March 26th, 2024 | Andrew Hagger | News

M&S Travel Money’s latest insight, ahead of the Easter holiday period, reveals the value of the pound has increased against all of the top ten currency destinations over the last 12 months, meaning families heading away for the Easter break, may see their travel money go that little bit further, compared to the same time last year.

While sterling has gained an average of eight per cent across the ten most popular currency destinations and as much as 16 per cent on the eighth most popular currency (the Japanese Yen), the Eurozone remains the most popular destination, despite the smallest sterling gain, of just four per cent year-on-year.

America remains the second most popular destination, with UK holidaymakers benefitting from the pound increasing six per cent on the US dollar. Sterling has also gained six per cent against the Barbadian dollar, which moves into the top ten currency destinations this year. Turkey, which featured in the top ten destinations last Easter (ninth place), has moved out of the top ten this year.

For those looking to travel a little further, some of the largest sterling gains can be seen on long-haul destination currencies. For example, sterling has gained seven per cent on the Australian Dollar, the third most popular destination. New Zealand has also grown in popularity for UK travellers over the last 12 months, moving up three places to seventh place – with the pound gaining eight per cent on the New Zealand dollar year-on-year.

Sterling has also increased seven per cent on the UAE Dirham, which is in fifth place, having moved down just one place, from fourth, on the same period in 2023.

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

With year-on-year sterling gains on many currency destinations, holidaymakers should see their travel money go further, which could help offset an increase in the cost of travelling to that longed for holiday.

The amount spent on travel⁴ has gradually risen over the last few years, surpassing pre-pandemic levels, according to M&S Credit Card customer data, with travel spend in 2023 up by 18 per cent year-on-year and the number of travel transactions up by 14 per cent over the same period.  So far, 2024 is also showing year-on-year growth in travel spend and travel transactions.

Nic Moran, M&S Travel Money, said: “We would always encourage holidaymakers to consider the total cost of their holiday, including exchange rates and local costs, so it’s great to see that sterling has gained on all of our most popular currencies, as families looking to jet off this Easter may see their budget go that little bit further.

“And while many of us are looking for ways to save and make our money go further, our data also shows that families are still looking to create new memories with their family by enjoying a well-earned holiday, continuing to spend more on travel, year-on-year.”

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.

March 26th, 2024 | Andrew Hagger | Uncategorized

TotallyMoney has calculated the cost of using some of the most popular credit cards to withdraw cash when travelling, and warns the 2 million UK holidaymakers heading abroad this Easter to use the right card:

• Some providers will charge a huge £4.59 in fees on £20 withdrawal. In real terms, this represents a 22.95% charge
• For larger transactions, the representative charge decreases, but can still add a huge £7.99 on a £100 equivalent cash withdrawal
• Two million people plan to go away this Easter†, and more than half of Brits are setting their sights on jetting off later this year, with the average person spending £227 per week abroad
• There are alternative options available, which offer customers free withdrawals abroad

Below, TotallyMoney calculates the cost of credit card cash withdrawal fees and provides three top travel money tips, with supporting insights from independent personal finance expert, Andrew Hagger.

TotallyMoney’s travel money trifecta

TotallyMoney CEO, Alastair Douglas shares three top tips for making your travel money go further:

1. Pack the right card
   “Before you go away, double check how much your bank will charge you for using your card abroad. If you’re lucky, you might already have a fee-free option in your wallet — so make sure you stick to using that one. If not, and you’re planning on using credit, then consider applying for a Halifax Clarity or Barclaycard Rewards card —specifically for overseas use. Both offer fee-free purchase and cash withdrawal transactions abroad. Alternatively, current accounts with Chase, Starling and Monzo will all let you withdraw cash for free when abroad.”

2. Go large
   “If you need to use your credit card for ATM withdrawals abroad, avoid using it for multiple, low value cash transactions — and instead consider taking out fewer but larger amounts. That way, you can avoid lots of withdrawal fees, which quickly adds up. Let’s say you take out £200 in one go, to cover you for four days, you might incur up to £15.98 in charges. On the other hand, if you take out £50 per day over the four day long weekend, you could end up paying the bank £31.96 — which is twice as much!”
3. Shop local
   “Whenever you’re paying by card, or withdrawing cash, and you’re asked if you’d like to pay in the local currency, you should almost always pick the local currency. Choosing to pay in pounds sterling will lead to currency conversion fees set by the ATM operator or vendor — and worryingly, there’s no limit to how much they can charge.”

 Andrew Hagger, Personal Finance Expert, and founder of Moneycomms adds:

“Although credit cards are useful in helping you manage your day to day cash flow and cope with unexpected expenses, using them to take cash out at ATMs overseas can be an extremely expensive way of funding your holiday spending.

“Consider a fee-free credit card or a low cost debit card as an alternative if you don’t want to see a big chunk of your overseas holiday budget swallowed up by cash withdrawal and non-sterling charges.”

March 26th, 2024 | Andrew Hagger | Uncategorized

A new survey has officially crowned the Volkswagen Golf as the country’s favourite car from the noughties. One in 10 picked the Golf as the car they love the most from the decade, placing it above every other model on the list. It was closely followed by the MINI (7.4%) and the Ford Focus (5.3%).

Car-changing marketplace Carwow asked car enthusiasts about their favourite vehicles from the noughties that are still on the road today. The results suggested that the nation has an affinity for the Golf, as well as other cars by VW, Ford and Vauxhall. The top 10 contained two models by each of these manufacturers, including the VW Polo, the Ford Fiesta and the Vauxhall Astra.

The UK’s top 10 favourite noughties cars:

1. Volkswagen Golf

2. Mini hatchback

3. Ford Focus

4. Land Rover Freelander

5. Ford Fiesta

6. Toyota Yaris

7. Vauxhall Corsa

8. Vauxhall Astra

9. Volkswagen Polo

10. Honda Jazz

While most drivers declared the Golf as their favourite, older motorists felt more affection for the Land Rover Freelander. Overall, 7% of over 54s picked it as their favourite from the decade, more than any other model. Women preferred the Mini, with 10.1% naming it their first choice, and only 7.9% selecting the Golf.

Carwow also investigated which of our noughties favourites are now worth the most. It says that fans of the Golf can expect to pay an average of £1,651 to get hold of a noughties model, with one of the most valuable versions being the 2009 hatchback, which has a median Cap value of £6,100.

However, it found the Honda Jazz to be one of the most valuable noughties favourites overall, holding an average value of £2,052.

In contrast, the Vauxhall Corsa was named the cheapest car out of the top 10 with an average value of £691, closely followed by the Vauxhall Astra at just £759. Carwow said that some versions are available for even less, revealing that the 2002 Corsa Hatchback has a median Cap value of just £340, perhaps showing that Vauxhall is the decade’s champion of cheap and cheerful wheels.

John Rawlings, Consumer Editor at Carwow, said: “Now that we’re over 10 years removed from the noughties, it’s enjoyable to look back on our favourite cars from this era and see which are holding their value. The VW Golf is clearly a favourite of the decade, with some versions now being worth over £6,000, although it looks like the Honda Jazz is generally the most valuable on average.

“If you own one of these noughties favourites and are considering changing your vehicle, now may be a good time to sell up, as there’s plenty of money to be made based on their current valuations. Don’t worry if you were hoping to snap up an old classic from this time though, as there are many with a lower price tag available, too.”

Out of the UK’s favourites from the noughties, Ford has the most vehicles still on the road today. There are currently around 328,519 Ford Fiestas on UK roads, more than any other noughties car, as well as 276,629 Ford Focuses. The VW Golf is close behind with 245,111 still on the road, while the Vauxhall Corsa and Astra each have just under 200,000 vehicles in use.

Find out more about the nation’s favourite noughties cars on Carwow’s website.

March 26th, 2024 | Andrew Hagger | News

A new report has revealed the average age of first-time home buyers in the UK compared to three decades ago.

The research, conducted by Go.Compare home insurance, investigates government data on first-time buyer trends. It shared that the average age of first-time home buyers is 33, the same as it was in 1990,[1]  despite inflation and the ongoing cost of living crisis. The insurance comparison site also revealed that the average age for all mortgage borrowers is 36, which has increased by two years since 1990.

The proportion of first-time buyers under the age of 25 has also decreased by 18.1% and increased by 9.5% in 35 to 44-year-olds. Although the average age of first-time home buyers is the same as in 1990, the figures suggest it’s not as easy for under 25s to invest in a home.

The average age of Brits buying a modern home is 36, compared to 37 for those buying an older property. The insurance comparison site’s research also shows that the UK prefers older houses, with 64% saying an older build would be their dream home if cost were not an issue.[2]

Its data has further revealed the median cost for home insurance policies, showing that, on average, older properties are pricier to insure compared to new builds.

The average annual cost for all insurance policies combined amounts to £185 for an older build, £39 more than for a new build. When looking at different insurance policies individually, buildings only cover is revealed to have the biggest price difference, with it costing £62 more on average for old buildings.[3]

Ceri McMillan, home insurance expert at Go.Compare, says: “The data clearly shows that older properties cost more insurance-wise, even though they’re the UK’s preference for a home. However, there are many ways to get the cost of insurance down, such as looking after and updating your home, or combining buildings and contents insurance to get a discount.

“It’s interesting to see that the average age of a first-time buyer has not changed much over the years.

But in the cost of living crisis, buying a house can be a difficult prospect, especially as the expenses don’t stop after the purchase. All the more reason to consider the different long-term costs between old and new builds, as well as the different types of insurance available.”

For more information, visit the Go.Compare website.

March 20th, 2024 | Andrew Hagger | News

Most UK adults are unaware of a major shake-up of an ISA rules coming in April 2024 that could make it easier for them to get better deals and create more ‘balanced’ investment portfolios, according to new research commissioned by Wesleyan Assurance Society.

A raft of ISA rule changes designed to simplify the scheme and encourage more people to invest tax free were announced by the Chancellor in his Autumn Statement in November 2023.

This includes allowing investors to open multiple ISAs of the same type every tax year. The reforms are designed to incentivise ISA use by giving savers more flexibility with their money – enabling them to create ISA portfolios better suited to their needs, and making seeking better returns easier.

But new research conducted on behalf of financial mutual Wesleyan found 78% of 2,000 UK adults surveyed don’t know about the rule change to allow multiple ISAs of the same type to be opened within the same tax year. Although, when told about the imminent shake up, almost a third (31%) said the changes would make them want to invest more money into ISAs.

The survey also uncovered enduring misconceptions around ISAs that could mean savers are missing out on the potential benefits.

Seven in ten (70%) of the UK adults surveyed don’t know the different types of ISAs available work.

Of those who don’t hold ISAs, close to half (45%) believe you need large sums of money to open an ISA and more than one in five (22%) say they don’t want to lock their money away where they can’t access it.

In reality, you can typically open an ISA online, with low minimum subscriptions, and there are options available that allow you to withdraw your money at any time.

Toby Hester, Deputy Chief Product Officer at Wesleyan Assurance Society said: “The changes to ISA rules announced in the Autumn Statement are a welcome step towards providing more flexibility for investors but could have gone further.

“Being able to open more than one ISA of the same type and switch between providers will give people the freedom to shop around for better deals and achieve better returns on their investment.

“And it means they can create a portfolio of ISA investments that’s more varied and balanced to their needs, which can provide more security and peace of mind during times of market volatility.”

The research found that more than two-fifths of UK adults surveyed (42%) have invested in ISAs, with more than three quarters (76%) of them opting for Cash ISAs and 29% choosing Stocks & Shares ISAs.

They are investing in ISAs to benefit from the tax advantages (51%), to grow their money (33%) and invest for their retirement (25%).

Toby Hester added: “ISAs are an extremely powerful savings and investment tool, so it’s concerning that that there are still so many misconceptions around ISAs, which means many are missing out.

“I’d urge savers to take a good look at how they can make the most of the new flexibilities as soon as possible to maximise the time they have to benefit.”

The value of your investments can go down as well as up and you may get back less than you put in.

March 18th, 2024 | Andrew Hagger | News

With Easter holidays on the horizon, new research¹ from American Express has found that the average UK family will spend £3,045 entertaining children during the school holidays in 2024.

The total comprises sports activities, clubs, toys, books, magazines, games consoles, tech devices, meals out, days out, TV subscriptions and films. The figure is per child so families with multiple children could end up spending more.

School holidays are a time for many children to relax from school, make new memories, discover new interests and spend quality time with family. With that in mind, 43% of parents say they expect to spend more entertaining kids during the school holidays, compared with term time (with only 7% spending less).

Digital dreamers

Tech leads the charge when it comes to keeping kids entertained. In 2024, British parents plan to spend an average of £401 on tech devices like phones, laptops and tablets to keep children busy out of term time. Clubs come in second, with parents expecting to spend £366 this year which includes the likes of sports clubs, drama, dance, music and more.

Parents said that entertaining kids outside the home is the biggest factor behind school holiday spend (59%). With that in mind, over half (59%) of UK parents will be spending money on the likes of cinema tickets and days out.

38% of parents are motivated to spend on entertainment as a way of having bonding time with children. Eating out is the most popular bonding activity, with just under half (47%) of parents saying they will take their children out for food to spend quality time with them. Other popular bonding activities include watching films and television (39%), cooking together (36%), and various outdoor activities like hiking and camping (35%).

Dave Edwards, Vice President, American Express: “Keeping kids entertained over the school holidays might not always be easy but our data shows it is a focus of many parents’ spending, whether it’s a meal out with the family, a sports club, or a games console. We know our Cardmembers, many of whom are parents, value entertainment and experiences, and our Cards offer that – from access to Amex^® Experiences, to cashback and tailored offers.”

March 18th, 2024 | Andrew Hagger | News

With price hikes expected across broadband packages in the next few weeks, Go.Compare broadband is warning customers to review the terms and conditions of their current agreements, to see if they can negotiate a better deal.

The average price rise expected this April is 7.7%, with some broadband providers increasing their tariffs by up to 8.8%. The increases come into force every year and in 2023, some households faced annual increases of 14.4%.

The comparison site has provided a breakdown of the top five providers and their expected price increases in April 2024:

• Sky and NOW: 6.7% average increase across some broadband, phone and tv packages.
• Virgin Media and O2: 8.8% increase (New customers who joined after Feb 8th, 2024, are exempt until April 2025).
• Vodafone: 7.9% increase.
• BT: 7.9% increase.
• TalkTalk: 7.7% increase. 

Virgin Media is the only provider in the top five who has increased its prices based on inflation (RPI) + 3.9%, where others base the price increase on Consumer Price Index (CPI) + 3.9%.   There are exclusions on all of these price increases, which will depend on the broadband package and when customers started their contract.

There are also a number of providers who are offering a fixed price guarantee, meaning that they have committed to not increase their prices rises within the initial term of the agreement. These include Zen Internet, Cuckoo, Zzoomm, Hyperoptic and Trooli.

Catherine Hiley, broadband spokesperson at Go.Compare, said: “While the price hikes expected this April aren’t as high as those we saw in 2023, these increases are still a difficult pill to swallow when consumers are facing increased energy bills, mortgage payments and other outgoings.”

The comparison site is now encouraging anyone who is out of contract with their current provider to review the market and see if they can find a better deal elsewhere: Catherine continued: “Anyone who is out of their contract with their current provider can switch easily, and without being penalised. These bill payers could already be paying a lot more than they should be for their broadband, even without the additional hikes so it’s absolutely worth doing a comparison to see how your current deal stacks up.

“For those who are still in a contract, price increases are unfortunately written into broadband agreements. But we would still recommend reviewing the terms of your existing agreement and if you’re unhappy, contact your provider as you may be able to haggle on the price rise, or ask about an early termination fee amount.  Many providers add an early termination fee into their contracts to stop people leaving providers, but even with this fee, it may still be worthwhile to pay this and switch to a better deal.”

In fact, recent research from Go.Compare* has found that broadband and TV packages were the most popular bills to barter with 59% of those who currently barter on their bills saying that they like to strike a deal with their broadband provider.

For more information about broadband packages and how to shop around for them, visit:  https://www.gocompare.com/broadband/how-to-avoid-broadband-price-increases/.

https://www.cable.co.uk/broadband/check-my-area also offers a fast and easy way for people to see what deals are available for their specific postcode.

March 12th, 2024 | Andrew Hagger | News

With holiday bookings for Easter and summer sun holidays in full swing, leading travel insurance provider Multitrip.com is reminding holidaymakers of the importance of purchasing holiday cover as soon as they book, or “ASAB”, to ensure their coverage begins immediately.

Almost two thirds (63%) of travel insurance policies purchased from Multitrip.com in 2023 were bought less than seven days prior to departure, meaning a significant number of holidaymakers run the risk of not being able to recover the cost of their holiday should they have to cancel their trip.

Jason Whelan, from Multitrip.com, warned: “If you wait until closer to departure to arrange your travel insurance, you run the risk of something happening that could lead you to cancel and losing out on the cost of your trip. That’s why we always urge holidaymakers to take out travel insurance as soon as they book their flight or holiday.

“When arranging your travel insurance, it’s crucial to consider the level of cancellation coverage you require to ensure your trip is protected in case you encounter any obstacles or need to shorten your journey due to an unexpected event like a medical emergency,” he concluded.

Multitrip.com offers various tiers to suit all type of travellers, ranging from Essential Travel Insurance from £19.99* with cancellation cover that pays up to £1,000 per insured person, all the way up to the Premier Plus plan that covers up to £5,000, ensuring holidaymakers are prepared for unforeseen circumstances that may arise during your travels.

According to the Multitrip.com Annual Travel Survey^**, meanwhile, 92% of holidaymakers do plan to purchase travel insurance in 2024.

To view policy types and exclusions in full visit, Multitrip.com.

*£19.99 is the online price for Essential European Cover per person under 40 years. Prices excludes £3.95 handling fee.

March 11th, 2024 | Andrew Hagger | News

A recent study has revealed that many used car buyers skip vital checks before making a purchase. In fact, one in ten Brits admitted that they make no checks at all when buying a used car, leaving them unaware of any potential vehicle issues.

The survey, conducted by online car-changing marketplace Carwow, uncovered just how common it is for used car buyers to skip essential checks. Despite being free and crucial in determining a car’s condition and history, 38% said they didn’t consult the vehicle’s logbook (V5C) and 37% didn’t assess the MOT history.

Overall, only 64% of respondents believed they performed the correct checks before buying their used car. This suggests that of those who bought a used car in 2023, more than 2.6 million of them could be inadequately informed about their significant purchase.

Link to chart

While aspects like the bodywork and engine are examined by a significant portion of buyers, safety-related checks like testing brakes and checking tyre tread depth are less commonly performed.

Similarly, only 29% of respondents said they asked about modifications to the vehicle. Missing this type of assessment could lead to potential performance, insurance, or safety issues being overlooked.

Despite the availability of professional services such as HPI checks and independent vehicle inspections, only around a third of respondents used these options. Carwow says that relying solely on personal inspection might not uncover all potential issues, and obtaining a professional opinion can make all the difference.

John Rawlings, Consumer Editor at Carwow, said: “It’s concerning to see so many used car buyers skipping vital checks before making their purchase. The reality is that buying a used car is a significant decision, and overlooking these crucial steps is a huge gamble.

“Moreover, the rise of free online resources has made it easier than ever for buyers to access information about a vehicle’s history and condition before they finalise their purchase, such as our Car Check tool. So, it’s puzzling that so many buyers do not consider these resources.

“Taking the time and effort to conduct proper checks is an investment in peace of mind and financial security. It’s crucial for buyers to take control of the buying process and not leave their decisions to chance.”

For more information on conducting the right checks when buying a used car, visit Carwow’s website.

March 4th, 2024 | Andrew Hagger | News

According to a new study, younger residents might be at a much higher risk of being underinsured for their home contents. Over two-thirds (68%) of under-25s said that they were unfamiliar with the potential pitfalls that could leave their contents underinsured. Only 17% of over-54s said the same, suggesting that younger generations are far more vulnerable to missteps.

The findings come from a recent survey by Go.Compare home insurance, which asked respondents about the issues that could leave them without full protection. It found that a much greater proportion of younger residents lacked awareness of these factors, meaning they might not receive the funds needed to replace their possessions in a worst-case scenario.

Underinsurance, the comparison site explains, occurs when a policy does not provide enough protection to cover everything it needs to. For contents insurance, this can happen when the possessions valuation given on a policy does not match the true value of what someone owns. As a result, a claim would not provide enough funds to replace everything.

According to Go.Compare’s research, only 15% of under-25s know how to calculate an accurate valuation of their possessions, leaving the majority of them at risk of underinsurance. In comparison, around a third (34%) of over-54s said they know how to give an accurate valuation.

Just 15% of under-25s also said the value of their possessions is up-to-date on a contents insurance policy, compared to over half (57%) of over-54s. This suggests that their valuation has a higher risk of being outdated, another issue which could leave them short when making a claim.

A similarly low percentage (14%) of under-25s said they know about single-item limits, meaning many might not have protection for the most high-value items in their homes. More than half (53%) of over 55s were aware of this.

The study also revealed that renters might be more likely to fall foul of these potential pitfalls – despite contents insurance being the main policy they need. The survey found that just under half of renters (47%) were unaware of all three issues, compared to a fifth of homeowners.

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, particularly younger generations and those living in rented accommodation. 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 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, too. For anything you buy that might be worth more than £1,000, double-check that your policy will provide sufficient coverage. You might need to inform your provider about these so that 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.”