January 16th, 2018 | Andrew Hagger | News

16 Jan 2018 More than a third (37%) of Brits will go abroad to seek out the sun this winter, according to new research from Halifax, spending an average of £840 per person.

38% of Brits surveyed admit that the cold weather brings out a bad mood, with this figure rising to 42% for women, compared to 34% for men. By contrast, 70% say that warmer weather puts a spring in their step, encouraging the desire for a winter holiday.

In comparison, while 37% intend to catch the rays, just 11% take a winter holiday in order to enjoy winter sports, while 32% travel to see family and friends, and 31% are motivated by the opportunity to enjoy other cultures during the winter months.

A third of those surveyed (35%) have taken a winter break in the past year, with the average cost coming in at £840 per person. This rises to £969 for the over 55s, while 18-34s are the savvy sun-seekers, spending an average of £754.

Jon Roberts, Managing Director of Credit Cards for Halifax, said: “When the dark nights draw in and the cold weather is upon us it’s hard not to think of an escape to the winter sun. For those who do choose to travel, it’s important to consider not just the cost of the holiday itself, but how you will finance expenses while you’re away. With the Halifax Clarity card, there is no fee for spending abroad in the local currency, meaning cardholders don’t need to worry about carrying their holiday cash around.”

Halifax’s Clarity card is a great option for those traveling abroad, with one simple rate and no usage fees. A £20 cashback offer is currently available for accounts opened until 28 February 2018. For more information and to check eligibility visit: www.halifax.co.uk/creditcards/clarity-card/

January 15th, 2018 | Andrew Hagger | News

15 Jan 2018 Millions of people are risking their financial future by not checking their credit score, according to Amigo Loans.

New research from the UK’s largest guarantor lender has revealed over half of Brits have never checked their credit file, meaning millions could be jeopardising their financial freedom. There are approximately 51.7 million adults in the UK, meaning that 26 million may be at risk from not checking their credit rating.

Worryingly, 2.5 million (5%) Brits are too scared to look, while almost a fifth believe there’s no point checking as nothing can be done to improve their score.

Simply not knowing how to go about it was the a common reason (24%) for people not checking their record and an even larger number (36%) hadn’t thought about doing it. 12% said they only check when applying for a new form of credit. 3% confessed they don’t even know what a credit score is.

Following the research that highlights people’s fear and misunderstanding of credit, Amigo Loans is calling for a better system that’s more accessible for people, where information is displayed clearly.

Kelly Davies, Chief Communications Officer at Amigo Loans said: “Understanding their credit profile and correcting any mistakes could be one of the most financially beneficial things people can do for themselves in 2018. They’re one of the most important pieces of documentation held in our names, yet people are intimidated by them – but they shouldn’t be.

“It’s confusing for people because there isn’t one central source, and we don’t have one single credit score. The companies that hold our files use different systems, and methods of scoring. We’d recommend customers start with something easy and free like Noddle.co.uk to get to grips with it all.”

There are a number of other credit reference agencies available which allow people to check their score before applying for credit including Equifax, Experian and Callcredit, while Noddle and Clearscore and TotallyMoney provide customers with the ability to see their data for free.

Top tips for improving your credit score:

1. Double check you’re on the electoral register. Lenders use the electoral register to confirm an individual’s address and location and fight against identity fraud.
2. Try not to have a high balance on your credit card. Lenders may view this as excessive debt and think you have an inability to repay.
3. Make sure to pay your bills on time, or ahead of time, a good credit score will be built up over time.
4. Do not make multiple applications for credit as this can impact your record negatively.
5. If you notice anything unexpected on your credit report you could be a victim of identity fraud, i.e. someone could have applied for credit in your name, contact the credit reference agency who will try to resolve the issue, alongside the lender.
6. Only apply for credit which is necessary – applying for more than four a year can lower your score.
7. Cancel old credit card agreements and out of date credit cards, such as store cards you no longer use, as this will still show on your file. Lenders will be cautious about the possible size of your debt.
8. If you are divorced or separated, cut all financial ties and make sure your former partner’s details are eliminated from any joint accounts. The credit history of anyone you are financially associated with, such as on a joint bank account with a spouse, can affect your credit rating.

January 15th, 2018 | Andrew Hagger | News

15 Jan 2018  Up to 1.3 million recipients of pension advice could miss out on £236m of potential tax savings, if advisers and employers do not act on new legislation in time for April.

Employees can now sacrifice up to £500 taxable salary p.a., in return for a tax-free payment from their employer, reimbursing them for any fees paid for pension advice. Salary sacrifice schemes – such as Childcare Vouchers or Cycle to Work schemes – allow employees to swap taxable salary for a non-taxable benefit in kind. In the case of pension advice, this can save people up to £310 p.a. in tax and national insurance.

However, the new legislation has gone largely unnoticed since receiving Royal Assent in November. No Employee Benefits Platform has built a scheme to help employers in the same way as they have with Childcare Vouchers and Cycle to Work, due to the complexities involved. Consequently, very few employers have plans to offer this benefit.

If this does not change in time for the end of this tax year, 1.3m clients could miss out on an average saving of £187 for the 2017-18 tax year.

Pension Advice Vouchers – launched by VouchedFor in December – is the only pension advice salary sacrifice scheme to have launched in the wake of this new legislation. Adam Price, MD, comments “Access to good financial advice is so important right now, and this government initiative reduces the cost by up to 62%. But very few employers yet offer this benefit. It’s especially urgent for the 1.3m employees who already pay for advice each year – they only have until April if they want to capture their first year’s savings.”

Adam continues with this advice:

• “Employees – should urge their employer to join the Pension Advice Voucher scheme. Most easily, they can submit a request through the website. We will then work with both their employer and adviser to put everything in place.”
• “Employers – can register with Pension Advice Vouchers and start promoting the scheme with just a few clicks.”
• “Advisers – can register with VouchedFor free-of-charge, then login to invite their clients to claim vouchers from their employer. They can also encourage their corporate clients to join the scheme”

Commenting on VouchedFor’s innovation, Adam adds “We found we had all the necessary ingredients to bring this scheme to market quickly, just in time for the first April deadline. Our VouchedFor verification system makes it possible for us to contact any UK IFA on an employee’s behalf and verify the validity of their request for fee reimbursement. And of course, VouchedFor makes it easy for any employee who needs a good IFA to find one. Finally, with Hatch – our new hybrid robo-coach financial planning service – we have a low cost solution for those employees who fall below advisers’ minimum criteria.”

January 12th, 2018 | Andrew Hagger | News

12 Jan 2018 With almost 900,000 National Savings ‘Pensioner Bonds’ due to mature over the next four months, savers may be looking for inspiration as to where to put their money in today’s market.

At the time the 3 year Pensioner Bonds from NS&I were launched offering a fixed 4% return,  the offer rate was way above market rates at the time and is even more so today.

Andrew Hagger of the website Moneycomms said:”To be brutally honest, there’s no chance of earning anywhere near that figure today without taking an element of risk.”

“The stock market has performed well in recent years but potential volatility means it’s not going to be suitable for many pensioners particularly if this money represents the bulk of their savings nest egg.”

“For some it may be worth looking a little more closely at some of the more established peer to peer options – for example RateSetter is paying 3.1% on 30 day money today – although nobody has lost any money since it started over 7 years ago it’s important that you understand that your capital is at risk and is not covered by the Financial Services Compensation Scheme (FSCS) guarantee.”

As for standard fixed rate options please see the best buys below – some of these names may not be familiar with some savers but they are all banks covered by UK FSCS so your money is as safe as it is with a high street bank or NS&I.

The decision is whether you put all your cash away for three years or perhaps split it so half in for three years and half for a shorter term – with interest rates possibly rising again later in 2018 or early 2019 we may see fixed rates creep up so maybe better to avoid locking all your cash away for 3 years as you may miss out on slightly higher returns.

Best Buys – fixed rate bonds as at 12 January 2018

January 12th, 2018 | Andrew Hagger | News

January 8th, 2018 | Andrew Hagger | News

08 Jan 2018 The increasing cost of living and the impact of Brexit top the Nation’s main financial concerns for 2018, according to new research from GoCompare.

The research found that 40% of people think that 2018 will be a financially challenging year, with 12% admitting to being ‘seriously worried about their finances’ in the year ahead.

Just under half (49%) of people said they need to try and reduce their outgoings in 2018, with  one in ten expecting to carry credit card debt for most of 2018 and 7% relying on credit cards simply to make ends meet.

The rising cost of living was of greatest concern to those aged 65 and over with 73% citing it as their biggest financial worry in 2018, compared with 58% of all UK adults.  Meanwhile, young adults (aged 18 to 24) were significantly more concerned (35%) than the UK adult population as a whole about the ability to find sufficient work.

Commenting on the research, a spokesman for GoCompare, said; “The level to which people are worried about their financial situation and job security in coming year is a real concern. We know that money worries can impact on our relationships, our work and our mental health, causing us to make poorer financial decisions which in turn could make our situation worse. With the rising cost of living and most of us unlikely to see a pay rise any time soon, it’s no surprise many are expecting to have to make sacrifices.

“But while there will be some who simply cannot find areas to make any savings, the vast majority of us could and it doesn’t have to lead to great hardship either. Why pay more than you need to for your utilities or insurance?

“Just twenty minutes on a comparison site  could set you on a path to ensure you are thousands of pounds richer by the end of the year. Providers are constantly review their pricing, so even if you think you’re currently getting a good deal on your financial products it’s worth shopping around on a regular basis to find out. It might be the best New Year’s resolution you have made!

January 3rd, 2018 | Andrew Hagger | News

03 Jan 2018 New Research reveals that the costs for energy, motor and home insurance have risen by 13% over the past year from £2,216 to £2,502, leaving consumers £286 out of pocket.

Energy bills have seen the most dramatic price hike, as customers have paid on average over £200 more than the previous year. The average bill is now £1,625 – an increase of almost a fifth (17%) on the 2016 figure of £1,383.

Changes to the personal injury discount rate (also known as the Ogden Rate), and Insurance Premium Tax (IPT), which impacted the cost of car insurance in 2016 and 2017, continues to impact finances. The rising cost of cover shows no sign of slowing, as findings show that car insurance premiums rose by a further £43 in 2017. This follows 2016’s sharp increase of almost £100. Home insurance was the least affected by price hikes, rising by barely noticeable 85 pence in 2017.

Some regions have been hit worse than others. Wales has experienced the highest price increases in the UK over the course of 2017. Household bills soared by £500, with energy bills increasing by a huge £458. Scotland too has also seen large bill increases, with costs rising by 15%, rising to £2,317.87.

Simon McCulloch, of Comparethemarket, commented: “It’s been a torrid three years for household finances. The combination of soaring bills and squeezed wages is causing a lot of pain for millions. The ongoing trend of ‘billflation’ is most apparent within the car and energy markets; in the latter case consumers can expect to pay around £200 more than they did in 2016. UK motorists are paying a heavy price for the changes to IPT in 2016 and 2017 and the Ogden Rate, brought about in March this year, which have significantly increased the costs of insuring a vehicle.

“Despite recent announcements from big-six energy firms who plan to scrap Standard Variable Tariffs (SVTs), millions are still languishing on expensive default tariffs, which may account for the fact that energy costs are at a record high.

However, it is not all doom and gloom. Significant savings that can be made by switching suppliers. Consumers can expect to save, on average, over £500 on all their household bills simply by shopping around for the best deal.  As steep, annual price hikes have rather depressingly become the norm, it is vital that people engage with finances and find the best deals in the market. Only then can they offset the impact of soaring bills.”

January 3rd, 2018 | Andrew Hagger | News

03 Jan 2018 Around three in five millennials currently saving for a house deposit are more confident in their ability to achieve their goal following the Chancellor’s stamp duty changes, according to the latest sentiment research from Foresters Friendly Society. Around 17% of this age group are much more confident following the announcement.

The Lifetime ISA (LISA) was developed in order to specifically help those under 40 years old in their long-term saving. And while there is now a strong awareness of the Lifetime ISA amongst this age group, with three quarters having heard of it, too few have chosen to take advantage of the benefits. Take-up sits at just 11% of those eligible and this figure remains the same even amongst the third of respondents who view a house deposit as one of their current savings priorities.

The figures clearly show the lack of understanding amongst younger savers about the best way to save at their stage of life, with many preferring options that offer limited risk but also weaker returns.  Low down on the list of preferable saving vehicles are those options that are best suited to early saving such as the Lifetime ISA (9%) and Stocks and shares (5%). Those that are saving for a house deposit are instead opting for savings accounts (43%), cash ISAs (27%), and current accounts (24%) as their preferred way to save.

Paul Osborn, Chief Executive for Foresters Friendly Society commented:

“As young people continue to strive to get on the housing ladder, it’s hugely important that they use the most suitable products to help them achieve their savings goals. While economic uncertainty tends to push people towards options deemed as lower risk, doing so can mean forfeiting much needed returns and makes the effort of saving for a house deposit feel even more of a struggle.

“While it’s encouraging that three quarters of those under 40 are aware of the Lifetime ISA, it is evident that more work needs to be done to help them understand the role that it can play in their long-term savings plan. The 25% government bonus offers significant savings support at a time when inflation continues to outstrip wage growth and is putting pressure on people’s savings.”

January 1st, 2018 | Andrew Hagger | News

01 Jan 2018  One in ten UK adults said they were considering buying or giving a home to a dog or cat before the end of the year, according to new research from Sainsbury’s Bank Pet Insurance, with an even split between those intending to get a cat or  a dog.

Throughout the festive season 5% of UK adults said they were considering buying a puppy or a kitten while 3% planned to give a home to a rescue dog or cat.

Sainsbury’s Bank says those who have a new puppy or kitten should get their pet insured from a young age as they can be particularly vulnerable to parasites and prone to accidents as they explore their new home.

Analysis of Sainsbury’s Bank’s claims data shows that from 2013 to 2017 there were 24% more claims for pets aged under two than those aged between two and three.

Further analysis of the claims data shows that the ailments that younger pets (aged 0-1) suffer more frequently than older pets (aged 2-3) are: leg/hip/shoulder disorders (56% more common), skin disorders (41% more common) and accidents and injuries (38% more common).

The ten most popular cat and dog breeds insured by Sainsbury’s Bank Pet Insurance up to the age of four are: crossbreed, moggy, Labrador Retriever, Cocker Spaniel, Cavalier King Charles Spaniel, West Highland White Terrier, Staffordshire Bull Terrier, Golden Retriever, English Springer Spaniel and German Shepherd.

Sainsbury’s Bank Pet Insurance is currently offering 12 months for 9 , available to new Pet Insurance customers who buy online. New customers with a Nectar card can receive up to a 12.5% discount as well as double Nectar points on Sainsbury’s shopping and fuel. 

Sainsbury’s Bank Pet Insurance lets customers build a policy to suit their pet’s needs. There are three policy levels to choose from as well as additional cover options available. For further information people can call 0330 100 7925 or go online at www.sainsburysbank.co.uk