First time buyers still have options to help them get on the property ladder

Times are hard, and now we’re hearing that the UK’s economic recovery is ‘paralysed’ by Europe’s debt crisis. With the economy the way it is, first time buyers often write off the possibility of ever getting on the property ladder and believe they are set to rent for the rest of their lives. This is not the case anymore, with the government; various agencies; housing associations and property developers now offering a range of deals to help first time buyers get on that crucial ladder. Here are 5 tips that can help you keep those costs down…

Shared ownership

Shared-ownership is a terrific way into home ownership and is the main affordable housing scheme. If you cannot afford to buy outright, you can part buy part rent your home – you pay a rent on the share that you do not buy which is set at an ‘affordable’ rate. The bigger the share that you purchase, the less rent you have to pay.

The FirstBuy scheme

Saving for a deposit is something that holds lots of first time buyers back. Schemes like this give you a step up onto the ladder, by lending you some of the money through a shared equity offer. If you purchase your first home in England though the FirstBuy scheme, your deposit could be as low as 4% – there are online calculators to see the difference it could make. If you are looking in Scotland or Wales, there’s a similar scheme called Head Start.

Avoiding stamp dut

Not an offer as such, but a way to reduce the cost of purchasing your own home. If your home’s value is less than £250,000 there’s no Stamp Duty to pay if you complete before March 24, 2012. That could save you up to £2,500 when you move.

Family ownership with your parents

It is becoming increasingly popular for young single people to include their parents on their mortgages. Even if they just own 1% of the property this security enables you to borrow more money from the bank and buy a more expensive property.

Move to a cheaper area

This does not sound like a perfect solution but sometimes in life, we have to take a step sideways to move forwards. House prices in some areas are much cheaper. If you are willing to move to these areas then you can make buying a house a real possibility. You never know, you may make a hefty profit in the end. It is worth bearing in mind that cheaper areas do not always mean lower quality. For example, some areas are more expensive because they are close to good schools so it is worth researching prices in different areas.

Tags: offer, housing associations, deals, buying, tips, Shared-ownership, Ownership, ownership shared-ownership

Money Advice service now available for consumers

There is no doubt that there are many people these days that are desperate for financial advice, as they have a range of money issues that they need advice and help with, including debt advice, pensions advice, and advice on savings and other financial services. However, it has become increasingly difficult for people to get the advice that they needed over recent years, especially in respect of debt with demand for these services soaring.

However, the government has now launched its Money Advice Service, which is designed to provide consumers with advice relating to a wide range of financial issues that may be causing confusion or problems. Consumers are able to use the service online or can use it by phoning or visiting an advisor in person. The aim of the service is to offer free, impartial advice to those that have issues relating to their finances.

The service deals with a wide range of different areas relating to finance, and it is available to anyone that needs advice regardless of what their financial situation is. The service also offers access to a range of tools and resources for consumers to use in order to help them with their financial queries and issues. The service has evolved from the Consumer Financial Education Body, which was launched in 2010.

The service’s chairman Gerard Lemos said: “The Money Advice Service is here to make people’s lives easier and better. We’re not here to sell people anything and we won’t charge anyone – we are here to help people take decisions about their money and plan for a better future for themselves and their families.”

Another official stated: “It is important that everyone in the UK has the knowledge, skills and confidence to make the financial decisions that are right for them. We welcome the launch of the Money Advice Service as a new way to give consumers information about managing their money and choosing the financial products that are right for them.”

Tags: better future, service online, advice, way, anyone, service, financial, launch

Warning for women over store cards

Christmas is fast approaching and many High Street retailers will have geared up to try and get women to take out store cards when they go into the shop to buy an outfit for the festive season. Many women every year take out store cards, as shop sales staff make them sound enticing by offering customers money off their purchase right away.

Many of the popular High Street retailers have a big push on store cards at this time of the year, but these cards come with very high rates of interest, with some charging almost 30 percent interest. This means that a debt as small as £500 could take over a decade to repay if the cardholder only pays the minimum repayment each month, as the bulk of the repayment will be swallowed up in interest.

Store cards are said to be one of the most expensive forms of borrowing, but despite this there are around 12.9 million of them in circulation, with around £2.2 billion spent on them. The number of single women struggling to repay store card debt is three times higher than the number of single men, and women are now being urged to think twice before taking out and spending on a store card this year.

An official from the Citizen’s Advice Bureau said: ‘There is a problem with the way store cards are sold. Targeting young women at the till means customers are usually more focused on the discount for their purchase than the terms and conditions of the credit.’

Another finance industry official added: ‘Customers who repay only the minimum amount on store cards could end up paying twice the price and still be repaying the debt in a decade’s time. Do not touch store cards unless you can afford to pay off the balance in full every month.’

Tags: sales, way, finance industry official, expensive forms, Debit card, single men, repayment, advice

Older women pay far more for car insurance

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

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

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

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

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

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

Consumers fleeced over bill payment methods

Many people these days are keen to try and reduce their outgoings, and in the current financial climate with so many people struggling financially making cutbacks has become vital for some people. One of the ways in which many people try and cut back is through reducing their bills by doing thing such as switching providers, which can help to make significant savings.

However, one way in which many consumers are wasting millions of pounds a year between them on their bills is via their payment methods. Many people fail to realise that companies these days often charge a small fortune based on how the consumer pays their bills, and that by making a simple change to their bill payment methods they could make a significant saving.

Companies such as energy suppliers, home phone providers, and broadband providers often make additional charges to those that do not pay by direct debit. Most consumers have a number of choices when it comes to making payments on bills, such as direct debit, standing order, cheque, or in person at banks and post offices.

For those that do not pay by standing orders some companies such as broadband and utility providers apply an addition monthly or quarterly charge, which can really bump up the cost of services for the customer. For example, Virgin Media, which provides phone, television, and broadband services, will charge consumers an extra five pounds a month for failing to pay by direct debit, which equates to £60 a year. In addition to this the company charges extra when customers ask for paper bills to be sent to them.

In order to save more money on their bills consumers should set up direct debits wherever possible, as otherwise they can end up being charged a small fortune on the cost of their bills. There is also another benefit to setting up a direct debit for a bill payment, and this is because it can reduce the chance s of making a missed or late payment, which can also incur charges when the payment is on something such as a credit card or loan. These missed or late payments can also result in the consumer’s credit rating being affected, which can make it more difficult to get finance in the future and makes it more expensive to get credit due to higher interest rates charged.

Tags: debit, Standing order, payment, Payment systems, finance

Virgin Money makes changes to repayment system

Many Virgin Money credit card customers have been pleased to hear a recent announcement from the financial giant with regards to the repayment allocation on its credit cards. Virgin has announced that as of the start of September any repayments made on the Virgin credit cards will be allocated to the more expensive debt first, which could potentially save credit card holders a fair amount in interest.

Under the current repayment system, as is the case with many credit card providers, anyone that repays their debt gradually on the Virgin credit cards will see the repayment being out towards the cheapest debt first, which is often interest free debt. This means that more expensive debts that have high interest rates can be left to faster and continue accruing interest, which means that customers often end up paying out more.

The move to make credit card providers allocate customers’ repayments in this way has been pushed by regulators and financial authorities in the UK following similar moves that were taken in the United States. However, whilst lenders who offer credit cards will have to adopt these measures eventually many have surprised customers by bringing in the moves earlier than was necessary.

Virgin Money has become one of a number of credit card providers to bring in the changes to the allocation of repayments earlier than they needed to, and collectively customers could save a huge amount on interest as a result of these changes being made early.

One customer said: “I think its great that Virgin have decided to take this action early, because it will allow customers to save a fortune on the interest that they would otherwise have to pay.”

Tags: current repayment system, credit, finance, business, Virgin Credit Card, regulators, way

Electrical goods websites accused of being misleading

It has been claimed in a recent report that a large number of websites that are selling electrical goods are actually misleading consumers. Read more

Tags: cost, way, electrical retailers, electrical goods. online electrical goods, investigation, Europe-wide problem, solution, EU Consumer Commissioner

Tips for Buying a Flat With Friends

Many times friends decide to pool their resources and buy a flat together. The combines resources and credit ratings gives them more borrowing power, which in turn allows them to purchase a larger flat in a better area of a city. Read more

Tags: way, house buying, group mortgages, idea, Mortgages, buy flat with friends

Half the Population of the UK Don’t Have Funds Set Aside for Retirement

The BBC recently revealed that about half of all the people living in the UK aged 20 to 60 have not been putting aside any funds for their retirement years. This does not mean that they do not have any savings for such purpose, but they haven’t been paying into a pension fund. Read more

Tags: today, uk, plan, retirement, wife's situation, Gfk, retirement fund, way

Government and many other credit cards fail to do proper income checks

In the current financial climate most industry experts would agree that credit card providers need to ensure that they carry out proper income checks on applicants to ensure that they can afford the repayments on their credit card debt, particularly given the high level of defaults. Read more

Tags: lack, fact, Credit Cards, way, income checks, rate, political parties, Labour

Worst of recession could be over according to economist

One economist, who has recently become a member of the powerful Monetary Policy Committee, stated that the worst of the recession for Britain could be over. Read more

Tags: rate, way, recession over, Macroeconomics, economist, certain time lag, credit crunch, interests rates

Offspring claim financial independence whilst taking cash from parents

A recent study has found that there are many young adults in the UK who class themselves as being financially independent, yet they are still taking money from their parents to help fund a wide variety of things. Read more

Tags: financial future, financial independence, way, class, help, Parent, future, cash

Don’t be tempted to lie on your insurance application

Insurance is something that many of us take out to protect various aspects of our lives, from our pockets when taking our vehicles on the road and our belongings in our properties to our health and our loved ones in the event of unforeseen problems. Read more

Tags: Cheating, household budgets, pressure, insurance applications, way, insurance fraud

Questions to ask before taking a secured loan

When an individual is taking out a secured loan, there are many questions to ask before taking the loan. Before you take that secured loan out, you should not be afraid to ask the lender questions. Within this article, we are going to tell you some questions that you may want to put on the list to ask the lenders of thatsecured loan. Read more

Tags: percent, Hard money loan, good credit, secured loans, money, high points, way

Long haul package holidays being slashed in price

With the global credit crunch still underway and soaring household bills and living costs impacting on consumers’ budgets it is little surprise that many people have decided that they either cannot afford to take a holiday at all or that they can only afford to take a break somewhere local within the UK rather than heading to some far flung destination that costs a small fortune when it comes to flights, accommodation, and all the extras. Read more

Tags: United Kingdom, holidays, trip, way, bargain

How much will you need to retire?

For many people retirement is something that they would rather not think about, either because they do not have the money to put towards their retirement fund in the current financial climate where households are struggling to make ends meet due to higher bills and living costs, or because they are relatively young and feel that retirement is a long way off so they can think about it later. Read more

Tags: life trust, financial commitments, Financial economics, Retirement Report, post-career years, Impact, way, advisor

Inflation levels hit 11 year high

June saw inflation levels rise to an eleven year high of 3.8% as a result of soaring food and petrol prices, according to recent reports. The rate of inflation for May had already hit highs of 3.3%, resulting in the governor of the Bank of England, Mervyn King, having to write to the chancellor, Alistair Darling, to explain why inflation had soared so high and what would be done to bring it back down. However, the situation is now even worse, with inflation nearly double the government’s 2% target. Read more

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Holidays still important to Brits

According to a recent report holidays are still important to Brits despite the fact that the global credit crunch has impacted heavily on household finances. In fact, the report suggests that many people would actually rather cut back on every day goods and luxuries than have to give up their yearly holiday, even though many are suffering from really strained household finances. Read more

Tags: conscious travellers, holidays, repercussions, arrangement fees, Household, smoking, way, food

Food prices continue to soar

A recent report has shown that food prices are continuing to soar and add further pressure to already strained household finances, with food inflation thought to have gone up by around 7% in the space of a year. It is thought that the rate of inflation could rise even higher as a result of the increase in food prices, and many households are finding it harder and harder to keep up with costs, with living costs going up so sharply. Read more

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Prepaid currency cards “more competitive” than credit cards

Holidaymakers are likely to favour prepaid currency cards over traditional travellers’ cheques, according to industry experts.

The currency cards are on offer from the Post Office, Barclay’s and Lloyds TSB and allow travellers to withdraw cash abroad. Travellers load the currency they need on to the card before setting off on their holiday.

Moneysupermarket.com explains that currency cards have the edge on credit cards because there are no fees for transactions. They can also be used by individuals who have difficulties acquiring credit.

Steve Willey, of Moneysupermarket.com, said: “In terms of their use, effectively they’re a traveller’s cheque replacement.

“Once people have got comfortable with the concept and realise that there are savings to be made, then I think this will become just ‘the way to do things’.”

Travellers are also protected against fraud because the card is frozen if it is stolen and the balance and card holder’s details remain protected.

Last year statistics from APACs revealed an increase of 77 per cent of fraud associated with cards stolen abroad.

Tags: experts.The currency cards, year, statistics, post office, need, traditional travellers, way, favour

Joint mortgages with strangers are ‘risky’

Entering into a joint mortgage with someone you do not know is “extremely risky,” say mortgage experts.

Bestinvest has said home buyers could also find themselves “in all sorts of problems” if they enter into a mortgage with a friend who they fall out with.

Peter O’Donovan, mortgage manager at Bestinvest, said: “If you buy a house with someone and you don’t know their credit record, that’s even worse because you are jointly and solely liable for that mortgage. If the other person stops paying you have to continue.”

He added that there is no protection that people entering joint mortgages can take out to protect themselves against defaulting if the arrangement does not work.

According to research conducted by Scottish Widows in July 2007, joint mortgages are becoming popular among graduates who find that they offer the only way onto the property ladder.

Of those graduates surveyed 63 per cent purchased property with a partner.

Tags: loan, property ladder, record, way, manager at Bestinvest, Joint

Barclays Freedom credit card encourages frivolous spending

Barclay’s Bank has run into trouble once again, following accusations that it is encouraging consumers to spend more than they can afford, thus adding to the already mounting debt levels in the UK.

This is due to the the Freedom credit card which has been launched by the bank. The card offers consumers credit limits of up to £25,000, with an interest rate of 14.9% on the balance and an option to transfer the balance to a 6.6% loan if the customer wishes to do this.

On the advertisement for the Freedom credit card it stated: ‘If I see something I want, I need to be able to act quickly and not have to wait to arrange finance, or be stuck with a high rate of interest.’

However, concerned industry professionals and campaigners state that this card simply encourages frivolous spending, and increases the risk of consumers ending up in unmanageable levels of debt because of the high credit limits and the ability to switch to a loan. The loan can be paid between 3 months and 7 years with a fixed monthly repayment.

Barclays is trailing the card through a well known price comparison site, but has not confirmed how long the trial will last. However, experts have been quick to point out that the card could just be another way for the bank to make huge amounts of interest on super high balances from customers, or to increase its loan business through customers running up high balances and then transferring them to a loan with Barclays.

Credit cards are already known to be a major contributor to debt levels in the UK, and a card that offers such high credit limits could add ot the debt problems relating to credit cards significantly according to some experts.

Tags: ability, consumers credit limits, way, industry professionals, concerned industry professionals, card, business, Credit card balance transfer

Isas to be ‘increasingly’ popular

The growing popularity of individual savings accounts (Isas) in the past few years is a continuing trend, an industry expert has said.

According to Michael Brill, director of Baronworth Investment Services, people are increasingly putting their equity into Isas as traditional banking methods become more risky and less attractive.

He said: “If you go into a cash Isa then it is very safe. In a deposit account, one would have thought it is the safest you can get.

“If someone wants to make sure their money is saved and they are not playing with the stock market it is an excellent way to save tax free money and a lot of people are doing it.”

He added that, in the most part, cash Isas are “very flexible”, with consumers advised to select one that best suits them.

HM Revenue and Customs released figures this month showing the amount of money invested in Isas, which now stands at an impressive £208 billion.

Tags: stock, ISA, way, michael brill, industry, Business Finance, market

Greater equality for gay people over insurance

There has been a change in attitude when it comes to insuring homosexual people.

Chris Morgan, managing director of Compass Independent Financial Advisors, said that there has been a shift in the last five years.

In the past, he said, it would have been difficult to have assured a £200,000 sum for an “openly gay” customer, whereas now as much £1 million life assurance can be given.

However, he added: “There are other issues you have to consider in finance for example specialised advice for people with HIV and that’s around mortgages particularly because they can’t get life assurance.”

According to the ABI, in October 2005, a Statement of Best Practice was put in place by the insurance industry regarding HIV and insurance that affects the way some types of gay men are insured.

It states that ‘the gay question’ on life insurance forms, income protection and critical illness cover applications that many homosexuals consider unfair. The ABI have put an end to this and “other intrusive personal questions”.

Tags: homosexual people.Chris, Social Issues, way, change, illness cover applications, Managing director, Best Practice

Are banks playing on the consumer’s conscience?

Over recent months consumers in the UK have been finding more and more services and products that are going ‘green’, enabling them to get the services or products that they need whilst also helping the environment. Read more

Tags: green credit card, Payment systems, banks, way, bank accounts, consumer

Lifetime balance transfers

One big advantage that a lifetime balance transfer has over a consolidation loan is that it offers far greater flexibility when it comes to payments, a leading bank said today.

With credit card users paying hundreds of millions of pounds worth of penalties last year, looking to avoid such fees ought to be a big priority among British consumers.

“You know exactly what you are going to pay and it is a guaranteed balance,”
Donald MacLeod, head of credit cards at Sainsbury’s Bank, said.

“[It] is probably one of the most straightforward ways of using a credit card: you transfer the balance [and] you know what you’re going to get,” he added.

“One of the big benefits of the lifetime balance offer compared to loans is that there are no penalties so you’ve got complete flexibility of payment – so as long you give a payment you can pay as much as you want or as little as you want, whereas with a consolidation loan your payments are set in stone from the start.”

Mr MacLeod also said that, far from encouraging debt, the flexibility of payment offered by balance transfers made them a good way of restructuring existing debt.

Tags: Credit card, Stoozing, head of credit cards, lifetime balance transfers, year, way, today

Market volatility increases attractiveness of buy-to-let

The recent fluctuations in the UK stock markets have caused a lot of financial concerns among investors.

Originally caused by the meltdown of the US sub-prime mortgage sector, the current turbulence in credit markets might lead some to look elsewhere to grow their assets.

Mortgage Trust commented today that some landlords are finding safer bets in the buy-to-let market.

According to their research, 32 per cent of new landlords have cited control over their investment was a major factor behind their decision to enter the market.

This represents a four per cent rise over the same question asked by the company in January.

Managing director at Mortgage Trust John Heron commented: “When investing in stocks and shares, your only option if you don’t like the way an investment in a fund or company is performing, is to sell.

“With buy-to-let, landlords are in the driving seat. As financial markets become increasingly volatile, this level of control will become more attractive to investors.”

Mr Heron also claimed that the spiralling base rate of interest – which the Bank of England has raised five times in the last year – had also led investors to become “increasingly risk averse”.

Tags: fund, Trust, buy-to-let, United Kingdom, stocks and shares

UK consumers struggle to remember pin codes

Research from high street bank Abbey has today revealed that consumers have trouble remembering their pin codes.

Fully 39 per cent of those polled by the card provider said that they write down their numbers so as not to forget them – although a big majority of this group disguised them in some way.

Making records of pin codes makes credit card fraud far more likely, as does making all cards carry the same code, as admitted to by 14 per cent of respondents.

Around 55 per cent admitted to having forgotten a number, with card holders increasingly owning more than one piece of plastic.

The survey found that six million Britons hold three cards, around three million hold four, and two million hold five cards or more.

Steve Shore, head of banking at Abbey, said that with many consumers holding multiple cards, “the challenge of remembering all those PIN codes is getting greater.

“But we really do urge you to try and commit them to memory rather than write them down. Otherwise it’s like signing a blank cheque for fraudsters.”

Tags: head of banking, Credit Cards, cent, piece, card, way, card holders

Internet banking needs innovation

Internet banking recently turned ten but one of its pioneers says the current crop of sites lack innovation and direction.

Jim Spowart, chairman of peopleschampion.com, who created the UK’s first bespoke internet banking site, has criticised the current market.

He says that banks appear to be unsure of where to go next with their online banking websites and wants to see them doing more to offer customers something different.

“The banks have been concentrating on profitability. All they have done is use the technology to update their traditional banking methods,” commented Mr Spowart.

“There’s been very little thinking about how they can offer the customer something brand new. Internet banking is just an add-on convenience for many – but it hasn’t changed banking. That’s why the banks are having to hit the customers with extra hidden charges.

“In every way, the internet has changed the way we all look for products and services. The poor old traditional bankers are still scratching their heads looking for ways of gaining customers, yet the whole game has changed,” he added.

Internet banking in the UK celebrated its tenth anniversary on May 27th 2007, a decade after Nationwide launched the first site.

Tags: Business and Economy, site, internet, way, internet banking, thinking

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, hsbc, cash machines."Experts, payment, figure, steady trend, time, way

RBS customers face new charge

The backlash from the Office of Fair Trading’s (OFT’s) crackdown on bank charges is beginning to be felt.

After the organisation announced that banks should reduce the amount they charge customers when it comes to penalty fees, it became apparent that banks would look for other ways to make their money.

Now Royal Bank of Scotland (RBS) has announced that it is making some changes to the way that it operates.

The bank has revealed that customers who change address must inform RBS before two statements are sent to the previous property or they will be hit with a £12 fine.

In addition, RBS has plans to change the way it treats card purchases of items such as gift vouchers and betting slips.

The bank wants these “cash equivalent products” to be charged in the same way as cash advances, meaning customers will incur a higher rate of interest.

RBS is not the first bank to announce changes to its operations since the OFT crackdown.

A number of firms have increased interest rates, while some are charging customers for failing to use their card on a regular basis.

Tags: backlash, card purchases, Fair Trading, cash, amount

Single parents struggle to save for kids

Single parents are finding it difficult to manage their banking, meaning that few are able to put money aside for their children.

According to Engage Mutual Assurance, only one in six lone parents make regular payments into a savings account for their children.

A study carried out by the firm found that married couples are much more likely to save for their child’s future, with 42 per cent making regular payments compared to just 17 per cent of single parents.

This is despite increased child benefit and child tax credit which were announced during the last Budget.

“Rising childcare and education costs, along with increases in the cost of living, mean that today’s parents are feeling growing financial pressures in bringing up children,” said Engage spokesman Karl Elliott.

“For lone parents, living on a single income, these pressures may be especially hard to deal with.

“However, parents should not despair of saving for their children’s future. Tax exempt child savings plans and Child Trust Funds provide simple and affordable means to saving for children,” he added.

Parents are advised to put at least some money aside on a regular basis to help pay for their child’s education and perhaps give them a starting point as they try to make their way onto the property ladder.

Tags: Trust, starting, Child care, property ladder, child, exempt child savings, way, today

Critical illness payouts grow

The number of critical illness claims that were rejected by a leading insurer fell dramatically between 2006 and 2007.

Legal & General has revealed that the rejection rate for critical illness claims was down 19 per cent on the previous year, something the firm says is good for consumers and the industry as a whole.

The reasons behind the falling rejection rate are varied but Legal & General believes that a number of key factors have had the largest impact.

Tele-medical interviewing, which sees a nurse or underwriter speaking to the customer about their medical history, is said to have gone a long way to reducing the number of claims which are thrown out for non-disclosure.

Figures for 2006 show that claims declined for non-disclosure fell by 15 per cent, with the insurance firm paying out £92.1 million in critical illness claims in that time.

“We didn’t go into the business of critical illness to reject claims and so our latest experience is good for customers and good for the industry as a whole,” said Russell Whitworth from Legal & General. “It shows that people can have confidence in critical illness cover.

“Our claims figures demonstrate that the time and effort that we have invested in our underwriting systems to reduce non-disclosure and improve the clarity of policy definitions is paying off.”

Critical illness insurance is designed to help people financially if they are struck down with a life-changing illness or disability.

Tags: cover, policy definitions, cent, General, disclosure, underwriter, way, critical illness

Bailiffs will be regulated

Those of us in debt will be protected from overzealous bailiffs by a strict new licensing regime.

That is the promise of constitutional affairs minister Vera Baird who says that bailiffs will not be given the power to forcibly enter a domestic property until the new licensing system is in place.

It comes as new laws are set to be introduced which will give bailiffs to right to force their way into a property to collect debts due for credit cards, loans and other bills.

The proposed laws have caused controversy as it is claimed that bailiffs are not properly policed and consumers need to be protected from rogue elements.

“Concerns have rightly been expressed about the right of bailiffs to force entry to people’s homes,” commented Ms Baird.

“We have always said forced entry can only be used as a last resort and when all other avenues have been exhausted.

“Today, I’m happy to announce this power will not come into force until those bailiffs who are not Crown employees are licensed by an independent regulator. This will help to further protect the public,” she added.

Ms Baird’s announcement has been welcomed by Citizens Advice, although the organisation has warned that regulation of bailiffs must be “robust”.

If you are in debt do not ignore the problem and hope that it will go away. If you contact your lender or debt collection agency to arrange a repayment plan you can begin to pay off the debt and avoid having bailiffs visit your home.

Tags: Credit Cards, avenues, proposed laws, repayment, way

Cost of treatment affecting health

The cost of treatment is leading to many women in the UK failing to get properly checked-out for fatal diseases.

Research from PruHealth shows that 79 per cent of British females have never been for a full body health screening.

That means many people are running the risk of developing illnesses such as breast cancer and heart disease, with PruHealth’s research showing that the reasons are often financial.

In total, 37 per cent of respondents said that health screening is too expensive, while 36 per cent revealed that they would go for a screening if it were made available on the NHS.

“People are putting themselves at risk by not having a regular check-up and full body health screen,” said PruHealth’s direct marketing and partnerships director Nick Read.

“Preventative methods like these can pick up early signs of chronic diseases such as cancer and heart disease.”

In addition, Mr Read revealed that having a screening can lead to people adopting a “healthier lifestyle”.

The cost of this kind of treatment need not be so large that women are passing it up and many will find that by taking out health insurance cover they can spread the burden and pay for their treatment in a more manageable way.

Tags: way, Nick Read, nhs, burden, PruHealth's direct marketing

5 Ways To Reduce Your Student Car Insurance Policy Payments

One in every five students in higher education in the UK either owns their own car or has access to a car that they can drive to university. If we take it as given that higher education students have very tight budgets to live on, the following are five ways to help reduce your student car insurance policy payments and help you to save money: Read more

Tags: cheaper student insurance, car insurance for students, dad, way, insurance provider

London card holders redeeming £349

More and more people are using credit card reward schemes to make some money, with Londoners the best at taking advantage.

According to research by Goldfish credit card around 83 per cent of card holders in the capital have a loyalty scheme attached.

The study found that between November and January alone, 39 per cent of Londoners redeemed an average of £349 on their cards.

Most people saw this money in the form of vouchers, cash back or travel rewards, meaning card holders were given the extra bonus of having to spend it on a personal treat rather than clearing debts.

Although Londoners have been enjoying their rewards with vigour, it is a different story in the north of England, with fewer people claiming their rewards.

“Credit card reward schemes are a great way for cardholders to be rewarded for everyday spending, but there is no point in having one if customers do not redeem their points,” said Patrick Muir from Goldfish credit card.

“Savvy spenders should consider cards that offer them a tangible benefit or reward for their spending.”

The research also showed that women are more likely to hold a rewards-based credit card but men are more likely to claim the rewards.

Tags: london, benefit, scheme, Savvy, point, way, rewards."Credit card reward, bonus

New buy-to-let trend

A new trend is developing in the buy-to-let market, with people buying homes and renting them out then using the money to pay their own rent.

Many first-time buyers are finding it so difficult to buy a property in the south, and in particular London, that they have to rent, says website SpareRoom.com.

However, they feel as though they are wasting money this way, so they buy a house in a cheaper area and rent it out.

The rent they receive from this property then goes towards paying their mortgage and their own rent but, in the mean time, they are buying a home.

“We’re seeing a definite increase in young first-time buyers taking on a bigger mortgage than they can afford on their own and renting out a second room to pay for it,” said Rupert Hunt, founder of SpareRoom.

“Not everyone wants the risks that come with joint ownership. Until recently it has been tricky for people to get a big enough mortgage to buy somewhere with a second room to rent out, but things are getting easier.”

In response to this growing trend, many mortgage providers are now offering loans which take into account income earned through renting another property.

Tags: Equity sharing, way, Mortgage loan, Politics, Renting

Hybrid travel, credit card

Barclaycard has teamed up with the people behind Transport for London’s Oyster Card to bring a new era of payment to the UK.

Cubic Corporation, the firm that developed the Oyster Card, has struck a deal with Barclays in London to develop a hybrid card.

It will be useable both as an Oyster Card, allowing travel on the capital city’s transport network, and as a credit card.

The credit card element will work in exactly the same way as it does at present, as will the Oyster Card functions, but low value payments will now be revolutionised.

Holders of the new card will be able to make payments of £10 or under by simply waving the card in front of a receiver.

“Oyster has been a great success making journeys across London, cheaper, easier and quicker, but we want to make Oyster even more convenient,” said London Mayor Ken Livingstone.

“This new deal will mean that from next year people can buy low cost items and take advantage of Oyster fares on the same card, reducing the need to carry cash.”

A £10 limit has been put on the ‘wave and pay’ function for security reasons and the card, which will be tested in London in early 2007, also contains standard chip and pin technology.

Tags: firm, way, British people, capital city transport, new era

Credit card cloning warning

Credit card holders are being told to increase their vigilance and be on alert after a spate of card cloning incidents.

Police in Cheshire have sent a warning out to all card holders in the area after around £3,000 was taken from accounts over the new year period, reports the Chichetser Observer.

In total, officers say that ten people reported money missing from their accounts, all of whom had used the same cash point.

The investigation is now focussing on the HSBC machines located in a local supermarket.

A process known as skimming is believed to be what was used by criminals to obtain the account numbers, sort codes and pin numbers of unsuspecting victims.

This data is then transferred to another card and it can be used in exactly the same way.

Those who have already realised that money has gone from their account did so because they have checked their statements, however police fear the number of victims will escalate when others check their balance.

Tags: Automated teller machine, business, way, year, card cloning incidents.Police, card cloning warning

What Is A Warranty?

Second hand or first time round?

When you buy a used car from a dealer you will nearly always get offered at least three months warranty. If you are buying from new then you will get about three years warranty as standard. But what is it and what’s it got to do with insurance? Read more

Tags: something, car warranty, warranty, warranty period, way, form

Why Does Car Insurance Cost More For A Young Person?

Bright Young Things

Trying to second guess what your insurance is going to cost you is a nightmare. Despite all the insurance groupings, one thing you do know is it will cost a lot more for a young person than somebody of more advanced years. Why? Read more

Tags: driver, lamp post, way, Vehicle insurance, game players, Boy racer, repair