Older women pay far more for car insurance

A recent report has highlighted how women can suddenly see the cost of their car insurance rocket when they hit the age of sixty, with a study revealing that once they hit this age they can end up pay around £80 a year more than men for their cover. Younger women generally get charged less than men for their vehicle insurance cover because they are considered to be safer drivers.

According to reports insurance firms believe that the abilities of women decline faster than those of men as they grow older, and because of this they are seen as a higher risk when it comes to driving. This means that as women get older they can see their insurance premiums increase, and once they hit sixty they will find that they may be paying considerably more than men.

The study was carried out by the consumer watchdog group Which?, and officials from the group said that sixty seemed to be the point at which women started paying more than men rather than the other way around. The officials involved on the research used a price comparison service and obtained quotes from five difference vehicle insurance companies to work out what the cost differences would be.

The research showed that after the age of sixty a woman could end up paying around 28 percent more than a man for the same policy with the same car and the same personal circumstances. The group said that of the insurance firms that were looked at only one gave a similar price for men and women after the age of sixty.

A spokesperson from Which? stated: ‘Gender is one of the factors that has an influence on the premium we offer. The difference is correct based on our estimates of the level of risk the two customers would represent to us as an insurer.’

Tags: men and women, insurance premiums increase, officials, way, research, risk, level, price comparison service

Half of young Brits think renting is a waste of money

It has been revealed in a recent survey that around half of young Brits believe that renting a property is a waste of money. However, despite this opinion many are being forced to rent because they are unable to get a mortgage in the current climate to get onto the property ladder and get a place of their own.

Recently released figures have shown how restrictions in the mortgage market are driving up the cost of renting, and whilst many non-homeowners believe that renting is a waste of money more and more are having to do this and pay more for the privilege. With so many would be first time buyers unable to get a mortgages the demand for rental properties is high, and this is driving property rental prices up further.

Recent research has shown that the amount that buyers are now expected to pay out by way of a deposit is unmanageable for many people, and whilst buyers may have no problem affording the repayments on a mortgage, especially with the base rate at an all time low, many simply cannot raise the deposit required by lenders, which is running into tens of thousands of pounds in some cases.

The level of deposit required in London has reached nearly £30,000 for first time buyers, which means that many are relegated to renting or living with friends and family. However, with the cost of rents having also rocketed some people in the London area would be looking at paying close to £1000 a month just for a one bedroom flat, with the average rent across the UK having now increased to nearly £700.

Tags: climate, research, london, property, first time buyer, tens of thousands, mortgage, Renting

Consumers warned over door to door energy sales people

Consumers are being warned to watch out for door to door sales people that call around trying to get them to switch their gas and electricity suppliers. Read more

Tags: Technology Internet, door sales technique, research, energy prices, cheaper deal online, energy supplier

Drivers making cutbacks to afford petrol

It has been reported that many drivers in the UK are being forced to make cutbacks in other areas in order to pay for petrol costs. Read more

Tags: petrol price, unemployment, West Midlands, research, driver savings, saving fuel

January sales start early on the High Street

With Christmas well on its way and consumer spending levels still low due to tight financial conditions, many major retailers on the High Street have started their January sales early by slashing the prices of their goods in the hope that it will boost spending amongst consumers. Retailers are slashing prices by up to 75 percent in some cases, hoping that their bargain prices will pull in customers and reduce the risk of shattered profits over what is expected to be a bleak Christmas in terms of spending. Read more

Tags: research, risk, year, industry, retail, recession, festive season, sales

7 percent fall expected in Christmas spending overall

According to recently released figures an overall fall of around 7 percent is expected in Christmas spending for this year, as consumers continue to try and cut back on their expenditure. The cutbacks will be made in a range of areas, such as gifts, food, clothes, entertainment, and socialising. The survey was carried out by research group Deloitte, and showed the different areas in which people were planning to cut back on their Christmas spending. Read more

Tags: Business Finance, consumers, Verdict Research, Deloitte, financial situation, holidays, Opinions

Recent revelations from energy satisfaction survey

The big six energy firms in the UK have faced controversy for quite some time, with problems relating to customers service and billing, inaccurate prices, and of course in relation to the huge price hikes enforced, with two rounds of price increases having taken effect over the space of this year. Many households are facing fuel poverty, with officials claiming that since the start of this year gas bills have increased by over 50% and electricity bills by close to 30%. Read more

Tags: research, oil, Consumer Focus, satisfaction tables, satisfaction, energy prices

Is haggling a way to get a good deal?

As a nation the British do not really engage in haggling in the same way as consumers in many other countries do. In most cases if there is a price tag on something that we want to buy then we pay it without question, or we wait until the sales are on and hope that the price gets reduced. However, with the financial climate and consumer finances in the state that they are in, Brits can no longer afford to maintain a stiff upper lip and pay what they are expected to, and it seems that an increasing number of consumers may turn to the age old process of haggling in order to try and get the things that they want at a price that they can afford. Read more

Tags: Bargaining theory, industry, Communication, insurance policies, sales person, Marc Lockley, research, haggling

Campaigners do not think price comparison sites will necessarily mean the best credit card deal

According to some officials from a consumer campaign group sing a price comparison site to try and get the best deal on a credit card will not necessarily prove effective. More and more price  comparison sites have sprung up over the past couple of years, and many people use these to try and get the best deals on credit cards as well as on other products and services such as loans, mortgages, insurance, utilities, and more. However, officials have said that these sites will not necessarily mean that you are getting the best deal. Read more

Tags: couple, Credit Cards, Business Finance, research, comparison, try

Is private health insurance the way forward?

We all want to do our best to protect our own health and that of our loved ones, but for many people in the UK the National Health Service leaves a lot to be desired. The NHS has come under fire for many things over recent years, from the length of its waiting lists and the quality of care given in hospitals to the levels of staff and even the levels of hygiene exercised in NHS hospitals. Read more

Tags: cannot, research, health insurance, price, issue, giant, super bugs, recent years

1 in 10 clueless about their debt

Britain is a nation “in the dark” about its finances, a new report has suggested.

A report published by CreditExpert has revealed that just one in four people can accurately say how much they have left to repay on their loans.

Furthermore, one in ten people are unsure as to their actually level of debt, the study revealed.

The research also highlighted that many Britons are not confident about applying for loans, with more than one in five believing they would be refused credit of £1,000.

Furthermore, four out of ten would not expect to be authorised to borrow £10,000 and 66 per cent of people believe they could not take out a loan of £30,000.

The research follows a further recent study, conducted by Alliance & Leicester which showed that Britons are trying to cut back on their spending and save money in order to improve their financial health as the cost of living rises.

Tags: debt, research, recent study, order, loan, britons, alliance & leicester

Axa: Teenagers blow budgets in experiment

More than two-thirds of teenagers taking part in an experiment set up by the AXA Financial Task Force blew the budgets they were given for a week’s worth of household spending.

Given a budget of £248.40 each, 70 per cent of the 15 to 17-year-olds went over this amount and one child spent more than twice their budget, racking up a bill of £597.73 in seven days.

Axa is concerned that Britain’s young people are unable to cope with their finances and may find themselves in financial difficulty if they continue to overspend once they hit 18-years-old and can apply for credit cards and loans.

Research conducted by Axa shows 44 per cent of 15 to 17-year-olds are planning to get a credit card when they become adults and nearly one in five are thinking about getting a bank loan.

These concerns were raised soon after PricewaterhouseCoopers reported that in the first months of this year, 25,264 people went bankrupt or entered into an individual voluntary arrangement in England and Wales.

Tags: research, year, Debt Financing, financial difficulty, teenagers, axa financial, financial, Teenagers blow budgets

“Shop around online” for discounts, advises expert

A personal finance writer has advised consumers to avoid spontaneous shopping trips and impulse buys, instead saying people should “try and shop around online” to find the best discounts on a range of products.

With more people finding themselves in financial difficulty as a result of the global credit crunch, Cliff D’Arcy says they should use the internet to find bargains and “get more bang for [their] bucks”.

The comments follow research from Monolink, which found that British consumers aged between 16 to 34 years old are struggling to pay off their credit card debts as they try to keep up with their friends and lead a fashionable lifestyle.

According to the survey, 14 per cent of respondents have bought clothes on a credit card which they are still trying to clear and 13 per cent have bought a car when they still have debt on their credit card.

Shopping online can result in discounts of between 30 and 50 per cent, says Mr D’Arcy.

Tags: global credit crunch, research, credit, credit card debt, crunch, finance, internet, comments follow research

Insurance warning for gardeners

Homeowners have been advised to do their homework before planting trees in their garden to reduce the risk of subsidence.

Research from Sainsbury’s has shown that around 9.7 million intend to plant at least one tree in their garden but has warned that such good intentions can lead to subsidence and home insurance claims in the long term.

Around 12 per cent of money that Sainsbury’s hands out to its customers is for subsidence caused by trees and vegetation.

Neil Laird, home insurance manager for Sainsbury’s, said: “It’s great news that so many of us are good-intentioned when it comes to planting trees but it’s important that we don’t put our properties at unnecessary risk of subsidence. Our advice is to do your homework before putting spade to soil.”

The warning comes as Bupa has advised homeowners that doing the garden can help people keep fit.

An hour of lawn-mowing burns as many calories as an hour’s bike ride at ten miles per hour while planting seeds for an hour uses as much energy as two games of badminton.

Tags: long term.Around, planting trees, energy, research, tree

People using same Pin are risking money

Around ten million people in the UK are putting their money at risk by using the same Pin number for their different credit and debit cards, according to new research.

The study conducted by Opinium Research found that almost a quarter of the 41 million adult cardholders in the UK choose one Pin number for their cards.

However, of those who had been more cautious, 11 million now only use one card because they cannot remember their different Pins.

Steve Willey, head of credit cards at price comparison site moneysupermarket.com, advised cardholders to be more careful, saying: “A little vigilance can go a long way. It certainly beats the trauma and trouble that can be caused by being far too lax with your cards.”

He also warned that people should be careful to keep sight of their cards when making a purchase, since criminals make billions of pounds each year from card cloning and skimming.

Younger cardholders in particular seem unaware of this, with 23 per cent of those aged 40 or under allowing their card to be taken where they cannot see it, compared to 13 per cent of older people.

Tags: trouble, younger, research, Automated teller machine, billions, United Kingdom, Cardholders, business

One in seven drivers admit to getting behind the wheel with no insurance

Up to 15 per cent of motorists admit to driving a car without being covered by insurance, according to new research.

The findings from moneysupermarket.com show that nine per cent broke the law while behind the wheel of someone else’s vehicle and a further six per cent said they had driven their own cars without having any cover in place.

Richard Mason, director of insurance at moneysupermarket.com, said that anyone who drives without insurance, no matter the length of the distance and whether it is their car or not, is breaking the law.

“Not only that, but it costs the insurance industry over £500 million each year in claims, which drives up the cost of insurance for responsible motorists,” he continued.

Men are more than twice as likely as women to drive while uninsured, with 21 per cent admitting doing so according to the results of the study.

Meanwhile, a study conducted by confused.com revealed that men are officially worse drivers than women.

Tags: insurance industry, distance, Insurance, Business Finance, research, Confused.com, cover, finance

More savers in the north and spenders in the south

More consumers in the south were in the mood to spend than those in the north, reveals the findings from a new financial study.

Research from Legal & General showed that 31 per cent of Londoners quizzed were up for spending their money compared with only 21 per cent of those in the north.

However, 70 per cent of northerners were concerned about putting money away to save with while this appealed to just 57 of London-based respondents.

Julia Clayworth, Legal & General’s Wealth Management head of marketing, said: “Whilst the overall spending and savings patterns havent changed dramatically this month, what we have noticed is a growing regional difference in spending and savings habits.”

Meanwhile, when questioned about their ability to meet monthly bills, nearly one in five people from the north claimed to be spending more on paying bills and debts than they earned.

Recent research from Legal & General showed that in January, there was a split in spending habits between those in their 20s and those over-45.

The older generation were in less of a mood to spend than their younger counterparts.

Tags: law, respondents, research, consumers, Julia Clayworth, regional difference, quizzed, london

Drivers urged to tell the truth when applying for insurance

Despite car insurance being at highest recorded levels, drivers need to avoid the temptation to lie to acquire cheaper premiums, one financial expert has urged.

According to Gocompare.com, some drivers will look to cut insurance costs by withholding information to insurers which, if they get caught out, could increase costs later on.

Providing incorrect information is a “false economy” as it can invalidate a policy and mean it is more difficult to get insurance in the future.

Hayley Parsons, Gocompare’s managing director, said that insurance represents a large proportion of the money drivers spend on their vehicles so they are always on the lookout for savings.

“One of the best ways to save money on your insurance is not to just accept your renewal quote, the best company for you 12 months ago, may not be the best today,” she added.

Meanwhile, research from uSwitch revealed that UK motorists pay £333 million per year in fees to car insurers to make changes to amendments to their policy.

Tags: uswitch, research, renewal, finance, GBP, Insurance, business

Up to five out of six UK consumers fear for their finances

Up to 30 per cent of British spenders do not think they can cope much longer when it comes to managing the pressures surrounding their finances, according to new research.

Findings from a survey conducted by moneysupermarket.com during the budget week reveal that only 84 per cent of those questioned said they had no financial worries.

Additional research showed that Brits owe more than £1.3 trillion on loans, credit cards and overdrafts.

Tim Moss, head of loans and debt at moneysupermarket.com, said he was surprised by the levels of financial worry among UK consumers.

“There is little doubt many Brits will find their annual road tax as high as the value of their car as from next year, creating a massive headache for people who are really struggling,” he continued.

Moneysupermarket.com added that those spenders who are worried about their spending habits should take action rather than burying their head in the sand.

The firm recently said that consumers are becoming increasingly aware of having a good credit rating with more and more checking their financial status.

Tags: GBP, new research, com, credit rating, research, sand, loan, budget

Consumers need to be encouraged to use Isas say financial experts

More needs to be done to encourage savers to put their money into individual savings accounts (Isas) by showing them the benefits of the products, one financial expert has claimed.

Findings from research from Nationwide revealed that one in ten savers topped up their Isa by more than £3,000 while only 8 per cent of Isa holders increased their limit by over £3,000.

Up to half of those questioned in a recent survey said they would like to save more money in Isas but do not have the funds to do so.

Matthew Carter, director for savings at Nationwide, said that with just over a week to go before the new Isa limits come into force, more needs to be done to encourage people to take advantage of their Isa allowance.

“With one in ten ISA holders opting to save in a regular savings account instead of their ISA, it’s essential that consumers are educated about the benefits of tax-efficient savings and how most Isas allow instant withdrawals,” he added.

The deadline for submitting an application for an Isa is April 5th.

Tags: allowance, research, Banking, matthew carter, application, individual savings account, regular savings account, Rob Fisher

Bank customers warned to avoid fee-paying accounts

Bank customers paying fees for packaged accounts are getting very little for their money compared with customers in free accounts, according to new research.

Findings from MoneyExpert revealed that the average credit interest rate on packaged accounts is 2.1 per cent per month, only 0.2 per cent more than the average rate available through free banking.

The average monthly fee of a packaged account is £11.61, with some accounts charging as much as £25 a month.

Sean Gardner, chief executive of MoneyExpert.com, said: “The basics of a typical fee-paying current account are frankly terrible value for money.”

“You don’t have to be a mathematician to see how an average interest rate of just 2.1 per cent compares to free banking if you have to pay a typical fee of £11 for the privilege,” he added.

The figures show that over half of all packaged accounts pay less than 2.5 per cent AER on positive balances.

Meanwhile, financial experts Fool.co.uk said that there are “lots of good offers” on the bank account market due to the effects of the credit crunch.

Tags: financial experts fool.co.uk, Fool.co.uk, research, executive, rate, mathematician, free banking

Parents make sacrifices for children

Parents are making considerable financial cut-backs in order to afford what their children want, according to new research.

Findings from Engage Mutual reveal that up to 49 per cent of parents with children under 18 say that they have given in to their children’s pleading in the last 12 months.

A further 68 per cent said they would make financial sacrifices to be able to afford gifts that their children ask for.

Karl Elliott, spokesperson for Engage Mutual said: “With kids being spoilt for choice for toys, technology and games, many feel pressure from their peers to keep up with the latest gadgets and labels.”

He added that the research gives a new perspective into family finance with some children ‘wearing the trousers’ when it comes to family spending.

The survey found that up to 44 per cent of parents with children under 18 say that they cannot always afford what their children want or need, with 81 per cent of these parents being more likely to make sacrifices.

Meanwhile, the child poverty action group has welcomed the proposals in the budget stipulating that £1 billion will be put aside to help child poverty.

Tags: poverty, Parent, Childhood, survey found that, research, family, order

Homeowners need to set aside 20% of income to pay stamp duty, say experts

The average home buyer in nearly one in three of local authorities needs to set aside over 20 per cent of their average income to pay the stamp duty bill associated with buying a new home, according to mortgage experts.

Research from Halifax reveals that in 2002 the average stamp duty bill was equivalent to more than 20 per cent of average annual full-time earnings in only one in 20 of local authorities.

Martin Ellis, chief economist at Halifax, said: “A growing number of home buyers are paying the equivalent of more than 20 per cent of local average annual earnings in residential stamp duty.

“This trend is most prevalent in the south of England. But, other parts of the country are being affected as well,” he added.

The average homebuyer in South Buckinghamshire paid stamp duty of £21,241 in 2007, equal to 49 per cent of average annual full-time earnings in the area – the highest proportion in the country.

Meanwhile, recent research from Halifax has shown that the number of owner-occupied households in England fell by 83,000 between 2006 and 2007.

Tags: time earnings, Buckinghamshire paid stamp, average home buyer, south buckinghamshire, cent, research, equivalent, trend

Brits want fixed-rate mortgages according to research

Over half of British consumers would choose a fixed-rate mortgage if given the choice, reveals new research.

Findings from the Fairinvestment.co.uk shows that 30 per cent of these respondents said they would favour a short-term mortgage while the remainder would prefer a long-term fixed interest rate.

James Caldwell, director at Fairinvestment.co.uk, said that fixed-rate deals allow homeowners the security of knowing what their monthly repayments will be.

“The public are obviously wary of exposing themselves to the economy at large and are acting accordingly,” he stated.

Mr Caldwell indicated that consumer confidence has been affected by the uncertain economic outlook when the Council of Mortgage Lenders has announced recently that in 2007 there were 27,000 homes repossessed.

The survey also found that 23 per cent of homeowners would favour a tracker mortgage, nine per cent would opt for a discounted mortgage, eight per cent would chose a variable rate mortgage and three per cent would go for a stepped deal.

Meanwhile, according to research from the BBC, more than half of the repossession orders in the UK are brought by subprime lenders.

Tags: new research, Fairinvestment.co.uk, subprime, repossession, fixed rate mortgage

Over a £1bn spent on Valentine’s day

Over a £1 billion is expected to be spent on Valentine’s day, despite over half of consumers saying the day has become ‘over-commercialised’, according to new research.

Findings from research by Alliance & Leicester covering customer activity on the Valentine weekend last year indicate that debit card spending on flowers, restaurants and jewellery rose by 60 per cent compared with the previous week.

Last year men spent more than 36 per cent the normal amount in florists on Valentine’s day

Emma Walkley, senior current account manager at Alliance & Leicester, said: “Although people say Valentine’s day has been spoilt by over-commercialisation, spending patterns show that we still make an effort to celebrate it in some way.”

She added that consumer figures from last year reveal a ’spending rush’ on the day and those preceding February 14th in 2007, a trend expected to be repeated again this year.

Meanwhile, research from Halifax has shown that the average male spender is expected to pay £42 on flowers and £82 on eating out during February.

Tags: week, Valentine weekend, alliance, research, Flower

Increasing benefits to offshore banking

As increasing numbers of Britons move abroad there are increasing benefits to be found in banking offshore, one financial expert has claimed.

Natwest said that if you are working abroad or moving abroad benefits are “around the taxation side”, with consumers having increased access to specifically designed products.

Dave Isley, head of NatWest International Personal Banking, said: “Banks are becoming more and more sophisticated at providing very good products to help them do that.”

He adds that those looking to move abroad should ensure that consumers do their research “very carefully” as each country varies in terms of medical assistance and housing.

Consumers moving abroad need to know that they can afford to live there comfortably, Mr Isley concluded.

The comments come after Natwest’s latest report on British expatriates from across the world.

According to the new research, the desire for a better way of life was a strong reason to leave the UK, with over a third (37 per cent) of expats surveyed putting quality of life as their top factor for living abroad.

Tags: research, United States, quality of life, factor, access, financial expert, Legal entities, Banking

Credit card balance transfers better value than personal loans

Consumers looking to take out a personal loan may want to consider a credit card balance transfer instead, claim financial experts.

According to research from everyinvestor.co.uk, a borrower requiring £10,000 could save over £1,000 over a four year term if they choose to transfer their credit card balance rather than applying for a loan.

Chris Gilchrist, editor with the consumer advisors, said that lenders have raised interest rates on personal loan rates sharply in the past six months.

“Credit card companies continue to offer lengthy zero per cent balance transfers and even though you may pay balance transfer fees, this still works out well below the interest you would pay with a personal loan,” he added.

Industry commentators have predicted the end of the zero per cent interest balance transfer for the past 18 months according to the experts.

However, credit card companies are expected to continue to offer the rate in a bid to attract more customers.

Meanwhile, new research from Fool.co.uk has revealed that up to one in eight credit card holders in the UK have had their credit limits cut.

Tags: year, Business Finance, research, interest rate, industry commentators

Bridging loans “should not be employed”

Bridging loans should not be employed “unless absolutely unavoidable” claim a legal body.

AA Legal Services said that although broken property chains remain, they should never be considered a routine factor and if one is obtained as a last resort, it should only be used where the period is limited.

James Molloy, product manager for AA Legal Services, said that the market will never be rid of aborted transactions and broken chains.

“Certainly not without reform around making the commitment to proceed legally binding earlier in the process – as in the Scottish process,” he added.

However, in all cases, and with all financial products appropriate advice in individual circumstances is essential.”

Research from the Times estimated that one in three property chains is broken.

According to new research from Hometrack, house prices dipped for the fourth month running while the average time it takes to sell a property is on the rise.

Tags: research, rise, manager for AA Legal Services, Mortgage loan, month, house prices

“Imperative” for travellers to get the right insurance

It is “imperative” for travellers to ensure they have the correct insurance cover for their trip say experts.

STA travel said that every level of travel insurance is different offering various degrees of inclusion and levels of cover.

A spokesperson for the company said there is also a ‘no-one-size-fits all’ approach to purchasing travel insurance.

With adventure holidays and long-haul trips there are increased levels of risk which must be taken into account when selecting insurance cover.

“It may not be the most exciting, but travel insurance is probably the most important purchase you’ll make for your trip,” she said.

It will help you enjoy your trip, offering you protection “against the unexpected” she added.

According to figures from the Mintel Gap Year report, predictions are that the global gap year market will be worth £11 billion by 2010.

The research showed that the market demographic is split into those travelling before, during and after university, as well as those taking a ‘career gap’ and the post-retirement travellers.

Tags: protection, risk, travel, Oceania, research

Consumers better barometer of inflation than statistics

Spenders maybe “a better barometer of inflation” than statistics from the government’s Office for National Statistics claim financial experts.

Findings from research conducted among Fool.co.uk’s readers reveals that many believe inflation to be between six and seven per cent rather than the two per cent stated by the government.

David Kuo, head of personal finance at Fool.co.uk, said: “We are slowly beginning to see that these inflation figures are slowly beginning to feed through.”

He added that although at the moment interest rates are seen to be coming down because the Bank of England is very worried about a recession, “we do honestly believe that there is inflation within the economy”.

This time last year, the BBC reported that inflation was at an 11 – year high as higher fuel costs helped to push up the consumer price index (CPI) to 2.7 per cent in November.

On January 10th, the Bank of England voted to maintain the Bank’s rate at 5.5 per cent, having cut the rate by 0.25 per cent back in December.

Tags: research, Fool.co.uk's readers, government, fuel costs, cent, head, inflation, bbc

Buy-to-let sector remains upbeat

The optimism in the buy-to-let sector has not been deterred by predictions of a moderating property market, according to industry experts.

Research from the Association of Residential Letting Agents (ARLA) has revealed that only one in ten of landlords are considering selling their property.

A further 40 per cent of investors are looking to expand their property portfolios over the next year.

Ian Potter, head of operations at ARLA, said: “This is good news for the whole of the private rented sector and for the housing market, particularly as it comes from surveys carried out well after the credit crunch had begun to bite.”

The findings also show that 90 per cent of buy-to-let landlords also have no intention of selling up in the last quarter of 2007 within the next 17 years.

Meanwhile, house prices in the UK increased by just one per cent in the final quarter of 2007, according to research released today by the Nationwide building society.

Tags: nationwide, investors, last quarter, today, credit crunch, quarter

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

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

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

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

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

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

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

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

Consumers unsure of rate change impact

The majority of Brits are unclear on the value of a one per cent mortgage rate difference, it has emerged.

Research by Nationwide Building Society has found that 75 per cent of people in the UK do not know how much real difference this would make to their mortgage, which could be up to £4,000 on a five year fixed rate mortgage deal.

Meanwhile, when told to compare two five year mortgage deals to compare, the largest proportion of respondents (28 per cent) said there would be a difference of £500 to £2,000 between a £120,000 mortgage with interest of 5.6 per cent and one with interest of 6.6 per cent.

In fact the difference would be £4,000, which was correctly identified by just 23 per cent of respondents.

“People’s lives are busier than ever in the run up to the festive season and, as a result, they may be less inclined to shop around for the best deal. The temptation may be to take a slightly higher rate as an easier, less hassle option,” said Matthew Carter, divisional director for mortgages at Nationwide Building Society.

Tags: run, building, best deal, research, Real estate, mortgage, divisional director for mortgages

Hidden savings costs revealed

Easy access savings accounts can hold hidden charges for savers wishing to take out any of their money, it has emerged.

Consumers are urged to look at the small print of a savings deposit before entrusting their cash and laying themselves open to punitive measures, said Kevin Mountford, head of savings at moneysupermarket.com.

He commented: “It’s clear that some of these accounts deserve their place in the ‘easy access’ sector, but others should perhaps be categorised as ‘new notice accounts’.

“They do have a part to play in the market, but they are very much aimed at more disciplined savers. We know from experience that savers are different and save for different reasons.”

Mr Mountford added that savers should consider the details beyond the advertised rate and make sure they truly understand what they are signing up for.

Research from the website found that just four in ten of the highest interest-paying accounts give savers the chance to have unlimited access to their cash without losing any interest.

Tags: which, moneysupermarket, highest interest-paying accounts, punitive measures, interest, research, access savings accounts, different reasons

Yuppies of the 80s “come back down to earth with a bit of a bump”

Young Urban Professionals (yuppies) who enjoyed a lavish lifestyle in the 1980s are now forced to face up to the financial concerns of modern times, said Liverpool Victoria financial company.

Lucy Pope, a spokesperson for the company explained that, today, so-called yuppies face financial hurdles that were not necessarily existent 20 years ago.

She said that on strain on purse strings today is the fact that companies do not offer pension schemes in the same way they did two decades ago, making it even more important today that consumers make alternative saving arrangements.

“They might have felt that they were protected by their employers”

“There aren’t so many pension schemes and final salaries available [now], so you may not get the comfort of your employer as you may have done in the 1980s.”

She added that many people of the 80s yuppie era are now “playing catch up” having delayed saving for the future.

Recent research carried out by YouGov on behalf of Liverpool Victoria, found that 45 per cent of yesterday’s yuppies are now finding it a struggle to live within their means.

Tags: research, lavish lifestyle, Yuppie, pension schemes, Victoria, Social groups, liverpool victoria, LV=

Wrong insurance costs Brits £750 million

Having the wrong insurance cost Britons £750 million in the last year, according to new research.

The figure is the sum total of the value of claims people who had lost cars, holidays and other possessions which they thought were insured, but which turned out not to be covered by their policies.

One million people had claims rejected, with an average value of £736, the research from Tesco Personal Finance found.

The company also found that 55 per cent of insurance buyers only skim read the terms of their policies.

Peter Dingle, managing director at TescoCompare.com, said: “It is worrying that so many of us have made mistakes in the past twelve months. With the pace of modern life, many perhaps simply do not have the time to make sure they understand what they are buying.”

Mr Dingle’s comments are borne out by other findings in the research.

Four and a half million shoppers were found to have bought an item of clothing in the last 12 months only to find out later that it was dry-clean only.

Tags: cost, possessions, 12 months, Financial economics, Brits, research, britons, life

Opening joint account requires ‘utmost trust’

Couples considering opening a joint bank account must be sure to have the “utmost trust” in one another, according to the British Bankers’ Association (BBA).

Brian Capon, head of media relations at the association, explained that, while joint accounts are still a popular choice for couples and can be useful for bill paying and saving money, those involved must be completely confident in the others’ integrity.

“Regardless of who pays the money in, if it is an account which allows either to sign, either of those people can draw money out and there is nothing to stop them drawing it all out or potentially running up an overdraft,” he said.

He added that consumers must do their research properly before going ahead with such an endeavour, to find out their rights and responsibilities.

Recent research by Abbey National found that 93 per cent of people with a joint bank account used it for paying household bills, while 83 per cent used it for shopping and 72 per cent to pay for holidays.

Tags: integrity, Opening, couples, british bankers association, Abbey National

High-end mortgage industry sees growth

Despite only representing a small amount of mortgage business, demand for high-end products is growing, an industry expert has said.

According to Andrew Arnott, a spokesperson for Investec, larger-scale mortgage growth is hailing particularly from “areas of multi-currency mortgages”.
“Certainly more banks offer larger-size mortgages than in the past,” he said.

“A lot of the products on the market aren’t available if the loan size is over, say, half a million or a million pounds.

“It is more specialist players that deal with those sorts of mortgages, so it’s more difficult for borrowers to find products right for them.”

Recent research by Halifax Estate Agents revealed that the number of house sales for £1 million has tripled in the last five years, with 6,107 homes selling for over a million from June 2006 to June 2007.

Halifax has estimated that there are currently 88,000 houses in Britain worth in excess of £1 million.

Tags: business demand, Britain, research, high-end products, Real estate, mortgage, house, loan size

Tracker rate deals gaining popularity

Fear over the fate of the UK property market has led to a significant increase in tracker rate mortgage interest.

According to GE Money, tracker and discount products are set to account for a third of all broker business, representing a 120 per cent increase from the last quarter.

The changes results from the fact that 89 per cent of mortgage brokers believe that interest rates have peaked, with nearly half anticipating a fall in the base rate in the next few months.

Subsequently, brokers are increasingly recommending discount and tracker products over longer fixed rate deals.

Gerry Bell, head of mortgage marketing at GE Money home lending, said: “Consumers and brokers alike have clearly been concerned by the recent stress in the financial sector and our research indicates that the market is now being boosted by a possible decrease in interest rates in the coming months.

“This will also be welcome news to those homeowners currently coming to the end of a fixed rate product who are concerned about re-mortgage products and rates that will be available to them.”

The UK markets have felt the far-reaching impact of the sub-prime mortgage crisis afflicting the US this year that has led to worldwide credit squeeze.

Tags: crisis, Mortgage broker, research, cent, credit, interest rates, mortgage, welcome news

Banking ’smart’ could make a big difference to your love life

The right choice as to where to do your banking and in which accounts could even affect your love life, according to research from Abbey.

In a survey conducted among its current account holders it was revealed that arguments over how much money is spent on gifts had actually caused three quarters of a million of them to split up with their partners.

Some 5.9 million savers complained their partners did not spend enough on them and Abbey argues that banking with an account paying more interest could keep couples together, as it would enable them to buy each other more gifts.

Steve Shore, head of banking at Abbey, said: “Love doesn’t come cheap … we estimate it costs over £1,500 a year to be in a relationship.”

Its data shows average amount spent on presents for a partner is £95 on birthdays, £133 at Christmas and £97 on other gifts through the year.

Day to day expenses such as drinking and eating (£1,044) both in and outside the house and entertainment such as going to the cinema (£224) also eat into savings, according to the report.

Tags: cheap, birthdays, right choice, finance, amount, account, research

Britons improving to add value

Homeowners in the UK are taking the time and effort to improve their properties in the hope that it will boost value.

Research carried out by Halifax found that 25 per cent of people who carried out work on their home in the last year did so in order to increase its worth – up from seven per cent last year.

Some 16 per cent were inspired to improve their houses in order to make it easier to sell, a higher figure than the two per cent who did the same a year before.

“Our research shows that Britain has become a nation of movers and improvers,” said Patrick Swindon from Halifax. “It’s great to see that so many people are investing time and effort in improving their home.”

The study revealed that the most popular ways to improve property were redecorating for 66 per cent, overhauling the garden for 41 per cent and laying new flooring for 25 per cent.

Interior designer George Bond recommends that homeowners focus less on the wallpaper and more on the main rooms in the house.

“In my own experience, the major parts of the house to change to increase the property’s value are the bathroom and kitchen,” he said. “These are the key areas of the home; if these rooms are modernised, the property’s value will go up.”

Tags: research, designer, home, order, bathroom, George Bond, higher figure, experience

Britons using savings to ease cost of living raise

An increasing number of Britons are being forced to raid their savings to keep on top of a rise in the cost of living, new research has shown.

According to the Birmingham Midshires Saving Britain report, the average consumer has been forced to withdraw £400 from their savings in the past three months, a rise of 14 per cent on the comparative figures for the tail end of 2006.

The statistics suggest that Londoners were the most likely to turn to their rainy day funds and that northerners were the least likely.

And the over 50s were the age group most in need of the saviour of savings – taking four times more from their back up accounts than the over 30s

Urging Britons to take advantage of the financial climate to make more savings, Jason Robinson, director of savings operations at Birmingham Midshires, said: “While homeowners are feeling the pressures following Bank of England rate decisions, there has never been a better time for people to put away their money.

“Interest rates at a six-year high mean great returns for savers, whatever amount you can afford to put away.”

Previous research conducted by Birmingham Midshires found that almost a quarter of Britons had dipped into their savings accounts between July and September 2006.

Tags: Cost of living, average consumer, advantage, rainy, Midshires, research

Debt “now outweighs GDP” in UK

The debt mountain in the UK has now grown so high that it is now bigger than the country’s entire gross domestic product (GDP).

This is the shocking new claim from consultants Grant Morgan, whose research on debt, published today, lays bare the true scale of the problem in Britain.

The figures show a total debt – made up of mortgages and unsecured loans, among other debts – of £1,345 billion, which slightly outweighs a national GDP of £1,330 billion.

Stephen Gifford, chief economist at Grant Thornton, said: “Britain’s huge level of consumer debt is symptomatic of the country’s well established ‘buy now, pay later’ culture.”

He added: “Fortunately, most consumer debt is secured and can be repaid over several years otherwise we would be technically bankrupt.”

The implications of the research is stark. Extrapolating from national consumer debt as it currently stands, 2007 debt levels would now take until January 5th next year to be covered by GDP.

By contrast, just ten years ago, debt would already have been swallowed up by August.

Tags: Gross domestic product, product, level, shocking new claim, consultants grant morgan, Grant Morgan, country, research

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

Co-op: green products not necessarily more popular

So-called “green” financial services are not bought if the quality of the product is unacceptable, the Co-operative Bank said today.

A spokesperson for the bank said that the consumer “does not want to sacrifice anything in terms of the product just for the green credentials. People will not pay more – they will not pay more on their mortgage, they will not pay more on their credit cards – they won’t take a lesser product just because it is green.”

The bank stressed that green policies were generally “mainstream products” with “added on green features”, rather than standalone services.

Contrary to many customer preconceptions, the spokesman stressed that ethical policies were not much more expensive than “normal” ones.

When asked whether a green service purchaser would be more likely to go into debt is a result, the spokesperson replied that he did not think it was an issue.

The statements from the Co-op chimes in with research from unbiased.co.uk, showing that around 50 percent of those polled say that they are not prepared to pay more tax to tackle climate change.

Tags: today.A spokesperson, United States, ethical policies, The Co-operative Group, today, green products, research

High income mortgage basket to become “more sophisticated”

The mortgage market for those on high incomes will become “more sophisticated” to match the increasingly varying ways that people earn money, a bank said today.

Private bank and mortgage lender Investec said that high-earning clients were increasingly seeking out more flexible and adjustable mortgages.

Indeed, so great has demand been that they have launched more personalised services such as multi-currency mortgages, limited to those who earn more than £150,000 per year and looking to borrow at least £500,000.

Spokesperson Wayne Preston commented: “Multi-currency mortgages aren’t for everybody…They need to understand markets. They need to understand interest rates… It’s really a more sophisticated type of individual or investor who understands that type of market.

“What clients are looking for is some alternatives in the market today”, he surmised.

Investec also revealed research which suggests that more than 100,000 Britons bring home over £200,000 each year.

Analysing Land Registry data, the bank also says that the number of £1 million homes increased by 48 per cent last year.

Tags: sophisticated type, Land, research, land registry, money, Britons bring home, income, Spokesperson Wayne Preston

Saga issues travel insurance warning

Holidaymakers who purchase their travel insurance well before they leave are more likely to successfully claim all their money back than those who do not get covered until the last minute.

According to new research, 68 per cent of people who buy their insurance well before going on holiday can claim their money back should the trip be cancelled.

This number is far lower (52 per cent) for those who purchase their insurance in the week leading up to the trip.

Saga Travel Insurance, the firm behind the research, points out ten per cent of respondents revealed that they had lost out financially in the past because something had gone wrong before they had bought insurance.

The most common causes for a trip being cancelled include a travelling companion falling ill or having an accident and family bereavements.

“This research clearly demonstrates the need to secure insurance well before you plan to travel as the cover is in force from the date it’s purchased, not just whilst you are actually away,” said Andrew Goodsell, chief executive of Saga Group.

Saga is also telling holidaymakers to make sure that they have a European Health Insurance Card (Ehic) before travelling anywhere within the EU.

It allows EU residents to get medical care in any EU country and replaces the old E111 form. However, 29 per cent of respondents were unaware that the E111 is no longer valid.

Tags: research, Financial economics, date, date it, European Union, Saga Travel Insurance

Homebuyers told beware hidden costs

The average British household will spend an additional £23,800 in hidden costs when moving home.

Research by the Co-operative Bank shows that we fork out this amount during our lifetime while moving and few of us have a contingency plan in place to do so.

The figure is greater than the average salary in the UK and Co-op warns that those moving home should be prepared for the additional costs.

Only 56 per cent of those asked said that they had a fund in place to meet these costs, while 15 per cent sink further into debt by taking out a loan to cover the expenditure.

The hidden costs include solicitors’ fees, stamp duty, removal costs and estate agents fees and Co-op is concerned that many buyers are getting into financial trouble by not being properly prepared.

“As house prices have continued to increase it is important for people to look at the bigger picture in terms of costs,” said John Barker, head of mortgages at the bank.

“Hidden costs that are not budgeted for can soon mount up and by having a contingency fund in place it will enable people to be fully prepared for any eventuality.”

The study also found that Brits are happy to sacrifice a number of things in order to get onto the property ladder.

Around 28 per cent said that they do not go on holiday so that they can afford a house, 21 per cent give up eating out and 18 per cent do not buy new clothes.

Tags: business, research, eventuality."The study, co operative bank, Homebuyers, average salary, Opportunity cost, uk

Tired driving warning

Motorists are being warned of the dangers of driving while tired, following new research from insurance firm esure.com.

The company has published a report, entitled ‘Yawning Nation’ and found that driving a long distance is the most likely everyday activity to make you yawn.

A total of 44.2 per cent said that sitting behind the wheel for a long time leads to them feeling quite sleepy and an astonishing eight per cent admit to having fallen asleep while driving.

The dangers associated with this are massive and well publicised and many drivers say that they try to take action to counteract the effects of tiredness.

The majority of people, 81 per cent, open the window in order to remain awake, while a further 64 per cent turn on the air conditioning.

Music is often used, with 50 per cent singing along to the radio or a CD and 43 per cent playing loud music.

Despite this, experts point out that most people are simply wasting their time with these ’stimulating’ methods.

“The methods that drivers say they are using to keep themselves awake in the car are all ineffective. They will not stop people from falling asleep unintentionally or fend off a distracting yawn,” warned Dr Chris Idzikowski from the Edinburgh Sleep Centre.

“The only thing to counteract tiredness behind the wheel of the car and fully recharge the human battery is having caffeine followed by two closely spaced 20 to 30 minute naps before setting out.”

Tags: recharge, Insurance, Tired driving warning, new research, cent admit, loud music, research, order

Brits spend billions on conversions

British homeowners have spent over £90 billion on converting ‘dead space’ in their homes.

Research by AA Financial Services shows that 20 per cent of mortgage holders have converted attics, garages, cellars and sheds to make them liveable areas.

The main driving force for the majority of people was to increase the value of their property, with 27 per cent citing this reason.

Money appears to be a major factor when it comes to conversions, with 17 per cent of those asked saying that they would have preferred to leave the ‘dead space’ as it was but needed to room and could not afford to move.

Others though were simply keen to get the most from their property, especially as house prices continue to rise.

“Many homeowners relish turning unused or ugly areas of their homes into liveable rooms as it means more space for family and less dusty boxes and clutter,” said Janet Pell from AA Insurance.

“But it is important that you ensure you have the appropriate building regulations approval before going ahead.

“And make sure you update your home insurance cover following an extension or conversion – your three-bed cottage might suddenly become a four-bed house – and of course, you’ll have additional furniture and possessions too.”

It is worth noting however, that if your property does become a four-bedroom house, it will be subject to the new Home Information Pack regulations from August 1st.

Tags: research, cent, cover, three-bed cottage, possessions too."It, home insurance, mortgage holders, conversions

Finances are taboo

Most of us are more comfortable talking about health issues with friends and loved ones than we are discussing finances.

That is according to Scottish Widows which carried out research into the subject and found that banking has become a taboo subject.

Two thirds of us apparently do not tell our family members how much we earn and only one third know how much our partners earn.

One in five admit to being uncomfortable talking about salary, savings and investments with out partners, yet we are most comfortable discussing money with our work colleagues.

Men are said to be twice as likely to reveal their salary to a work colleague as they are to their mates.

Scottish Widows’ customer and brand marketing director Mike Hoban is surprised by the trend but says that it also explains why many people’s finances are in a mess.

“As a nation, we’ve become increasingly liberal – we are happy to talk to our loved ones about sex, relationships and health problems, but despite this modern trend in honesty it seems that money is now the topic we avoid,” he said.

“It’s no surprise that the nation is under-saving and under-preparing for the future when money is clearly such an uncomfortable subject.

“If you really can’t face discussing money with people you know, it might be a good idea to seek professional financial advice,” he added.

Tags: Widows, research, scottish widows, Scottish, family members, hoban, investments, salary

Mortgage payments up 15%

Mortgage payments across England and Wales are increasing, leaving many homeowners in a precarious situation.

New figures, published by Woolwich Mortgages, shows that mortgage payments in April of this year reached £590.

That is an increase of £78 on the figure for the same month in 2006 and signals a rise in costs of 15 per cent.

Clearly this is going to have an effect on the financial situation of many homeowners and this is compounded by the fact that household net earnings have only increased by five per cent in the same time period.

Andy Gray, head of Woolwich Mortgages, is concerned that many people will be beginning to feel the pinch, especially if further interest rate rises are introduced.

“Mortgage borrowers are really getting squeezed. With the costs of council tax, petrol, food and drink, as well as mortgages, all increasing, consumers are seeing a large amount of their earnings being diverted to essentials, putting real pressure on disposable income,” he said.

“Most commentators are suggesting that interest rates will increase further this week. However, our research shows that that the three interest rate increases over the last 12 months are already starting to have a major impact on borrowers.”

The figures released for April put mortgage payments at the highest level they have been since Woolwich began collating the data in 2002.

Tags: disposable income, Impact, commentators, head, precarious situation

Burglaries, vandalism on the rise

The latest figures show that overall crime in Britain has fallen by two per cent but homeowners will be concerned that burglary and vandalism rates are up.

Home Office statistics reveal that burglaries rose by eight per cent, while vandalism increased by 11 per cent in the final quarter of 2006.

These figures have led to a leading insurance firm carrying out its own research in which it found that one in ten Brits have had their property vandalised.

According to research by Lloyds TSB, half of the population believe that vandalism is one of the biggest problems currently facing modern British society, while 22 per cent are concerned that they will become a victim.

The most common form of vandalism is the ransacking of homes, while smashing windows, damaging fences, putting graffiti on walls and smashing garden ornaments are also popular.

“Prevention is always better than cure when it comes to crime and it is great to see evidence that crime appears to be falling in some areas,” commented Phil Loney from Lloyds.

“However our own research backs up today’s crime survey figures which show that vandalism is a problem on the rise. Insurance is vital in this equation and home owners can’t afford to cut back on their cover.”

The perceived causes of vandalism are varied with many Brits blaming a lack of discipline at home (79 per cent), boredom (74 per cent), alcohol and drug abuse (70 per cent) and the lack of a deterrent (44 per cent).

A further nine per cent even blame modern music for the rising crime.

Tags: modern british society, Law Crime, percentage, deterrent, society, insurance firm, research

Dirty weekend is dead

The days of the dirty weekend appear to be fading away, with new research showing that most of us prefer to go away with friends.

New research by AA Insurance shows that 55 per cent of people in a relationship have gone on holiday without their lover, while 13 per cent admit they enjoy short breaks more when their partner stays at home.

The most popular reason for taking a break without our partners, cited by 22 per cent of those asked, is that we want to do an activity which our other half does not enjoy.

A further ten per cent say that they go away alone because they need some space.

“For many, mini breaks are a chance to have some time away from their partners and do things they wouldn’t necessarily do if their partner was with them,” said Clare Emsley from the AA.

The new partner-less mini-break has been dubbed a Clean Weekend and a number of insurance firms are offering special premiums for people taking this kind of holiday.

However, many people will find that it is far cheaper to get travel insurance for a couple than on an individual basis.

Tags: activity, research, basis, New, holiday, Clean Weekend, mini, fading away

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: holiday, purchases, cent, research, Credit card holders, provider

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: provider, penalty, interest, research, majority, Credit Cards

First-time buyers making sacrifices

First-time buyers are prepared to give up many of their creature comforts in a bid to get onto the property ladder.

That is according to research from Abbey, which shows that 53 per cent of people are willing to give up their holiday, while 49 per cent would be prepared to not drink alcohol.

Many potential buyers (21 per cent) say that they would sacrifice their independence by moving back to their parents’ home while saving for a mortgage.

A total of nine per cent of those asked are willing to take even more drastic action by splitting from their partner if it meant that they could buy a home sooner.

“With first-time buyers struggling to get onto the first rung of the property ladder, prospective homeowners are having to make big sacrifices to build their finances,” said Nici Gardiner, head of mortgages at Abbey.

“However with a typical first-time buyer taking as long as five years to save up a five per cent deposit, people would need an iron will to sacrifice anything they enjoy for that long.”

Recent figures from the Royal Institute of Chartered Surveyors show that accessibility has got 230 per cent worse in the last ten years due to very sharp increases in house prices.

Abbey says that the average first-time buyer needs to raise £32,784 in order to get onto the property ladder, the equivalent of 81.8 per cent of the average joint income.

Tags: research, First-time, surveyors, head, property, house, anything, Gardiner

Bank charge row

The British Bankers’ Association (BBA) has hit out angrily in retaliation to a Which? magazine report that claimed banks are trying to trick their customers.

The publication looked into bank charges and found that many banks are employing “underhand methods” to prevent consumers challenging the charges.

According to the report, those who attempt to challenge the banks can be threatened with account closure and having their details passed onto debt collectors.

“In an attempt to avoid paying consumers what they are due, we have found banks employing increasingly underhand methods,” said Doug Taylor from Which?

“It is important that the exposure of these tricks does not put people off reclaiming their charges, though, as that would be playing into the banks’ hands.”

In response to the claims made by Which?, BBA has launched a scathing counter attack, labelling the report “sensationalist” and “personally insulting”.

BBA says that it is perfectly reasonable for a bank to close a customer’s account when it is clear that the relationship has broken down.

Additionally, the organisation points out that a bank is acting within its rights if it chooses to use a debt collector if it has chased an individual a number of times.

“Which? is clearly trying to exploit its position as a consumer body by sensationalising what could be a useful piece of research,” said Angela Knight from BBA.

“The way in which Which? has approached this is not only sensationalist, it’s also personally insulting to the front line bank staff who do an excellent job serving their customers.”

Another report into bank charges, carried out by the Office of Fair Trading, is due to be published soon.

Tags: office of fair trading, relationship, bank, research, british, banks, Bank charge

More Brits banking online

Britain is becoming a nation of internet bankers, with new figures showing that we are becoming more comfortable with sorting out our finances online.

New research, carried out by Lloyds TSB, shows that over two thirds of us do the majority of our banking on the internet.

This is a huge leap when compared to 2005, when just 18 per cent of Britons said most of their banking was done online.

Despite the common perception that the internet is the plaything of the young and not well used by older people, Lloyds found that, when it comes to banking, the opposite is true.

A staggering 70 per cent of people over the age of 50 said that they prefer to do their banking online, while those aged between 18 and 25 are the least likely to manage their finances in this way.

“The growth of internet banking is phenomenal and this year is set to break records,” said Anita Hockin, head of internet at Lloyds.

“This popularity isn’t surprising given the convenience of banking online. It’s possible not only to check your balance, but also to pay bills, set up standing orders and direct debits and move money between accounts at the touch of a button.”

Lloyds’ research found that of the ten per cent of people that do not bank online, the main reason given was that they do not feel the need.

Tags: research, growth, majority, Technology Internet, head, Banking Services, Business Finance, online