Insurance firms increase premiums after first speeding offence

In years gone by a first minor offence for drivers was not something that would generally have a huge impact on their premiums. However, it has been reported that insurance firms are cracking down when it comes to driving offences and are now hiking up insurance premiums by a considerable amount even in cases where the offence is a minor one, such as a first time speeding offence.

According to reports, some insurance firms are adding as much as 20 percent onto premiums in cases where drivers have been caught committing speeding offences. Other offences that could result in a huge hike at renewal time includes being caught on your mobile phone whilst driving, texting, playing games, or tampering with other hand held devices whilst operating a vehicle.

The increase is particularly significant given that the cost of vehicle insurance has already soared by such a huge amount over recent years. For those who are caught committing driving offences, even first offences, the cost of insurance could rocket, leaving those drivers struggling even more to keep on top of their insurance premiums. According to reports, drivers aged forty and over who are caught speeding could be hit with a 10 percent hike, whilst those in their thirties can expect a 15 percent increase and younger driver could face hikes of 22 percent.

One insurance expert from the motoring group, the AA, said: “We have seen a sharp swing in attitude by insurers towards minor offences such as speeding of late. They used to be more relaxed about it, with most ignoring a first offence. But our latest research reveals that all are now loading premiums by up to a quarter even after a first offence.”

Tags: top, Other offences, minor offence, speeding offences, increase, younger driver, first offence, amount

Record levels reached for rents

Over the past year getting a mortgage has remained difficult for the many non-homeowners who are desperate to get onto the property ladder. This has led to an increasing number of people that may normally have opted for a mortgage to buy their own place having no other option but to rent. The demand for rental homes has rocketed as a result of this, which has pushed up rental costs.

It has now been revealed that rents are at their highest level since they last reached record highs back in November of last year. The average rent being paid has now soared to £692 per month, reflecting an increase of 0.8 percent compared to the previous month and a rise of 4.4 percent compared to the same period last year.

The landlords of private rented properties are, on average, raking in around £30 per tenant more each month as a result of these increases. Whilst the rent increases are good news for landlords, as they have a huge demand for their properties, it is not so good for tenants who are already struggling financially and do not have to option in many cases of being able to invest in their own property because of the financial restrictions in the mortgage market.

There are concerns amongst landlords about increased levels of arrears and missed or late payments recently. One official said: “The final bank holiday of the month delayed many rental payments, but on top of this, thousands of tenants took advantage of the opportunity and booked holidays, which has impacted on the timely payment of rent. Nevertheless, despite the short-term factors, landlords need to remain especially vigilant over the medium-term. We are yet to see the true picture emerge from public sector spending cuts, and changing employment situations will hamper many tenants’ ability to meet their monthly rent cheque on time.”

Tags: landlord, Renting, Record levels, result, top, mortgage, payment

Tenants now carry out reference checks on landlords

There was a time when any tenant was considering moving into a privately rented property that the landlord would be sure to get a credit check carried out on the potential tenant. Read more

Tags: reference, check, tenants, government backed scheme, top, real problems, property, Politics

Many wasting money on unreliable broadband

Reliability is the most important thing customers in Britain are looking for from their broadband provider according to a recent survey from a popular broadband news website. Read more

Tags: service 34 percent, internet services, particular provider, Virgin Media, broadband, triple-play tv, top, online services

Homeowners must be wary of repossession

Over the past couple of years the world of many homeowners has been rocked because they have suddenly found themselves threatened with the loss of their home through repossession. Thousands of struggling homeowners have indeed ended up losing their homes to repossession, whilst some have taken action early and managed to avoid losing their homes. Read more

Tags: repossession, afresh, busy getting court, Mortgages, anyone

Mortgage arrears to rocket

According to recent reports the level of mortgage arrears in the UK is set to rocket, with some industry reports claiming that there could be a huge rise in the number of people in arrears in 2009 despite the aggressive base interest rate cuts that have been applied by the Bank of England. In fact, around half a million households are set to fall behind with mortgage repayments in the coming year according to the reports, which come from the Council of Mortgage Lenders. Read more

Tags: lending, year's figure, top, intervention, mortgage, mortgage arrears, council of mortgage lenders

Icesave customers get 100% guarantee

Amidst all of the financial chaos that has been taking place over recent days, the Chancellor of the Exchequer, Alistair Darling, has issued some good news to consumers that had money saved with the collapsed Icelandic Internet bank, Icesave. Darling has announced that savers with money with Icesave will receive a 100% guarantee on all of their savings, so those with more than the £50,000 threshold will not lose any of their money as a result of the collapse. Read more

Tags: treasury official, iceland banks, Business Finance, chancellor of the exchequer, GBP

Brits’ confusion over interest rates ‘worrying’

It is “worrying” how few people in the UK fully comprehend the impact of rising interest on their mortgage repayments, said CreditExpert.

According the credit report monitoring service’s Personal Credit Index survey, as many as 70 per cent of people asked, were not clear of the implications of the effect of interest on an example given to them and gave the wrong answer.

Respondents were asked to estimate the effect of a 0.5 per cent interest rise on monthly repayments for an interest-only mortgage of £100,000. Almost a fifth (19 per cent) guessed at £80 while 17 per cent estimated it at no more than £10. In fact, the correct answer was a £40 increase.

Furthermore, around eight in every ten mortgage holders were unaware of the meaning of annual percentage rate (APR).

Jim Hodgkins, managing director at CreditExpert.co.uk, said: “Although the current Personal Credit Index shows that people generally are more confident than in the last quarter, the lack of understanding of key terms and the effect of interest rate changes is worrying.

“It’s important for people to be familiar with standard financial terms and stay on top of changes that affect their personal finances so they can make the best possible decisions and choices.”

Tags: wrong answer, Jim Hodgkins, monthly repayments, Brits, Credit Index survey, council of mortgage lenders

Council tax rises by 91% in 10 years

Increasing council tax bills are putting the squeeze on mortgage holders throughout the UK.

According to research by Halifax, the average council tax bill has risen by 91 per cent in the past ten years.

This huge increase is clearly going to cause trouble for many homeowners, particularly first-time buyers who may be struggling to keep up with mortgage payments anyway.

Halifax points out that the average annual bill currently sits at £1,078, almost double the £564 that most people paid in 1997-98.

The largest percentage rise has been seen in Monmouthshire, where council tax has increased by 184 per cent in the last decade.

People living in Richmond-upon-Thames pay the most council tax in Britain, with a bill of £1,665.

Halifax points out that the 91 per cent average increase is well above percentage rises in other areas, with average earnings goring by 51 per cent and the Retail Price Index growing by 31 per cent in the same time period.

“Council tax bills have increased significantly faster than either average earnings or retail prices over the past ten years,” said Martin Ellis, chief economist at Halifax.

“Bills diverge across the country. Growth rates over the last decade differ by a wide margin between billing authorities too.”

People considering getting a mortgage are advised to ensure that they have calculated their finances properly before signing up to ensure that they will have enough cash to pay for things such as council tax and household bills on top of their mortgage payments.

Tags: billing, trouble, Subprime crisis background information, top, bill, Business Finance, increase