Consumers should seize opportunity to overpay their mortgages

Industry officials are urging consumers to seize the opportunity to overpay on their mortgages whilst the base rate remains at its all time low of just 0.5 percent. This is the lowest level the base rate has ever been in the history of the Bank of England, which spans over three centuries, and has been at this level for nearly two years.

However, there are now fears that the base will have to increase at some point in the near future, which will result in repayment for those with variable rate mortgages increased again. Over the past two years these homeowners have seen their monthly repayments plummet, leaving them with more disposable income each month and reducing the risk of repossession for non-payment of mortgage.

However, by overpaying their mortgages whilst they have spare money consumers can significantly reduce the term of the mortgage loan as well as the amount that they end up paying in interest. Officials are now telling consumers to consider making these overpayments whilst they still can before the interest rate increases again. Many homeowners have already been making overpayments since the base interest rate fell, and officials have said that the low interest rates combined with the uncertain future facing many people means that it would be sensible to overpay on the mortgage at this stage.

One official said: “Whilst homeowners may be enjoying the chance to spend some extra money from the savings that they are making on repayments the money would be far better spend on paying off as much of their mortgage debt as possible. Those that have been making overpayment since the base rate fell will save a fortune on the interest that they pay and will find that the mortgage is paid off much, much earlier than had been originally planned.”

Tags: sensible, payment, centuries, spare money, bank, risk

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

Further increase expected with credit card interest rates

Over recent years there has been a lot of controversy with regards to the high rate of interest that is charged on many credit cards, with campaigners, consumers, and various other officials pointing out that the gap between the base interest rate – which is at its lowest level on record at just 0.5 percent – and the average credit card interest rate was getting wider and wider.

Whilst the base rate has been at its all time low for well over a year now credit card interest rates have continued to increase, leaving many credit card customers who are unable to settle their balances in full at the end of each month facing very high levels of interest on their debts. However, despite the controversy it appears that the problem could be set to get worse.

According to reports experts from the credit card industry are predicting that credit card companies are set to increase credit card interest rates even further, and this could further impact on the finances of many people that are already struggling to stay afloat. Experts believe that credit card providers will increase their rates in order to offset the risks that they are having to take.

Recent research showed that over five million consumers in the UK had admitted to using their credit cards on a regular basis to make bill payments and other essential payments, and this means that the higher interest rates could take their toll on many people.

A spokesperson from Moneyfacts.co.uk said: “Providers have been putting rates up and obviously there’s high unemployment and the risk of people defaulting and not repaying their debts is still quite high, so they’re very strict on who they give their cards to. The customers that pay off just the minimum every month are going to be the ones who are hit hardest. They’re going to add, maybe, hundreds of pounds extra on to their debt and take a lot longer to repay [it].”

Tags: risk, personal finance, Credit Cards, increase, interest, Credit card

Comparison sites could help find the best credit card deals

Industry experts have recently said that in the current financial climate, with many credit card companies cutting back on deals and enforcing more stringent regulations, many consumers could find that they are better off using a comparison site to find the most suitable credit card deals for their needs. Read more

Tags: risk, card provider, compare credit cards, Credit Cards, card comparison sites, damaged credit, comparison site, credit card comparison

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

Still no major risk of recession

A recent report from the Ernst and Young ITEM club claims that despite the various factors affecting the economy and the financial climate in the UK, the risk of a recession occurring is still pretty low. The economy has suffered a slow down over recent months, and this is expected to continue over the course of this year. However, it is unlikely to end in recession according to the data on the report. Read more

Tags: cheap no-questions-asked credit, interest rate, economy, Ernst & Young, england, risk, major risk, bank of england

Many people could find it even more difficult to sell their homes

A recent report has shown that many homeowners in the London area could find it increasingly difficult to sell their homes in the near future, as a result of new plans that may be introduced to force homeowners to inform potential buyers about the risk of flooding. It is already very difficult for many homeowners to sell their properties due to problems in the mortgage and housing markets, and this could matters even worse for many more. Read more

Tags: housing, housing markets, danger, United Kingdom, mortgage

Fraudulent motor insurance claims come to five million a week

According to a recent report motor insurance bodies have discovered fraudulent motor insurance claims that are amounting to around £5 million a week in terms of value. Officials from the Association of British Insurers said that last year around twenty four thousand fraudulent motor insurance claims were uncovered, and these amounted to £260 million, which equates to £5 million a week. This reflects the level of the problem when it comes to fraudulent insurance claims, both in the motor insurance sector and other insurance sectors. Read more

Tags: level, vehicle, Business and Economy, criminal record, insurance industry faces, risk, fraud, motor

Holidaying without insurance “incredibly irresponsible”

Going on an adventurous holiday and risking serious injury without travel insurance is “incredibly irresponsible”, the Association of British Travel Agents (ABTA) has said.

A recent survey for the Foreign Office revealed that 20 per cent of people aged over 55 took risks on holiday that they would not have taken at home.

Furthermore, it was found that almost two-thirds (65 per cent) of over 55-year-olds did not take out travel insurance for their last holiday.

Sean Tipton, press officer at the ABTA, said it is “extremely foolish” for people to travel uninsured, particularly on an adventurous holiday such as skiing.

By not taking out travel insurance, holidaymakers could save “£30 or £40″, but in the event of a serious accident they “run the risk of having to sell [their] house to pay the bill and travelling uninsured is just a very foolish thing to do to”, says Mr Tipton.

Tags: tipton, Skiing, home, risk, bill, injury, holiday, finance

Direct Line: Advice on reducing risk of burglary while on holiday

Homeowners going on holiday should ask friends or neighbours to check their property and collect post to reduce the risk of burglary while they are away, Direct Line has said.

Andrew Lowe, head of Direct Line home insurance, advises people to take a number of “simple measures” such as making sure their valuables are hidden out of sight and the curtains are drawn before setting off on holiday.

Leaving valuable items where they can be seen can cause serious problems warns Mr Lowe: “People should make sure they don’t leave credit cards, keys and personal documents out in the open as replacing these items is often difficult and can also result in ID theft.”

He also highlighted the importance of having the right locks fitted to doors and windows, saying that key-operated window locks and five-lever mortice door locks are a good option.

A professionally fitted and maintained burglar alarm and lights which illuminate potential entry-points can also help to reduce the likelihood of a property being burgled.

Homeowners will be pleased that burglaries in England and Wales have fallen by 59 per cent between 1995 and 2006/7 from 1.77 million to 726,000, according to the Home Office.

Tags: good option.A, leave credit cards, likelihood, Andrew Lowe, Direct Line home, collect post, Robbery

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

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

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

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

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

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

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

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

Travellers need to remember European Health Insurance Card

Travellers need to remember to take their European Health Insurance Card (EHIC) with them when they go to Europe, warn insurance experts.

According to the AA, the card, previously known as the E111 form, offers health insurance which is always a “good idea” when travelling.

Ian Crowder, public relations manager for the AA, said that the EHIC is a reciprocal agreement with the NHS should allow holidaymakers to receive treatment in EU countries free or at low cost should it be required.

“[However], depending where you are may depend on the standard of service you get,” he added.

Research from gapyear.com states that a quarter of those who go travelling do so uninsured or underinsured which can put their parents’ homes and financial security at risk.

Up to 230,000 people take a gap year between the ages of 18-24 who have an average spend between £3-4,000.

A further 90,000 people take a gap year between the ages of 25 and 35 and spend an average sum between £6-9,000.

Tags: financial security, security, Gap, standard, risk, nhs, Ian Crowder

InterRailers should take out adequate travel insurance

InterRailers should ensure they have adequate travel insurance when exploring Europe, an financial expert has warned.

STA Travel said that insurance should be part of the essential preparation a traveller undertakes before setting out on an interRailing trip.

A spokesperson for the company said: “Take insurance. With all your possessions in one bag, it is advisory to take adequate travel insurance. Also, make sure your insurance also covers the loss/theft of your InterRail pass.”

She added that those embarking on a journey could save themselves money by booking accommodation in advance of arriving at their destination, or travelling by night which could completely remove the cost of hotels.

Recent statistics from gapyear.com showed that a quarter of young travellers go abroad uninsured or underinsured, which puts their parents’ homes and financial security at risk.

According to an article on guardian.co.uk, the number of people taking a gap year continues to rise.

The market was last valued at £5 billion in a Mintel report of 2005, but is predicted to rise to £20 billion by 2010.

Tags: gapyear, risk, taking a gap year, journey, europe, parents, finance, com

“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: travel, gap year, research, global gap, cover.A spokesperson, protection, Oceania, risk

Hedge your bets with Post Office savings bond

A new five-year savings bond has been launched this week, offering savers a risk-free route to high returns.

The Post Office has announced the launch of the fifth issue of its Fiveyear Saver bond, which permits savers to benefit from gains in the stock market without taking on the risk of losing their money.

The bond delivers 7.5 per cent gross interest on half of the sum deposited, plus 50 per cent of any rise in the FTSE 100 index on the rest it over the course of the five year period. People’s savings are thereby insulated from any risk of loss.

Post Office director of savings and investments Richard Norman said: “Although many investors are seeking to benefit from gains in the stock market, they also want a guarantee that they won’t lose their money.

“Post Office Fiveyear Saver is a secure investment which gives a guaranteed return, while still offering the growth potential of the FTSE-100 Index. There is no risk of losing your original deposit and you can invest from just £500.”

The maximum investment is £1 million, and the offer period is open until January 11 next year.

Tags: Post Office director, route, risk, Fiveyear Saver bond, Hedge, offer, Fiveyear, growth

Fixed-rate mortgages on expensive buys

Property investors are advised to take out fixed-rate mortgage when purchasing high-value properties.

According to Bestinvest, when mortgage repayments increase by even a small amount, homeowners paying off debts on a high-value property can find their repayments increasing dramatically.

With any changes to the Bank of England’s interest rate, house prices and borrowing costs are directly impacted. With a fixed-rate mortgage, buyers are not vulnerable to these fluctuations.

Peter O’Donovan, mortgage manager at Bestinvest, advised that young professional first-time buyers should consider a mortgage with a fixed rate: “It obviously is down to the person’s view of risk, and what they have in the background to support their mortgage repayments.

“But in general I would suggest to people borrowing a larger sum for the first time to take a fixed rate, because it’s quite a large part of their disposable income going [towards repayments].”

The latest statistics from the Council of Mortgage Lenders show that 3,000 mortgages worth £250,000 to £500,000 were taken out in July this year by first-time buyers. This represents a rise from January’s figure of 2,000.

Tags: risk, first time buyers, manager, interest rate, fixed rate mortgage, Peter O'Donovan, figure

Students urged to cover contents

A significant number of the UK’s students could be starting the year’s learning with inadequate home contents insurance, putting them at risk of financial loss.

That is according to new research from Abbey, which found that around 30 per cent of undergraduates will probably start the academic year without protecting their belongings.

Despite the fact that 95 per cent own a computer, some 14 per cent of students have not thought about insuring their possessions or think they are not of a high enough value to warrant cover.

Some seven per cent said they would not afford the cost, while nine per cent didn’t get around to arranging it or spent the money for it on something else.

“Over 60,000 students believe the value of their belongings does not justify buying insurance, but we find many people are shocked with how much their belongings are actually worth,” said Abbey’s head of insurance marketing, Prasad Shastri.

The study also found that students will take around £3,300 on average worth of items with them to university this year.

A separate report from Cornhill Direct encouraged parents recently to check their own home insurance policies to ensure they cover student offspring’s belongings.

Tags: Business and Economy, belongings, home, risk, student, home insurance

Pet insurance affected by location and housing

The cost of insuring a pet can be affected by where the animal is housed and what part of the country you live in.

According to insurer Allianz, there are various factors which determine the price of pet insurance premiums such as the age and breed of a pet, how much it cost to buy it, how much physical activity it takes part in and if the owner lives in an area where it is expensive to run a veterinary surgery.

Clare Wheatley, risk and underwriting manager for Allianz’s Petplan programme, noted that “the cost of setting up and running a vet practice can vary greatly across the UK”.

She added: “We take a pet’s age, breed and location into account when insuring them.

“Age is a factor because just like humans, pets are more likely to fall ill as they get older. A man or woman may develop diabetes and arthritis later in life, and so may a pet. Therefore, to cover the additional risk of insuring an older animal we charge slightly more for dogs over the age of eight (five years for some breeds) and cats over the age of ten.”

Tags: United Kingdom, Physical exercise, pet, Financial economics, woman, risk, allianz, Human Interest

100 per cent-plus mortgages safe

A predicted slow down in house prices should not dampen the optimism for 100 per cent plus mortgages, experts have claimed.

Bestinvest, a financial advice firm, claim that even if house prices stabilise, 100 per cent borrowers will not be at risk of negative equity.

However, the company maintains that this type of borrowing is not for everyone and advice should be sought before taking up such a loan.

Peter O’Donovan of Bestinvest said: “Eventually house prices will continue to increase. And hopefully as they pay off their mortgage, of course, they reduce that burden on the loan-to-value.”

He added: “It’s down to affordability – speaking to a client, getting to know them properly and being able to recommend these sorts of products knowing that you aren’t putting them in any sort of danger.

“Lenders themselves do say ‘no’ if they don’t think its right. They don’t want to have to repossess in a year’s time, it’s not good business.”

However, the Royal Institution of Chartered Surveyors warned that there may be a one in ten chance of a housing market crash in the UK.

Tags: percentage, Mortgages, danger, lenders, risk, housing market crash, donovan

Pre-paid cards ‘help people budget’

Using pre-paid cards instead of credit cards can help people to budget more accurately, as well as being convenient and secure.

That’s according to Mark Simon, chief executive of card provider Tuxedo, which is teaming up with the Sun and Newcastle Building Society to launch a pre-paid card.

“There is no credit involved and as a result there is no risk of going over-drawn and there is no risk of incurring credit costs,” he said. “It allows people to plan and control their finances according to the credit they have.”

Because buying online requires a credit card, pre-paid cards offer a secure and simple way for consumers to purchase via the internet as well as on the high street, Mr Simon said.

“You’re putting money on a card which is very convenient and secure but also using it for payments online and offline,” he explained. “It really offers the customer … convenience and, crucially, security.”

Such a card could be especially useful for people with a poor credit rating. “This is absolutely for them because they can spend money they have and they don’t have to incur credit exposure,” Mr Simon said.

Tags: teaming, poor credit rating, mr simon, risk, pre paid card, pre-paid card."There, High Street

Younger drivers ‘pay more for insurance’

Revealing that one in three male drivers writes off a car in the first year after passing their test, car insurance provider Direct Line has warned young males that they will always have to pay higher premiums because they pose a greater risk.

A spokeswoman for the insurer explained: “Young drivers present a greater risk than experienced drivers, and, as insurance is based on risk, they will pay a higher premium. They are much more likely to have an accident. Those who present higher risk pay a higher premium.”

She explained that newer drivers would always suffer higher premiums because of their inexperience on the road, but advised those looking to minimise the financial damages to invest in a smaller car and take advantage of the Pass Plus advanced driving scheme.

“It is a government run initiative and it is six one-hour sessions and it costs around £100 to take and you can do this and get 35 per cent off,” she added.

A recent survey from Churchill Car Insurance revealed it is not just new drivers who pose a risk on the roads. More than one million infrequent drivers suffer from “rusty driver syndrome” and forget basic rules of the road, the insurer found.

Tags: insurer, insurance provider, risk, government run initiative, finance, Types of insurance

Garden goodies ‘attract thieves’

People in the UK should ensure that the contents of their gardens are adequately insured as opportunistic thieves may be tempted to help themselves.

That is according to John Potter, the director of Saga, who has advised Britons to check that their policies cover items like garden furniture.

“Even the more modest garden furniture sets can cost hundreds and whilst many policies, like Saga’s, do provide cover as standard it is important for people to check to ensure their cover truly reflects the value of their set,” he said.

Research from the Target Group Index showed recently that more than a million people in the UK spend £150 each year just on plants.

“Add to that the cost of a barbecue, patio heater, garden ornaments, garden furniture sets and even bird tables and bird baths and the cost of a garden can soon run into thousands,” Mr Potter added.

A recent report from Halifax warned that during the summer months, many homeowners risk invalidating their home insurance by leaving windows open.

Tags: summer, group, furniture sets, risk, bird tables

Gay applicants “fairly treated” by life insurers, says ABI

The infamous ‘gay question’ during life insurance applications is no more, the Association of British Insurers (ABI) reassured consumers today.

Whereas previously, applicants had been asked point-blank to specify their sexuality, the ABI has moved to confirm that, under a statement of best practice implemented in 2005, a more non-specific question regarding HIV status is asked.

Claimants are also reassured that any past negative tests they might have taken will have no bearing on their life insurance.

A spokesperson for the association said that “it’s possible that there has been a perception that applications were not treated in the same way in the past, but now no longer do people have to disclose…what their sexuality is.”

“There is government legislation now which means that you don’t have to disclose whether you’re in a civil partnership, so there can be no way that the insurance company knows what your sexuality is.”

Many gay men had felt unfairly treated by the question, which implied that their sexuality posed an inherent insurance risk, providing the impetus for the reform.

Tags: past, education, risk, Association of British Insurers, perception, life, question regarding hiv

Insurers warn of premiums rise due to floods

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

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

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

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

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

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

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

Tags: Insurance, Eastern England, emergency, home insurers, price comparison website

Smokers lose money on insurance premiums

Most smokers realize that by kicking the habit they could save a fortune each year, with many smokers spending thousands of pounds each year on cigarettes.

However, many forget that in addition to saving money on the cost of cigarettes, which can then be used for anything from luxury holidays to investments for the future, they can also save money in areas, one of which is insurance.

There are many different types of insurance cover, and the main ones on which smokers can save money include medical or health insurance cover, life insurance cover, and home insurance cover.

Smokers are classed as an increased risk when it comes to these types of insurance cover, and as a result of this increased risk most smokers pay considerably larger premiums than non-smokers, which adds to the overall cost of being a smoker.

When it comes to medical and health insurance, smokers are more likely to make a claim because of the health risks and illnesses associated with smoking, and therefore have to pay higher premiums. With life insurance, smokers are more likely to contract a terminal illness such as cancer due to smoking, and again as a result of this the cost of premiums are pushed up.

And in terms of home insurance, smokers are classed as an increased risk when it comes to fires in the home, and this also pushes up the cost of insurance premiums.

It is also thought that the number of people in the UK smoking in their homes, and therefore being classed as an increased fire risk, will increase, as the smoking ban in public places has now come into force in the UK.

Although many smokers now aim to give up altogether, which could boost their finances in many areas, many others will resort to staying in and smoking in the home rather than going out to pubs and clubs where they can no longer smoke.

Tom Smith
5th July 2007

Tags: life, increased, house, smoking, public, homes, ban, risk, health, clubs

Citizens Advice urges caution with consolidation loans

With record numbers of consumers struggling to pay off unsecured loans, a consolidation loan can sometimes be seen as a reasonable way out, but Citizens Advice
has warned debtors to consider all options before signing up to the agreement.

Speaking to The Observer, Peter Tutton, a social policy officer specialising in credit and debt for Citizens Advice, stated that an alarming number of people were signing up to consolidation loans when in fact, these agreements could make them worse off financially.

“There are problems with secured consolidation loans – we’re seeing lots of evidence that where people do get into [financial] trouble, they’re being pushed into consolidation,” said Mr Tutton.

Problems arise when consumers take out a secured consolidation loan for an unsecured debt and find that if they cannot meet the repayments, their home is now at risk.

James Ketchell, a spokesman for the Consumer Credit Counselling Service, added that in some circumstances, consolidation loans could be beneficial as the interest rate is often lower than with an unsecured loan.

Having said that, he stressed that in general, it was only a solution for five or six years, since consumers usually then built up more credit card debt and personal loans and put themselves into an even worse situation than before.

Consumers are advised to seek independent advice if they are concerned about their financial status and to consider all of their options before signing up to a fiscal agreement.

Tags: debt, Peter Tutton, risk, independent advice, service, financial trouble, Citizen's Advice Bureau, finance

Pet costs ‘overlooked’ by Brits

Pet insurance prices and veterinary fees are among many costs forgotten by pet owners in the UK, who are currently paying out a collective £520 million each year, according to Halifax Pet Insurance.

The insurance provider claims that the average cost of buying a dog in Britain is £282, or £92 for a cat, and that some 59 per cent of Britons did not research the potential cost of their pets before they made a purchase.

Vets bills alone were one of the most overlooked costs among the 1,000 people surveyed, with owners allegedly underestimating costs by as much as 103 per cent.

“It is worrying that so few pet owners are researching the upkeep costs for their chosen pet before selecting an animal,” said Halifax spokeswoman Vicky Watson.

She added that the cost of keeping a pet varies enormously between different breeds due to the amount of food required and the different ailments that would require expensive treatment.

Ms Watson finished: “Purchasing comprehensive pet insurance can mitigate the financial risk of a pet needing expensive treatment that an owner has not budgeted for.”

Tags: upkeep costs, risk, Human Interest, spokeswoman vicky watson.she, GBP, Pets, upkeep, average cost

Buy-to-let buyers not causing price rises

A leading property expert says the popular belief that buy-to-let investors are pricing first-time buyers out of the housing market is unfounded.

Michael Ball, professor of urban and property economics at the University of Reading Business School, said investors are not to blame.

He was speaking at the annual conference of the Association of Residential Letting Agents (Arla) and said that there is only one way in which to bring house prices down to a more attainable level.

“It is to build more houses that people actually want to live in and in places where they want to live,” he told the conference.

Mr Ball was keen to emphasise that he feels those considering getting a buy-to-let mortgage are benefiting the market, and society as a whole, and should be encouraged to go through with their plans.

“Without buy-to-let, the private rented sector would probably be much smaller. The quitters would have exceeded new entrants,” he said.

“It enables households to build up their own equity and, although tenants do not share in capital gains directly, they do so through lower rents and lower risk.

“They can do this while living in good standard accommodation, as competition in the rental market is now greater,” added the professor.

Buy-to-let properties account for between five and six per cent of housing in the UK and is a bigger industry than all of the country’s pubs, hotels and restaurants combined.

Tags: housing, house, while, annual conference, buy-to-let, risk

Skiers warned over insurance

Holidaymakers planning a skiing trip in the coming months are being warned to check their travel insurance policy before setting off.

The Post Office says that the mild winter has left many people disappointed, as there has not been enough snowfall.

Recent weeks have seen a fairly heavy dumping in many parts of Europe, but the travel insurance provider says that there is still a risk that a lack of snow may stop play.

The firm warns holidaymakers to check their travel insurance policy before setting off, ensure that they are covered and read the small print to make sure there are no hidden surprises.

“So far, this ski season has been among the worst on record in Europe with some areas having little or no snowfall,” said Kevin McAdam from the Post Office. “This can mean limited time on the slopes, plus an increased risk of injury or damage to equipment due to poor conditions.

“This may leave people without the holiday they would have wanted and looking for some form of compensation.

“Our advice is to make sure you know exactly what your cover offers before you go and, importantly, what evidence you need to have before you come home,” he added.

Mr McAdam went on to say that many insurance companies will only pay out if all of the slopes are closed for 12, or even 24, hours. Many firms also want written confirmation from authorities that the slopes were closed.

Tags: economics, Hospitality Recreation, insurance policy, insurance companies, winter, risk, small print, holiday

How does your age affect your premium?

As many UK motorists are aware there are a range of factors which come into play when companies decide the rate premium you pay. The first step of this process, at the application stage is to take all your details – which the company will do with a paper based form or over the internet. Read more

Tags: system, Disaster Accident, service, claim, assessment

No Claims Bonus

Information about your car insurance no claims discount:

A no claims bonus can significantly reduce the cost of your car insurance cover. If you have never heard of the no claims bonus, or are unsure as to its workings or methodology it can be explained as follows: Read more

Tags: no claims bonus, older drivers, no claims discount, maximum bonus, insurance policy, risk, car insurance, young drivers

Brits ignorant of cancer risk

A survey by Cancer Research UK has highlighted that many British people are burying their heads in the sand when it comes to cancer.

The findings have led to a number of insurance industry figures calling for greater emphasis to be put on educating people about the disease and what they can do to prevent it.

The chances of developing cancer were put down to fate by a huge 27 per cent of people in Britain, with these respondents believing that lifestyle had little or no effect.

Aside from the obvious physical effects of cancer, those who are diagnosed are often left financially vulnerable during treatment if they do not have insurance as they may be prevented from working.

With this in mind, Virgin Cancer Cover was launched, and Scott Mowbray from Virgin Money says ignorance of the disease’s contributing factors can be very dangerous.

“The results of this survey are very alarming,” he said. “When we launched Virgin Cancer Cover last year we were criticised for drawing attention to the fact that one in six of us will get some form of cancer before the age of 70.

“However, it’s clear there’s still a frightening number of people burying their heads in the sand not only about their chances of getting cancer in their lifetime but also the steps they can personally take to reduce their risk of getting the disease and protect themselves against the financial burden of getting cancer.”

Cancer Research UK has launched the Reduce the Risk campaign, which is aimed at encouraging people to learn about the changes they can make to lead healthier lives and reduce the risk of developing cancer.

Tags: American Cancer Society, attention, cancer cancer, cancer risk, insurance industry, risk, Occupational safety and health, treatment