Mortgage rationing to continue next year

Officials from the Council of Mortgage Lenders have stated in a recent report that mortgage rationing is set to continue next year, and consumers that are hoping to get mortgage finance in order to get onto the property ladder may still face disappointment as banks continue to slash their lending.

One of the problems facing the banking industry is repayment of some of the bailout money that they took at the height of the global financial crisis, which needs to be repaid. Sadly, it is likely to be consumers that pay the price once again, as this will result in further restrictions on mortgage and other types of lending, making things more difficult for those that need to take out finance.

The CML has also said that repossession numbers are likely to increase next year, although the increase is likely to be modest. There are a number of factors that may affect repossession numbers, and this includes the government Spending Review and cuts, which could affect people’s jobs. Buyers are also likely to be put off from taking out mortgage finance even if they are able to get it, and this is due to the fragile state of the economy.

The CML said: “Given the continuing economic uncertainties, there is little to encourage buyers. First-time buyers will continue to find it difficult to get into the market. With funding in short supply, the availability of mortgages for first-time buyers will remain limited.”

The Council of Mortgage Lenders concluded: “Activity in housing and mortgage markets is set to remain broadly flat in 2011 and we do not envisage a return to the lending levels that characterised the middle of the last decade for many years to come.”

Tags: report, mortgage, money, economics, cml, property, bank, disappointment

Survey shows households in UK still overstretched

A recent study has shown that households in the UK are still overstretched financially, with the findings showing that more than 50 percent of them have been struggling to repay their debts. The study was carried out by the Bank of England and involved polling around two thousand people.

According to the results of the study more than half of households were struggling meet repayments on debts such as credit cards, loans, and other unsecured debts. The results also showed that around 22 percent of consumers had been put off spending money because it was becoming more difficult to borrow money – this reflected an increase from the 16 percent that said the same thing in a poll carried out last year.

In addition to looking at difficulties with debt repayments and spending the survey also looking into how people thought they would be affected by government cutbacks. The results showed that a massive 90 percent of consumers thought that they would be affected by the cutbacks and spending cuts that were being imposed by the coalition government.

However, despite the fact that so many believe that the cutbacks will affect them less than 50 percent had actually taken any steps or action to try and prepare themselves for the possibility of being affected, such as saving more money, looking for a new job, or working longer hours. Reliance on credit cards and loans has been growing according to the Bank of England report, and a quarter of households are struggling to meet payments on bills.

In its report the Bank of England noted: “The burden of unsecured debt has risen this year, most likely reflecting a combination of weak earnings growth and the interest rates on unsecured debt remaining high over the past two years.”

Tags: Household, weak earnings growth, report, debt consolidation, spending, addition, United Kingdom, fact

Billions accrued in debt during downturn

It has been claimed in a recent report that Brits have managed to accrue billions of pounds in debt during the economic downturn as a result of their shopping addictions. Despite the money worries and concerns over job security that have been experienced by many consumers many have continued indulging in their shopping addiction, and accruing huge debts into the bargain.

The comparison website uSwitch claims that British shoppers have managed to accrue £24 billion worth of debt as a result of their recession shopaholism, which is a term that the website uses to describe those that have built up more than half of their debt through purchases of fashion items.

The breakdown provided by the website showed that there were more women than men that were classed as shopping addicts, with three million men and four million women. However, the average debt accrued was higher amongst men, coming to £3425 compared with £3353 for women. Unsecured debt for women in Britain came to £13 billion and this compared to £10 billion for men.

An official from uSwitch said that although finances have been strained for many people many women had continued to follow their idols and buy a range of expensive fashion items including clothes, handbags, and shoes rather than curbing their spending on fashion shopping in order to save money and ease the financial strain. In some cases those that have accrued debt by shopping for non-essentials during the downturn have said that the recession and economic downturn has been the cause of their spending, as they have shopped to cheer themselves up.

uSwitch officials said: “Despite the financial constraints, women have carried on copying the lifestyles and shopping habits of their idols and ignoring the debt they are racking up in the process.”

Tags: uswitch, Financial services, consumers, report, debt

Supermarkets offering better deals on credit cards than banks

A recent report has claimed that on average supermarkets tend to offer better deals on credit cards these days than banks, which means that consumers can often get a great deal on a credit card simply by heading to their local supermarket rather than trawling through the websites of the various High Street banks. Read more

Tags: cash gifts, Spencer, report, Credit card, personal finance, local supermarket, loyalty points, lending criteria

Many older people getting a raw deal with insurance

According to a recent report many older people in Britain are getting a raw deal with it comes to their insurance cover, with many insurers that target older age groups failing to give these consumers a fair deal. Read more

Tags: British Insurance Brokers Association, company, Vehicle insurance, fair deal, report, older clients

More people putting money towards funerals instead of savings

According to a recent report an increasing number of consumers are now putting money towards their funeral costs rather than putting it into savings. It appears that the recession has caused a new trend to emerge, and rather than leaving their loved ones to foot the bill should the worst happen many people are already putting money aside for their funeral rather than putting their spare money into a savings account. Read more

Tags: savings, increase, service, money, london, year, space, report

Christmas clubs increasing in popularity in current financial climate

A couple of decades ago Christmas clubs in the UK were extremely popular amongst consumers that wanted to ensure that they had enough put by for the Christmas period when they would have to spend a fortune on gifts and food. Read more

Tags: report, ongoing recession, office, north midlands, Credit Cards, spending, christmas, christmas clubs

King takes a stance on public borrowing

As most people are only too aware the public purse has taken a real bashing over the past year, with the government using taxpayers’ money for all sorts of measures in order to try and stabilise the financial system and improve the economy. Read more

Tags: Deficit, public borrowing, financial, general election, Conservative Party, recession, report

Homeowners struggle to get better mortgage deals

It has been revealed in a recent report that many homeowners across the UK are struggling to get new and more affordable mortgage deals, as the recession and the difficult financial climate results in lenders still being very careful about their lending criteria. Read more

Tags: better mortgages, attitude, homeowners, Mortgages, Mortgage loan, cheaper finance, struggle, report

Government moves to help the indebted

It seems that the government has decided to take drastic measures in order to help those in huge levels of debt according to a recent report. Read more

Tags: report, Insolvency law, debt relief orders, investment, Business Finance, economy, Lottery

G8 finance ministers discuss stabilising of economies

According to a recent report G8 finance ministers have stated that major economies around the world are starting to stabilise following the turbulence and chaos caused by the global financial crisis and the recession, the UK being one of these economies. Read more

Tags: South Korea, interest, G8, Tim Geithner, report

Car scrapping scheme could run dry of funds early

It has been announced that the car scrapping scheme that the government put into place after the budget could run out of money six months earlier than anticipated. Read more

Tags: scrap cars, result, report, advantage, car, cars, car scrapping, scrapping

Recession causes insurance fraud to soar

According to a recent report the level of insurance fraud has been rocketing as a result of the bleak financial climate and the recession. A report was recently released by the Association of British Insurers, and officials from the ABI have said that in 2008 the number of attempts to defraud insurance companies increased by 17 percent compared to 2007. Read more

Tags: insurance claims, report, road, insurance fraud, Recession causes insurance, Association of British Insurers, insurance cheats, premiums

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: number, moment, Rating Regulators report, regulation, report, Consumer Focus

More being saved by younger Brits

Although the current financial and economic climate has made it increasingly difficult for many of us to put money aside into savings, a recent report has indicated that younger people in the UK appear to now be saving more. Read more

Tags: report, younger people savings, finance, abbey, age, living costs, savings amounts, Recent research

Homebuyers being shut out by many lenders

A large number of homebuyers are having the door shut in their faces by lenders, according to a recent report. In the current financial climate an increasing number of lenders are becoming more and more stringent about who they will lend to, and as a result of this many homebuyers have been left out in the cold because they are not able to get the finance that they need to purchase a property. Read more

Tags: bank of england, order, standard deposit, equity, property, buyer groups, bank, report

Consumers warned over belongings in care homes

Consumers have been warned to be careful about belongings that are in care homes, as they may not be automatically insured against theft, loss, and damage. Read more

Tags: addition, Insurance, care homes, damage, college accommodation

25% of the nation could face fuel poverty

Energy prices have been at the centre of heated controversy over the course of this year. At the start of the year the big energy firms in the UK cheerfully announced that because the price of wholesale energy had risen the cost of energy usage for customers would be going up, and just weeks later, true to their word, they increased energy usage costs quite significantly, leaving already struggling household to cope with more financial worry and strain. Read more

Tags: gordon brown, GBP, fuel, situation, quarter, electricity bill, money

Homeowners flock to try and sell homes

According to a recent report many homeowners are panicking because of the ongoing drop in property values in the UK, and this has resulted in a million homes being up for sale recently. Property values have been falling for some months, and many industry officials believe that they could fall by in excess of 10% by the end of the year. Many homeowners are worried that if they wait to sell their homes they could end up losing thousand of pounds more on the value of the property. Read more

Tags: Real estate appraisal, remortgage, Business and Economy, report, May, homeowners, property

Brits admit saving less for retirement

As the prices of food and fuel continue to increase, Britons admit they are saving less for their retirement, a new report reveals.

Research published by financial services firm Edward Jones has shown that many people are cutting down on such savings in order to meet their everyday living costs.

Andrew James, retirement planning manager at the firm, said the findings are a “big concern”.

People who fail to save sufficiently for their old age are likely to face issues in the future, he continued.

Mr James also expressed worry that 23 per cent of those questioned admitted failing to save any money towards their pensions.

“It is imperative the government and all those involved in the pensions industry do all they can to keep driving the message home that people must continue to make provisions for their retirement,” he urged.

Earlier this month, financial services firm Life Trust warned that because people are living longer than ever, many could be forced to re-think their financial strategies for retirement.

Tags: findings, provisions, Pension, report, life trust, concern, personal finance

Packaged account charges on the rise

The monthly fees charged on some packages current accounts have been hiked up recently according to a recent report, with officials stating that this is the first step that banks are taking in order to make up for possible losses stemming from the recent High Court test case into bank charges. Whilst the judge ruled in favour of the Office of Fair Trading in the case, which means that the OFT will be able to assess the banks’ terms and conditions for fairness, banks have appealed against the ruling. Read more

Tags: premium, Gold, bank accounts, preferential borrowing rates, benefits include things, report, bank account charges, set monthly fee

Check your credit profile to stamp out fraud, urges expert

With a recent report finding that account fraud is on the up, a financial expert has urged consumers to regularly check their credit profiles to help stamp out the crime.

David Kuo, head of personal finance at Fool.co.uk, said that current financial conditions are pushing people to extreme lengths to get hold of credit, but that consumers can protect themselves by checking their credit profiles to make sure that fraudulent activity is not taking place.

According to research by the UK’s fraud prevention service CIFAS, the number of instances of facility takeover, or account takeover, increased by 146 per cent in the first three months of 2008 when compared with the same period last year.

“If you are a consumer and you haven’t recently checked your credit reference, go and have a look at it just to make sure there is not anyone out there making fraudulent applications on your behalf,” Mr Kuo advised.

Tags: law, report, UK's fraud prevention, credit card fraud, Cifas, Instances, service, David Kuo

ABTA: Travel insurance is very good value

With the travel insurance market more competitive than ever, insurance policies are currently “very good value”, an expert has said.

The Association of British Travel Agents (ABTA) has said that “travel insurance is probably the cheapest it’s ever been”. Despite this, people often do not bother or forget to take out a policy, particularly if they are going on short trips, according to the organisation.

A recent report from the Association of British Insurers revealed that the group most likely to make an insurance claim are those aged over 65.

In fact, over 65-year-olds are three times as likely to make a claim as those aged over 35 and the costs are on average three and a half times more expensive than those of under 50-year-olds.

ABTA says people who travel at least twice a year, particularly if they take short or last minute holidays, should consider an annual policy as this will cover them in case they forget to take out insurance.

“If you’re the kind of person who is fairly spontaneous and takes advantage of last-minute cheap deals then the easiest thing to do is take up an annual policy,” advises Sean Tipton, a spokesman for the ABTA.

Tags: insurance market, policy, travel insurance market, Association of British Insurers, report, tipton, Association of British Travel Agents, organisation.A recent report

Credit crunch shouldn’t affect responsible credit card users, claims expert

Credit card users who have not had difficulty in managing their finances in the past can continue using their cards despite the current economic downturn

Financial information provider Moneyfacts said that so long as people have a sensible approach to their finances, they could continue to take out personal loans, however the company also warned that transferring debts to new credit cards is becoming more difficult to do as lenders tighten their criteria.

Samantha Owens, head of personal finance at Moneyfacts, commented: “We haven’t seen the rates rising on credit cards like we have across other products just because the margins on them are so big already,” but the company calculated that they nevertheless went up by 0.2 per cent over the past year.

A Nationwide report released this month found that consumer confidence was at its lowest level since records began and a survey by YouGov revealed that six per cent of people have taken time off work as a result of worrying about their debts.

Ms Owens advises consumers to consider various options for managing their finances, including taking out a structured personal loan.

Tags: difficulty, responsible credit card, business, finance, worrying, company, report, YouGov

Online shopping more popular than ever with consumers

Latest research has revealed that online sales rose by more than 50 per cent in the three months leading up to Christmas.

Internet sales for 2007 totalled £46.6 billion which equates to 15p in every pound spent on retail in the UK was online, according to figures from the Interactive Media in Retail Group (IMRG) study.

James Roper, the chief executive of the e-retail organisation, said: “Virtually all the growth in retail is now online.”

“There is no growth anywhere else and it is taking more and more business from the high street to online channels. Internet has become the dynamo of retail. It is where all the growth is now,” he added.

Online consumers splashed out £15.2billion between October and December alone, the report showed.

Sales of electronic goods increased by 60 per cent compared with December 2006, proving to be the most popular items to buy over the internet.

Meanwhile, reports from Argos claimed that the Nintendo Wii was one of the most popular products with consumers at Christmas.

Games sales were reportedly up by 40 per cent said the retailer.

Tags: popular items, e-retail organisation, online channels, Nintendo, retailer, interactive media, group, report

Millions switched banks in 2007

According to recent report millions have dissatisfied customers have switched from their existing bank to another bank this year, indicating the high dissatisfaction levels with the banking industry.

Read more

Tags: overall figure, banks, report, figure, Poor customer service, switch bank accounts, bank accounts, service

The importance of keeping your credit clean

Over the years more and more of us have become reliant on credit for the things that we need in life, whether it is a new home or a new car or whether it is to fund a wedding, and education, or even a luxury holiday.

Most of us would be lost without our credit cards, and the majority of us take the ability to be able to open a current account for granted. Yet, if you find yourself facing severe credit problems you could find all of these things impossible, leaving you to deal with a very bleak and difficult financial future.

This is why it is so important to keep your credit in good shape. Those with good credit can enjoy a far easier financial future, with access to a choice of financial services and products from a wide choice of lenders. People with good credit can get the best interest rates, making it more affordable to take out finance. Whether you are looking for a mortgage, a personal loan, a secured loan, a credit card, a store card, or any other type of finance you will find that having good credit can make a huge difference to the amount you pay on your borrowing – and whether you are even eligible to get the credit that you need.

Your credit can be affected in a number of ways. Firstly, it is important to remember that having no credit rating can be as bad as having a poor credit rating, as it means that lenders have no way of knowing whether you are going to be a viable risk when it comes to taking out finance. Therefore, it is important to kick start your credit as early on as possible. One thing that has a major effect on your credit rating is your repayment habits – those that pay their bills and debts on time, regularly, and for at least the amounts requested will enjoy a good credit rating and access to some great deals on finance.

If, however, you make regular late repayments on your financial commitments, or worse still you default on your financial obligations, you will find that your credit rating rapidly declines, and this is where you will start experiencing problems. Those with poor credit will find that their access to finance is greatly reduced, and many lenders will not take risks on those with damaged credit, particularly in the current economic climate. Those with very bad credit may find that they cannot get any form of unsecured finance, and will have to rely on credit that is secured against their homes – even then the interest rates charged are likely to be very high.

There are other factors that can adversely affect your credit, such as fraudulent activity, out of date information, or mistakes on your credit file. This is why it is advisable to order a copy of your credit report on a regular basis and checking through the information on the file. You may find that there are mistakes and inaccuracies that could having an adverse effect on your credit, out of date information that needs to be updated, or even suspicious transactions that could result in your credit rating taking a knock. If you pick up on anything like this you should contact the credit reporting agency as early on as possible to get it rectified.

You should also bear in mind that a log is made on your credit file each time you apply for finance, and the more rejected finance applications that are logged onto your file the more your credit rating will suffer. Therefore if you are turned down for finance you should resist the temptation to keep on making applications. Instead, try and find out what may have affected the lender’s decision by going through your credit report, and wait at least three months before you make another application.

Related articles:

• How To Build Up a Good Credit Rating
• Credit Building Tactics

External links:

• Credit Reports
  Every time a customer applies for a financial product such as a credit card, the credit company will consult that customer’s credit file. This file records all their financial activity in terms of credit applications and banking activity.
• Credit Cards Designed To Improve Your Credit
  Credit cards have become very popular over the years because of the ease, convenience, and flexibility that they provide, and these days there are many different types of credit card available
• Applying For Credit Cards When You Have Bad Credit
  For those with a poor credit score, getting a credit card is harder. However, there are solutions and we will discuss and offer these in the article.
• Using Your Credit Card To Build Credit History
  Let’s say you want to buy a house, but you need to get a mortgage to help pay for the house. However, you have no credit history to speak of, so how can you apply for the mortgage to get your dream home?

Tags: secured, debt, credit, Loans, report, personal

CML: Mortgage lenders to feel the squeeze

Mortgage lenders will feel the pressure of the credit crisis on the market, the Council of Mortgage Lenders (CML) has said.

The CML warned that this “testing time” is yet to come despite gross mortgage lending being up in October, standing at £32.4 billion.

Furthermore, the Building Societies Association (BSA) has revealed that £4.65 billion was lent for mortgages last month, down significantly on last year’s figures for October.

The BSA also reported the highest ever savings levels last month.

CML director general, Michael Coogan, commented: “The next few months will be a testing time as ongoing pressures in financial markets feed through into the wider economy.

“Funding constraints will continue to restrict lending activity and make loans more expensive.”

The Inflation report recently published by the Bank of England added to speculation that rates may fall, which Mr Coogan explained “should provide some relief for borrowers sooner rather than later”.

Tags: lending, Mortgages, economy, report, wider economy, lending activity, Inflation report, gross mortgage lending

‘Danger thresholds’ show borrowers most at risk

An industry expert has highlighted the fact that many people falling outside “defined thresholds” could be adversely affected by credit crunch.

Fool.co.uk urges mortgage borrowers to recognise the risks they could face from the wider impact of global credit problems by taking guidance from the Bank of England’s Financial Stability report.

It states that those with repayments of over 55 per cent of their total household income are most at risk, standing outside the defined thresholds.

David Kuo, head of personal finance at Fool.co.uk, advised: “Consumers should draw up a Statement of Affairs immediately to get a useful snapshot of their finances. The snapshot will tell, at a glance, whether you fall into one of the ‘at risk’ categories.

“Failing to draw up a Statement of Affairs in the current difficult financial climate is tantamount to driving a car without shock absorbers.”

The Financial Stability report speaks of a “tightening” in the money markets, pointing to the need for more focus on liquidity management and better stress testing among other things.

Tags: loan, fact, bank of england, income, report

New car loans figures from Halifax

New research from Halifax has shown that January and August are the most popular months for applying for a car loan.

According to Halifax Unsecured Personal Loans, the most popular age group for taking out such a loan – forming around half of total applicants – was the 30-49 group.

The figures also show that 67 per cent of loan applications were made by men

Neil Chandler, head of Halifax Unsecured Personal Loans, said: “Purchasing a new car takes a lot of time and thought as it is a big financial commitment.

“It is important to choose a finance deal which suits you best, leaving you free to sit back and enjoy your new car.”

More generally, the new report says that there are currently around 31 million vehicles on Britain’s roads, with 2.3 million purchased last year.

The research was undertaken by Halifax Unsecured Personal Loans in anticipation of the new 57 licence plates, which are to hit British forecourts next month.

Tags: new car loans, year, new 57 licence, group, credit, report, car loan.According

Insurers advised on risk models

With Hurricane Dean having caused havoc across the Caribbean in the past week, along with forest fires caused by the Mediterranean heatwave – not to mention the two disastrous floods in southern England last month and in June – this summer has been marked by an unusually high amount of natural disasters.

Insurance companies have been left to count the costs, with the two UK floods alone estimated to set them back £2.5 billion, according to figures from the Association of British Insurers (ABI).

Today, investments company F&C warned insurers that, with the seemingly higher incidences of natural disasters, they will need to adjust their risk models accordingly.

Associate director in the firm’s governance and sustainable investment team Vicki Bakhshi said: “The good news is that the sector is starting to wake up, and some risk models are now beginning to be amended. But the question is: which will change faster, the way the insurance sector operates or the weather?

“Despite the change in climate conditions, the risk models used by insurers are almost entirely based on historical patterns, not on climate science, and they do not take into account this upward shift in the risks,” she added.

“This means insurers might be underpricing risk. And some may also be underestimating the amount of capital they need to survive the kind of mega-catastrophes that are more likely to occur as a result of climate change.”

F&C also announced today that it has been conducting research into how insurance companies are responding to climate change, and will be publishing a report on it soon.

Tags: firm, higher incidences, UK floods, insurers, Financial institutions, science, uk

Interest rates frozen

The Bank of England has decided to freeze interest rates at 5.5 per cent.

The monetary policy committee (MPC) made the decision following a quarter point rise in May and after four rate rises since August 2006.

Industry figures had widely predicted the move as it was thought that the MPC would want to wait and see what effect the last rise had.

Despite the decision being good news for those with loans, mortgages and credit cards, borrowers are being warned that further rate rises are likely in the near future.

“The majority of economists are calling for a rise in July but if we need another increase it would be more logical for the MPC to wait until the next quarterly inflation report in August before making that decision,” said Ray Boulger from mortgage advisor John Charcol.

“With the total previous rise of one per cent looking like it is doing the trick, I believe the MPC will want more time to see if this is indeed the case.”

This sentiment has been supported by a number of figures, with research firm Global Insight also predicting another rate rise in August.

“We believe that the MPC is likely to act by August at the latest to try to stamp out the significant upside risks to longer-term price stability,” said Howard Archer from the firm.

Tags: Insight, longer-term price stability, bank of england, interest, inflation, rate, report

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, attitude, director, uk, number, alliance, report, leaving home

Stub out the interest on your mortgage

People who smoke are prolonging how long it will take them to pay off their mortgage.

That is according to mortgage broker John Charcol which says many people could save themselves thousands of pounds by stubbing out.

With No Smoking Day (March 14th) fast approaching, the firm has highlighted the fact that someone who smokes could save £27,000 in interest by quitting.

The idea is that a former smoker uses the money he or she used to spend on tobacco and puts it towards paying their mortgage off early.

On a 25-year mortgage this will lead to savings of over £27,000 and will reduce the term of the loan by eight years.

“When smokers look at what quitting can do to their finances it may provide that added incentive to finally stub out the habit,” remarked Katie Tucker from John Charcol.

“A 20-a-day smoker can save around £1,825 a year by giving up which, in itself, is incentive enough. Yet when you look at what overpaying by this amount can do to a mortgage, it is even more of an enticement.

“Even someone with a relatively small mortgage of £100,000 will pay £27,417 less in interest,” she added.

John Charcol points out that heavier smokers have the potential to save more money, with someone on 40 cigarettes per day saving around £45,000 on a £100,000 mortgage and shaving 14 years off the loan term.

People who give up smoking not only protect their health but also see a wide range of financial benefits.

A recent report by Sainsbury’s Bank found that an ex-smoker can save up to 48 per cent on a life insurance policy.

Tags: report, small mortgage, smoking day, mortgage, smoking, Katie Tucker, business

Travel insurance industry slammed in report

Millions of us could be going on holiday without adequate travel insurance due to hidden clauses in our policies.

That is according to the Treasury Select Committee (TSC) which carried out a report and found that many people are not being told exactly what they are buying when they take out insurance.

The TSC highlighted that there is “insufficient awareness” among consumers about clauses in travel insurance policies.

“All too often, exclusions are buried in the small print of insurance policies,” said John McFall, chairman of the TSC.

“Holidaymakers are risking damage to their health or considerable financial loss if they require treatment while abroad or repatriation to the UK.”

The report has caused a stir within the industry, with Which? calling it “damning” and saying that it reiterates “the urgent need for consistent regulation of travel insurance”.

“Which? research shows that travel insurance is being mis-sold and consumers aren’t being given the appropriate information,” said Mike Naylor from Which?.

“There is no reason why travel agents should be excluded from regulation.”

People planning a trip abroad are advised to take out travel insurance and Which? has compiled a list of tips to ensure that you get the right cover.

Declaring any information that may lead to a claim, checking cover limits and exclusions, looking out for excesses, reading the small print and informing the insurer of any medical conditions are all advised.

Tags: Types of insurance, Financial services, exclusions, report, travel agents, trip

Subsidence risk for 100,000 Londoners

Around 100,000 homes in London face an increased risk of subsidence due to the growing trend of turning front gardens into driveways.

That is according to esure home insurance, which carried out research including a report from the British Geological Society.

The report details how driveways cause rainfall to run off into drains rather than filtering down to the soil where tree roots lay waiting.

As the roots receive no water they move to seek some out, leading to changes in soil moisture beneath foundations.

“It is very appealing for homeowners in busy streets to create a bespoke parking space for their property,” said Nikki Sellers, head of home insurance at esure.

“Unfortunately, for houses with a street tree or large front garden tree nearby this can significantly increase the risk of subsidence.

“A dedicated space may increase the value of your home but subsidence damage will do quite the reverse,” she added.

Homeowners are being warned to do their research before installing a driveway or patio and are advised to take out adequate insurance if they are concerned about subsidence.

Tags: Insurance, property, soil moisture, bespoke, report, business, head, Esure

£44m sitting in unused accounts

A campaign is being launched to reunite customers with their unused bank and savings accounts.

Halifax is attempting to bring people back together with their accounts and the money that is idly sitting in them.

According to the bank, there are around 110,000 unused Halifax accounts in the UK, holding a combined £44 million.

The majority of people who have a forgotten account are said to have less than £100 sitting in them, but some have much more.

Halifax has employed a third party to search for those with accounts containing more than £1,000, but it is calling for other bankers to make themselves known.

“Our job is to reunite as many of our customers as is possible with their cash,” said Mike Regnier from Halifax and Bank of Scotland.

“We are using every means at our disposal to do so – mailings, advertising and the internet. We are also employing search agents where appropriate.”

The move comes as government plans to change the rules regarding unused accounts appear likely to come into force in the next few years.

It was announced in the 2005 pre-budget report that if an account is unused for 15 years it will be officially tagged as dormant.

This means the money can be given by the government to good causes, although the cash will always remain the account holder’s property and he or she can reclaim it at any time.

If you have an account which you have not used for some time it may be worth checking to make sure there is no money in it.

Tags: government, holder, savings accounts, hbos, property, report, unused accounts, Mike Regnier