moneynet.co.uk

House prices rise again but weather depresses activity

01 Jan 1970 00:00:00

House prices rose again in January but buyer interest and new instructions to sell property fell as bad weather hit activity in the market.

In January, 32 percent more Chartered Surveyors reported a rise than a fall in house prices up from 30 percent in December. However, the net balance of surveyors reported that buyer enquiries fell for the first time in 14 months while new instructions dropped for the first time in seven months. 20 percent more chartered surveyors reported a fall than a rise in new buyer enquiries down from a positive reading of 18 percent. The bad weather clearly had a negative impact upon business with newly agreed sales also falling for the first time in ten months.

However, surveyors are optimistic that these negative signs are a reflection of the extreme weather conditions experienced in the early part of the month. The number of surveyors expecting house prices to rise increased from 12 percent to 24 percent while the number of surveyors expecting sales to pick up over the next three months rose from seven percent to 24 percent in January.

Commenting, RICS spokesperson, Ian Perry said:

"The cold snap in January clearly has a huge impact upon both supply and demand in the housing market with activity coming to a halt amidst the seasonal chaos. Activity and interest is likely to pick up in the coming months as the market experiences a spring bounce.

Top tips for first time buyers

01 Jan 1970 00:00:00

Unbiased.co.uk and their media mortgage advisers offer top tips on buying your first home

Melanie Bien, Savills Private Finance

"Get an ‘agreement in principle' from a lender before you start property hunting. This will give you an idea as to how much you can borrow - and in this market - this is really important as lenders are requiring bigger deposits than before - up to 25% of the property value for the best rates. The other advantage is that vendors will take you more seriously. Property chains are breaking far too frequently when a buyer has to pull out of a transaction because they can't get the necessary finance and many vendors have lost time and money when their sale has fallen through. So expect an estate agent to ask whether you have already arranged a mortgage before your offer will be accepted.

Ray Boulger, John Charcol

"When embarking on the house buying process for the first time, plan well ahead because lenders are very fussy. Most lenders will credit score you, and this process assumes you are guilty of not being able to handle credit unless you can prove otherwise. It is therefore important to understand what affects your credit score and how you can improve it. For example, make sure you are on the electoral roll - even if you don't plan to vote. Never go overdrawn unless you have agreed an overdraft facility and if you have a facility, never exceed it. Make sure no cheques or direct debits bounce. (Most lenders want to see between 1 and 3 months bank statements for first time buyers.) If you are renting don't miss any payments. If you don't have any credit cards get a couple, spend something on them every month and set up a direct debit to repay the balance in full every month. The longer you have had your current account with the same bank, lived at the same address and been with the same employer the more points you will get. Always put your landline telephone number on a mortgage application form in preference to a mobile number."

AXA warns homeowners to learn the lessons of cold December and January

01 Jan 1970 00:00:00

With the Met Office forecasting plummeting temperatures again this week, AXA is warning people to make sure they take precautions to avoid the misery of a burst pipe.

Statistics from AXA show that during the last couple of months, claims for ‘escape of water' escalated as homeowners faced up to the damage caused by pipes bursting as a result of the freezing weather. The company has already seen hundreds of claims with average damage costing around £30,000. The biggest claims have seen houses totally destroyed with costs reaching hundreds of thousands of pounds. And for the 20% of households who have no cover for contents, this could have much more serious repercussions.

The most consistent factor behind these losses is householders who have gone away without taking any precautions. Even a day or two away can have devastating effects if sensible measures aren't taken.

Research from the company suggests people really don't understand the risks. Only 8% are concerned that a burst pipe might be a problem while away on holiday over the winter period and only one in three (38%) people will take even the most basic of precautions such as leaving the heating on.

'Be aware of varied lending costs' warns expert

02 Aug 2010 13:59:12

With Valentine's Day rapidly approaching, many people may be looking to borrow money in order to surprise their loved one with an engagement ring.

Andrew Hagger of Moneynet.co.uk has compared popular lending arrangements in order to highlight the discrepancies between the best buys and the more expensive options.

Mr Hagger said: "The smartest financing option is to buy the ring on your credit card and apply for a balance transfer card now so you can switch the balance across to an interest free deal when your statement comes through."

He added that while a personal loan is another viable option, the interest on smaller amounts tends to be more expensive this way.

The differences in the price of borrowing money can be substantial as Mr Hagger points out.

A £2,500 loan from the Post Office or First direct comes at a rate of 13.9 per cent APR.

The equivalent from the Halifax Bank of Scotland would be lent at 22.9 per cent, which would mean an additional cost of £200.

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Bank rate remains at historic low

02 May 2010 14:20:25

Mortgage and loan rates are likely to remain steady for now as the Bank of England has maintained its lending rate at 0.5 per cent.

The Bank also announced a pause in its artificial bolstering of the economy though quantitative easing while leaving the interest rate at a historic low.

Robert Sinclair, director of the Association of Mortgage Intermediaries (AMI) commented: "It comes as no great surprise that the Committee has chosen not to extend its quantitative easing programme.

"However, leaving the door open for further consideration indicates that the Committee remains concerned that base-rate levels alone are not enough to maintain the recovery. The monetary injection was entirely necessary at the time."

He added that if inflation rises faster than expected, then interest rates are likely to also rise "sooner, and faster, than we expect".

But for now, "the assurance that the Committee considers the inflationary factors are supply driven is encouraging".

According to Mr Sinclair any sudden increase rates could result in serious problems for millions of homeowners and put "pressure on the housing market."

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Isas offer "long-term" benefits

02 Apr 2010 13:21:06

People should invest in Isas for the "long-term", an expert has said.

Andrew Hagger, spokesman for Moneynet, has encouraged consumers not to discount Isas in the current climate, but to see their benefits in the future.

Mr Hagger said: "While I understand why Isas are not good value for people at the moment, you perhaps have to take a long-term view of it."

He added that "ring fencing" your money away from the tax man for the next year would be a strong advantage of saving with an Isa.

Research from the Fair Investment Company found that the Bank of England's low interest rate of 0.5 per cent was having a knock-on effect on high street banks, meaning that generally poor savings rates were on offer.

Mr Hagger's comments echoed this adding that in particular banks have very little incentive to offer competitive rates on Isas due to the nature of the market.

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38% increase in current account sales at The Co-operative Bank

01 Jan 1970 00:00:00

The latest data from The Co-operative Bank Current Accounts has revealed a 38% increase in current account sales in 2009. This includes a 22% increase in customers switching their current accounts from other major banks.

New research findings highlight many of the reasons which drive people to look for a new current account provider, with over a third citing customer service (29%), a quarter looking for online banking facilities (23%) and a local branch (19%) and more than one in ten looking for a more ethical provider (10%), and a transparent charging structure (14%)

John Hughes, Business Leader, Retail Products for The Co-operative Financial Services comments, "The findings clearly show that customers are now increasingly likely to switch their bank account, if they are unhappy with the service, facilities or ethos of their provider."

"Historically many people chose their banking provider when they were younger and stayed with that provider throughout their life.

However now more than ever consumers should review their banking products as their personal circumstances change to ensure that their account suits their financial needs and service requirements. In the past moving a current account often seemed daunting, but actually, most banks now do all the work, including transferring all direct debits and existing balances, which makes the process much easier for customers."

Prompt change needed to lower energy bills

02 Mar 2010 12:34:36

Without "prompt change" consumers could face higher energy bills, the latest report from energy regulator Ofgem suggests.

Published today (February 3rd), the organisation's report on Britain's energy supply has found that current energy arrangements are stretched and will not meet sustainability targets.

But Alistair Buchanan, the regulator's chief executive, commented that fast action from the government will "help keep costs as low as possible for consumers and businesses".

He suggested that investing in energy now will avoid difficulties and high bills in the future.

The global financial crisis, an increase in world-wide demand for energy, tougher EU emissions targets and the closure of ageing power stations have all increased the pressure on gas and electricity providers.

Ofgem is concerned that this pressure could lead to rising costs being passed on to consumers.

If prices rise, consumers are advised to shop around to find the best deal.

Making changes such as paying energy bills by direct debt could also save money.

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Tax-free savings 'could balance out poor interest rates'

02 Feb 2010 13:17:40

Tax-free savings could prove vital for those relying on interest from their savings to top up their income.

This is according to a study by Andrew Hagger of Moneynet.co.uk.

Mr Hagger found that with lower rates of interest on savings accounts, many people could end up benefitting from falling under the tax-free threshold.

He said: "Savings income is a vital lifeline for some people, so qualifying for interest free of tax will at least go some way to offsetting the sharp fall in interest rates."

Mr Hagger also commented on figures from ING Direct which show that the average Briton only has £2,205 in "readily accessible cash and deposits".

Urging banks to make saving a more appealing option, he said: "Six months down the line if not years later, we will get a much better rate on that money you put away now. So people should always look to save when they can afford to."

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OFT warns consumers of financial scammers

02 Jan 2010 13:23:42

The Office of Fair Trading (OFT) is urging consumers to be careful with their money and watch out for scammers who are trying to "dupe them out of their cash".

New research from the OFT has found that just over four million adults in the UK have fallen for a scam at some point in their life.

Of these, a third lost money, with five per cent losing more than £5,000.

The guidelines issued by the OFT warn consumers that "if something sounds too good to be true it probably is".

Consumer minister Kevin Brennan commented: "It is really important that people are on their guard and know that help is available as scams can bring real upset and misery to their victims.

"We have invested £7.5 million to create 'scambuster' teams across the country. These specialist Trading Standards teams are working hard with the police and others across local authority boundaries to come down hard on the worst scammers."

Email is now the most common form of scam attempted by criminals, followed by letter and text message.

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