “wild west”, and recommended a kite mark system for trustworthy web service providers.

The world’s largest online payments service PayPal reacted to the report by releasing its own ten-point plan for customers to improve their own security.

PayPal recommended that suspicious emails purporting to be from users’ banks be subjected to special scrutiny.

Consumers were to look out for an urgent tone, a generic greeting and links to non-secure websites – those not prefaced by ‘https’, with ’s’ standing for security – on such emails.

Cristina Hoole at the payments service said: “The security of people who use the internet and shop online must become a top priority, not just for the Government but also software vendors, if the ongoing threat of e-crime is to be culled.

“Online companies have an obligation to consumers to help them stay safe online, so they do not become the unwitting victims of e-crime. PayPal does a number of things to help its customers stay safe online, and at the heart of our own activity is consumer education.”

Tags: slams, threat, number, plan, consumer education, e-crime, greeting, today

Urban vehicles “less likely” to be insured

The Motor Insurers’ Bureau (MIB) has pointed out big regional variations in the number of uninsured vehicles on the road.

MIB records show that the “hotspots” for this illegality occur almost exclusively in urban centres, with London alone accounting for around a quarter of the nationwide total.

Head of communications at the MIB, Susan Beck, said that the higher urban rates were “probably a reflection of inner city life where if you look across all levels of crime – not just those who drive without insurance – you would probably see higher incidents in large cities than in smaller towns”.

She also slammed those drivers who remained illegally uninsured, calling them irresponsible and selfish in the extreme.

“Uninsured drivers are putting their own life at risk and also the lives of other road users ,” she said.

The Association of Chief Police Officers (ACPO) also revealed this week that 78,000 uninsured vehicles were seized by the police last year for not having insurance.

Tags: police, Insurance, big regional variations, association of chief police officers, week

Compare Mortgages Online – UK Mortgage Comparison

There are many different types of mortgages available in the UK these days, and in order to find the right mortgage for your needs you need to compare mortgages to see which one best suits your needs, circumstances, and budget. Read more

Tags: huge financial commitment, great deal, mortgage comparison, related mortgage articles, solution, Mortgages, number, compare mortgages

Best Buy-To-Let Mortgages

Here we take a look at the top mortgages for Buy-To-Lets currently available, and some of the advantages and disadvantages. Read more

Tags: buy to let mortgages, UK mortgage terminology, round, maximum loan, Mortgages, minimum fee, number, total advance

Govt in Hips U-turn

The government yesterday (May 22nd) announced that the introduction of Home Information Packs (Hips) will be delayed.

In what has been described by Tory MPs as a “humiliating climb-down”, communities secretary Ruth Kelly told the House of Commons that Hips would not come into force on June 1st as previously promised.

She was jeered and laughed at by opposition MPs as she confessed that the training of people to carry out Energy Performance Certificate inspections had not gone to plan and would fall woefully short of the target number by June 1st.

This came despite promises to the contrary just days earlier and led Liberal Democrat spokesman Andrew Stunell to lambaste the government for its “complete incompetence”.

“This piecemeal implementation of this jinxed scheme will result in yet more confusion for buyers and sellers,” he added.

Ms Kelly said that Hips would eventually be phased in from August 1st but would initially only apply to houses with four or more bedrooms.

The minister also claimed that the new measures would give “clarity to everyone about the next steps” and remove uncertainty for mortgage holders.

The government back down also comes on the back of a legal challenge by the Royal Institute of Chartered Surveyors (Rics) which said its Judicial Review had been ’stayed’ but could be reactivated.

“We will be examining the new proposals in detail and will continue to work in the public interest on home buying reform and climate change,” said Jeremy Leaf Rics housing spokesman.

Tags: Performance Certificate inspections, back, government, Review, number

House price growth slows

UK house prices have risen at their lowest rate this year, with Home Information Packs (Hips) and interest rates being named as the reasons.

May house prices increased by an average of just 0.4 per cent, with some regions actually seeing prices fall.

The east Midlands, west Midlands, north, and north-west of England all saw the average price come down but areas such as London and East Anglia saw strong rises.

The figures come from estate agent Rightmove and the firm says that with the introduction of Hips now just days away, it is almost impossible to predict what will happen to the market.

“It’s all rather confusing at the moment,” said Miles Shipside from the firm. “The future direction of the market is very hard to read with two external influences likely to coincide at once.

“You have the potential of Hips artificially increasing the supply of property and, within the same month, a six-year high in interest rates potentially depressing the number of buyers.”

If prices continue to level out it will be good news for those seeking to get a mortgage, particularly first-time buyers who are struggling to get onto the property ladder.

Tags: information packs, cent, six-year high, buyers."If prices, Business Finance, number, england

Dry weather causing subsidence threat

Climate change could have an effect on the number of home insurance claims made in Britain.

New research shows that the 80 per cent of garden centres in the country have seen an increase in people enquiring about subsidence of their property in the last year.

This is thought to be down to the hot weather which has led to soil drying out and tree roots moving to find water, leading to the ground beneath properties being destabilised.

“Last year’s water restrictions highlighted the threatening conditions for subsidence,” said Neil Curling from Halifax Home Insurance.

“With Britain having already experienced unprecedented high temperatures in 2007 and an extremely dry April, we are concerned that increasing numbers of properties could be affected and are urging householders to be vigilant to this threat.”

The Met Office is predicting above average temperatures for the summer ahead, which will only exacerbate the problem, but homeowners’ habits could also be having an effect.

Around 76 per cent of garden centre managers say that demand for exotic plants and trees has increased in the last 12 months but Halifax is warning buyers to do their research first.

“Green-fingered Britons planting new exotic species, should carefully research the impact they could have on their garden and their home,” continued Mr Curling.

“Britons may be unaware of the appropriate distance to plant an exotic species away from their property to ensure the tree or shrub’s root system does not cause subsidence later down the line as the roots take water out of the soil.”

Halifax says that something as simple as trimming a tree or shrub can keep protect a property from subsidence.

Tags: High-pressure area, office, britons, ground beneath properties, garden, Mr Curling, Britain

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: savings operations, three months, online, director, option, savers

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

First-time buyers going it alone

First-time buyers are becoming less dependent on their parents when it comes to getting onto the property ladder.

That is according to new research from Abbey, which shows that the number of us expecting help from our parents to put down a deposit has fallen.

Just 9.7 per cent of first-time buyers expect any financial help at all from their parents when it comes to purchasing a property, compared to 23 per cent six months ago.

Despite the move away from parents when it comes to securing your first mortgage, many people (45 per cent – unchanged in six months) still expect help from their parents when it comes to moving into their new home.

“The decline in the number of potential homeowners relying on their parents is a positive indication that first-time buyers are finding alternative ways of funding their homes,” said Nici Audhlam-Gardiner, head of mortgages at Abbey.

“However, despite the decline parents still have a large role to play. With one in ten people still requiring parental help to buy and over half still needing help on moving day, it’s not just the children that feel the financial burden of buying a home.”

The survey also found that the ideal home for those taking their first steps onto the property ladder is a country cottage, followed by a townhouse and a penthouse.

Tags: First-time, deposit, decline parents, number, indication, Audhlam

Lenders responding well to exit fees ruling

Mortgage lenders have responded positively to a Financial Services Authority (FSA) ruling that borrowers should be told more clearly about the cost of exit fees.

That is according to the ifs School of Finance, which says many lenders have removed or reduced the fees on their mortgages.

A number of banks and building societies have made “encouraging steps” to reduce exit fees since the FSA ruling was made public, with Barclays, Kent Reliance and Portman all named as firms that have announced changes.

The ifs School of Finance also points to a “general willingness” among lenders to ensure that customers are being treated fairly when it comes to exit fees.

This too follows a statement from the FSA which said that some customers are being left in the dark over specific issues with their mortgage.

“Banks and building societies have proved very responsive to the FSA’s recent announcement,” said David Fields, head of banking at the ifs School of Finance.

“However, it remains imperative that customers should consider the overall cost of a mortgage, ie; administration and exit fees as well as the interest repayments, before they make what is likely to be the biggest financial decision of their lives.”

Those of you considering getting a mortgage should make sure that you have done your research and are completely aware of any potential costs which are not immediately apparent.

Tags: Mortgages, general willingness, exit fees, ruling, bank, number, FSA ruling, overall cost

Men Vs Women Car Insurance

One of the eternal arguments that can come up in male versus female arguments is that of driving insurance premiums. It is a well known fact the women’s car insurance premiums can be significantly less than men’s, if all other factors remain the same (such as type of vehicle, location and past claims history). But why is this? Read more

Tags: versus female arguments, female car insurance, bias, Road transport, mens car insurance