March 6th, 2018 | Andrew Hagger | News

06 Mar 2018 Home movers looking to make the most of current low interest rates could be missing a trick by not porting their mortgage, says Yorkshire Building Society.

Brits move on average eight times in their lifetime but according to data from the mutual, only 6% of the Yorkshire’s customers who moved house applied to port their mortgage in 2017.

Porting may sound technical but it simply means transferring your existing mortgage deal from your old home to your new home, and adding to it with a new mortgage if you need to borrow more overall.

Figures from a survey of homeowners conducted by the Yorkshire revealed that a competitive rate is the main driver for borrowers, with 73% of those surveyed indicating the amount of interest they will pay is the most important feature when it comes to choosing a mortgage.

Almost one in two (47%) respondents who do not intend to port believed they would get a better interest rate if they took out a completely new mortgage.

However borrowers may end up paying more by disregarding porting their mortgage without looking at the facts as it could be a good money-saving option, especially if a borrower is part way through a mortgage deal that has exit fees or early repayment charges.

In addition the costs incurred with getting a new deal, including product fee, valuation fees and legal fee charges, may mean it is more cost effective to stay with your current lender and port your mortgage.

Porting also allows a borrower to keep their current interest rate, on the amount they transfer, which could be beneficial if interest rates rise.

Chris Irwin, Senior Mortgage Manager at Yorkshire Building Society, said: “It’s clear that borrowers are keen to secure the best rate, especially when they move home, but getting a lower rate than your existing mortgage may not always mean you are getting the better deal overall.

“We are seeing a growing trend in borrowers locking into longer term deals, perhaps due to recent political and economic uncertainty plus a potential upward trend in interest rates.

“However life never remains static, so porting could be a good option for people looking to move either up or down the property ladder and retain their current mortgage deal.

“The majority of our mortgages are portable, however borrowers should contact us before making any decisions on moving as individual circumstances may affect the ability to port.”

March 3rd, 2018 | Andrew Hagger | News

03 March 2018  A third (32%) of UK holidaymakers say they struggle to get travel insurance and of these, 60% say this is due to a pre-existing medical condition, according to a new study released today by the Co-op.

Cancer (21%), diabetes (18%) and high or low blood pressure (18%) are the most common conditions that UK sightseers say are to blame for the lack of cover.

Of the 60% of Brits who can’t get insurance due to a pre-existing medical condition:

1. 21% were previously diagnosed with cancer
2. 18% have diabetes
3. 18% have high or low blood pressure
4. 15% suffer from chronic pain
5. 13% take prescribed medication
6. 12% previously suffered a heart attack
7. 11% have high cholesterol and so take statins
8. 10% have arthritis
9. 9% have asthma
10. 9% have angina

Furthermore, travellers aged 65 plus are the most affected, with over four fifths (83%) saying they find getting travel insurance difficult, due to their pre-existing medical condition.

In terms of how UK tourists overcome these difficulties, a third (32%) of those who are unable to get cover say they now just travel without it.

Over a quarter (28%) use specialist providers, which they explained made their insurance at times more expensive. A fifth (19%) take out insurance, but refuse to declare their medical conditions, in order to keep costs down.

The study also reveals however, the number of holidaymakers who are now limited when it comes to their choice of destination. Over a quarter (27%) changed their holiday plans and a fifth (21%) cancelled their trip entirely, when they became aware of their travel insurance struggles.

What do travellers struggling to get insurance do?

• A third (32%) now travel without having insurance in place
• A third (28%) use specialist providers
• A quarter (27%) changed their holiday plans
• A fifth (21%) cancelled the holiday
• A fifth (19%) took out insurance but didn’t declare their medical condition

Of the UK jet-setters who travel without insurance, a third (30%) just hope that nothing happens to them whilst they’re on holiday and a tenth (10%) say they avoid riskier activities.

Colin Butler, Head of Travel Insurance at the Co-op commented: “It’s really quite worrying to think that people who find it difficult to get suitable travel insurance product are resorting to not declaring important details about their medical conditions or are ignoring travel insurance completely.

“The average travel insurance claim stands at £2000 and so it’s really important that people take out appropriate cover that’s right for them. We want to help bridge this gap to ensure that everyone is able to get appropriate cover. It’s for that reason that we’re offering travel insurance for any ages and any medical conditions.”²

Dr Dawn Harper, GP & TV personality commented: “A large population of the UK live with conditions such as diabetes and high blood pressure, the risks of which sadly increases with age.

“However, many people in their 60s and over are still very active and want to live out their later years travelling. For this reason I’m delighted to see that the Co-op are offering an affordable travel insurance product for the thousands of people who currently struggle because of pre-existing medical conditions.”

Ends

Top 5 countries UK holidaymakers travel to without insurance

1. 59% would travel within the UK
2. 21% would holiday in Europe
3. 11% would holiday in America
4. 5% would holiday in Asia
5. 5% would holiday in Australia

February 28th, 2018 | Andrew Hagger | News

28 Feb 2018    BRITS BRACE THEMSELVES FOR COSTLY SNOW STORM DAMAGE

• One in ten UK adults have had to make a claim on their insurance policy due to storm damage, a survey of more than 4,000 adults has found
• This is includes damage to roofs, fences and outbuildings, as well as burst or damaged water pipes
• With the average claim estimated to be £905, total damage caused by the Beast from the East could add up to millions of pounds across the country
• When it comes to burst or damaged water pipes, 14% admitted they wouldn’t know what to do, while one in four would be confident they could fix it themselves. Three quarters of those surveyed would have to call an expert to repair the damage
• Furthermore, people underestimate the cost of an emergency plumber by nearly £30 per hour
• People assume an emergency plumber costs an average of £63 an hour, whereas it actually costs approximately £90; an additional, unexpected cost that can further inflate the cost of storm damage

Adam Powell, Head of Operations, Policy Expert commented: “It’s essential people are aware of the potential costly damage a storm could throw at them this winter. Cold and stormy weather can ravage buildings and pipes so we would urge all homeowners not only to protect their homes but to invest a bit of time and money in ensuring you have the correct level of home insurance. For example, check the small print – some policies may not cover sheds and outbuildings, and others won’t cover damaged boilers if they haven’t been seen by a registered plumber. It’s also important to remember that your home insurance policy isn’t a maintenance policy. If a problem has been caused or exaggerated by general wear and tear, or poor upkeep of your property, it’s highly likely you won’t be covered – so make sure you’re taking the necessary precautions just in case.”

Top tips from Policy Expert on protecting your home from winter weather:

• Check your boiler and heating system – If you haven’t done so already this year, get your boiler checked and/or serviced by a Gas Safe registered plumber.
• Roof tiles – Check for any cracked, missing or loose tiles and replace them. If a roof is in disrepair the weight of snow or high winds can prove to be hazardous.
• Keep the central heating on – Set the central heating to a minimum of 14 degrees Celsius throughout the winter. It helps prevent pipes freezing and frost damage.
• Repair damaged chimneys – Look for cracks around chimney pots and at the roof join, also for loose render and render that’s come away from the stack. High winds and heavy rain can damage chimneys even further, make sure they’re properly stable before extreme weather happens.
• Windows – Take a look at your window frames and fill any cracks and put on a coat of paint if needed. Extreme temperatures and wet weather can cause untreated wood to expand and rot, treating the window sills helps prevent water and frost damage.
• Insulation – Lag any pipes and water tanks in exposed areas such as lofts, garages and utility rooms to prevent pipes freezing and bursting.
• Guttering and drains – Clear your guttering and drains of any debris such as leaves, mud and stones; they can block easily and freeze up.
• Walls – Check the pointing in brickwork both on the main house, all outbuildings and garden walls, look for any loose stone or areas that are in need of repair.
• Fuse box and electrics – A home’s electrics are a major source of insurance claims. If you haven’t done so in a while, get a registered electrician to check your home’s fuse box and wiring.

February 28th, 2018 | Andrew Hagger | News

28 Feb 2018  The latest Government review into pensions auto-enrolment shows 9 million employees are now enrolled into a workplace scheme and employer contributions have been on the rise reaching a record 61% in 2016-to-2017. However, new data from online pension planning tool, Pension Monster, suggests women are still lagging behind when it comes to saving for retirement.

The findings show only a third (32%) of consumers currently using Pension Monster to review their pension options are female suggesting men generally take more active interest in their savings. And worryingly this lack of engagement appears to correlate with their pension pot sizes, with women accumulating just £70,000, less than half the male users’ £192,000 average pot size.

The career breaks and part-time jobs many women take during their working lives all contribute to this pensions shortfall. As it stands women need guidance to bridge the pensions gap. Significantly, data from Pension Monster shows women with access to professional financial advice have a significantly bigger pot size of around £125,000 compared to those earning a similar salary and who are unadvised.

Employers can help their employees engage more with their pensions by hosting online tools like Pension Monster within their workplace websites. This can provide a tailored report to show what their options are and how much is needed to save to meet their retirement goals.

Peter Bradshaw, National Accounts Director, Pension Monster commented:

“Despite the initial success of auto-enrolment, efforts to maintain this level of engagement are necessary. Women in particular will benefit from early and ongoing planning and guidance. Considering women will likely take career breaks for child care, and the fact life expectancy for women has reached 83 years old, they have the most to benefit from early and ongoing planning and guidance.”

February 28th, 2018 | Andrew Hagger | News

28 Feb 2018 Research by Moneynet Awards winner Yolt, the money app backed by ING, reveals that 22% – nearly 1 in 4 – of the public now know what Open Banking is.  This represents a significant increase from the identical question being asked in Which? research in October 2017, when the same question revealed that 92% of the public didn’t know what Open Banking was.  In the Yolt study, only 39% of consumers had absolutely no idea what Open Banking is – whilst 30% knew it had something to do with banking online or via a smartphone but couldn’t be more specific than that.

Leon Muis, from Yolt said:

“Just over a month since the Open Banking process started in earnest, the dial has really moved in terms of consumer understanding of what the Open Banking reforms are all about, which is great to see.  If we can move from 8% to 22% in just a few months, it suggests that consumers are receptive to the possibilities Open Banking can offer.”

Additional findings from the Yolt research included:

• 1 in 5 people (20%) said that seeing all their bank accounts in one place is a key benefit of Open Banking
• Only 16% of women knew what Open Banking was, despite research from Allianz showing 51% of women saying they are the ‘Chief Financial Officer’ in their household. This is compared to 28% of men who knew what Open Banking was.
• 20% of consumers would consider using Open Banking if it meant that the products and services offered were tailored specifically towards them. This figure increases to 28% of Londoners and over 30% of millennials

Leon Muis, from Yolt, added:

“Open Banking has come such a long way in such a short space of time.  As the process progresses and more and more customers start to engage with Open Banking, users will be able to access more genuinely personalised products and services.  Only when you have all of your different accounts and products in one place – such as Yolt – can you really start to manage your money properly.

“Yolt is a great example of how Open Banking works in practice, and with more than 100,000 users we hope that more users will embrace the ease, choice and control that it will bring.”

February 23rd, 2018 | Andrew Hagger | News

February 21st, 2018 | Andrew Hagger | News

21 Feb 2018 The number of UK 18-year-olds who have a profile on Instagram is more than double those who are ready to vote for the first time, new statistics have revealed.

The number of people turning 18 who are registered to vote has fallen by 6.09% year-on-year. Just 374,515 youngsters joined the list for 2017, down from 391,978 the previous year.

The statistics from the annual canvass come as politicians continue to debate whether the right to vote should be extended to 16- and 17-year-olds.

Experian’s Head of Consumer Affairs James Jones said: “For many young people, getting onto the electoral roll may not seem like a priority but they may not realise that by not registering they stand to miss out on much more than their voting rights. A wide range of organisations including banks and lenders use the electoral roll to help verify a customer’s identity and, in some cases, creditworthiness. As a result, failure to register to vote can make it harder for people to access lots of services including competitive rates on loans, credit cards and mortgages. Young people should view registering to vote as a first step to establishing their credit history, which is a key part of the information lenders use to grant credit responsibly.”

Figures for registered voters overall are more encouraging, topping 47 million for the first time. The 47,161,118 registered voters represent a 0.69% rise on the previous annual canvass.

Reasons to sign up for the electoral roll include:

• Vote in elections
• Prove your identity online
• Get better rates on credit cards, loans and mortgages
• Lower insurance premiums
• Strengthen your credit score

February 20th, 2018 | Andrew Hagger | News

20 Feb 2018 New research from Charter Savings Bank shows Cash ISA savers are missing out on transferring their accounts to gain more competitive rates and increased flexibility because they value convenience over better returns and fear the transfer will be too complicated.

The research indicates that half of Cash ISA savers aged 55-plus have never moved their accounts to another provider, with more than two out of five (43%) saying they don’t transfer their savings because they want all their money in one place.

However, nearly one in 10 say they have never transferred because they think the switch will be too complicated, while 42% believe they will not be able to secure a more competitive deal.

HMRC data shows around 10.3 million over-55s have money in Cash ISAs, with around 3.9 million opening new accounts each year. Under current ISA rules, most providers only allow savers to deposit their annual allowance into one type of Cash ISA account per year, limiting options for savers.

Charter Savings Bank is offering more choice with its Mix & Match ISA platform, enabling savers to spread their annual allowance within multiple Cash ISAs.

Most providers only offer a Fixed Cash ISA or Easy Access Cash ISA as an option to their customers and lock them in, whereas the Mix & Match ISA gives the customer flexibility.

With the Mix & Match ISA, customers don’t have to put all of their annual allowance into one single Cash ISA. They could for example open an Easy Access Cash ISA with £5,000 and then the following month deposit £10,000 in a 1 Year Fixed Rate Cash ISA product. If they have more money available they could open a third Cash ISA product using the remaining £5,000 of their annual allowance.

Charter Savings Bank has also adopted the industry’s ELSA system to ensure most savers switching will benefit from a quick and simple transfer.

Its research shows the main motivation for transferring Cash ISA accounts from their existing provider is a rate reduction: 51% of over-55s who have moved said they switched because of a reduction.

Just 35% of over-55s say they always assess the Cash ISA offers each year and move if they find a better rate, while one in three (33%) say they move when the fixed rate term on their Cash ISA expires.

Charter Savings Bank’s research found the age group most likely to transfer Cash ISAs are those aged between 25 and 44 – around 62% of them have switched their Cash ISAs.

Paul Whitlock, Director of Savings, Charter Savings Bank says: “Transferring Cash ISA accounts is a straightforward process, now that the industry has signed up to new standards and is utilising new technology and systems.

“People regularly shop around for more competitive deals on a wide range of goods and services, and that should also be the case in the Cash ISA market. Those who don’t move are risking missing out on more competitive rates, greater flexibility and access to their savings when needed.

“The Charter Savings Bank Mix & Match ISA provides flexibility for savers and enables them to split their allowance across multiple accounts, all with competitive rates.”

February 16th, 2018 | Andrew Hagger | News

16 Feb 2018 Nearly one in four primary school children have used their parents’ card to make purchases and one in five know their parents’ credit or debit card PINs, research from Prudential shows.

The study coincides with the introduction of a new free online educational resource, Cha-Ching (www.cha-chingeducation.co.uk), which is designed to improve the financial capability of Key Stage 2 pupils across the UK.

Prudential’s research found that nearly 16 per cent of  parents let children pay for items with their contactless card.

Emergency cash

Kids who are allowed to use their parents cards are mainly given permission so that they have access to money in an emergency. Parents also argue that it helps them to keep track of what their children are spending. The vast majority (92 per cent) say they set a limit on how much their children can spend. 

Jane Rawnsley, Group Head of Corporate Responsibility at Prudential Plc, said: “The survey suggests that the way children use and understand money is changing very fast. It’s important that parents and teachers are given the tools to ensure that the opportunities created by digital payment technology are accompanied by an understanding of the responsibilities that come with it. That is why we are launching Cha-Ching in the UK, a digital-first financial education programme built around mobile, tablet and online resources which can also be integrated into the real environment of a classroom and home.”

Cashless worries

Prudential’s research went on to show even if spending on contactless cards is soaring teachers and parents are worried that relying on contactless cards means children are not learning the value of money. Around 78 per cent of teachers and 37 per cent of parents say the rise of the cashless society is damaging to children’s understanding of money.

However, the majority of children themselves (87 per cent), still prefer their pocket money in cash.

February 14th, 2018 | Andrew Hagger | News

14 Feb 2018 One in seven young Britons (14 per cent) say they would buy a home with a stranger in a bid to get on the property ladder, according to nationwide research.

A new study of 2,000 Brits (aged 18 – 40) by HSBC has revealed the true extent to which buying a property now feels increasingly out of reach for the younger generation, with 83 per cent claiming they may never be able to afford to buy their own property.

According to the report, 80 per cent would co-own a property with someone who is not their partner, with a further 59 per cent saying they’re at least “open to the idea” of buying with a stranger – if they ticked all the right boxes.

4 per cent said they would be prepared to move in with “someone they met in the pub”, while just under one in twenty would even consider buying with an ex.