February 28th, 2024 | Andrew Hagger | News

Holiday packages during school breaks can cost an extra £804 on average for a family of four, according to a new study. The research finds that this rises even more during the summer holidays when travel costs increase by an average of 23% – equivalent to an additional £276pp (per person).

By comparing holiday package prices for the upcoming year, Go.Compare reveals just how much extra it’s costing parents to travel during school breaks due to the rules around unauthorised absences.

It’s no secret that travelling during term time is much cheaper than during the school holidays, but the comparison site unveils just how much parents have to fork out to take their little ones abroad.

Term time packages to popular destinations like Spain, Italy and France have average prices starting as low as £289pp. Meanwhile, the lowest average package price during school breaks sits at £398pp – over £100 more per person.

Trips to Greece saw the largest increase in package prices with an additional 28% per person being charged for travel during school breaks. However, the most expensive destination for school break getaways is France with a median price of £1,208pp.

This increase in costs forces families to choose between paying high holiday prices or taking their kids out of school to travel, which could result in a hefty fine. A fifth (20%) of Brits said that they would consider or have taken their children out of school for travel and 38% of these stated that they did this to cut down on expenses.

With fines costing as much as £480 for families of four depending on your local council, parents put a lot at risk by taking their children out of school without authorisation. Only around a tenth of parents who took their children on holiday without permission said they avoided a fine, showing that this might be a more common occurrence than many realise.

Manon Jones, travel insurance expert for Go.Compare, said: “Family travel choices become increasingly daunting during the holiday price surges. The financial contrasts are stark, particularly during the summer holidays.

“It’s no surprise that travel during term time proves to be much cheaper. However, these insights provide a way for families to make the most of the school breaks without breaking the bank. It’s also worth considering the costs that come with travelling outside of just accommodation and flight prices alone.

“Travel insurance is something else to consider, especially as premium prices can vary depending on when you’re travelling as well as with who and the kind of cover you require. Additionally, there will be extra costs added once you arrive at your destination, so consider how much you’ll need to spend on amenities as well as food and local travel.

These considerations can help travellers to prepare and weigh out their options in full before booking.”

Find out how to make the most of travel this year as well as more information about the research on Go.Compare’s website.

February 28th, 2024 | Andrew Hagger | News

Yesterday, the Financial Conduct Authority launched a new campaign, urging customers to compare deals to ensure the best savings rates on their deposits. And to save people time and money, TotallyMoney has crunched the numbers and highlights some of the best and worst places to put their money:

• For the mean average* savings, a poor-value, easy-access savings accounts returns just £201.43 interest per year, compared to £896.03 for one of the best — a difference of £69.60†
• Meanwhile, savvy savers can earn £913.40 with a leading 1 year fixed-rate bond and make £920.35 with the best in market 90 day notice saver†
• Millions could be missing out on the best rates, as 37% of people haven’t switched for five years, while 27% have never switched‡
• In addition, just 52% of savers have switched or plan to switch accounts‡

Below, we continue with tables for various savings amounts in different accounts, and provide commentary from Alastair Douglas and Andrew Hagger.

 Savings: a matter of interest

14 successive Bank of England rate hikes should’ve signalled good times for millions of UK savers, but banks were slow to pass the benefits on to customers, leading to the FCA setting out a sets out 14-point action plan§ on cash savings last summer, and following it up with a £600k campaign‡ to encourage savers to switch accounts earlier this week.

And while the cost of living crisis has meant 56% of adults have stopped saving, lowered their amounts, or used their deposits to meet their daily expenses, 37.1 million (70%) still have a savings account of some type. The majority (54%) of these are held with savings accounts, building societies or NS&Is, 28% in cash ISAs, and 26% in premium bonds¶.

However, 37% of savers haven’t switched for five years, and 27% have never switched, while just 52% of savers have switched, or plan to switch accounts#.

The tables below compare a variety of accounts, and the amount of interest paid out on various levels of deposits, including the mean average held in a UK savings account of £17,365.

Both the Barclays EveryDay Saver and Easy Access Cash ISA pay a measly 1.66% on savings below £10k, and even less (1.16% and 1.21%) on anything over. For the mean average balance, this means earnings of £201.43, compared to £896.43 on the market-leading easy access Beehive Money saver, paying 5.16%.

For those looking to get a bit more for their money, the SmartSave 1 year fixed rate bond pays £913.40 interest on the average deposit — and if that seems like too long a time to lock away your money, there’s the StreamBank 90 Day Notice Saver, paying £920.35.

 Alastair Douglas, CEO of TotallyMoney comments:

“In recent months, the UK’s biggest banks have banked billions of pounds and recorded record profits from charging high rates on debt while paying low interest on savings. And with inflation at 4% — still double the target rate — some are paying as low as 1.16%, meaning some deposits are losing value every single day.

“But millions of customers unwittingly think their banks are doing right by them, and a quarter haven’t switched accounts because they trust their bank. But loyalty doesn’t pay, and if you’re one of the 10 million people who’ve never moved their money, then the chances are your bank will have been profiting from paying you a pittance. So work out which savings option works best for you, and switch accounts to a provider who’ll help your money grow.

“While the regulator is right to campaign for people’s money to work harder, they should be pushing banks, not people to change. The role of the Consumer Duty is to set higher and clearer standards of consumer protection across financial services, requiring firms to put their customers’ needs first. Not vice versa.”

February 27th, 2024 | Andrew Hagger | News

As inflation has slowed and expectations of the Bank of England’s base rate have risen, mortgage lenders have slashed APRs in a bid to grab the headlines and attention of would-be borrowers.

This week, borrowers can lock in rates as low as 4.63% for a 75% LTV two-year fixed rate deal. However, often these eye-catching offers only mention product fees (of c. £1,000) in the small print.

Fees become more of an issue with a 2-year fix compared with a 5-year fix, when the cost is spread across 60 months. They will also add up over time with customers locking in back to back short term deals, and when they choose to pay the fees over the lifetime of the mortgage (as they will accrue interest) instead of paying them up front..

While a low-rate high fee deal can work for larger mortgages (the table below shows Londoners could save £81 over two years), they’re often more expensive for homeowners borrowing smaller amounts (for example, an extra £639 for those in the North East).

The above table compares the cheapest two-year (Halifax 4.63% plus £999 product fee), and the cheapest two year fee-free fixed rate (Lloyds 4.84%) deals. And it shows that for all regions bar London, the cheapest two-year deal is more expensive than the cheapest fee-free mortgage offer.

 Alastair Douglas, CEO of TotallyMoney comments:

“Over the past three years, more than a third of people taking out a mortgage or changing to a new rate decided not to use a broker or advisor, and instead found it themselves. And this figure could rise, as 1.5 million cheap mortgage deals come to an end this year, and people look to cut costs as they’re faced with higher rates and the increased cost of living.

“The worry is that without expert advice, some might be distracted by the eye-catching headline rates, without having a real understanding of their cost over time. Costs which could continue to grow as more than half of customers lock in short term two year deals.

“Back in 2022, the FCA introduced new rules for overdrafts — removing fees and charges, so banks could only charge a flat rate. In simplifying overdrafts and making them easier to understand, the FCA estimates that customers are saving between £473 million and £525 million per year§.

“And with a mortgage being a far bigger commitment, we need to see similar action, making them simpler to understand and compare, while offering fair value and delivering better customer outcomes. That way people can make their financial future as safe as houses.”

 Andrew Hagger, founder of Moneycomms adds:

“The mortgage market is a potential minefield for would-be borrowers, with thousands of products and different rate and fee combinations — if you don’t use the services of an independent broker, you can easily come unstuck.

“The best ‘rate only’ or rate plus fee combination isn’t a straightforward choice and you’ll need an expert number cruncher to make sure you get the cheapest deal for your circumstances.

“Your mortgage is the biggest financial transaction that you’re likely to make in your lifetime, so don’t go in blind otherwise you could end up paying way more than you need to in repayments.”

February 22nd, 2024 | Andrew Hagger | News

A new study has revealed that a staggering £276 billion worth of possessions are uninsured in the UK. The research estimated that the total value of the UK’s contents is a jaw-dropping £827 billion, but said around 9.3 million households do not have any contents insurance. As a result, it’s likely that only a few of these belongings are properly covered, and could disappear should the worst happen.

The calculations, produced by Go.Compare home insurance, come from census data on the number of residential properties in the UK and FCA statistics on the number of contents insurance policies in place. Using these figures, the comparison site estimated that billions’ worth of our belongings are at risk of being lost.

The research also found that many of those who are insured do not have the right amount of coverage. Approximately 5.6 million homes in the UK are underinsured for their contents, meaning that millions will not receive the funds they’d need to repair or replace their possessions – even if they claim.

The comparison site says a possible reason for this is that many people might be falling foul of insurance pitfalls. Less than a quarter know how to calculate an accurate valuation of their possessions, according to the report, meaning 76% are at risk of having insufficient coverage from their policy.

Similarly, only 43% said the value of their possessions is up-to-date on a contents insurance policy, and just 39% said they know that contents insurance policies often have a single-item limit. Overall, a third of respondents said they did not know about any of these three issues – all of which could lead to underinsurance.

Ceri McMillan, home insurance expert at Go.Compare, says: “It’s shocking to see that so many might not have the coverage they need to keep their possessions safe. Millions of pounds are at risk of being lost, highlighting that many of us need to take action to make sure our possessions are properly protected.

“While it might not be the first thing on your mind, it’s critical that you update the value of your home’s contents regularly. Otherwise, you risk being underinsured and might not get the funds you need in a worst-case scenario like a fire, flood or theft. This results in the cruel double-whammy of losing your possessions and having to absorb the financial cost of replacing them.

“A good way of getting into the habit of updating your insurance is to make sure you revalue your possessions whenever your policy renews. You should also consider updating it after you’ve made any big purchases, such as jewellery or tech, or after big occasions like Christmas and birthdays where you might have an influx of new possessions.

“If you do make any big purchases, be wary of single article limits that might be on your policy, too. For anything you buy that might be worth more than £1,000, double-check your policy will provide sufficient coverage. You might need to inform your provider about these so they can be listed individually.

“Many people find it difficult to provide an accurate estimate, but there are ways you can get support with this. Our online contents insurance calculator can help you come to a realistic valuation, so consider trying this if you’re struggling.”

More information can be found on Go.Compare’s website.

February 21st, 2024 | Andrew Hagger | News

American Express has launched its first-ever limited time offer on the Platinum Cashback Everyday Credit Card, offering new Cardmembers 5% cashback up to an increased £125, over an extended five month welcome period.

This is £25 more than the usual £100 limit on the 5% introductory cashback rate, and runs over an extended five month period versus the usual three months, giving Cardmembers more time and opportunity to benefit from the 5% rate. Customers must apply for the Card between 21 February and 9 April, 2024 to receive the offer.

Following the extended 5% cashback period, Cardmembers can then earn up to 1% cashback, as usual. They receive 0.5% cashback on spend up to £10,000 and 1% cashback on spend over £10,000, each Card membership year. With no annual fee, there is no cap on how much cashback Cardmembers could earn from their spending each year.

On top of this, Cardmembers can continue to earn up to £150 additional cashback through referring a friend who is approved (£20 for each successful referral).

Dave Edwards, Vice President, American Express, commented: “Recent research in our latest Amex Trendex Report showed that 45% of UK adults are factoring in personal finance when making resolutions for the year ahead, so we know many of us are embracing the early months to look at ways we can get more from our spending. This limited time offer will provide new Platinum Cashback Everyday Cardmembers with a chance to kick-off the year positively, by earning boosted cashback on every purchase they make.”

American Express^® Platinum Cashback Everyday Credit Card benefits

The Platinum Cashback Everyday Card comes with a host of benefits beyond purely cashback. With Amex^® Experiences, Cardmembers enjoy exclusive access to some of the most sought after sports, music and theatre events before tickets go on general sale. Alongside this, Cardmembers can make the most of Amex Offers; discounts from a range of popular dining, entertainment, retail and travel brands.

By adding family members or partners to their Account, Cardmembers can earn cashback even faster. Platinum Cashback Everyday Credit Cardmembers are entitled to up to 5 complimentary Supplementary Cards (subject to approval), with spend on all Cards earning cashback.

Full terms and conditions apply. 18+. Subject to status. For more information please visit https://www.americanexpress.com/en-gb/credit-cards/platinum-cashback-everyday-credit-card/

The American Express Platinum Cashback Everyday Credit Card has a Representative APR 31.0% Variable.

February 19th, 2024 | Andrew Hagger | News

A new study by Carwow has found just how severely mileage impacts the value of used cars. The study reveals car valuations can drop by a staggering 27% once they tip over the 60,000-mile mark. As a result, owners looking to sell are now being advised to do so before their vehicle hits this 60k mileage milestone.

Carwow’s research also reveals that 42% of people want to sell their car as quickly as possible once they’ve made the decision to change vehicles. However, delaying the move to sell may prove costly for consumers once the vehicle has reached higher mileage.

How much value (£) a car loses per 10,000 miles:

Chart image link

The graph above highlights three points where the value lost increases significantly. These sit at 30,000, 60,000, and 110,000 miles.

The most value is lost when cars surpass 60,000 miles, dropping by an average of 27% compared to their value at 50,000 miles. This could be because the industry standard car warranty lasts for three years, or until a car reaches 60,000 miles, whichever is sooner. Cars that have clocked over six figures will then see a further drop of 24% – an average loss of £945 when hitting 110,000 miles.

Carwow’s data also shows that cars with between 100,000 and 150,000 miles on the clock could fetch an average valuation of £3,259, yet owners run the risk of much lower valuations if they rack up more than 150,000 miles.

The loss in value per mileage bracket shows that a timely sale could save car owners from a sizable drop in valuation prices, showing the importance of keeping a close eye on mileage.

Paul Barker, Managing Editor at Carwow, said: “Our data highlights just how crucial it is for car owners to act quickly. Waiting around to sell could result in a substantial drop in valuation price, and owners selling at the right time becomes key to get the best valuation for their car.

“Of course, there are many factors that can affect the value of a car, such as the model and any modifications that have been made. However, mileage is one of the key factors that affect a car’s value and understanding just how much will help car owners in their decision-making.

“With a considerable proportion of sellers looking to sell their cars as soon as possible and a notable decline in their valuations, it’s crucial for owners to weigh their options and consider making the most of the current used car market before further depreciation takes its toll.”

February 14th, 2024 | Andrew Hagger | News

M&S Travel Money insight reveals the value of the pound has increased against nine of the top ten currency destinations over the last 12 months, meaning families heading away for some winter sun may see their travel money go that little bit further, compared to the same time last year.

While sterling has gained ten percent or more on half of the destinations in the top ten, the Eurozone remains holidaymakers’ top currency destination, despite a smaller sterling gain of three per cent on last year.

For those looking to travel further afield, America remains the second most popular currency destination, with UK holidaymakers benefitting from the pound also increasing three per cent against the US dollar.

Barbados has dropped out of the top ten currency destinations for Brits heading abroad this February, compared to the same time last year, with Switzerland moving into the top ten currency destination, at tenth place, despite the Swiss Franc gaining three per cent on the pound.

The pound has seen the biggest movement against the long-haul destinations in the top ten, compared to the same time last year, with sterling gaining 10 percent on the Australian Dollar, the third most popular currency destination, and 13 per cent on the Thai Baht, the fourth most popular currency destination.

Sterling movements against M&S Travel Money’s top ten currency destinations:

Nic Moran, M&S Travel Money, said: “With Sterling gaining on many of our most popular currencies, holidaymakers looking for some winter sun should consider the total cost of their holiday, including exchange rates and local costs, to ensure they’re making their holiday budget stretch even further.”

Nic’s top travel money tips:

• Plan spending money early: Get your spending money organised ahead of time; order your currency online, or visit a high street bureau de change, to secure a rate in advance – and travel with both local currency and a credit card, to ensure you’re covered for all eventualities.

• Don’t leave yourself short when it comes to currency: Ensure you have enough cash for snacks, taxis and tipping, ATMs may not always be readily available.
• Consider local costs when budgeting: ensure you factor in the cost of things like meals, shopping and tipping; sterling gains on some destinations can mean your holiday budget goes further on arrival

The M&S in-store travel money bureaux, alongside its euro and dollar Click & Collect travel money service, means an M&S currency service is available in more than 450 M&S stores. The service offers a Click & Collect facility, so customers can order using their Smartphone or tablet – whether at home or in-store – and collect in as little as 15 minutes.

Top ten currencies 2024 YTD

February 13th, 2024 | Andrew Hagger | News

Go.Compare car insurance has today released new data, showing that the average car insurance premium has risen by 35% in 12 months.

The latest price index from Go.Compare car insurance shows that in Q2 2022, the average price of car insurance was £347, and then in Q4 2023, it had risen to £465, an increase of 35%. The report also revealed that the most expensive place to insure your car is in London, where the average insurance premium costs around £678 a year, which is 78% more expensive than the South West, where the median cost is £371.

Commenting on the index, car insurance spokesman, Tom Banks, said: “This updated report shows that car insurance premiums, whilst changing each quarter, have been steadily increasing since in the start of 2022, and between Q3 and Q4 2023 alone, premiums jumped by 10%.”

The data also revealed that currently, the cheapest type of car insurance was third party, fire and theft cover (TPFT), which costs £456 annually, slightly lower than the average premium for a comprehensive policy (£467).  According to the Index, third party only (TPO) insurance policies cost £607, almost 30% higher than comprehensive cover.

Tom continued, “Usually, you would expect the most basic level of cover to be the cheapest, but for car insurance, Third Party Only (TPO) policies are the most expensive. It was surprising to see that TPFT policies came out as the cheapest type of policy- it just goes to show how things are changing when it comes to pricing.

“The increasing costs of premiums is being attributed to the rising costs of replacements and repair costs, as well as inflation. We are now seeing these costs being passed onto the policyholder, who is having to foot the bill for these increases.”

In addition, recent research from Go.Compare found that over 80% of motorists have seen their insurance premiums increase this year.** And in an effort to minimise the impact of these rising costs, policyholders are taking matters into their own hands, with 55% of respondents saying they now make sure that they shop around at renewal.

If you have found that your car insurance premiums have increased, you may be able to shop around and find a better deal elsewhere.  Go.Compare has compiled 18 tips on how to get cheaper car insurance, some of these include:

• Don’t leave it until the last minute: Data from Go.Compare has revealed that the best day to renew insurance on your car is 27 days before your renewal is due.*** The same data also found that the most expensive time to buy your new policy is the day the renewal is due. On average, the longer you leave it to renew your car insurance policy, the more you are going to pay.

• Mileage: Statistically, the more you drive the more likely you are to have an accident. So if you drive 10,000 miles a year, your car insurance will probably be more expensive than someone who drives only 6,000 miles. While this isn’t always guaranteed, simply driving less could help you lower the cost of your car insurance and it remains important to estimate your mileage as accurately as possible.
• All in a day’s work: It may be worth thinking about how you describe your job and the work that you do. If, for example, you don’t commute, you may be able to find a cheaper policy by describing your insurance as being ‘for social use’.

Also, the way you describe your job can affect your premium. For example, a ‘chef’ might pay a different premium to a ‘cook’ as even though the roles are very similar in reality, the insurers may treat them differently. But be honest or you risk invalidating your policy.

Tom concludes: “With premiums on the increase, it’s more important than ever that you shop around at renewal as insurance companies will change how they price for certain risks. Just because one insurance company was the right policy for you last year, it doesn’t mean it will be the same this year.”

For more information, and to read Go.Compare’s report on the “Cost of car insurance”, please visit:  https://www.gocompare.com/car-insurance/guide/how-much-does-car-insurance-cost/

February 8th, 2024 | Andrew Hagger | Uncategorized

Data from Hodge  reveals 80% of Brits are most concerned about the increase in energy prices, 72% are worried about everyday costs and 61% are struggling with rising inflation.

Although concerns about the rising cost of living have eased slightly, it continues to impact over three quarters (76%) of people surveyed.

From a regional perspective, top worriers are in the East Midlands (35%), followed by West Midlands (34%), and North East (33%).

Additionally, over a third (38.2%) of Northern Irish residents expressed worries about fuel and electricity costs.

Surprisingly, despite these concerns, they boast the highest confidence in managing their own money.

Meanwhile, the housing market continues to present challenges for first time buyers with skyrocketing mortgage rates, which is reflected in the 10% of Brits that are actively saving towards owning a house. Instead, many are choosing to save for leisure activities.

From an age perspective, 57% of people below 20 years old are most concerned by the escalating costs of fuel.

However, over two thirds (69%) of 20-30 year olds are deeply worried about the increasing cost of everyday items.

Interestingly, residents aged 31 and older are struggling with energy costs. This financial landscape underscores the shifting worries and priorities experienced throughout different life stages.

Biggest money worries in the UK

•  Energy prices – 80%
•  Cost of everyday items – 73%
•  Rising inflation – 61%
•  Fuel prices – 52%
•  The effect on pension/retirement income – 32%
•  The effect on wages – 22%
•  Rising interest rates – 22%
•  Fall in the value of the pound – 22%
•  House prices – 18%
•  Increased loan payments – 12%

Christie Cook, managing director of retail at Hodge, said:

“Over the past few years, the UK has faced economic uncertainty, making financial planning a challenge.

“It’s evident Brits are actively taking steps to manage their finances amidst these challenges with the majority reducing their electricity usage to cut back on costs.

“Additionally, nearly half (49%) of the UK population are preparing for their future by setting aside money in emergency savings.

“Others are choosing to enjoy their money by saving for a holiday, while more than 4 in 10 (46%) are dipping into their savings.

“With fluctuating interest rates on savings accounts, it’s understandable that consumers aren’t staying loyal to their bank.

“More than half (54%) of individuals say they would consider moving their savings if they found a more competitive rate.”

February 8th, 2024 | Andrew Hagger | Press Releases

A recent data analysis revealed the substantial financial contribution made by vans to toll roads in England. In 2022, they generated a daily estimated revenue of £339,488, resulting in an annual revenue of over £123 million.

Van drivers, who make up 18% of road traffic, are spending more time exploring cost-efficient ways to manage their expenses on the go. Research by Go.Compare Van Insurance highlights the toll roads that are best avoided if van users want to save some cash.

Despite toll roads making up a small fraction of the 187,200-mile English road network, they significantly impact the 3.8 million van drivers regularly crossing the country. However, the impact isn’t always negative, as some alternative routes can be pricier due to the additional mileage.

Comparison of toll expenses vs. alternative routes:

While certain toll roads like the M6 and the Tyne Tunnels appear more costly for van drivers, most toll roads not only offer convenience but also prove cheaper than alternative routes. For instance, steering clear of the M6 could save van drivers a substantial £14.25, adding only around 8 miles to their journey. Considering that there are 9,000 daily van crossings on the M6, exploring alternate routes could result in significant savings.

The comparison site found that van drivers saved an estimated £24 million on fuel costs by using tolls every year. On the other hand, the additional mileage incurred by avoiding tolls might lead to increased vehicle wear and potentially higher insurance premiums.

Tom Banks, motoring expert at Go.Compare, said: “Our research highlights the significant financial impact of tolls on van drivers, it’s evident that navigating these routes strategically can lead to huge savings.

“While tolls offer convenience, our data highlights that certain routes might prove more costly for van drivers. By opting for alternative routes, van drivers can save substantially, a crucial consideration given the high volume of daily van crossings.

“However, it’s essential to weigh these savings against potential increased mileage, which could impact insurance premiums. Finding the right balance between toll use and mileage is key for van drivers seeking cost-effective journeys.”

More information about the research can be found on Go.Compare’s website.