July 28th, 2015 | Andrew Hagger | News

Nearly a third of over-55s expect to be in debt in retirement or are unsure whether they will have paid off all their financial commitments, new research by equity release lender more 2 life shows.

Around 60% of those surveyed had applied for some form of credit within the last two years, including 58% of those aged 65 and above, but one in eight have been turned down with some reporting that their age was a factor in the decision (18% of those aged 65 and over said they were refused credit on the basis of their age).

The nationwide study underlines the growing need for increased flexibility from lenders as well as a recognition that increasing longevity and rising house prices mean more people owe money on their mortgages past traditional retirement ages.

more 2 life believes there is growing demand – and a need – for lending solutions aimed at over-55s who may need to borrow past traditional retirement ages. Its research shows there is strong demand for credit among the over-55s with more than 58% borrowing in some form in the past two years.

There is also demand to continue to borrow into retirement with nearly two-thirds of those questioned welcoming the ability to borrow in retirement without necessarily wanting to use it.

A spokesman for more 2 life, said: “Given the high levels of those who expect to be in debt at retirement, it is crucial that pensioners and those in the run-up to retirement focus on having sufficient income to support them once they retire.

“However that can be more easily said than done and the industry needs to focus on enabling people to borrow responsibly as well as open up the opportunity for those approaching retirement to make the most of the equity in their property.

“Mortgage debt is a particular issue and the concern about interest-only mortgages needs to be addressed. In many cases those people are entirely able to service their debts but just need lenders to take a flexible approach.”

July 23rd, 2015 | Andrew Hagger | News

The days of the best man chasing the groom’s mates to get their contribution to a weekend of revelry, a tatty envelope going round the office collecting cash for a colleague’s birthday gift, or a jam jar stuffed with cash in a shared house could well be a thing of the past with the launch of KiTTi, a brand new money management app from Santander.

This is the first app in the UK that brings the good old cash kitty up to date, and allows up to 100 friends to contribute and keep an eye on their money all at the tap of a button.

Customers of any UK bank can download the app, quickly and easily set up a KiTTi, invite their friends and get started.

How it works

KiTTi is accessed exclusively through a smartphone app, available on both iOS and Android and users do not need to be an existing Santander customer. The service is available to anyone over 18 with a UK debit card and works in the following way:

• Download the app from either the Apple or Android app stores
• One person registers as an owner to set up a KiTTi and is sent a KiTTi prepaid contactless MasterCard
• Each KiTTi can be given a name, target value and payment milestone(s)
• The owner invites friends to join the KiTTi via the app (text message is sent to their smartphone)
• The owner and friends pay into KiTTi by entering their debit card details, which they need to do only once, through the app’s secure payment process
• A small fee of 35p is applied whenever a payment is made into the KiTTi
• Using the KiTTi prepaid card, money can be taken out or used to pay for anything the group wants – in the UK and overseas
• A single KiTTi has a maximum balance of £4,000

A Santander spokesman said“We’ve all been through the hassle at the end of a fantastic meal with friends when it comes to splitting the bill. You get a pile of notes, coins and cards in the middle of the table and then have to divvy up the change. And you know at least one of your friends is secretly annoyed because they feel they’ve paid more than they should.

June 4th, 2015 | Andrew Hagger | News

Research out this week reveals that UK citizens took almost 39 million holiday trips abroad in 2014 and spent £24.4 billion whilst there.  Sainsbury’ Bank Travel Money predicts another busy June, as last June was the fourth busiest month for the supermarket bank’s travel money sales. The amount of travel money bought from Sainsbury’s in June 2014 jumped 16% from the amount sold in May 2014.

This June, up until 29th, Sainsbury’s Bank Travel Money has pledged to beat any in-store travel money rates customers find at their local Post Office or M&S Bank travel money bureaux (within five miles).

Sainsbury’s Bank Travel Money already provides Nectar card holders with a discounted rate but guarantees that if Post Office Money or M&S Bank are offering a better in-store rate on the day, it will beat their rate.

Sainsbury’s Bank has around 170 travel money bureaux in Sainsbury’s stores across the UK and offers 0% commission on foreign currency. There are over 50 currencies available to order. Open seven days a week and with handy parking, Sainsbury’s offers the convenience of collecting travel money whilst shopping.

June 3rd, 2015 | Andrew Hagger | News

High street retail giant Boots has launched its new travel insurance range, designed to make sure that all members of the family can enjoy the health benefits of a holiday.

The new product range is now wider and more comprehensive with five levels of coverage, which means customers have a greater choice of insurance options to make sure they find the correct cover for everyone on the trip.

A spokesman for Boots commented: “We believe that enjoying a safe and happy holiday is something that should be available to everyone. Our policies now cover a range of travel experiences – whether it’s policies that take care of people with medical conditions, the older traveller, or allowing children to be covered for free when travelling on their family holiday. We’ve also removed the upper age limit for single trip policies* and made travel for those with pre-existing medical conditions even easier, meaning that more people will be able to afford to go on holiday safe in the knowledge that they are protected by a quality, comprehensive product.”

Understanding that travel is important for people’s sense of happiness and wellbeing, should anything happen while on holiday, Boots customers will have access to a 24/7 emergency helpline where they can talk to doctors who will have an in-depth knowledge of their medical conditions.

Key features of Boots travel insurance:

• Specialist cover for pre-existing medical conditions
• No upper age limit on single trip policies
• 24/7 emergency line managed by real doctors
• Talk to people not checklists
• Children go free with family or single parent cover

June 2nd, 2015 | Andrew Hagger | News

GoCompare is warning drivers not to inadvertently invalidate their car insurance by not advising their insurer of any modifications they make to their vehicle.  Modifications include performance or aesthetic changes to the bodywork, engine, wheels – even fitting a roof rack or tow bar.

The warning comes after an insurance company threatened to void a Welsh vicar’s car insurance policy when she tried to claim, as she had not told her insurer that she had adorned her car with religious stickers.

All modifications, including those made to the original specification on new cars, should be declared to insurers. Failure to do so could leave drivers out of pocket as the majority of insurers would not pay out for damage or loss of undisclosed altered parts.

Analysis of car insurance quotes by Gocompare.com has revealed that only 2% of drivers declared that their car had some kind of modification – that means that just over half a million cars on UK roads have been modified in some way, which includes everything from a new sound system to a tow bar.

Modifications are any changes to a car that aren’t as standard – so, any changes that have been made to the car since it left the factory or car showroom. By law, vehicle keepers must tell the DVLA about changes such as colour, engine number, chassis, monocoque body shell and model description. There is no legal requirement to declare changes to the gearbox, suspension, or cosmetic additions such as trims, spoilers and tow bars, as well as other electronic modifications to the DVLA, but insurers will want to know about any of the changes above, plus any other non-standard additions or alterations.

May 29th, 2015 | Andrew Hagger | News

Customers will be able to invest a further £10,000 in Premium Bonds from Monday 1 June 2015 after the maximum holding limit was increased from £40,000 to £50,000.

The change follows the Chancellor’s announcement in the 2014 Budget that NS&I would help support savers by increasing the Premium Bonds investment limit. It comes 12 months after the Premium Bonds limit was increased from £30,000 to £40,000 with a second £1 million prize winner also being introduced from August 2014.

The total amount invested in Premium Bonds has increased from £19.7 billion in 2003 (when the previous £20,000 limit was increased to £30,000) to over £53 billion today – an increase of 169%.  The total Investment value has increased by £6bn since last June and NS&I expect the total amount will increase again following changes on 1 June this year.

Premium Bonds remain popular with savers for a variety of reasons: they offer a chance to win tax-free prizes, they can be easily bought and managed online or by phone and due to the excitement that ERNIE brings each month when he creates two £1 million jackpot winning Bond numbers and delivers over 2 million other prizes from £25 to £100,000 in value, across the country.

In addition to the changes to the Premium Bonds limit, from Monday 1 June 2015 parents or legal guardians will now have the opportunity to purchase Premium Bonds for their children directly online or by phone for the first time.

Previously parents could only buy by post, or at a Post Office branch, but they can now purchase Bonds for their children (so long as they are under 16) through the internet or over the phone.

Jane Platt, NS&I’s Chief Executive said: “Premium Bonds are one of the nation’s favourite ways to save. Last year we saw a huge level of interest when we raised the limit from £30,000 to £40,000 and this latest increase to £50,000 is further good news for customers who want save more and to give themselves extra chances to win a tax-free prize.”

“Premium Bonds have been with us for almost 60 years and the process of buying them, how much you can invest and even the Bond record itself has changed a lot in that time – but ERNIE and the randomness of how our winners are picked is timeless and well-loved.

May 28th, 2015 | Andrew Hagger | News

M&S Bank is urging British motorists to check their car insurance policy before hitting the roads this summer after research revealed that nearly  one  in  ten (nine per cent) are planning to drive their car in the European Union (EU) over the next 12 months.

The M&S Bank research  revealed that of those that are planning to drive their car in the EU, more than two in five (41 per cent) will do so for a holiday,  nearly a third for a mini-break and 18 per cent to visit friends or family.

However, more than a quarter of those planning to drive their car in the EU either aren’t, or don’t know if they are covered to drive in the region.  When it comes to breakdown cover in the EU, more than two in five aren’t, or don’t know if this would be covered under their car insurance policy.

In addition, nearly a third aren’t planning to take the time to  familiarise themselves with the driving laws of the countries they are travelling  to.  More than one in ten said this was because  they believed it was the same as driving in the UK, while nine per cent  said  they  didn’t  have  time  to  familiarise  themselves  with any differences.

In most European countries, drivers  are  required to have photographic identification  on  them  at  all times and the use of dipped headlights is compulsory  in  poor  daytime  visibility.  However,  there  are  also more specific  laws  of  the  roads  across  different  European countries which drivers  should  be  aware of. For example, in France, vehicles must always carry a breathalyser certified by French authorities, while in Germany, at certain times of the year, it is illegal to drive without winter tyres.

When covering  long  distances, such as with  self-drive holidays, it’s important  for motorists to consider breakdown cover that includes both the policyholder  and  the car across the region. While some insurance policies
will come  with  EU  travel  already included, and for extended periods of time, drivers should not assume this is always the case and check that they are covered before they travel.

May 28th, 2015 | Andrew Hagger | News

Millions of people are regularly being cut-off from their basic gas and electricity supplies because they can’t afford to top-up pre-paid meters, according to research* from the debt advisory centre.

A quarter of people questioned were reliant on pre-pay meters in their homes because they have experienced problems paying their bills or need help to manage their energy spend.

The research found that 4 million people often can’t afford to top-up their gas meters. Of those people, 18% say they are cut-off from their gas meter every few months, while as many as 7% lose their gas supply at least once a week because they can’t afford to top-up the energy key.

Residents in the East Midlands are struggling the most, according to the research, with 63% regularly unable to top-up their gas meters. Residents in the West Midlands and East Midlands had the highest rate of fuel poverty, according to the Government’s Annual Fuel Poverty Statistics Report 2014.

The picture is the same for electricity supplies, the study shows, with 4.7 million people saying they are regularly cut-off. Of those people, about 15% admit to having their energy supply cut-off every few months, and 6% are cut-off at least once a week.

Many households are forced to rely on pre-paid meters because they have fallen into arrears on their utility bills. Some 10% of those questioned were up to three months behind with their gas, electricity or water payments, the research shows.

A spokesman said “It’s alarming to see how many families are struggling with fuel poverty. As customers on pre-paid meters typically pay more each year for their energy, this means that often, the poorest and most vulnerable people are paying the highest prices.

“We are concerned that energy bills will continue to rise in the future, plunging more people into fuel poverty.

We would like to see more help given to these people so they can switch on to better deals and climb out of fuel poverty.”

Households that spend more than 10% of their income on fuel to keep their home in a satisfactory condition are considered to be in fuel poverty.

If you are struggling to pay energy bills or want advice on heating your home more efficiently, call the Home Heat Helpline on 0800 33 66 99 or visit the website at www.homeheathelpline.org.uk.

May 26th, 2015 | Andrew Hagger | News

Private rents across England and Wales have reached a record high average of £774 a month with costs currently rising at between 5% to 8% per year.

The cost of monthly rental payments were up 4.6% in April compared to the same time last year – the fastest annual increase since November 2010 – while they grew by 0.8% between March and April too.

Whilst these numbers make great reading for landlords, it’s a growing issue for tenants across the UK.

The figures, compiled by Your Move and Reeds Rains estate agents, will come as no surprise to hordes of renters who are struggling to save enough money to afford a deposit for a home of their own.

The research found that those in the east of England are facing the biggest increases. Compared to April 2014, rents have risen in the region by 12.5% over the past year to £810 a month. That rate of growth has accelerated from 12% in the year to March 2015 and 10.2% in the 12 months to February 2015.

Those in London saw the second biggest annual increase of 7.8% in April 2015, compared to an annual increase of 5% in the year to March and 4.9% in that to February.

May 26th, 2015 | Andrew Hagger | News

An estimated 1 million Brits have had a serious family argument after a loved-one has passed away with no will in place, according to new research by Macmillan Cancer Support. Of those that said that they’d had a family feud over a will, nearly a fifth said that it had gone on to break up the family.

Furthermore a third of people who said that they have promised something to a loved one have not actually covered this in a will – which means that a further 5 million people are potentially risking family arguments in the future.

The survey of 2,000 adults coincides with Dying Matters Awareness Week (18 -24 May) and shows that whilst people would describe themselves as organised (93%) and say they are comfortable talking about their dying wishes (44%), they are actually putting off important tasks like will writing and talking about their own end of life plans, leaving many families in turmoil following the death of a loved one.

With 59% of Brits admitting to not having a will, the top reasons given were having ‘just never got round to it’ (34%), the belief that they don’t have anything valuable to leave (31%) and that they don’t think they need to write one until they’re older (20%).

Macmillan Cancer Support is encouraging the nation to use Dying Matters Awareness Week as a prompt to finally start discussing their end of life wishes with loved ones, and move writing a will to the top of their to-do list.

Dani Adams, Legacy Manager at Macmillan, says: ‘We want to encourage people to look to the future in a positive way. Whilst people do not have to leave a gift to Macmillan to use our discounted will writing service, we hope that people will consider leaving a legacy, as another way to help us ensure no one faces cancer alone. With estimates showing that by 2020 one in two people will get cancer in their lifetime, it’s about making sure that there will be support for their loved ones in the future, should they ever face cancer.’