October 22nd, 2015 | Andrew Hagger | News

Consumers spend more £7.8bn each year in total on tradesman visits, according to new research that explores the fear of picking up the toolbox. In the last 12 months, Brits have spent £294 on average employing a tradesperson to carry out minor repairs within their homes.

 According to research from Swinton Insurance, the majority of Brits shy away from DIY, with less than half (48%) feeling brave enough to carry out minor repairs in the home themselves. A quarter even admit that they don’t feel confident at all carrying out DIY tasks of any description. When Brits were asked what odd jobs they do feel confident undertaking, just 49% said putting up a shelf, 35% said fixing a leaking tap, 17% said fitting a sound system and 60% said unblocking a drain.

 Tradespeople are in agreement with the view that people shy away from basic DIY, with eight in ten (83%) believing Brits are too quick to ask for help. They estimate they spend an average of three fixing jobs their customers could do themselves.

 Swinton’s research also brings to light the cost of getting it wrong when it comes to home improvements. Tradespeople believe they spend an average of two hours 21 minutes a day repairing DIY tasks that have gone wrong. The research found Brits have a tendency to get their wires crossed when it comes to electrical based odd jobs in particular. According to tradespeople, the number one botched job they spend time fixing is changing a fuse, closely followed by wiring and changing plugs. When asked how much money they’ve spent on hiring tradespeople to fix a botched DIY job in their home, Brits admitted to over £150 on average in the past 12 months.

Swinton wants to help Britain get more DIY savvy. The UK’s largest high street insurance has teamed up with tradespeople to help Brits with some of the most common jobs they are likely to face when looking after their homes. This includes useful, practical advice from professional plumbers, builders and electricians.

A spokesman for Swinton Insurance, said: “The findings make it clear that much more needs to be done to educate Brits on basic DIY. It’s absurd that we spend hundreds of pounds on odd jobs we could do ourselves, particularly when family budgets continue to be stretched. But we understand that DIY can be daunting. That’s why we’ve launched our Tips from the Trades online hub, to help Brits get up to speed with their DIY knowledge.

“Of course the need for professionals is always going to exist, and there are some tasks only experts should handle, especially complicated electrical and plumbing jobs. It’s also vital that when you do hire an expert, you ensure they are a qualified tradesperson – if not you run the risk of invalidating your insurance.”

October 20th, 2015 | Andrew Hagger | News

Figures from The Co-operative Insurance have shown a huge spike in home and motor claims when the clocks change and daylight saving time ends.

After reviewing claims data since 2013, The Co-operative Insurance can reveal that home theft claims increase by 38% in the five months after the clocks go back – this year scheduled to be on 25 October.

Thefts are most prevalent in the winter months on a Friday.

With winter nights often making it easier for burglars to hide under the cover of darkness and unoccupied houses easier to spot as they may not have lights on theft claims increase.

According to the data, home thefts between November and March are more likely to be via forced and violent entry than in the summer months. In comparison thefts which are more opportunistic or deceptive, and are non-forcible are more prevalent in summer than winter months.

The Co-operative Insurance’s top tips to protect your home from burglary

1. Leave a light on when you are out or invest in a light timer
2. Install exterior security lights at the front and back of your property
3. If possible, invest in a CCTV system
4. Don’t post your location on social media sites
5. Ensure doors and windows are locked
6. Set your burglar alarm
7. Ensure outbuildings/sheds are secured
8. Don’t leave valuables on display
9. Never leave car keys within easy reach of a letterbox
10. Don’t leave ladders outside your home

A spokesman for The Co-operative Insurance said: “Darker nights unfortunately lead to an increase in home burglaries, so when the clocks change this coming weekend we are urging people to be more vigilant when it comes to home security.

“Nobody should have to go through the trauma of having their property burgled. Whilst in a lot of cases it is simply a case of bad luck, there are things that homeowners can do to deter thieves such as ensuring lights are left on when no one is at home and installing CCTV cameras, or at least dummy ones, to make burglars think twice.”

October 17th, 2015 | Andrew Hagger | News

New research from Castlefield, one of the UK’s leading specialists in responsible investment, reveals that investors are becoming increasingly savvy about risks and the consequences of damaging the environment.

Following the increase in high profile individuals and pension funds looking to pull their investments out of fossil fuel companies, the survey found that 56% of investors were concerned that they could lose money by investing in these so called ‘stranded assets’, like oil and gas.

The Castlefield survey suggests that investors are beginning to recognise that sustainable funds with long term vision are likely to do well. 51% of investors think that companies which are trying to make a positive contribution to society and the environment are more likely to succeed long-term and their investments are likely to perform better over the long term.

Consumers want their money to ‘do good’ and say they would be cautious about investing in green wash or funds with ethical claims that are not substantiated. 74% of respondents said they would be shocked if companies claiming to be ethical were found to be investing in companies that negatively impact the environment.

Surprisingly, nearly half (45%) of British investors do not know that there are ethical and sustainable options available when it comes to investments.   Six out of ten people (60%) would like to be offered an ethical and sustainable option when choosing their investments.   But despite this growing interest in doing something positive with their money, 58% do not know where to go to look for advice.

John Ditchfield from Castlefield said: “We understand the desire to invest in the right funds but there is more to it – than just looking at financial performance.   You need to know and understand your investment and your investment choices, a specialist ethical adviser can help you to consider your values, look at your risk profile, and recommend funds that suit your particular needs.”

Olivia Bowen, Partner at Castlefield, commented: “Our Survey clearly demonstrates current demand from the public for more thoughtful investing, and by bringing our businesses together under the Castlefield umbrella, we now have the resources and expertise to respond to this.

October 15th, 2015 | Andrew Hagger | News

Buying and renewing your home insurance ought to be a straightforward job, but with different prices charged depending whether you buy direct from an insurer or via a price comparison site trying to get suitable cover at the right price has become a real chore.

However things may be about to change as Virgin Money this week launched its home insurance product with the promise that their customers will be offered the same price whether they buy by phone, via the internet or through a price comparison provider.

Another welcome promise from Virgin is that it’s fair and transparent pricing structure means they won’t play games at renewal by quoting a higher price and then backing down if challenged by the customer – Virgin is taking the stance that it will offer its best price at the first time of asking.

Its research found that more than 80 per cent of people shop around for a better deal on renewal but when they go back to their insurer to cancel after finding a cheaper deal elsewhere, their insurer suddenly offers a lower price in an attempt to retain their custom.

A further plus point is that these products won’t have any hidden nasties buried in the small print with Virgin eliminating the annoying charges often levied by insurers for cancellation or if you want to make minor amendments to your cover.

Customers are fed up with the games that insurers play in order to extract maximum profits from them, let’s hope Virgin provides the wakeup call the industry needs so there’s no longer that feeling of despair when the annual renewal papers land on the doormat.

October 15th, 2015 | Andrew Hagger | News

October 8th, 2015 | Andrew Hagger | News

AA Financial Services this week launched a new ISA which enables savers can split their tax free savings between fixed and variable rate products within one online account.

The one year fixed deal pays 1.76% and the two year fixed pays 2.01%. The easy-access variable product offers 1%, with no introductory bonus and transfers in are permitted.

A spokesman for AA Financial Services said: “This proposition is at the fore of the savings market and offers a remarkable level of flexibility for savers.  It allows the customer the opportunity to divide their funds between a higher interest fixed rate and an easy-access variable rate, which can all be managed easily online.

“The AA ISA also accepts transfers in, enabling savers to consolidate their ISA savings under one roof and get competitive interest rates on their entire ISA pot.”

Andrew Hagger, personal finance analyst from Moneycomms.co.uk, said: “This is an innovative move from AA and will appeal to consumers looking for a competitive fixed rate but with the added option to keep an element of their tax free funds in an easy access account in case they need to get at it in a hurry.

“Usually it’s a choice of a variable or a fixed rate option, but with this new AA ISA the customer has the flexibility to be able to apportion their savings in a way that works best for their circumstances.”

October 8th, 2015 | Andrew Hagger | News

Customers looking to switch their current account to Clydesdale and Yorkshire Banks have until 30^th November 2015 to benefit from a £150 switching offer.

Following the success of the initiative, the Banks have announced that customers have until the end of November to benefit from the offer when they complete a full current account switch to Clydesdale and Yorkshire Banks using the Current Account Switch Service (CASS).

It is available to new customers who hold a current account with another bank or building society as well as existing Clydesdale and Yorkshire Banks customers who meet the qualifying criteria, and use the Current Account Switch Service to transfer in an account held elsewhere.

Steve Fletcher, Head of Clydesdale and Yorkshire Banks Retail Network, said: “We have had a very positive response to our Current Account Switch Service offer which makes moving your current account to Clydesdale Bank or Yorkshire Bank simple and hassle free.

“We want to thank customers for switching to Clydesdale and Yorkshire Banks, however we would urge customers to act quickly as the offer will end on 30^th November 2015.”

October 6th, 2015 | Andrew Hagger | News

Regular household bills are rising relentlessly despite inflation remaining flat, according to figures from Bacs Payment Schemes , the people behind Direct Debit in the UK.

A “basket” of the most common household bills paid by Direct Debit – including energy, water, mortgages and rent, council tax, broadband and phone, TV licensing, and household insurances – has been tracked, with historical data used to look back as far as 2007. And the data shows the average amount paid out has gone up from £565 in pre-recessionary June 2007 to £668 in June 2015.

The data is drawn from 100 million actual anonymous monthly transactions processed by Bacs as householders use Direct Debits to pay for their essential household bills – it does not include elective personal bills such as gym memberships or mobile phone payments.

Seasonal differences in bills like energy are evened out by comparing each month with the same period in a previous year. For example, in January 2007, the average amount householders spent on core bills was £549. In the same month during 2015, the average figure was £662 – an increase of £113 or 21 per cent.

The Bacs Bill Tracker clearly shows that with the exception of small, occasional monthly falls, coupled with a constantly low rate of inflation, the pressure on households to find extra cash to pay for essentials has seen a continuing rise.

Mike Hutchinson from Bacs said: “These new figures – drawn from actual anonymised payments we have processed – reflect the financial burden householders face as the price of household bills increases steadily.

“With 71 per cent of regular bills paid by Direct Debit, this data gives a clear indication of the upward financial pressures across a basket of core household bills. Splitting costs across the year could relieve some of the strain on hard-pressed family purses and, with the discounts offered from many billers and service providers for paying by Direct Debit, there’s an opportunity to save some vital pounds.”

September 29th, 2015 | Andrew Hagger | News

As competition within the retail banking sector increases with the growth of challenger banks, Equifax research reveals that receiving the best rates is by far the biggest incentive for consumers looking to switch banks.

In an online survey conducted by YouGov, 42% of people cited better deals and rates as a reason they would switch bank accounts; 28% said that incentives like a cash bonus or new smartphone would prompt them to change and 24% flagged better customer service as a priority. More convenient branch locations are a deciding factor for 21% of people but only 14% would be swayed by better technology and security. 26% of people said that nothing would prompt them to change provider.

The research also showed that only 13% of respondents are aware of the government’s midata initiative, which allows consumers to easily compare current account offers based on their recent banking history. Only 1% have actually used midata.

Consumers’ focus remains on the traditional aspects of a bank account such as returns on savings or low interest rates for loans. A lack of awareness of comparison tools however means that consumers may struggle to determine the best financial deals for them, making them less likely to change provider.

September 28th, 2015 | Andrew Hagger | News

A new report from The Co-operative Insurance claims that around one hundred thousand parents are currently ‘fronting’ motor insurance for their children

One in ten of parents of young drivers in the UK currently aged 17-25 have admitted to fronting their son’s and daughter’s motor insurance policy at some point, for an average time of two years. Of those that have admitted to fronting, over a third at 99,600 of parents are currently fronting their child’s motor insurance*.

According to the DVLA, there are currently 2.9million drivers aged 17-25 on the roads with either a full or provisional driving licence.

‘Fronting’ is a type of insurance fraud whereby parents say that they are the main driver of a car when, in reality, most or all of the driving is done by their child. Whilst well meaning, 62% of parents are fronting to save their children money, the implications of fronting can be serious and in some cases it could make it extremely difficult for drivers to obtain insurance later if they are found to have fronted.

Seven out of ten of those parents fronting have children with full driving licenses, though figures show that over a quarter (27%) of parents are fronting insurance for their children who only have provisional driving licenses.

New drivers can have their licence revoked if they gain more than 6 points on their driving licence within two years of passing their test and, whilst well meaning, parents could be unwittingly putting their children at risk of this as in the worst case scenario they could be found to be driving without insurance – which comes with a maximum penalty of 6 points.

The findings have revealed that parents are willing to ‘front’, despite the fact that the majority are aware that it is illegal. Though, despite this, 94% of parents believe they would be covered if they had to claim on their motor insurance.

Dads are more relaxed than Mums when it comes to fronting motor insurance with 10% of Dads willing to admit to it in comparison to 8% of Mums. More parents of children aged 17-19 are fronting than any other, followed by parents of 20-22 year olds then 23-25 year olds.