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Daylight saving leaves millions of homeowners in the dark about opportunistic thieves

October 26th, 2018 | Andrew Hagger | News

26 Oct 2018 As the clocks go back, the winter nights draw in, home insurer Policy Expert urges homeowners to be vigilant and take precautions to protect their homes.

The warning comes as new research of almost 4,000 people found that 28% of workers get home past 6pm. There are approximately 32.4 million workers in the UK – this means there could be as many as 9 million people leaving their homes in the dark for longer. As the afternoons and evenings get gloomier, 14% of Brits say they are more concerned about leaving their property due to a potential burglary whilst they’re at work.

The research also found that the average time to get home from work is 5.09pm. At present, that means people are arriving home in daylight hours. However as of Sunday 28th October it will get dark at 4.41pm, meaning that from Monday 29th October, homes could be empty and unattended in darkness for 28 minutes. The length of time will increase by one to two minutes every day until mid-December when the average home could be left empty and unattended in darkness for a full hour and 15 minutes.

Despite this, the research revealed that many homes do not have adequate security in place to protect them while they’re empty. In fact, a quarter of people don’t take any security measures at all to protect their home from theft.

Only two in five of those surveyed have timed lights and just 39% install extra security lighting. A third (32%) close their curtains, one in five (18%) leave the TV/radio on and just over one in eight (12%) improve their locks. Yet, almost one in ten make an extra effort to leave work earlier or on time.

Homeowners have the current security measures in place:

  • External lighting – 69%
  • Tall fences – 49%
  • Plants/ Hedges – 40%
  • Lights on timers 39%
  • A dog – 34%
  • Burglar alarm – 32%
  • Neighbourhood watch membership – 17%
  • Surveillance cameras – 16%

Adam Powell, Head of Operations at Policy Expert commented: “The winter months are a tempting time for opportunistic burglars. Longer nights and shorter days mean that there are more opportunities for crime to take place under the cover of darkness, so it’s important to remain vigilant and ensure your home is adequately protected. Any way to make your home look occupied or visible deterrents, such as lights on timers, CCTV cameras and burglar alarms should go some way in preventing a break in. Finally, check your home insurance policy to ensure it’s up to date and any valuables are declared to ensure you’re fully covered should the worst happen.”

Tips on protecting your home this Autumn:

  • Install a timer to set lights inside your home to come on once it gets dark – choose a light in a visible room at the front of the house, not the hallway, as this will create the impression that someone is inside
  • Invest in sensor-activated, external lighting for the garden and around the front of the home
  • Install a burglar alarm – not only is this a visible deterrent, if someone does attempt to break in the alarm would alert neighbours and the police before any damage could be done
  • Don’t leave curtains closed – during the day this makes it look like there’s no-one at home
  • Make sure any outbuildings or sheds are locked and that any tools are hidden away – these could be used to break into your home
  • Ensure any valuables are out of sight – remove the temptation and make sure these items cannot be seen from outside the house through the windows
  • Never leave a spare key anywhere near the front door, for example under a doormat, flower pot – thieves know all the usual hiding places
  • Similarly, don’t store house/car keys just inside your front door, as burglars could try to fish for the keys through the letterbox

Winter holidaymakers warm up to prepaid cards

October 23rd, 2018 | Andrew Hagger | News

23 Oct 2018 Holidaymakers are warming up to prepaid cards for overseas spending as the switch from cash continues, new research from financial data analytics experts Consumer Intelligence shows.

More than 27% of people heading abroad for winter holidays this year plan to use prepaid cards for some of their spending compared with 23% who used prepaid cards on winter breaks last year.

Nearly three-quarters (74%) heading overseas will still use some cash, the study found, but that is down from 76% last year with the data also showing a rise in the use of credit and debit cards for holiday spending. Pre-paid cards are now nearly as popular as debit cards which are used by 28%.

The gradual switch to pre-paid cards is an opportunity for providers to expand their range and Consumer Intelligence’s research on winter holiday destinations is another indicator of potential growth areas.

Its study found Spain remains the top choice for UK holidaymakers in the winter with 22% planning to visit. But Canada and the US are now the joint second destination chosen by 11%. France and Germany make up the rest of the top five.

Advantages for holidaymakers using prepaid cards include potentially better exchange rates plus less risk for their money if they lose the cards. But customers need to watch out for fees and debit cards can also offer good deals.

A spokesman for Consumer Intelligence said: “It is plain that card spending, for winter travellers, is definitely gaining ground.

“Providers must ensure they are offering the right deals, including prepaid cards, for the winter season, as well as taking note of the new popular destinations.”

Grandparents support family to a tune of £21 billion every year

October 19th, 2018 | Andrew Hagger | News

19 Oct 2018 New research from Charter Savings Bank reveals that 40% (over 5.8 million) of grandparents give their families cash handouts every year worth an average of £1,475 each, as well as the equivalent of one month’s free childcare.

Children and stepchildren are the main beneficiaries, receiving £743 a year, while grandchildren collect around £450.

Of those grandparents who gift money, the majority (61%) do so because they want to pass their wealth to their family during their lifetime, while a third extend a helping hand to help family members who are struggling to make ends meet.

Grandparents’ cash is most likely to go towards the younger generation’s living costs (30%), holidays (21%) and home improvements (19%). One in six (15%) say they are helping towards a home deposit, while 12% are clearing university debt.

It’s not just the younger generation receiving a helping hand; the research shows that 5% of grandparents are also providing financial support to their parents too.

On a regional basis, the most generous grandparents are based in Yorkshire and Humberside who donate a whopping £2,298 every year. In a close second are grandparents living in London (£2,043) followed by the East Midlands (£1,929) and the South East (£1,723).

Grandparents contribute one month’s worth of childcare

As well as cash, two-thirds (65%) of grandparents have given up their time to look after grandchildren and great-grandchildren, spending an average of four hours per week. When rolled out over the course of a year, and assuming a 7.5 hour working day, grandparents are providing 28 working days of free childcare annually. Assuming the national minimum wage of £7.83 per hour2, grandparents are providing £1,629 of free childcare – collectively worth £4.3 billion.

While most grandparents can afford to be generous, over a third (37%) admit to having to make lifestyle changes including fewer holidays (58%) and postponed or cancelled home improvement plans (37%).

Paul Whitlock, Director of Savings, Charter Savings Bank, said: “Rising living costs and squeezed family incomes mean that grandparents are having to ride to the younger generation’s financial rescue. In many cases grandparents find it hard to say no and while they like being hands-on, the risk is that they compromise their own standard of living.

“Savings accounts play a key role in grandparents’ ability to finance the younger generation, so it’s important to check they’re getting a competitive rate.  Many grandparents have built up sizeable nest eggs thanks to years of saving regularly. Passing this habit down through the family will help to ensure that future generations can also benefit from a financial leg-up.”

 Regional breakdown of financial contributions

Region Financial support given by grandparents each year
Yorkshire and Humberside £2,298
London £2,043
East Midlands £1,929
South East £1,723
West Midlands £1,530
North West £1,501
Scotland £945
East of England £877
Wales £837
North East £817
South West £771

 

Source: Charter Savings Bank, 2018

Pensioners set to receive above-inflation pension increase

October 17th, 2018 | Andrew Hagger | News

17 Oct 2018 Today’s publication of the inflation rate for September means that the government now has all the information that it needs to set pension and benefit rates for April 2019.  Under the terms of the pensions ‘triple lock’ policy, the pension has to be increased by the highest of:

–          The growth in earnings, which was 2.7% in August 2018 (based on seasonally adjusted average earnings including bonuses);

–          The growth in prices, measured by the CPI, which is 2.4%;

–          A minimum of 2.5%;

With today’s fall in price inflation, the pension will rise in line with the growth in average earnings (2.7%).   The key figures (rounded to nearest 5p) are:

  2017/18 2018/19
Full ‘new state pension’ £164.35 £168.80
Old ‘basic state pension’ £125.95 £129.35

Pensioners on the old state pension system will see an increase in other elements of their pension, such as the state earnings related pension scheme (SERPS) in line with the increase in the CPI.

The main rate of the Guarantee Credit for the poorest pensioners is linked by law to the growth in average earnings so will also rise by 2.7%.

Commenting, Steve Webb, Director of Policy at Royal London said:

“Whilst the rates of working age benefits have been squeezed for many years, pensioners look set to enjoy another above-inflation increase.   Those receiving the full rate of the new state pension should get an extra £4.45 per week or just over £230 per year”.

 

ENDS

1 in 3 Britons are unaware of how to trace a lost financial product

October 17th, 2018 | Andrew Hagger | News

16 Oct 2018 While losing money is common, with those prone to misplacing things often finding spare change in pockets (66%), bags (37%) and drawers/cupboards (34%), new research from NS&I reveals that 14% of Britons (7 million people) think they may have lost track of a financial product, highlighting the staggering amount of money left dormant with UK financial services providers. And it’s not just savings accounts, with a fifth (20%) admitting there is a possibility that they have lost track of a pension.

Paper or provider: what’s the problem?

Nearly two-thirds of Britons (63%) admit to losing or misplacing things from time to time, but many admit that this could stretch beyond occasionally misplacing items such as keys. A quarter of Britons (25%) who admit to misplacing things tend to lose important paperwork, which could lead to losing track of bank or savings accounts, direct debits or signed agreements.

Now that many financial products are available to manage online, the requirement to remember security details or passwords is higher than ever before. Just over half of Britons think that misplacing passwords or codes for accounts is a cause for losing track of financial products, yet 78% believe that digital technology has improved the ability to stay in touch with financial products. This figure reaches 89% of 16-24 year olds, and steadily decreases with age, however over two thirds of those aged over 65 still agree that digital technology has improved their ability to keep track of finances.

While most Britons hold savings and investments with 1-3 financial providers 17% use between four and six providers. Nearly half of the population believe that people can lose track of financial products because they use too many financial providers.

As a way to combat the complication of paperwork that may come with using multiple providers, 45% of people believe that offering a single banking platform to view all accounts would help prevent people from losing track of their financial products.

Tracing could be easier than you think

While looking for lost change is easy, only half  (50%) of those who believe they have lost a financial product have ever attempted to track it down, and just over a third (34%) of these are unaware of the ways in which to do so.

NS&I offers a free tracing service for their products, and additionally works alongside UK Finance and the Building Societies Association to provide MyLostAccount.org.uk – a free service dedicated to reuniting customers with lost funds held in banks, building societies and NS&I. While the process may take up to three months to perform a successful trace, the reward could be worth the wait. To date, NS&I’s tracing service and My Lost Account combined have reunited over £770 million with customers.

Just over one in ten (13%) of Britons have heard of My Lost Account, while only 3% of Britons have ever used the service.

Ian Ackerley, Chief Executive at NS&I, said:

“Misplacing things from time to time, including money, is common, yet searching for something you may not know exists could appear like a waste of time.

“Our research shows that 14% of us think they have lost a financial product at least once and yet only 3% have ever undertaken a trace using My Lost Account to try to find them. It can be daunting to know where to start, but if you suspect you have funds with a financial institution, you should start by contacting them directly or by using services like My Lost Account.  Both NS&I’s tracing service and My Lost Account do the hard work for you, leaving you with time to spend on things that matter to you.”

Customers lose up to 13% exchanging unused holiday cash

October 16th, 2018 | Andrew Hagger | News

16 Oct 2018 Holidaymakers are losing up to 13% exchanging unused foreign currency after trips abroad due to the rates on offer from foreign exchange providers, financial data analytics experts Consumer Intelligence warn.

One of the biggest gaps between buying and selling rates is offered by the Post Office – customers buying £100.99 of US dollars at the Post Office receive $130 but would only receive £87.25 for selling the $130.

There are better rates on offer than the 13% loss on buying and then selling but Consumer Intelligence advises holidaymakers to consider buyback guarantees.

There is potentially huge demand – its research shows one in three holidaymakers intend to exchange left over foreign currency after overseas trips and 38% take more than £500 of cash abroad.

Providers offering buyback guarantees on unused currency include Asda, Travelex and Moneycorp who charge £3.99 for the service while Caxton charges £4.99 for the buyback on its prepaid cards. 

Eurochange uses a sliding scale offering to buy back 20% of the original amount for £2 after 20 days; 30% for £3 after 30 days; or 30% for £5 after 50 days. The Post Office does not offer a buy back guarantee. 

Andy Buller, from Consumer Intelligence said: “Buyback guarantees can be good value for customers planning to sell back currency particularly when compared with the buy and sell rates offered by travel money providers.

“Holidaymakers are often coming back with large amounts of unused cash and there is a real opportunity for currency providers to win more business by offering good rates on buyback schemes.

“There is certainly a lot of leftover foreign currency around in the UK and it’s all money that could be better used for something else.”

Android users claimed to be clumsiest smartphone owners

October 11th, 2018 | Andrew Hagger | News

11 Oct 2018 Android owners are more likely to clumsily crack, crush and smash their devices than iPhone users are, according to new data which has been revealed by gadget insurance provider Protect Your Bubble.

More than three quarters of Android and non-IOS users who submitted a claim to the insurance provider cited ‘accidental damage’ as the reason behind their device’s plight.

By comparison, just 62% of iPhone owners who claimed on their insurance cited the same reason.

But while the analysis of mobile phone claims made to Protect Your Bubble in 2017 suggests iPhone owners are, on the whole, more careful, the insurer’s data reveals Apple fans were more likely to water-damage their phones.

Just 4.4% of Android owners claimed for water damage, while 11.1% of iPhone owners did so during the same period.

Intriguingly, female iPhone owners were the most likely group to drown their devices, with 12.6% citing ‘liquid damage’ as the reason for their claim. Meanwhile, just 8.9% of male iPhone owners claimed for water damage, while 5.2% of female Android owners did so as well as just 3.6% of male Android users.

Protect Your Bubble also found Millennials were clumsier than pensioners, with 80% of 21 to 35-year-olds claiming for ‘accidental damage’ and ‘loss’ combined. By contrast, only 73% of over-65s submitted claims to Protect Your Bubble for the same reasons.

However, the older generation was still more likely to drop their devices in water, with 10.7% of pensioners claiming for water damage, compared to just 7.8% of Millennials.

James Brown, director of gadget insurance provider Protect Your Bubble, comments: “Our research shows that we are unquestionably a nation of butter-fingered Brits. There are few feelings worse than scooping up a once pristine smartphone from the ground and flipping it over to reveal a smashed screen or worse. Sadly, our data proves ‘accidental damage’ is the overwhelming cause of gadget mortality, with 65.2% of our customers submitting claims for this reason in 2017.

“But what raises eyebrows further is that iPhone owners are clearly substantially worse at keeping their devices above water level. One of the many causes of liquid damage is dropping a phone in the loo. Not only is someone confronted with the unpleasant task of fishing around in toilet for their device, but their phone is often rendered useless after.

Tandem Bank launches new credit card to help borrowers build their credit record

October 11th, 2018 | Andrew Hagger | News

11 Oct 2018 Tandem Bank, the UK’s leading digital bank, announce the launch of a second credit product, the Journey Card, available through application via the Tandem website.

Tandem Bank obtained its banking licence in January 2018 and launched shortly after with their Cashback Credit Card and three market-leading Fixed Saver accounts, along with an advanced app that aggregates bank accounts to give users full visibility and insight into their finances. Tandem is now adding its second competitive credit card offering to its product suite, this time to a market that Tandem believe is underserved.

The Journey Card is a way for those who haven’t had credit before to build up a strong credit profile. When paid on time, and without going over their credit limit, customers can use the Journey Card to achieve better financial health. Increasingly people are realising the importance of credit scores for building a better future, be that helping them to get car loans, mortgages and better credit rates in the long-term.

One of the worst things about travelling abroad is constantly having to worry about being stung with fees when you get home, but from today, customers signing up to the Journey Card can make purchases overseas without incurring fees and will receive real time in-app updates as they spend, leaving out the nasty surprises. Following the success of the Cashback Card, it’s clear that Tandem’s customer base loves to travel and the Journey Card offers the same great overseas features plus the advantage of a smooth application even if you are new to credit.

The Journey Card offers:

  • ZERO transaction fees on any purchases
  • ZERO transaction fees on cash withdrawals
  • 56 days interest free on any money spent
  • 24.9% APR representative, variable
  • Receive all updates and communication via the App (forget documents being lost or exposed account information)
  • Powerful in-App budgeting tools

NatWest Launches new £125 current account switcher offer

October 3rd, 2018 | Andrew Hagger | News

03 Oct 2018 NatWest is offering a new offer, £125 to new and existing customers switching their main bank account. The limited time offer runs from 3 October 2018 until 3 December 2018.

Customers switching to a NatWest Reward current account will also benefit from 2% Rewards on their household bills with an average of £83 received each year. A customer switching to NatWest could therefore receive over £200 just for switching bank accounts.

Additionally NatWest is enhancing the benefits on its Reward Silver, Platinum and Black accounts from 1 October. Customers will now be able to benefit from no foreign purchase fees on debit card purchases made outside of the UK, up to 40% off cinema tickets and (for Reward Platinum and Black customers) personal car breakdown cover which will cover customers for vehicles they own and will also cover a vehicle if a customer is travelling in it.  The NatWest Reward range has no minimum sign up period – meaning customers can try account benefits and cancel at any time if it doesn’t meet their needs.

Switching bank accounts is simple and can be done through the Current Account Switch Service. Payments, such as Direct Debits, Standing Orders and Bill Payments, will be automatically transferred to the newly opened account within seven days.

Switchers are required to use the Current Account Switch Service, close their existing account with their current provider and transfer their main current account to NatWest. Customers will then receive the payment by 8th February 2019.

It is simple for customers to obtain the £125. £1500 must be paid into the account and customers need to log into either online or through the award winning mobile app before 7January 2018. Customers must be 18 or over and not have already taken advantage of a cash offer from NatWest after October 2017 for opening a new current account and switching. Customers can apply on natwest.com or in any NatWest branch.

What Goes Into A Credit Score – Explained

October 3rd, 2018 | Andrew Hagger | News

03 Oct 2018 New research by credit experts TotallyMoney reveals exactly what goes into credit scores and how they’re calculated, allowing customers to understand better the reasons for any changes to them. 

TotallyMoney generates credit scores and reports using data provided by credit reference agency Callcredit. However, what goes into your credit score has largely been kept under wraps until now.

Payment Behaviour (48%)

According to the research, payment behaviour comprises 48% of your credit score and is the biggest contributing factor overall.

It considers on-time payments, late and missed payments, and how recently the payments occurred across all credit accounts. Bad behaviour in this segment is therefore likely to have the biggest negative impact on credit scores.

Credit Usage (21%)

Credit usage comprises 21% of your credit score, and considers a person’s total available credit and how close they are to their limits. It’s thought that keeping credit usage below 25% of an individual’s available credit can help keep a credit score healthy.

Credit Experience (21%)

Credit experience comprises 21% of your credit score, and looks at a person’s credit accounts and how long they’ve been using them.

Sensibly using credit products over a longer period could increase credit scores, whereas those new to credit or those who have limited experience using it might find their scores are lower.

Desire for Credit(5%)

Desire for credit comprises 5% of your credit score. It looks at credit account openings and closures, and when these openings and closures took place. Closing a credit account suggests there’s less desire for credit and could increase a credit score, whereas opening new accounts suggests more eagerness for credit and could lower a score.

Credit Types(5%)

Lastly, credit types comprise 5% of your credit score. This refers to an individual’s experience of managing different types of credit, such as mortgages, loans, credit cards, and even gym memberships.

Sensibly handling a variety of credit products could improve a credit score.

The research has also debunked the myth that getting rejected for credit lowers your credit score, which is not true for credit scores provided by credit reference agency Callcredit. However, this only applies to the number. Since lenders can see when you’ve been rejected for credit, it could lower your Borrowing Power, or your ability to get accepted for credit.

Andrew Hagger, Personal Finance Expert from moneycomms.co.uk said:

“We’re constantly nagging customers to check their credit score and telling them how important it is but fail to help them understand how it works.

Explaining which behaviours and actions have the biggest impact on your score is vital if we really want people to take credit scores more seriously.

There’s been too much smoke and mirrors in this industry for years, so it’s good that customers are being given a greater insight which will help them manage their score more effectively.

I’d highly recommend signing up for a service where your score is emailed to you every month – that way you always know where you stand as it’s always at the forefront of your mind.”

TotallyMoney CEO Alastair Douglas said:

“For a long time, people have had to rely largely on guesswork and anecdotal advice on how their credit score is calculated and what they can do to improve it.

“Hopefully, this research will help customers better understand their credit scores, so they can home in on what makes their score rise and fall.

“A good place to start is with TotallyMoney’s Free Credit Report. Once you find out what your score is, you’ll be in a better position to improve it from there.”