Consumers rely on lottery in case they lose their jobs

Whilst a huge number of us buy lottery tickets every week in the hope of hitting the jackpot or at least securing something substantial, the chances of actually winning big are minute and for the majority of us will never happen. However, despite this, recent research has revealed that there are many people who are hoping that a lottery win will sort them out financially in the event that they lose their jobs.

Worryingly, a large number of people now have no insurance in place to protect their income in the event of a job loss and are instead looking at other options to tide them over financially, with some stating that they would use savings, others relying on family and friend to help them out, and some relying on a lottery win to ensure that they can get by if their income is suddenly cut off.

The research was conducted by British Insurance, and according to the results, around 59 percent of workers were worried about the security of their jobs, which equates to around 17 million workers. This figure reflects an increase of 7 percent compared to the survey last year. However, fewer people now have any protection in place, with 20 percent of workers having protection in place last year but only 14 percent having protection according to this year’s survey.

One official from the company said: “Although we’re told the UK is coming out of a recession, this confidence is clearly not shared by the majority of workers. And with economists predicting that the economy will stagnate over 2012 or suffer a deep recession if the eurozone situation deteriorates, it’s advisable to have a plan to replace any future lost income without dipping into savings or falling into debt.”

Tags: future, Gambling, economists, recession, Recent research, Worryingly, eurozone, survey

Top spot in mobile broadband given to T-Mobile

As with any other service, consumers in the UK are looking for not only affordable prices but also great customer commitment and high quality when it comes to choosing a mobile broadband provider. Read more

Tags: deal, upload, service consumers, mobile broadband, upload speeds, T-Mobile UK, survey, t-mobile

Buyers attracted to property market due to low interest rates

A recent report has shown that a rising number of potential property buyers are being attracted to the property market recently as a result of the historically low interest rates. Read more

Tags: government, low interest rates, Mortgages, buyers, Banking, latest cut, survey, Royal Institute of Chartered Surveyors

Some areas are at risk of negative equity, claims expert

There are concerns that certain areas of the country may be prone to negative equity over the next two years, according to the UK property market information provider Mouseprice.

A survey published this month found that 23 per cent of 24 to 34-year-olds are worried about having negative equity and 13 per cent of respondents said they had decided to delay their plans to move until the situation in the housing market situation improves.

Jonathan Upton, business development director at Mouseprice, said: “The conditions that are required for negative equity are present in some areas,” adding that the situation will depend on the level of deposit that people took out, when they bought their house and the profile of the housing market where they live.

However, Mr Upton also commented that it is difficult to tell whether first-time buyers will be particularly hard hit.

In their favour, people who are not yet on the housing ladder may benefit from falling house prices, giving them a stronger hand in negotiations.

Tags: house, business, favour, provider mouseprice.a survey, Business and Economy, equity, survey

Gardens need insurance too

It is not only gardeners who value what is round the back of their houses. A new survey shows that a substantial minority of people value the contents of their gardens as worth up to £1,000.

The study by Nationwide found that 35 per cent of those polled put the value of garden furniture, lawnmowers, sprinklers, gnomes and other equipment in their gardens as between £200 and £1,000.

Thefts from gardens have been increasing in recent years, and garden tools left lying around can be used by burglars to gain entry to homes.

Nationwide’s insurance director, Robin Bailey, said: “Spring is in the air and, if the rain holds off, some of us may be planning to spend time in the garden this Bank Holiday weekend. Items such as lawnmowers and garden furniture will be dusted off and may be left out in the open for long periods of time, resulting in easy pickings for opportunistic thieves and vandals.

“It is really important that these items are adequately insured against acts of theft or vandalism.”

Tags: survey, Lawn mower, new survey, rain, furniture

Fixed-rate mortgages proving popular

Despite predictions that interest rates will likely fall again in 2008, fixed-rate mortgages are continuing to grow more popular, new research suggests.

Data from Abbey reveals that 35 per cent of homeowners would choose a fixed-rate loan if they were re-mortgaging tomorrow, which is an increase from February’s figure of 31 per cent.

Nici Audhlam-Gardiner, director of Abbey Mortgages, said that the findings suggest that “the appetite for fixed-rate mortgages remains high”.

“We expect that economic uncertainty is contributing to this trend, as people try to take control over their outgoings,” she commented.

The survey also found that five-year fixed-rate deals were the most attractive to homeowners looking for a new mortgage, follwed by two and three-year deals.

Meanwhile, the Charcol Mortgage Monitor also recently revealed an increase in the uptake of fixed-rate mortgages, with 52 per cent of all borrowers choosing this option in February.

Tags: February, increase, rate deals, Charcol, mortgage, fixed rate mortgage, survey, fixed rate mortgages

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, fixed rate mortgage, Fairinvestment.co.uk, subprime, fixed rate mortgages, repossession, survey, research

Study: Home-buying process ‘fraught with difficulties’

A new study by AA Insurance has found that prospective homeowners are increasingly wary of buying a new home.

The survey found that buying a house tops the list of daunting prospects among young people ahead of getting married or divorced and starting their own business.

Discontent stems from a range of sources, with 29 per cent saying they found the whole home-buying process difficult while one in ten harboured serious concerns about hidden faults.

Estate agents in particular do little to assuage the fears of homebuyers as 62 per cent of respondents said they did not trust them, placing them only marginally behind politicians (73 per cent) in terms of general unscrupulousness.

And even once homebuyers have taken the plunge it seems almost three in ten find they are unsatisfied with their new dwelling after moving in.

Janet Pell, head of AA Home Insurance, commented: “For most people, buying a home will be the most important purchase they make in their lifetime, so it’s really important to get it right and make sure you have no regrets once the contract is signed.”

She added: “Once you’ve found your dream home, make sure you shop around for the best deal on your mortgage, surveys and home insurance”.

Tags: AA Insurance, buying, survey, list, economics, in.janet pell, Financial economics, percentage

Homeowners ‘losing millions’ to gazumping

UK property buyers are losing up to £290 million each year through today’s ruthless house buying tactics, new figures have claimed.

Some 73 per cent homebuyers believe that gazumping, where sellers pull out after the buyer has forked out financially on particulars such as surveys, searches and lawyer’s fees, should be made illegal, a survey by Fool.co.uk has found.

The personal finance website’s study also revealed that 28 per cent of gazumping victims were left “seriously out of pocket”, while 11 per cent of homebuyers believe it is a necessary evil in the task of finding an ideal property.

Fool.co.uk has advised consumers to avoid the phenomena by taking measures such as getting their finances in place early, establishing a bond with the seller, and keeping the seller’s estate agent informed at all times about the progress of the purchase.

“While competition can often draw out the best price for a product, it can also bring out the worst in people,” the website’s head of personal finance David Kuo said.

However, a recent Building Societies Association report found that 71 per cent of current homebuyers accept that property prices could fall this year.

Tags: gazumping, study, survey, GBP, fool, necessary evil

UK in debt denial

Some four million people are considered ‘overindebted’, but the majority are in denial about their finances and therefore do not seek advice assistance.

A survey conducted by debt management firm Chiltern found that one in 16 Britons spends over a quarter of their income on repaying debt but just one in 45 admit to struggling financially.
“There are lots of people who are officially overindebted, but two-thirds of them don’t think they have a problem,” said Joanne Gill from Chiltern.

“Unfortunately debts don’t go away, they need to be repaid and ignoring them will just make the situation worse. Anyone who is paying a quarter of their income to service unsecured debts should get help to put those repayments on a sustainable footing before the situation gets worse.”

The research found that people aged between 35 and 44 were the most heavily in debt, with East Anglia proving to be the most indebted region.

Whether they admit it or not, it seems that money is still on the brain for many people in the UK. A recent study from Alliance & Leicester revealed that 3.4 million Britons consider money to be the biggest concern in life, with 18 per cent worrying about it every day.

Tags: Chiltern, britons, majority, denial, survey

Student debt rises again

Student debt levels are being ramped up still further, a worrying new survey claims today.

Run in conjunction with high street bank Lloyds TSB, the Push annual survey says that those who started at university last year can expect to owe nearly £17,500 by the time they leave.

Even more worrying is the report’s claim that this year’s freshers face a £20,000 bill for studying.

Furthermore, while the national average student debt lies at £13,000, the £20,000 barrier has already been breached at nine elite campuses.

Catherine McGrath at Lloyds TSB said: “Students face higher levels of debt than ever before and with the added pressures of escalating house prices and increased competition for graduate jobs, it’s essential that they find ways to keep their student debt to a minimum.”

Johnny Rich at Push added: “This increase is not just another rise. Some students are facing real financial hardship. Even so, the advantages of having a degree still vastly outweigh the costs.”

The Push survey was the largest ever conducted on the subject of student finance.

Face-to-face interviews were conducted by its pollsters with over 2,000 students at 130 faculties around the UK.

Tags: worrying, survey, Johnny Rich, lloyds tsb, bill, finance

Middle classes fiddle insurance claims

Although many of us are led to believe that fraudulent activities are usually conducted by those from lower income families, a recent report has suggested that many illegal activities in this field are actually committed by middle classes, particularly fraud such as inflated insurance claims.

The results from the survey suggested that a high number of middle class policyholders inflated insurance claims in order to improve their homes or simply to get back at the insurance companies for having to pay high premiums.

The survey was conducting using nearly 2000 respondents from across England and Wales. The report was compiled by Professor Susanne Karstedt and Dr Stephen Farrall of Keele University. Although other types of ‘white collar crime’ were also highlighted in the report, one of the significant types of crime that middle classes admitted to was fiddling insurance claims.

One official stated: ‘Politicians from across the political spectrum regularly claim that most crime is committed by a hard core of offenders, largely drawn from low-income groups. This research demonstrates that volume crime is far more widespread, with the middle class being responsible for a wide range of illegal activities. The reasons for this are complex, and relate to the fundamental social changes in British society over the past 30 years.’

One professor involved with the study added: ‘Contempt for the law is as widespread in the centre of society as it is assumed to be rampant at the margins and among specific marginal groups. Anti-social behaviour by the few is mirrored by anti-civil behaviour by the many. Neither greed nor need can explain why respectable citizens cheat on insurance claims or in second-hand sales, and do not hesitate to discuss their exploits with friends in pubs.’

Tom Smith
15th July 2007

Tags: middle, premiums, home, car, claim, sales, house, class

Landlords remain confident

Confidence among buy-to-let landlords remains very high.

That is according to what Bradford and Bingley is calling the largest and most authoritative landlord survey in the country.

Almost 5,000 people responded to the research, which found that the buy-to-let market is thriving and landlords are confident that it will continue to do so.

A massive 96 per cent revealed that they believe rent levels across the board will either rise or remain the same in the next six months.

In addition, 88 per cent of landlords have plans to either increase or maintain their current portfolio of properties.

All of this, coupled with very few (four per cent) being concerned about low rental yields or availability of tenants makes for a very positive outlook in the market.

“Many of our landlords have been in the market for a long time, with half investing in property for more than five years,” said Bradford and Bingley’s director of mortgages Andy Wiggans.

“Significantly, even those who have been landlords for under four years believe the sector remains strong, with many planning on expanding their portfolios.”

With house prices continuing to rise, more people are renting properties until they can afford to buy. This helps landlords to ensure that their properties are rented out.

Tags: sector, board, long time, survey, Leasehold estate, investing in property, bradford and bingley, landlords

Hips to benefit new buyers

The controversial introduction of Home Information Packs (Hips) to the home-selling process is just days away and the row over them continues.

Hips are due to be introduced on June 1st but they face a last-ditch attempt at derailment in the House of Lords tomorrow (May 23rd).

In light of this, the Association of Home Information Pack Providers (Ahipp) has been singing their praises, particularly the help they will offer first-time buyers.

Ahipp points to the current process which sees first-time buyers forking out for surveys and other extras once a price has been agreed.

This can cost thousands of pounds and often highlights problems which force the buyers to withdraw their offer, essentially wasting much-needed cash.

Added to this, another buyer might come in for the same property afterwards and go through exactly the sae process.

Ahipp argues that with the introduction of Hips, this process will be eliminated, saving money for buyers and ensuring that there is a steady supply of first-time buyers.

“A fluid influx of first time buyers underpins the house buying market and brings vital buoyancy to the wider UK economy,” said Paul Broadhead from Ahipp.

“The introduction of the Hip will greatly benefit this vulnerable group of soon to be home owners.

“As the vendor will be responsible for acquiring the Hip, duplicated costs will be eliminated, buyers will be able to make a more informed decision on the purchase from the offset and they will avoid the initial costs of commissioning searches,” he added.

Although Hips have been a hot topic for those with or considering getting a mortgage, it seems they mean nothing to some.

Property firm fish4homes recently carried out a survey which found that one in ten UK adults believe Hips is a sexually transmitted disease.

Tags: tomorrow, influx, wasting, cash, House of Lords, survey, Association, Information Pack Providers

Green mortgages to become the ‘norm’

Gordon Brown announced during his Budget yesterday that people who take out a mortgage on a carbon-neutral home will no longer have to pay any stamp duty.

This news, announced during what is widely expected to be the Chancellor’s final Budget, was welcomed by many as the kind of financial break that is needed to encourage us all to reduce our carbon footprint.

In light of the announcement, the Co-operative Bank has revealed that it believes eco home loans will soon become the norm in the UK.

The firm is so confident that environmental concerns will have a big impact on the future of mortgage lending that it is planning to update its current green portfolio.

“We plan to extend our green mortgage proposition, which is currently available on all our products, by developing an innovative solution to reward and encourage homeowners to actively reduce their CO2 emissions,” revealed David Anderson, chief executive at the bank.

“We are convinced that green mortgages will be the most common form of home loan in the future and that is why we are working on several features that will make our range even more eco-friendly.”

A number of other lenders have also confirmed that they too will be extending their current portfolio of green loans.

The Co-operative Bank’s claim that eco home loans will be the norm in the future has been supported by a recent survey, carried out by More Than insurance, which revealed that 70 per cent of Brits wants all new build homes to be carbon neutral.

A fifth of all Brits also said that they would be willing to pay more for an environmentally-friendly home.

Tags: gordon brown, green mortgage proposition, future, Subprime mortgage crisis, survey, More Than insurance

Getting Cheap Car Insurance Online

According to a recent survey undertaken by the AA, 75 percent of us will head directly to the internet to check out online car insurance quotes before we decide whether or not to renew our existing policy. However, out of that 75 percent, 60 percent of us spend less than three minutes checking out competitive cheap car insurance quotes online and, unless we see an immediate reduction in our car insurance policy of at least 10 percent or more, we won’t bother looking any further! Read more

Tags: different car insurance, internet, finance, survey, choosing car insurance, cheaper car insurance, car insurance, Types of insurance