ABI wants to increase safety for young drivers

The Association of British Insurers has recently revealed a number of key priorities relating to car insurance, which is aimed at making a number of improvements including improving safety for young drivers. The organization said that it wanted to take steps to reduce young driver accidents and more importantly deaths as a matter of urgency.

Otto Thoresen, ABI’s director general, was speaking at the ABI Motor Conference recently and spoke about how all insurance companies were keen to be able to provide customers with competitive prices for their insurance cover. He said that one of the ways that would enable insurance firms to do this was to improve the safety of younger drivers .

Thoreson said that every day around eighteen young people were killed or seriously injured on the roads of Britain. He said that the ABI had called for measures to be taken some years ago to try and reduce these serious injuries and deaths and since then many young lives had been taken on the roads. The ABI wants the government to take steps to help tackle this issue, which will save lives and help to bring insurance costs down.

He said: ‘As a nation of car users with some of the busiest roads in the world, insurers are committed to providing the best possible deal for motorists. One of the key ways to achieve this has to be improving the safety of our young drivers, who continue to make up a disproportionate number of road casualties. Five years ago we called for measures, such as a minimum learning period, to tackle this tragic waste of life, yet every day 18 young people die or are seriously injured on our roads. Insurers are actively helping young drivers through the increasing use of telematic ‘black box’ systems that reward safer driving. But we cannot do this alone. So I reiterate our call to the Government to work with us to tackle this issue. The time has come to seriously consider tougher measures such as a zero tolerance drink-drive limit for drivers under 25, graduated licencing, and restrictions on driving at night and in the early hours.’

Tags: reiterate, time, reward, organization, period, Association, ABI Motor Conference, car users

No change in UK interest rates

Following the August Monetary Policy Committee Meeting the Bank of England has announced that the base interest rate is once again to remain on hold at its lowest level in the history of the Bank of England. The base rate has been at its all time low of just 0.5 percent for well over two years now, which has provided relief for many homeowners and borrowers who have seen their monthly repayments plummet.

Economists have now predicted that the base rate will remain at this record low for the remainder of this year, with some even going as far as to say that it could remain at 0.5 percent next year as well. In a poll that included 32 economists the majority believed that it would be next year before the base rate was increased and a handful said that it could be 2013 before rates increased.

The news that the base rate is to remain on hold comes as no surprise to most industry experts, as the MPC is reacting to the fragile economy by keeping the base rate low. There will be many people that welcome the decision to keep rates low, such as those with mortgages on variable rates. However, there are also some groups that want to see rates increased in order to try and bring inflation levels down.

One group said that rather than increasing the base rate the MPC could look at further increasing the quantitative easing scheme, as this would increase the amount of money available to companies.

David Kern, chief economist at the British Chambers of Commerce, said: “Every effort must be made to sustain the recovery. If the economy weakens further, the MPC should not hesitate to increase the QE programme.”

Tags: time, scheme, inflation, rates, chief economist, history, bank of england, interest

Many retirees have a second home

Over recent years many non-homeowners have found it more and more difficult to get onto the property ladder, with lenders becoming more stringent about lending money to first time buyers and demanding higher deposits, which most first time buyers cannot afford. This has resulted in many non-homeowners giving up on their dreams of homeownership for now and having to settle for renting a home instead.

However, whilst the younger generation struggles to even get a big toe on the property ladder many people that are coming up to retirement are the proud owners of second homes. A recent survey revealed that one in seven couples in their fifties and early sixties own a second home, with an average £250,000 tied up in their second homes, not including any mortgage on the second home and not including the value of their main home.

At the same time their grandchildren and in some cases even their children are struggling to get the chance to own even one home. Many are unable to secure the deposit that they need to get onto the property ladder and many others cannot afford the repayments on their current income. This has left them facing the toughest challenge to buy a home out of any other generation. The figures were released recently by the Office for National Statistics. This is the first time that calculations have been carried out to see how many people within this age group own a second home.

Overall 13 percent of people in that age group were found to own a second property, which in some cases was abroad. Many will have purchased these properties before the boom, with the average price when they purchased the home being £30,000 but the value for the same property today being an average £163,000.

Tags: time, main home, boom, couples, time buyers, percentage, price, grandchildren

Why you should be wary of low cost airlines

With the summer holiday season just around the corner there will be many people on the lookout for low cost flights and holidays so that they can get some time away without breaking the bank in the current climate. However, far too many people will be enticed by the remarkably low prices that are advertised by no frills budget airlines, little realising that once it comes to making the booking they could end up pay twice as much as they originally thought it would cost.

The problem with no frills airlines is that they appear to offer extremely good prices, which makes holidaymakers believe that they can get a really good deal. However, when you actually start making the booking you realise just how much more expensive it will be to travel compared to the amount you thought it would cost by the headline price. There are so many things that are added on as you go the cost can go up by double – in some cases even more.

This practice of adding on fees and charges as you go through the booking is known as price dripping and is a practice that no frills airlines are known for. Ryanair, for example, adds on all sorts of fees, from fees for checking in online, which you have to do anyway, to fees for baggage, priority boarding, and a hefty administration fee to top things off. What’s more these fees are all doubled because they are charged each way, so you could find that the price has suddenly shot up to two, three, five, or even ten times the amount you originally thought depending on what the original headline price was.

Many officials are concerned that these airlines are so shifty when it comes to the clarity of these charges. Whilst baggage and priority boarding are optional extras that the traveller can choose to add if they wish to do so other charges such as online check in fees and the administration fee is something that all customers will have to pay, so officials want to know why these charges are not just added onto the headline price. Many believe that these headline prices are misleading because they do not reflect other mandatory costs, which makes them look like they are a far better deal than they are.

One official said: “It’s ridiculous that a flight advertised at ten pounds can end up costing closer to a hundred. Even if the final cost represents a good deal, the customer still ends up feeling resentful when they come to hand their money over, especially when they’re charged again for the privilege of paying. Airlines shouldn’t be scared about being upfront with their prices.”

Tags: traveller, climate, time, upfront, dripping

Consumers advised to focus on debts for New Year

Industry experts are advising consumers to focus on their debt issues once the New Year comes around in order to avoid having to spend another year struggling with their finances, particularly given that the economy and job situation is still very challenging and fragile. Many people will have been struggling with debt for some time, whereas others may accrue temporary debt over the Christmas period. Either way, experts are suggesting that they tackle their debt problems head on once 2011 hits.

For many people in debt it is all too easy to bury their heads in the sand and try and forget about their debts until they spiral out of control to the extent that action has to be taken either by the borrower or their creditors. Many people are using, or have already used, their credit cards to fund their purchases over the festive season this year, and this could lead to spiralling debt levels for many people.

Tackling debt can be difficult but officials believe that by kicking the New Year off in the way that they mean to go on consumers are able to tackle their debt issues more effectively by streamlining their finances and getting things into order. Some are advising consumers to go through their budget with a fine toothcomb and go through their income and outgoings to see where they can make cutbacks to save on the amount that they pay out each month and avoid further debt.

One official said: “Another option for consumers when the New Year comes around is to consider taking out a consolidation loan and wrapping all of their various debts into one lower interest one, as this could save them money and the hassle of dealing with different creditors.”

Tags: action, job, festive season, debt consolidation, Business Finance, job situation

Comparing breakdown cover can save you money

It has been revealed that drivers who take the time to compare breakdown cover with different insurance companies are able to save more money in the long run than those that just automatically take the cover offered to them by their car insurance provider or simply go for the first breakdown cover plan they come across.

Over recent years an increasing number of people have started to take on vehicle breakdown cover plans, with more and more of them realising just how valuable this cover can be in the event of a breakdown either at home or whilst out and about. There are different levels of cover available, including plan that include home start, where someone will come out to you even if you break down in your own home.

There are now more vehicle breakdown providers than ever, as demand for these services has resulted in a surge in the number of companies that are offering cover. This means that drivers now have far greater choice, and can find a breakdown cover plan that offers them the level of cover that they need for a price that is highly competitive.

A study was recently carried out, and the results showed that people that took the time to compare different breakdown cover plans and providers were far more likely to get affordable breakdown cover than those that did not compare the different options available.

One industry official said: “The cost of breakdown cover plans can vary quite widely between different providers, and you may end up paying far more for your cover with one company than you would for exactly the same level of cover with another provider. This is why it is so important to browse and compare a number of plans and providers before you commit.”

Tags: official, insurance provider, affordable breakdown cover, car insurance, vehicle breakdown cover, music, time, whilst

Beat the VAT rise and pick up your big ticket items now

As outlined in the emergency budget earlier this year, which was delivered by the Chancellor of the Exchequer, George Osborne, VAT is set to increase from the start of next year, rising from 17.5 percent to 20 percent, as the coalition government strives to make more money to clear the huge public deficit.

This will come as bad news for the many cash strapped consumers who are already struggling to make ends meet, because it means that price on many things will soar even further. This is why many people are now rushing to make their purchases in the few weeks that they have left prior to the rate of VAT increasing.

The items that many people are rushing to buy include big ticket items such as electrical items like televisions, fridge freezers, washing machines, and the like. Many are also rushing to book holidays before the prices go up, as the effect of even a small 2.5 percent increase on the cost of more expensive items can make a big difference.

Bearing in mind that VAT is set to increase by 2.5 percent at the start of the year it is a good idea to determine whether you are going to be making any big ticket purchases in the early part of next year, and then bringing the purchase forward if possible. This could save you the cost of the additional 2.5 percent, which on higher priced items can make a difference.

If you time it right you could get a bargain on your big ticket items. Directly after Christmas the price of many items is slashed by retailers, and the VAT increase is not set to come in until the start of January. This means that if you purchase your items between Christmas and New Yearn you could benefit from the lower prices from the sale, and you can avoid the VAT hike, which means that you could get a bargain.

In order to make the biggest savings plan you sales shopping, and try and work out which retailers are holding sales between Christmas and New Year so that you can plan your sales shopping accordingly. You should also consider planning ahead, and if you are considering anything such as booking a holiday make the booking early to avoid the VAT increase so that you pay less for your holiday.

Tags: budget, additional 2.5 percent, New Year's Day, consumers, chancellor of the exchequer, cash strapped consumers, increase, time

Study being performed into behaviour of insurance fraudsters

A study is being carried out into the way in which people behave when committing insurance related fraud. A researcher at the University of Portsmouth, Sharon Leal, has been awarded a grant of £112,000 by an insurance fraud investigation firm to carry out studies into the way that people behave when they are committing insurance fraud.

The findings so far have suggested that many people that are committing insurance fraud give themselves away by thinking too much and too hard about their stories and about what they say. Leal said that those that were lying to insurers went into far too much detail because they planned their story beforehand whereas those telling the truth did not do any forward planning about what to say to the insurance company.

The fact that those committing fraud have to focus more on their story and think more carefully about what they are saying affects the way in which they behave according to the researcher, who is said to be an expert in detecting deception. Leal also said that it was these changes in behaviour that would most likely form a basis for new methods of detecting insurance fraudsters. Investigations into claims could be triggered by various factors such as an overly large claim being made or suspicion on behalf of the insurance employee that first deals with the claim.

Leal stated: ‘There is a real need to use evidence-based methods that are scientifically proven to work to stop wasting insurance companies’ time and money and to stop innocent people being treated as suspects while the guilty get away’ She added: ‘There is a saying, ‘when needs must, the devil rides’, which basically means that when times are tough, people are more likely to break the rules. Insurance fraud has been on the rise since the recession began and insurance companies are very keen to find a way of beating those who cheat.’

Tags: study, insurance fraudsters, Financial services, basis, telling the truth, time, various factors, researcher

Students in line for loan rate shock

It has been claimed that many students that are studying at university in the UK could be set to face a loan rate shock, with interest rates on student loans set to increase as a result of the rise in inflation levels. Students already face a tough time when it comes to being able to afford everything they need whilst studying at university, but if interest rates do increase the situation could get even worse for many of those studying in the UK.

This week it was reported that the level of inflation had increased to 3.4 percent, which is 1.4 percent higher than the government’s target of 2 percent. The increase in inflation was said to have been driven by price increases on things such as petrol, food, and energy compared to last year when prices on these products and services were falling.

The interest rates on student loans are increased by the Student Loans Company each September based on the level of RPI inflation seen in March of that same year. According to reports around three million students as well as graduates could see their rate of interest increase when September comes around. The rate of interest that students are paying on loans can vary based on when the loan was taken out.

In addition to facing increased interest rates on loans students are also up in arms about the lack of clarity over student funding and university fees from the three main political parties in the run up to the general election. Student unions have accused parties of failing to provide clarity over these issues and hiding behind a review that was carried out last year in order to avoid having to go into too much detail about their policies with regards to this matter.

Tags: time, education, Student loan, interest, government's target, Monetary policy, main political parties, finance

Demand for cheque alternative from pensioner group

It was announced last year that the banking industry is looking to do away with the cheque, which has been a method of payment for millions of older people for many years before debit and credit cards came along. Many pensioners and older people still rely on cheques to make payments for various services and purchases, and the announcement that the cheque was to be phased out caused concern that many of these people would be left without a viable alternative.

The banking industry has said that it is planning to phase out cheques by around 2018, but many officials have said that this could impact on pensioners negatively, causing them stress and difficulties. A pensioner group is now calling for an effective and suitable paper alternative to cheques to be offered so that those that cannot use the Internet to make payments will still have a viable choice.

The group that is lobbying for the paper alternative to the cheque is the National Pensioners Convention, and its protest to find an alternative comes shortly after the BCC revealed that more than 75 percent of pensioners were against cheques being phased out. The NPC is now calling for a guaranteed paper alternative to be offered to older people in place of cheques.

An official from the NAC said: “If cheques are taken away from older people it will create an enormous stressful situation for them, because their bills are paid on time, with a cheque, in an envelope and put in the post. We have told the authorities that what is going to be required is a paper trail to replace the cheques.”

A spokesperson for the Wandsworth Older Peoples Forum added: “A lot of people who are housebound use cheques daily, and a lot of people who have no computer and therefore can’t get onto the internet or do internet banking would be lost without it.”

Tags: cheque, concern, payment, finance, pensioner

Renting out your home short term could be made more difficult

For many people in the past being able to rent out their homes when they are away for a period of time has been a great way to raise a little extra cash as well as to save leaving their property empty. Read more

Tags: mortgage, Mortgage broker, order, time, property, problems, consent, climate

Number of JSA claimants soars

According to recent figures the number of people that are now seeking Jobseeker’s Allowance has soared, going up to 1.64 million in January. This reflected an increase of 23,500. Read more

Tags: Employment law, uk, unemployment, failure, summer

Sort your budget out for 2010

Like many other people you may have experienced a great many difficulties in terms of your finances this year, and this is partly because many of us were not prepared for the onslaught of financial problems that were set to hit us, ranging from the recession and job losses through to increasingly difficult credit conditions. However, the last year should have taught most of us some valuable lessons in terms of finances, and one thing that many people will be planning to do for 2010 is try and sort out their finances. Read more

Tags: difference unsecured debts, store, lenders, operation, magazines, time

Number of empty homes reached five year peak last year

Recently released figures have shown that the number of homes that were left empty reached their highest level in five years in 2008. The number of homes that had been left empty for at least six months in England is said to have increased by 9 percent in the year to April 2008, with the number of private homes that had been left empty for at least this length of time rising to 303,285. This was the highest figure since April of 2003. Read more

Tags: time, homes, economist, higher levels, big gap, empty properties, average earnings, loan

Interest rates stay the same for eighth month

For the eighth month in a row the base interest rate has remained at its all time low of 0.5 percent. The announcement was made following the monthly Monetary Policy Committee earlier this week. Read more

Tags: bank, easing, committee, finance, output, governor, time

CML revises repossession forecasts again

It has been reported that the Council of Mortgage Lenders has once again cut its forecasts for repossession numbers in the UK, having taken more recent industry figures and market conditions into consideration. Read more

Tags: repossessions, CML revises repossession, cml, Mortgages, quarter, time, council of mortgage lenders, Business Finance

Tips to Help You Save on Motoring Expenses

The prospect of owning a new car may send thrills up and down your spine, but the expenses you have to incur afterwards are not as thrilling. When you buy a brand new car, the value of the vehicle drops by about 20% as soon as you drive it off the lot. Read more

Tags: save money, great deals, mileage, car salespeople, motoring costs, slow sales, test drives, time

Are you being charged a fortune in interest on your insurance?

Buying insurance cover for your vehicle is already an expensive affair, and whilst there are different levels of insurance cover to cater for different needs and pockets there is no doubt that the cost of vehicle insurance cover overall has been rising for a number of different reasons, including the heightened level of insurance fraud in the current climate, which unfortunately honest drivers usually end up picking up the tab for. Read more

Tags: time, daylight, different levels, car insurance, shop, different reasons, insurance interest charges, whopping 40 percent

Supermarket giant to start offering mortgages next year

Supermarket giant Tesco has announced that it plans to start offering mortgages next year with plans to open a new call centre in Glasgow that will create around eight hundred new jobs. Read more

Tags: ideal time, northern rock, finance, time, tesco mortgages, Mortgages, supermarket mortgages

More parents may take their kids on holiday during term time

The high cost of holidays outside of school term time is resulting in many parents threatening to take their kids out of school so that the family can afford to go on holiday. Read more

Tags: school holidays, time, school, family holidays, holidays

Tackling uninsured drivers show some success

Over recent years the insurance industry has been battling to try and combat the financial damage that has been caused by uninsured drivers, and many insurance giants and the insurance industry as a whole have been fighting to crack down on uninsured drivers. Read more

Tags: car insurance, drink driving, Tackling, Bureau, time

Two thirds of potential buyers giving up on homeownership dreams

It has been reported that around two thirds of would be buyers that were hoping to get their foot onto the first rung of the property ladder have now decided to give up on their dream for now because of the difficult financial climate and the lack of mortgage availability. Read more

Tags: availability, it's little wonder, first rung, homeowners, difficult financial climate

Refuse jobs attracting applications in the hundreds

With unemployment levels rising in the UK, and many people finding themselves with a sudden loss of income in what has become a very difficult financial climate, it has been reported that even the most menial of positions are now attracting job applications in the hundreds from desperate people that will take any job in order to get an income. One job for a binman recently attracted nearly two hundred and forty applications from unemployed people desperate to start earning money again. Read more

Tags: time, Labour, desperate people, Website, unemployment, uk, earning money, job losses

£22 million in fines from FSA over 2008

Recently released figures have indicated that over the course of 2008 the Financial Services Authority handed down around £22 million in fines as it continued its crackdown against the mis-selling of payment protection insurance cover and tried to curb rising levels of mortgage related fraud. The UK’s financial regulator has been handing down record fines over the course of the year according to industry officials. Read more

Tags: financial, disappointment, ongoing problem, payment protection insurance, mortgage, Financial services

Were we already spending less on luxuries before the credit crunch?

Every week there seems to be some report or another stating how spending levels on luxuries such as holidays has plummeted since the onset of the global credit crunch, and indeed the financial situation and turmoil over the past year has made things very difficult for many households and has severely restricted spending levels, leading to a downturn in the economy. However, one recent report has suggested that families in the UK had already started spending less on things like holidays and clothes before the effects of the global credit crunch took full effect. Read more

Tags: credit crunch, Office for National Statistics, Northern Ireland, cinema, housing, time, luxury goods, fuel

Tips on saving money this Christmas

After a particularly difficult year financially many families will be trying to cut back on the cost of Christmas this year, and with consumer spending levels already having fallen most retailers are well aware that they will need to take action in order to get consumer spending levels up and keep their profits up at the same time. The recent VAT cut of 2.5 percent may go a little way towards making this a more affordable Christmas, but the difference this small cut will make is negligible, and it is really up to the individual to try and take action to keep costs as low as possible. Read more

Tags: financial climate, christmas, case, Business Finance, time

What’s going on with house prices and mortgages?

There is no doubt that both the housing and the mortgage market have been going through a very turbulent time over the past year. House prices have been falling month on month, and mortgage availability has become increasingly tight. However, amidst all of the chaos that has been going on in these sectors many people may have become confused over what is actually going on in these markets. Read more

Tags: bedroom, three-bed home, house prices, economics, favour, time, official, Mortgages

All big six energy firms have now increased prices

Earlier this year the UK’s big six energy firms increased the cost of gas and electricity usage, stating that the rising cost of wholesale energy was forcing them to increase costs for customers. With household budgets already suffering the rises came as a blow to many. However, the situation was made worse by the fact that soon after energy firms announced that prices would have to go up again in late summer or autumn, again due to wholesale energy costs. Read more

Tags: Today's price rises, Willie MacDiarmid, energy prices, round, household budgets, big six

Interest rate cuts could be put on hold

At the start of this year there were high hopes about base rate cuts amongst both borrowers and industry officials, with many expecting the base rate to fall significantly over the course of this year, and with some industry officials predicting that the base rate could fall as low as 4% or below by the end of the year. However, whilst the base rate was cut three times between December 2007 and April of this year, it seems that further rate cuts could be put on hold, as the Bank of England tries to deal with soaring inflation levels. Read more

Tags: present steps, government’s 2% target, time, Monetary Policy Committee, Mervyn King, foreseeable future

Supermarkets cut fuel prices

Consumers in the UK have been hit with soaring petrol prices over recent months, with the cost of oil per barrel rocketing and higher petrol costs putting additional strain on already struggling household finances. Households have also had to cope with increased food prices, higher borrowing costs, and hiked up bills, all of which have left many unable to stretch their month budgets as far as they need to. Read more

Tags: uk families, time, fuel prices, recent peak, cost, oil company bp, households, uk

More people opt for private healthcare

A recent report has shown that an increasing number of people are now opting for private healthcare cover rather than relying in the National Heath Service, reflecting the concerns that many have when it comes to NHS care. The survey showed that many of the people switching to private healthcare cover have stated that their reason for switching was fear of super bugs such as MRSA. Read more

Tags: time, decline, healthcare, Healthcare reform, momentum, Association, sophisticated consumers, Private healthcare

Inflation hikes are making life “tougher”

With inflation rising higher this week than analysts predicted it would, an expert has said that the situation is making life “tougher” for many people.

According to Ann Robinson, director of consumer policy at uSwitch.com, some consumers have seen their food, energy and other essential bills increase by 20 per cent over the past year.

Ms Robinson commented that many people are feeling the pinch as living costs continue to rise yet salary increases lag behind.

“We are working harder than ever before but we are not getting any richer.”

Ms Robinson warned: “With inflation misery set to continue this summer, this is a difficult time for consumers.”

Earlier this week inflation went over three per cent and Ms Robinson advised consumers to carefully review their household budgets and try to make savings wherever possible.

She pointed out that people could save an average of £1,500 on essentials by doing so.

Tags: inflation, percentage, salary increases, consumer, time, Business Finance, food, essential bills increase

Credit squeeze hitting savers

Consumers are increasingly feeling that they are unable to save as much as they might like to due to the current economic downturn, according to Nationwide Building Society.

Matthew Carter, Nationwide director for savings, said that although three in four people believe it is important to put money away in a savings account, some do not feel “they can afford to save as much as they need to” because their finances are being squeezed by the credit crunch.

New research from the building society has revealed that 57 per cent of people would like to be able to save more than they are currently doing.

Mr Carter pointed out that it is a good time to save at the moment because there are a number of accounts with attractive rates.

“The products available mean it’s a good time for savers so it’s incredibly unfortunate that would-be savers haven’t the spare money to put aside.”

Meanwhile uSwitch.com has said that the credit crunch and rising inflation are making life “tougher” for many people.

Tags: matthew carter, consumers, economics, moment, time

Norwich Union: Sporting fans can use ordinary travel insurance

With major sporting events such as Euro 2008 and the Beijing Olympics taking place this summer, Norwich Union has advised sports fans that they can travel abroad to watch these events with normal travel insurance.

Sally Leeman, a spokesperson for the insurance company, said that people need not look for specialist insurance policies when going abroad as sports spectators because standard travel insurance cover should be adequate.

However, she also warned travellers to take “reasonable care” of themselves and their possessions.

“If death, injury, illness or disability occur as a direct result of you being under the influence of alcohol or exposing yourself to unnecessary danger your insurance claim won’t be paid,” Ms Leeman said.

According to Sainsbury’s Travel Insurance, as many as ten per cent of holidaymakers travel without cover and the company estimates that over 4.2 million people did not have travel insurance the last time they went on holiday to another country.

Tags: time, olympics, travel insurance, sports fans, Sally Leeman, unnecessary danger, spokesperson, sports spectators

First Direct offers mortgages to new customers

First Direct has restored its mortgage services to new customers with a number of two-year, five-year and ten-year fixed-rate deals. Read more

Tags: cent, fixed rate mortgages, Everyone, time, mortgage products, guardian, first direct

Debtors should not “hide the problems”

People facing serious financial difficulties should not try to “hide the problems” or assume that they can solve them themselves by using their credit cards even more, says an expert.

A recent report has found that 400,000 people took out new solutions for unsecured debt in 2007, with over half (58 per cent) deciding to refinance or remortgage.

David Kuo, head of personal finance at Fool.co.uk, has advised people to ask their lenders for help to try to solve the initial problem of having borrowed too much money, which they cannot repay in the time period stipulated by the lender.

A possible solution is to extend the length of a mortgage which will lower monthly repayments making it more affordable in the short-term and giving the borrower “breathing space,” although the total amount to be repaid will be higher.

However Mr Kuo advises against taking out secured and unsecured loans, since they may compound the problem.

“Sometimes people are a little misguided about how they solve their problems and they try and throw money at them,” Mr Kuo concluded.

As debt problems increase for many people and lenders tighten their criteria, a survey has found that 18,000 applications for credit cards are being rejected each day, according to MoneyExpert.com.

Tags: money, space, time, David Kuo, expert, half, possible solution

Consumers “don’t take the time to read the small print”

When buying into financial products, such as critical illness cover and private medical insurance, “people tend to look at the top line and not the small print”, says financial experts.

Financial advisory firm Ashley Law said that those consumers who purchase products which are cheaper may find they have lesser benefits.

Jock Cassidy, director of Ashley Law, said: “If people don’t take the time to read the small print, and I doubt very much if they do because it’s not exactly the most interesting read, then they’ll go for the cheapest option.”

He added that when a person changes a provider of a financial product “it’s a guess on my part is that it’s [the decision] purely cost-driven”.

Meanwhile, David Elms, chief executive of Unbiased.co.uk, commented has said that record levels of business are being driven to independent financial advice through the company’s ‘Find an IFA’ service

As a result IFAs are converting the leads at a greater rate than before.

Tags: firm, financial advice, personal finance, result, line, David Elms, time, business

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

Lending to get tighter in the New Year

The effects of the credit crunch will see lenders “tightening up” and looking at minor misdemeanours which may well have been ignored in the past, claim financial experts.

Equifax has said there could be an increase in the number of loan applications in the New Year, as lenders look more carefully at a person’s payment history.

Neil Munroe, external affairs director for Equifax, said: “Any negativity that might not have been a problem in the past might rise in prominence.”

He also warned consumers that an increase in the number of applications within a short space of time can look suspect.

Repeated searches on a consumer’s history have the potential to affect a person’s credit rating.

The latest figures from Credit Action show that total consumer credit lending to individuals in October 2007 was £222 billion. This has increased 5.8 per cent in the last 12 month.

Total lending in October 2007 grew by £8.8 billion.

Tags: claim financial experts, credit, equifax, economics, Credit Action, finance, personal finance, time

Bank has a ‘difficult’ decision to make in slow economy

With inflation rates expected to “creep up over the course of next year” the Bank of England has to make a “difficult decision about interest rates”, according to industry experts.

The Confederation of British Industry (CBI) has said that the combination of inflationary pressure at a time when the economy is slowing will force the Bank to make a decision on what action to take.

Lai Wha Co, principal economist for the CBI, said: “On the one hand it’s monitoring how sharply the economy might slow, but on the other hand it has to weigh up the concerns about inflationary risk.”

She added that if inflation was to rise more markedly than the market forecast then the Bank’s members may be constrained.

The cuts in interest rates that some consumers were hoping for may not be delivered Ms Co concluded.

The CBI has predicted that inflation will rise during 2008 due to the higher price of oil, gas and food.

Tags: industry experts, time, decision, hand, forecast, interest rate, Monetary Policy Committee, economist

Young women can save and still ‘have a good time’

With careful budgeting young women can “have a good time and still plan for the future” says an industry expert.

Young women think that saving for the future will mean they have to cut back on spending in the present.

However, MDM Associates claims that if they work out what their outgoings are then this may not necessarily be the case.

Lisanne Mealing, director for MDM Associates, said: “You know you’re going to go out, you know you’re going to spend money on clothes: budget for it, so that you have a clear indication at the end of the day of how much you can afford to save.”

She added that an Isa is “definitely the best place to start” when it comes to saving due to the flexibility of access and use that it offers.

Research from online bank Egg found that one in five women earn more than their partner – a rise from one in ten in 2002.

Tags: time, use, budgeting young women, MDM Associates, industry expert, work out, saving for the future, rise

2008 will be a ‘double-edged sword’ for first-time buyers

Falling house prices and uncertain times will make next year a “double-edged sword”, according to the Council of Mortgage Lenders (CML).

Sue Anderson, head of external affairs at the CML, said: “On one hand, if the prices come down or even if they just stabilise, to a degree, that is good news for first time buyers.”

It is expected that consumers’ earnings will close the gap between that and house price inflation.

On the other hand consumers may “feel a bit wobbly in light of what has been going on in the market,” said Ms Anderson.

First-time buyers will be subject to confidence issues in relation to predicting behaviours in the housing markets, she concluded.

The Halifax House Price Index detailing the month of November stated that prices dropped by 1.1 per cent, yet prices are 6.3 per cent higher in annual terms.

Overall growth in house prices has slowed over recent months as the increase in interest rates between July 2006 and July 2007 has taken effect.

Tags: mortgage, time, time buyers."It, increase, sue anderson

Banks crack down on credit cards for Christmas

The amount of time allowed for one to pay off a credit card is to be cut substantially by some banks over the holiday season.

Both NatWest and the Royal Bank of Scotland have given their customers just ten days after January 2nd to pay off their balances before late payment and interest charges are levied.

The change in rules has caused an outcry from consumer groups who claim that it is a deliberate move to charge customers at the time of year when they use their credit cards the most.

A spokesman for the consumer group Which? said: “Many people will use their credit cards over the festive period and wait until they get paid in January before paying off this balance.

“But this shorter interest-free period may not give cardholders the same flexibility and many will incur charges.”

All the banks that have slashed the time given to pay off credit cards are owned by the Royal Bank of Scotland.

Tags: Many people, group, bank of scotland, which, Royal Bank of Scotland, time, festive period, credit

Charity credit cards ‘help children in need all year round’

Consumers are advised that charity credit cards can help them reach children in need every day of the year.

Today, Children in Need is celebrated around the UK with nationwide collections in expected to reach into the millions.

However, according to the Fair Investment Company, charity credit cards allow a donation to be made each time the card is used with no extra cost to the user.

There are many options, with a variety of children’s charities available at which consumers can effortlessly direct their generosity.

The Co-op offers The Children’s Society Card, which donates £5 with every account opened, with further donations when the card is used.

Meanwhile, Halifax supports two children’s charities through card offers, Save the Children and the NSPCC. Halifax donates at least £20 on the first use of the card and after that 0.25 per cent of any spending on the card.

Director at Fair Investment Company, James Caldwell, commented: “If you want to support a charity, a charitable credit card will allow you to donate every time you make a purchase.

“Charity credit cards can also make a real statement; each time you use the card it is good publicity for the charity.”

Tags: time, user, CardHub.com, card it, Credit Cards, finance, use

Check your home this Fire Safety Week

Bonfire night may have been and gone but there are plenty of fireworks still going off every night, and fire hazards remain a major risk.

According to figures from the Association of British Insurers (ABI), 200 homes a day are damaged by fires.

For that reason, November 14 to 21 has been declared as Fire Safety Week.

Organised by the Fire Protection Association and first held in 1975, Fire Safety Week is aimed at drawing attention to fire risks by bringing local fire brigades and the communities they serve together.

Halifax Home Insurance is joining in, by urging householders to conduct a fire safety check on their homes.

Measures people can take to cut their risk of a fire breaking out or being harmed if a fire does occur through simple measures like leaving internal doors closed at night, ensuring exits are clear, making sure all electrical wiring is in good condition and not smoking in bed.

Vicky Emmott of Halifax Home Insurance said: “With 200 house fires happening every day, there’s definitely more that could be being done to protect people’s homes and families from the risks of fire. We are urging all householders to spend a bit of time during Fire Safety Week checking their homes and improving fire safety measures.”

Tags: vicky, home insurance, bit, time, Fireworks, fire protection association

Abbey slated over 125% mortgage

Amidst the turmoil and chaos that has hit the financial and mortgage markets over the past month, high street bank the Abbey has announced the launch of a 125% mortgage deal for first time buyers and other property purchasers, and this move has been strongly criticized by many financial professionals.

The mortgage allows consumers to borrow over and above the value of the property, but experts state that many consumers could find themselves left in negative equity as a result of taking on these loans.

Experts state that if consumers default on the 125% mortgage they could quickly find themselves locked into negative equity, and this could be further fuelled if, as expected by many analysts, property values in the UK tumble over the coming months. The government has been urging financial institutions to be more responsible with lending in light of the current financial situation, and Abbey is now being accused of ignoring this advice.

The Abbey is offering consumers the opportunity to borrow 100% of the property value, and an additional £25,000 on top. The recent chaos with Northern Rock has increased concerns over irresponsible lending by financial institutions, and many experts are now accusing the Abbey of further fuelling the debt crisis in the UK by offering this type of mortgage in the current economic climate.

Officials from the debt charity Credit Action have commented on the availability of this 125% mortgage loan, and one official stated that the loan posed ‘real dangers’ to borrowers, adding that anyone that decided to take on this type of loan would have to be ‘incredibly bold or incredibly stupid’.

Tom Smith
24th October 2007

Tags: mortgage, time, first, property, abbey, 125%, debt

Young people should ‘consider insurance options’

Young people should shop around more for life insurance providers, an industry expert has said.

According to Clare Moyles of Sainsbury’s Bank, younger people are often inclined to use the same provider for life insurance as they have to take out a mortgage.

She said: “Younger people tend to go with their mortgage lender because they might be a first time buyer and that tends to be the easiest thing to do.

“Not shopping around is a disadvantage for them because with life insurance your premiums do stay the same.”

For those who are “younger and healthier”, she added, premiums will cost less. By sticking with one lender without looking at the other options, people are missing out on possible savings.

Information from the Association of British Insurers this year showed that £160 million per day was paid out in Britain in 2005 by the UK insurance industry.

This figure comprises £17 million in death benefits and £144 million paid to pensioners and long term savers.

Tags: expert, Types of insurance, Insurance, economics, shopping, United Kingdom, Title insurance in the United States, time

Many first time buyers taking a ‘wait and see’ stance

Over the past couple of years things have been extremely difficult for first time buyers in the UK.

Firstly there were problems being able to raise the money needed to purchase a property, with house prices soaring in the UK requiring buyers to obtain larger mortgages.

For first time buyers there is not equity from a previous property to rely on, which means that they have to take out a loan for all or the majority of the value of the property they wish to purchase. In order to address this problem many lenders have started offering increased income multiples and longer repayment periods on mortgages for first time buyers.

However, there is now a fresh problem for first time buyers to consider. Rising interest rates mean that in addition to having to take out a huge mortgage in order to buy a property these buyers also have to deal with huge repayments because of the increased interest rates, which have shot up by 1.25% in the past year.

Even those starting out on fixed rate mortgages have to put up with a high fixed rate, and will therefore be stuck with this high rate for a fixed period even if interest rates start to fall again in the near future.

Rumours of house prices falling towards the end of the year, combined with predictions of further interest rate rises, has now seen many first time buyers take a step back, with many deciding to rent and wait it out to see what happens before rushing to get onto the property ladder in the current economic climate.

One first time buyer stated: “I am desperate to get onto the property ladder, because I feel that the chances of ever getting my own place are getting slimmer and slimmer. But with all of these rumours about decreasing house prices and rising interest rates I want to see what happens before I make any long term commitment.”

Tom Smith
6th October 2007

Tags: increase, bank, Mortgages, england, interest

Bank holds interest rates

The Bank of England’s monetary policy committee (MPC) has decided to keep interest rates at 5.75 per cent for at least the next month.

Although rates have not risen since July, that was the fifth rise within 12 months and there were concerns earlier in the year that rates would hit six per cent before the end of 2007.

However the inflation rate currently sits at 1.9 per cent, below its target level of two per cent and the current problems in the financial markets are making further rises less likely.

In a statement that accompanied the decision, the MPC said that it had considered carefully the effects that recent credit market problems, brought about by the collapse of the US sub-prime borrowing market, could have on the inflation rate.

Responding to the news, the Council of Mortgage Lenders (CML) welcomed the bank’s decision to hold rates steady at 5.75 per cent.

Micheal Coogan, director general of the CML, said: “Credit conditions have tightened since the rate went up in July, and a further increase would have added to the liquidity problems we are already seeing in some sections of the market.

“At the same time, there is now much clearer evidence that the cumulative effect of five rate rises since last August is slowing activity in the housing market.”

Tags: US, time, interest, Council, bank's decision, cml, bank, evidence

Car insurance savings through shopping around

Motorists ought to be “shopping around” to get the best deal, an insurance company said today.

Sainsbury’s Car Insurance said that those drivers who are “not bothering” to check out and compare several different insurance providers were missing out on savings.

According to research released by the company, one-in-five of poll respondents obtained just one quote for the last time they took out cover.

Correspondingly, 37 per cent of those who had been with their insurance provider for three years or more claimed that their premiums had gone up, with ten per cent claiming that their premiums had gone up by over one-tenth.

Car insurance manager at Sainsbury’s Lucy Hunter said: “Only obtaining one or two quotes won’t give you a clear view of the varying price comparisons out there. We recommend getting at least four quotes so that you can compare against price and level of cover and make an informed decision on what you’re prepared to spend.

“These days you can get online quotes in minutes, so it doesn’t have to be an arduous exercise.”

Tags: Admiral Group, shopping, time, view, insurance manager, clear view, price comparisons, Sainsbury

Graduate mortgage lenders run risk, IFA says

Those lenders who allow recent graduates to take out mortgages with them do so at their own risk, Balmoral Associates said today.

The independent financial advisor said that the mortgages, which typically lend at five to six times salary under the assumption that wages will increase over the years, were not “very common”.

Director at Balmoral Associates Paul Monk also took care to distinguish them from 100 and 110 per cent mortgages, saying that the graduate loans were aimed at those who had read a “professional course like medicine or law” and whose “salary is going to increase dramatically over a short space of time”.

Given that a proportion of graduates will remain on similar wages after some years, however, Mr Monk added that “the lender’s taking a big risk” in offering the service.

“The lender’s banking on the fact that because of the sort of job you’re in that that is automatically going to happen but it’s not always the case,” he added.

Mr Monk also commented on the recent US sub-prime mortgage crisis, saying that the UK market might “tighten up” on lending, with recent graduates among the first to feel the squeeze.

Tags: recent graduates, salary, market, United Kingdom, law, time, service."The lender banking, medicine

Government wants longer term fixed rate mortgages to be available

The government, under new prime minister Gordon Brown, has announced that it wants more longer term fixed rate mortgages to be made available in light of the five recent interest rate hikes that have left homeowners struggling to keep up with rising repayments and have made the prospect of purchasing a home even more difficult for first time buyers on a limited budget.

Alistair Darling, the new Chancellor of the Exchequer, has stated that longer term fixed rate mortgages are more important than ever in light of the current state of the economy, as these will enable property purchasers and homeowners to benefit from stable repayments that will make financial management easier and reduced the risk of crippling repayments stemming from further interest rate rises.

Earlier in the week Alistair Darling stated: ‘When you look around the rest of Europe, it is more common to have longer-term fixed rates. We need to look at that. We need to reduce the volatility.’ He also spoke of the profits that some brokers and lenders are making by offering shorter time fixed rates that have to be renewed every few years, netting them thousands of pounds in profit: ‘Brokers want you to come back every two years, rather than every ten or 20. The Financial Services Authority has identified this as a problem.’

In light of the announcement made by government officials the Nationwide Building Society has just announced the launch of a 25 year fixed rate mortgage. However, there are concerns over how many people will want to take on a fixed rate over such a long period in case interest rates start to fall.

Tom Smith
31st July 2007

Tags: increase, first, building, rate, buyers, young

Credit card thieves ‘give to charity’

Charitable donations are commonplace on stolen credit cards, the information security company Symantec said last week.

It’s quite unlikely that card thieves are suffering pangs of conscience, though – small online charitable donations are an excellent way for thieves to check that the card is still valid.

Attempting to use an invalid card is one of the best tipoffs for law enforcement officials that the card is stolen.

However, quite apart from validation issues, making a small donation to a charity on a stolen card is much less likely to be picked up by checkers than an extravagant initial purchase.

According to Javier Santoyo, a manager at Symantec, “even the bad guys want to verify the other bad guys”.

Spokeswoman for the Red Cross Carrie Martin said: “This happens all the time. We have people at the Red Cross who deal with this type of activity.” She added that the charity had dealt with 700 such transactions in the past month alone.

Sometimes credit card numbers rather than the cards themselves are stolen. Holders are advised by issuers to check their statements carefully for unsanctioned purchases, even if small, and to alert them immediately if suspicious activity is detected.

Tags: best tipoffs, Attempting, conscience, bad guys, online, time, Red Cross Carrie, online charitable donations

Some people may never own their own home

According to recent reports future homebuyers could face house prices that are up to ten times the amount of their salaries, which means that many of today’s younger people could face the prospect of never being able to purchase their own home.

The research from the government backed National Housing and Planning Advice Unit (NHPAU) indicates that in order to avoid this situation many more homes will have to be build, otherwise millions of people will be left out in the cold when it comes to home ownership in the UK.

According to the research over a third of those that do not own their own home at the moment are doubtful that they will ever be able to afford to buy their own home. Another 20% of non-homeowners believe that they will have to wait a minimum of five years before they can afford to consider getting onto the property ladder. The purpose of the government run National Housing and Planning Advice Unit is to offer advice on improving affordability in the housing market.

The figures indicate that just seven years ago the average house prices was around four times the average salary of the consumers. However, with prices set to rise to ten times the average salary future generations face a very bleak future when it comes to the possibility of home ownership.

According to the chairman of the NHPAU: ‘First-time buyers have seen a big rise in the deposit needed to buy a home and the amount of their income spent on mortgages. Demand for housing is growing and unless action is taken, pressure on the market will only get worse.’

Tom Smith
4th July 2007

Tags: young, first, cost, time, Mortgages, wages, home, housing

Base rate set to increase to 5.75 per cent?

The Bank of England’s monetary policy committee may be tempted to increase the base rate to 5.75 per cent at this week’s monthly meeting on Thursday, many commentators believe.

Howard Archer, chief economist at the Global Insight consultancy, claims that the committee will experience a “very tight vote again”.

At last month’s meeting, the governor of the Bank of England Mervyn King’s desire to increase rates for a fifth time since August 2006 was blocked by MPC members for the first time since the bank gained independence ten years ago.

Mr Archer said that only one of the five who voted to hold rates at 5.50 per cent last month would have to change their vote to effect a rate rise.

Last month, Mr King said that Britons should expect a further interest rate increase to cope with an over-heating economy and increasing inflationary pressures.

Despite UK inflation falling to 2.5 per cent in May, this was still some way below the government’s two per cent target.

Tags: governor, economy, month, britons, inflationary pressures, time, bank, mr archer

The cash machine turns 40

On June 27th 1967 personal banking changed for ever with the opening of the world’s first cash machine in Enfield, North London.

The Barclays branch opened the first ever ATM so that customers could access cash outside of the bank’s normal opening hours.

Actor Reg Varney, star of popular sitcom On the Buses, christened the cash point and will always be remembered as the first person ever to withdraw money from a hole in the wall.

In those days, customers needed to feed a special voucher into the machine and enter a unique four digit code in order to gain access to a £10 note.

Principally, ATMs have not changed too much over the last 40 years but their popularity has soared.

By the end of the 1960s the UK had 595 cash points, while the world contained 781. By the end of 2006 there were 60,642 in the UK and 1.64 million across the globe.

“The cash machine, more than any other banking innovation, has had a major impact on the way we all conduct our lives, not just our banking,” said John Warren, head of cash machines for Barclays.

“Forty years ago cash was only available from 9-3 pm Monday to Friday and Saturdays from 9 -12.30 pm and, as cash was king, queues outside branches on a Saturday morning to get weekend money were common. Now you can get money any time, anywhere.”

The cash machine was invented by John Shepherd-Barron who had the idea while taking a bath after he had been prevented from getting his weekend money because he was late to the bank.

Tags: barclays, business, voucher, time, bank, code

Cash machines reign supreme

The way we carry out our banking and, in particular, the way we get our cash has changed radically in the last ten years.

New research by the UK payments association Apacs has found that cash machine withdrawals nearly doubled between 1996 and 2006.

Ten years ago, only 34 per cent of our cash demands were met by cash machines, while in 2006 that figure stood at 65 per cent.

In addition, other card-based withdrawals, including cashback and over-the-counter transactions, have also grown, from eight per cent in 1996 to 12 per cent in 2006.

The total amount of money withdrawn from cash machines hit £180 billion last year, growing from £80 billion ten years previous, with Sandra Quinn from Apacs putting the shift down to a change in attitudes.

“On the supply side, there has been a steady trend by business and government away from the payment of wages and state benefits by cash and a huge growth in the number and accessibility of cash machines,” she said.

“There is now a massive number of cash machines in the UK – over 60,000 in total. Demographic trends have also shaped the pattern of cash acquisition; in 2006 for the first time, more than half of over 65s are regular users of cash machines.”

Experts predict that the trend will continue with 81 per cent of our cash coming from a ‘hole in the wall’ in 2016.

Tags: hole in the wall, cash machines."Experts, payment, steady trend, way, hsbc

The death of DIY?

The Great British love affair with DIY may be coming to an end as people become more concerned about making a claim on their home insurance.

Research by Woolwich Mortgages shows that more and more people are turning their backs on DIY and opting to get professionals in to do the job instead.

Nearly half of those questioned said that they do not enjoy DIY, with 37 per cent avoiding the work in case they get it wrong and have to claim the money back from their insurer.

A further 40 per cent say that they simply do not have the time, while 22 per cent see DIY as a chore that takes up valuable leisure time.

“It seems that the phrase ‘time is money’ applies to the UK’s new DFYers (done for you-ers),” said Andy Gray, head of mortgages at Woolwich. “People think their own time is precious and with the added concern that they are not going to do a good job, people are increasingly turning to experts to get the job done.

“Home improvements can make a tangible difference to the value of peoples homes, but a bad standard of work can drag the price down.”

Some tasks are considered to be more worthy of hiring a professional than most, with 65 per cent saying that electrical work should be left to a qualified individual.

Plumbing is also avoided by 63 per cent, building an extension by 59 per cent and installing a new kitchen and bathroom by 58 per cent.

Interestingly, 35 per cent of people think that painting and decorating should be done by a professional, while 38 per cent think the same about erecting a shed.

Tags: time, home insurance, affair, professional, andy gray, home improvements, difference, added concern

Over two billion still to be claimed in bank charges

According to figures released by the price comparison website Uswitch, over two billion pounds worth of bank charges are yet to be claimed by consumers that have been hit with hefty and unlawful penalty fees over the past six years.

The topic of bank charges has exploded over recent months, with regulators claiming that the charges imposed for exceeding an overdraft limit and for returned cheques and direct debits are unlawful and unfair. As a result many people have claimed back these charges going back up to six years, but Uswitch officials claim that around £2.12 billion has still yet to be claimed.

The figures from Uswitch suggest that around four billion pounds in charges have been netted by banks that have applied these charges to the accounts of around nineteen million consumers in the UK. So far, over half of that amount has not been reclaimed by consumers.

So many people are now being encouraged to reclaim their fees from banks that there are a number of financial services available that can help consumers to try and reclaim their fees if they are unsure as to what they need to do. However, the clock is ticking, as an impending decision from UK regulators with regards to what is construed as a fair fee may reduce the amount that claimants can file for.

Many consumers have already threatened to take their banks to court for not repaying the fees, and in most cases the banks have paid up on a last minute basis, with no banks actually having gone to court to justify the amount that they charge.

However, it seems that many consumers are frightened of the consequences of making a claim, with a number of banks having threatened to close consumers’ accounts if they try and reclaim their fees.

Tom Smith
10th May 2007

Tags: charges, claim, uswitch, close, fees

Insurers expect surge in DIY claims

The May Day Bank Holiday is expected to have led to a surge in insurance claims as the UK went DIY crazy.

Bank Holidays are traditionally a time when homeowners decide to carry out some work on their house and this one has been no different.

Lloyds TSB Insurance says that it is expecting the number of calls it receives to surge by around 60 per cent in the coming days.

The firm has revealed that it saw calls rise by 56 per cent following the 2006 May Day Bank Holiday and it predicts that accidental damage claims will also rise.

“May Day Bank Holiday can spell disaster for DIYers,” explained Phil Loney, managing director at Lloyds TSB Insurance.

“We’re urging anyone who’s getting out a paintbrush, drill or stepladder to be extremely careful. Unfortunately, sometimes accidents do happen and it’s then that having the right insurance cover can prove invaluable.”

The firm says that their have been some quite interesting claims made in recent years. Among them is a toddler who wanted to follow his dad’s DIY lead and painted a newly-laid carpet.

One man accidentally drilled through a gas pipe and caused a leak, while another crashed through his ceiling as he tried to repair some floorboards.

Tags: damage, Insurance, director, disaster, accidental damage claims, Lloyds TSB Insurance, toddler

Motorists to save on insurance

Britain’s motorists are being told that they can make big savings by shopping around for their car insurance.

Recent figures show that the cost of owning a car is growing all the time, with Zurich recently putting the figure at an average of £1,766.62 per car, per year.

The increased price of petrol and road taxes during the latest Budget have added to these costs and many drivers are being forced to change their habits.

American Express carried out a survey of British motorists and found that 15 per cent have started driving less as a result of increased fuel prices.

In addition, ten per cent have bought a more economical car, while one per cent uses public transport more often.

However, American Express says that many drivers could save themselves a packet by shopping around for their car insurance.

“The cost of motoring seems to rise year on year and whilst there is little motorists can do to cut the cost of fuel or road tax, insurance is one area where real savings can be made,” commented Joanne Field, marketing manager for the firm.

Those looking for car insurance are advised to shop around for the deal that best suits their needs, compare similar policies and protect their no claims bonus once a deal is agreed.

Tags: time, average, bonus, cost, Express, GBP

Speeding youngsters

Many youngsters in Britain have risked their lives by getting into a car with a speeding driver.

Research by Co-operative Insurance (CIS) and road charity Brake has found that as many as two thirds of people aged between 15 and 25 have been a passenger in a speeding vehicle.

Of these, more than half admitted that they did not ask the driver to slow down despite being aware of the associated risks.

In total, 4,500 youngsters were asked to complete the survey and it was revealed that 65 per cent had been in a car which was driven at 40mph in a 30mph zone or at 70mph on a rural road.

The findings have led to increased calls for changes to be made to the way in which people are taught to drive.

“Now is the time for the government to take action and tackle the problem of risk-taking young drivers,” demanded Jools Townsend from Brake.

“Too many people have died due to a deadly combination of inexperience and recklessness among many young drivers. More will die if positive steps are not taken immediately to educate young people and reform the learning to drive process.

“The government has a duty to society to ensure every young person gets an education in road safety and introduce a more structured system of training and testing novices,” she added.

Young drivers are often forced to pay higher car insurance premiums than other road users as statistics show that they more likely to be involved in an accident.

Tags: road users, road charity brake, Road traffic safety, zone, testing, time, half

Unnecessary vet visits cost £19m

Up to 49 per cent of emergency trips to the vet are unnecessary and British businesses are losing out on £19 million as a result.

According to insurance firm More Than, 37 per cent of all pet owners in the UK have taken time of work to take their animal to the vet.

The majority lied to their employer about what they were doing, with 58 per cent taking annual leave, while many said that they were ill.

However, More Than has discovered that almost half of these cases did not require an emergency visit to the vet, costing a combined £118 million.

In response to this, the insurer is launching a new service which it says is based on the successful NHS Direct.

The service is called Vetfone and it is hoped it will save pet owners time, money and worry.

“Pets are an important part of the family so when a pet becomes ill, many people don’t hesitate to take time off from work to rush them to the vet,” said Mike Holliday-Williams from More Than.

“MORE TH>N’s Vetfone will provide worried pet owners with 24 hour access to a qualified veterinary nurse who can advise them on the best course of action.

“We anticipate that Vetfone will save pet owners valuable time and money in unnecessary vet visits, and it will enable vets to focus time on the serious cases that need their expert skills,” he added.

Tags: GBP, owners valuable time, uk, time and money, expert, pet

Start saving early, warns Saga

Young people are being encouraged to start banking their pensions early or risk a tough time when they hit retirement.

Over-50s advisor Saga says that youngsters should be putting money aside as soon as possible by using tax-efficient savings tools and watch what they spend.

Spokesperson Steve Ashton said the sooner people begin saving their money for retirement, the less pressure they will have on them to put cash away in later in life.

He added that it would leave people less likely to get into financial difficulties, such as having to re-mortgage their home.

“Everybody ought to every year be trying to put as much money as possible into the basic tax-efficient savings vehicles, such as your annual ISA allowance,” he said.

“[It's] all very straightforward stuff, but if you are putting a few thousand pounds every year for a number of years into an ISA, then that over ten, twenty years can really start to ramp up and make a significant difference to your retirement income.”

Tags: youngsters, financial difficulties, individual savings account, saga, sooner people, time, Business Finance, cash

Brits demand stamp duty changes

The majority of Brits want to see Gordon Brown change the stamp duty bands to bring them in line with current house prices.

A poll, carried out by GE Money Lending, has found that 71 per cent of us want Mr Brown to announce changes during the upcoming Budget statement.

Many people, 32 per cent of those asked, believe that the stamp duty exclusion band, which currently includes homes costing less than £125,000, should be increased to regional average prices.

However, one in four people accept that this is unlikely to happen and simply want Mr Brown to link the exemption band to house price increases moving forward.

Although most Brits are unified when it comes to increasing the stamp duty exemption band, we are more divided when it comes to helping first-time buyers to get onto the property ladder.

A majority 58 per cent want the Chancellor to increase the stamp duty exemption band for first-time buyers only and most want to see them given help in one way or another.

In contrast, 38 per cent believe that helping first-time buyers too much is unfair on those who have already paid.

“What is… interesting is the polarised levels of empathy consumers have when it comes to the plight of first time buyers,” commented Duncan Berry, director of mortgage sales at GE Money Lending.

“It is important that lenders continue to understand the difficulties faced by this group, developing new and innovative ways of helping them to get onto the housing ladder.”

If you are a first-time buyer who is looking to take out a mortgage make sure you shop around to find the best deal for you.

Tags: consumers, shop, Budget statement.Many people, is… interesting, polarised levels, budget, time

Don’t Skimp On Home Insurance

If you are worried about how much home insurance is enough, simply estimate the contents of your home and have your home market value appraised. Then shop around different companies for an insurance quote and make sure the amount is sufficient. For many people their home and the possessions it holds represents their entire life savings. Read more

Tags: high expenses, home contents, time, home insurance savings, thieves, life insurance, home insurance, buildings policy

Buy-to-let investors missing out on best loan deals

Investors looking to take advantage of the growing buy-to-let market are missing out on the best methods to finance their purchases, according to research from Heritable Bank.

Coupled with the hike in rates, this means that investors could be needlessly wasting thousands of pounds on interest.

The study shows that investors spend 60 per cent of ongoing costs on mortgage repayments. But only a quarter of the 186 investors surveyed said that they had put finding the most advantageous financing deal at the top of their priorities.

Chief executive of Heritable Bank, Mark Sismey-Durrant, said: “Property investors often have a real passion for the portfolio of bricks and mortar they have built up, but equally they are in the business to make money.

“That’s why we were surprised to see such a mismatch between the amount of money spent on meeting their mortgage and the amount of time spent ensuring they have the best, most appropriate financial arrangements in place.”

Other significant costs for investors, according to the study, included paying for maintenance work (13 per cent of overall costs), covering management and letting agency fees (ten per cent) and paying legal and accountancy fees (eight per cent). General property investment-related bills took up the final ten per cent of the ongoing costs.

Tags: agency, amount of time, time, property investment, mismatch

First-time buyers paying £150k

Tags: buyer, first time buyers, buyers paying £150k, First-time, first time buyer, Business Services, time, Supplies and Equipment

Nationwide puts an end to ’same mortgage’ deal promise to its existing customers

Despite the fact that the UK’s fourth largest mortgage lender has run a very public and prolonged promotional campaign based around its promise of giving exactly the same deal to its existing mortgage customers as it does to first-time buyers, come 1 December the Nationwide’s existing 1.2 million mortgage customers will no longer be given such treatment.

In what many are seeing as incredible marketing blunder, the Nationwide has announced that with effect from the 1 December it will no longer continue to treat its existing UK mortgage customers the same as it does new ones.  Henceforth, existing mortgage customers who want to re-mortgage, switch to a better deal, or borrow against the equity in their homes will be faced with higher interest rates than customers looking to buy new homes.

Unlike its main rivals, the Nationwide has long prided itself on the fact that it will not discriminate against existing customers, but with the new rates coming into effect from 1 December, Nationwide customers wishing to re-mortgage, switch to better deals, or simply borrow more on their equity will now face the prospect of two-tier interest rates that range from 4.73% for house purchases to 5.88% for re-mortgages.

In its defence, the Nationwide are claiming that the change to their policy is in-line with the UK home lending market’s trend of offering “slightly better rates” for home-movers.  This may be so, but for a UK home mortgage lender that has built such a public image around its promise of offering the same service to both existing customers and new customers, Ray Boulger, senior technical manager at Charcol, the mortgage broker, says, “There’s no way you can legitimately claim you’re offering the same deals for everybody if your existing customers don’t have access to the cheaper purchase rates.”

If it is any consolation, existing Nationwide customers will be entitled to receive a £100 discount off the reservation fee if the decide to switch from one Nationwide home mortgage product to another, or if they elect to increase the amount of their UK mortgage loan.  Nationwide also agreed to waive its re-mortgage administration fee of £99 for existing customers who re-mortgage.

Nonetheless, as Melaine Bien, associate director of Savills Private Finance comments, although the changes allow Nationwide to “become more competitive with its pricing when attracting first-time buyers,” the promise that no-one would receive preferential treatment at the Nationwide “no loner stands”.

Tags: offers, remortgages, time, cost, Mortgages, nationwide, paymenst, forst

Payment Protection Insurance – Worth The Extra Cost?

Protecting yourself against going into debt is a logical step for many people; but you have to make sure the insurance is actually worth the risk. Read more

Tags: time, loan insurance, ppi, mortgage insurance, taking, professional advice, likelihood, payment protection insurance

Bank Accounts For Bad Credit Applicants

With all the different products on the market today there must surely be a Bank Account available for somebody with a low credit rating. Or is there?

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Tags: bank accounts, Credit Cards, Banking, bad credit bank accounts, time, bad credit, FSA Banking articles