Energy customers could pay price for leaving fixed rate deal

Over the past couple of years many energy customers in the UK have decided to opt for a fixed price deal with their energy firm in the hope of avoiding soaring energy costs. These fixed price deals are set for a specified period of time, but in some cases when the deal expires the energy provider rolls the customer onto another fixed price deal automatically if they do not hear from the customer to say otherwise.

Officials are now concerned that customers who want to get out of a fixed rate deal with their energy supplier in order to switch to another provider could face crippling financial penalties with some facing fees as high as £200 simply for wanting to get out of the fixed rate deal that they are locked into. The Fixed Price 2015 tariff from energy giant EDF is the one that comes with the highest penalty, with customers being charged up to £200 for leaving the deal earlier than the expiry.

Experts are now urging consumers to make sure that they keep an eye on their fixed rate deals, and to make the switch when they get the chance rather than risking being rolled over to yet another contract and then getting stuck on another deal for even longer. British Gas charges up to £100 for exiting these deals early, Scottish and Southern Energy charges up to £75, and Scottish Power charged up to £50.

One official said: “This is a trap that people really should be aware of. If you are on a fixed rate deal, make sure you know when it comes to an end and switch accordingly. If you forget to do this in time, you will either end up stuck on a tariff that may not suit you and find yourself spending hundreds of pounds to get out of it. This is yet another reason to compare energy prices and tariffs on a regular basis, and make sure you switch as and when is necessary.”

Tags: contract, energy supplier, fixed price deal, Price 2015 tariff, provider

BT changes times for free calls

Many people that are with the communications giant BT have packages that allow them to make free evening calls so that they can get better value for money depending on when they tend to make most of their calls. Read more

Tags: money, bt, call, announcement, provider, 6pm, BT Total Broadband, British Telecom

Cutting your energy bills to save money

We have all had to make cutbacks over the past eighteen months or so in order to try and stay afloat financially, particularly with the global financial crisis and the recession still taking their toll. Read more

Tags: lot, saving, switch energy provider, huge outgoings, Climate change, electricity, provider, energy costs

Merger between Co-op and Britannia

According to recent reports there is to be a merger between the Britannia Building Society and Co-operative Financial Services. The merger will take place in the event that a new law that allows mutuals to merge is given the go ahead in March. Read more

Tags: part, substance, britannia, provider, Co-operative Financial Services, building society, mergers, recent reports

It’s ‘risky’ not to take out life insurance with your mortgage, says expert

Although people are trying to save money as they find their finances increasingly squeezed by the credit crunch, neglecting to take out life insurance along with a mortgage can be “risky” an expert has advised. Read more

Tags: assurance, plan, provider, economics, Plan Insure, Insurance, critical illness cover, life insurance

Congestion charge behind increase in motorcycle registrations

The increase in motorcycle and moped registrations could be attributed to commuters leaving the car at home in a bid to avoid the congestion charge, one insurance expert has claimed.

According to a spokesperson for insurance provider Churchill, the driving force behind the
increase in moped and motorcycle registrations during 2007 could be “due to people commuting by bike rather than car and congestion charging.”

Motorbike insurance policies can vary from insurer to insurer in terms of what factors they take into account and may depend on personal circumstances such as driving history and area postcode, said the firm.

Although people can buy motorbike insurance specifically for women, as with cars, Churchill said it offers the same insurance for both male and female motorists.

According to the Motorcycle Industry Association SMART guide, scooters cut journey times in London by an average of 48 per cent.

New figures also show that more than 3.5 million people are now licensed to ride a bike.

Tags: commuters, insurance provider, smart guide, Insurance, congestion, 5 million, insurer, provider

Up to one in five put off dentist trip due to costs

As many as one in five consumers are putting their teeth at risk by not going to the dentist due to the cost, new research shows.

Findings from the health plan provider HSA found that over a quarter of consumers believe that looking after their oral health is unaffordable.

Spokesperson for HSA, Richard Halley, said that the results of the study arrive shortly after the NHS has revealed that half a million fewer adults are visiting the now dentist than two years ago.

He said: “This could be down to cost, and also difficulty in accessing an NHS dentist. Indeed 27 per cent of those surveyed claim that they have struggled to find an NHS dentist.”

The study also showed that over two fifths of people think NHS dentistry will disappear altogether in the future while 28 per cent think it will exist in the future, but will only be available to a few.

Meanwhile, more research from the HAS showed that 65 per cent of firms believed their employees would most value dental benefits.

Tags: plan, risk, new research shows, nhs dentist, Richard Halley, spokesperson, provider

Number of credit cards offering capped transfers falling

The number of credit cards with capped balance transfer fees is falling, according to financial experts.

MoneyExpert.com said that 12 months ago consumers could choose from 18 different credit cards with capped balance transfer fees, compared with the seven which are now available through five different providers.

Sean Gardner, chief executive of MoneyExpert.com, said: “Credit card switching is big business. Someone switches a credit card every two seconds and there are very few cards out there that still do not charge a fee for the privilege.”

He warned that those consumers looking to move their credit card provider could be “in for a shock” if they do not choose a card with a capped balance transfer fee.

According to MoneyExpert.com, the average balance transfer fee is 2.8 per cent of the amount transferred, meaning the typical cost of a balance transfer is some £74.65.

Customers with higher balances could incur much larger fees – a £5,000 balance transfer could cost as much as £150 with a three per cent fee.

Meanwhile, recent figures from MoneyExpert.com revealed that up to 5.9 customers switched credit card providers in the past six months.

Tags: personal finance, balance transfer, finance, offering, cent, provider, consumers, shock

‘Viligence’ advised to avoid identity theft

Consumers are advised to exercise “vigilance” in face of identity theft risk, rather than rushing to buy insurance.

An industry expert has said that after news that the personal information relating to 25 million people in the UK has been stolen, consumers must think about the options available to them for protection.

Peter Gerraud, head of insurance research at moneysupermarket.com, explained that while there are products on offer that cater specifically for this type of cover, “many of these products are dubious value for money”.

“Most will cover losses if fraudulent transactions take place. However, if consumers are vigilant and report any unusual activity to their bank or card provider these losses will be covered by the provider as a matter of course anyway,” he continued.

He added that consumers should be sure to check statements on a regular basis to avoid the “time, stress and effort” involved in resolving the problems identity theft can cause.

Tags: identity theft risk, dubious value, type, provider, identity theft, uk, business, vigilance

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: online shopping, high street shopping, provider, cent, Center for Responsible Lending, month, director, cent admit

Mortgage slow-down expected as prices rise

A slow down in the market is forecast as a result of rising mortgage prices, according to Andy Hornby, head of HBOS mortgage lender.

He warned that property owners were at risk from the fluctuations to the mortgage market and predicted that concerns regarding these changes could end in homeowners having to spend more on mortgage repayments.

Speaking to a Merrill Lynch banking conference in London yesterday, he said: “I suspect that the mortgage market is about to undergo a fundamental shift. Over the past three years we’ve seen a major decline in mortgage margins.”

He added that mortgage cost adjustment would continue on the back of “wholesale funding costs”.

Lenders’ rate increases have been widespread in the UK following the sub-prime mortgage crisis, causing anxiety for those considering taking out a loan on a house, many of whom decided not to, according to National Homebuyers.

HBOS is a retail, business, corporate banking, investment and insurance services company. It is the UK’s biggest mortgage and savings provider.

Tags: National, United Kingdom, market, provider, Mortgage loan, HBOS mortgage lender.He, retail, conference

Mortgage holders in for a ‘rate shock’

Mortgage provider Nationwide has warned homeowners coming off of two year fixed rate deals this autumn that they could be in for a nasty shock as their monthly repayments jump up by £200.

Two years ago, the average fixed rate for a homeowner loan was just 4.56 per cent, but 250,000 homeowners will be seeing their mortgage revert to standard variable rate, which now is an average of 7.65 per cent, more than three per cent what they are currently paying.

Although Nationwide is urging customers to negotiate a remortgage as soon as possible and preferably before their existing deal expires, the average fixed rate is also a lot higher today than it was in 2005. In fact, the increase from 4.56 per cent to 6.41 per cent will still cost customers £110 a month on a £100,000 loan.

“For some borrowers it will come as quite a fright to see their mortgage payments increase dramatically,” said Matthew Carter, director of mortgages at Nationwide. To absorb some of this shock, borrowers need to consider remortgaging as soon as their deal ends, or beforehand if their lender allows it.”

He also noted that there has been growing interest in the bank’s 25 year fixed rate mortgage since the last Bank of England base rate rise.

According to a recent survey by Abbey Mortgages however, less than one in four Britons would consider taking out a 25 year fixed rate homeowner loan.

Tags: average, bank, monthly repayments, provider, UK mortgage terminology, finance, average fixed rate, today

People should avoid “pitfalls” when writing a will, says provider

Everyone should not only write a will, but must write it out carefully and properly, according to Willcraft Services.

The online will-making company also said that hiring professionals to do the job could be worth the customer’s while in the long run.

Colin Chapman, managing director at Willcraft, said that “I would say anyone over the age of 18 should make a will to ensure that everything goes where they want it to go. But, being more realistic, the first trigger point is either a child or a property purchase.”

He added that many clients “should really get professionals in to do the job properly because there are so many pitfalls” in the will-making process.

Those who had written a will years previously might well be in need of updating it, Mr Chapman said: “Circumstances have changed and certainly asset values have changed”, he said.

Recent research from Barclays Wealth shows that around two in three Britons have not written a will.

The statistic – 63 per cent of those polled – matches exactly a similar survey conducted the previous year, showing that the importance of writing a will has yet to be fully realised by the British public.

Tags: Willcraft, company, public, will-making process.Those, provider, run, purchase, research

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: Insurance, result, home insurance claims, director, Nationwide's insurance

Card holders wasting millions on holiday

Credit card holders are being warned that they may be wasting millions of pounds on fees by making purchases while abroad. Read more

Tags: cent, GBP, Credit Cards, Credit card holders, provider, holiday, research, purchases

Lloyds TSB’s annual credit card charge

People with a Lloyds TSB credit card that they do not use regularly face being charged for the pleasure of owning one.

It is the first sign that banks may be seeking to recoup the money they are likely to lose as a result of pressure to cut penalty charges, as predicted by research firm Defaqto this week.

The bank has announced that people who do not use their credit cards will be hit with an annual charge of £35.

However, Lloyds has failed to reveal what they define as low-usage, meaning many people may find themselves in a state of limbo.

People who have a card but do not use it at all have been told in no uncertain terms that they will be charged and are being advised to cancel the card and destroy it.

“It costs the bank money to issue cards to customers who are not using them. This is intended to get them to start to do so,” a spokesperson from the bank told the Guardian.

In a bid to tempt consumers into using their cards more often, Lloyds is offering zero per cent interest on all purchases until May this year.

Earlier this week Defaqto’s head of banking, David Black, said that he would be “very surprised” if free banking was still available in the UK in two years time.

“The first major provider to introduce charges for all customers is going to take a lot of flak but it is likely that the majority of the main providers will then follow the lead,” he said.

If you have an unused credit card with Lloyds TSB make sure that you cancel it and, for security reasons, cut it up before throwing it away.

Tags: majority, interest, research, Credit Cards, penalty, Financial services, provider, limbo

Defaqto: ‘2yrs of free banking left’

The end of free banking could be upon us within just two years, according to leading research firm Defaqto.

According to the company, the backlash from increased pressure on banks to reduce penalty charges could see consumers being charged a tariff for their bank accounts.

Defaqto says that this could rear its head as either a monthly fee or a pay-as-you-go system, which would see customers charged in relation to how often they use their account.

Any system like the latter could leave vulnerable people in a worse situation than they are currently in, especially if additional charges are added for the processing of things like cheques or discounts are offered to those using other bank services.

The UK has enjoyed free banking for 23 years, but Defaqto warns that the banks have to make up the money in some way.

“I will be very surprised if free banking is universally available in two years time,” said David Black, head of banking at Defaqto.

“The first major provider to introduce charges for all customers is going to take a lot of flak but it is likely that the majority of the main providers will then follow the lead.

“I would then expect to see a significant increase in account switching as well as many people closing their secondary accounts,” he added.

The UK is currently internationally unique in not charging customers for current accounts.

Tags: customer, leading research, vulnerable people, flak, provider, free banking, research firm, relation

Save On Your Car Insurance Premiums

There are various ways to save money on your car insurance:

The first, which may be apparent to many people is to shop around. Read more

Tags: car insurance premiums, good practice, provider, mire, finance, Automobile, choice, car insurance