March 18th, 2025 | Andrew Hagger | News

A new study has found that 2.9 million UK drivers pay more for their Vehicle Excise Duty (also called car tax) than necessary, simply because they’re unaware of a 5% surcharge applied to their payments.

Drivers who choose to spread the cost of their car tax through monthly direct debit instalments have to pay this 5% surcharge, meaning they end up paying more overall.

Close to two-fifths (39%) of motorists admit they didn’t know there was an extra cost for paying in this way, according to the research by Go.Compare Car Insurance. Among all vehicle owners who pay in monthly instalments, this amounts to 5.6 million who are unaware of the extra fee included in their tax.

For drivers paying in this way, the 5% fee quickly adds up. In total, UK motorists pay an additional £56.3 million a year without realising. Almost half (49%) of these drivers said they would pay differently if they knew about the surcharge. This means 2.9 million paid more than they needed to because they were unaware of the 5% extra fee, equating to £27.5 million that could’ve been saved.

To put the impact into perspective, a vehicle owner who pays £1,000 a year in car tax by monthly instalments would pay an extra £50 each year in surcharges. Over five years, that’s £250 lost on unnecessary fees. Those with higher vehicle tax rates could be wasting even more.

The surcharge is added automatically to vehicle tax that is paid monthly or every six months, but is not included on annual payments. Because the charge is included in the instalment plan, many motorists don’t notice they’re paying more than necessary.

Despite this extra cost, many people opt for direct debit simply because it’s convenient. But for those who can afford to pay in full, switching to a single annual payment at renewal is a simple way to avoid unnecessary charges – without needing to change their car, mileage, or tax band.

Tom Banks, car insurance expert at Go.Compare, said: “Setting up a direct debit is an easy way to pay for your yearly car tax, but many drivers don’t realise they’re forking out extra for that convenience. For some vehicle owners, paying monthly also makes the most sense as it allows you to spread the cost, but those who can afford to pay in full should consider switching to a one-off annual payment to save on the surcharge.

“Even if monthly instalments are the best option for your budget, it’s important to know exactly what you’re paying – and how much more it’s costing you over time. Checking your payment method before your next renewal could be a simple way to avoid unnecessary costs and make sure you’re getting the best deal.

“While it’s not possible to reclaim past surcharges you’ve paid, you can avoid any future added fees by switching to a single annual payment when your next renewal is due.”

Find more information about car tax costs on the Go.Compare website.

March 17th, 2025 | Andrew Hagger | Uncategorized

Mortgage broker Mojo Mortgages has carefully assessed the possible scenarios and their implications for homeowners and aspiring first-time buyers before transforming this insight into a guide: How will the Spring Statement 2025 impact my mortgage? 

While a major overhaul of fiscal policy isn’t expected, even subtle adjustments could have a ripple effect on affordability and access to homeownership.

Stamp Duty Changes: A Crunch Point for Buyers

The planned changes to Stamp Duty Land Tax (SDLT), scheduled for 1st April 2025, remain a key area of concern. These changes will lower the thresholds for both first-time buyer relief and home movers, which could add thousands to the upfront costs of buying a home.

• For First-Time Buyers: The threshold for 0% SDLT drops from £425,000 to £300,000. This means first-time buyers in many parts of the country will face a higher tax bill.

• For Home Movers: The 0% threshold decreases from £250,000 to £125,000, increasing the cost of moving for many families.

Adil Choudry, a Mortgage Advisor at Mojo Mortgages, explains: “The Stamp Duty changes are a real worry. For some, it could be the difference between being able to afford a home or not. We need to see if the Chancellor acknowledges the impact these changes will have, particularly on first-time buyers who are already struggling with rising house prices and the cost of living.”

ISAs and LISAs: Savings Lifelines Under Threat?

Potential tweaks to Individual Savings Accounts (ISAs) and Lifetime ISAs (LISAs) are also being watched closely.

• Cash ISA Limits: There’s speculation that the Chancellor might reduce the amount you can put into a cash ISA each year. This would be a blow to first-time buyers who rely on these accounts to build their deposit.

• Lifetime ISA Thresholds: The £450,000 property price limit for LISAs is becoming increasingly out of sync with house prices in many areas.

Choudry continues: “Lifetime ISAs are a fantastic way for first-time buyers to boost their savings. But if the property price cap isn’t raised, it becomes useless for those trying to buy in more expensive regions. We’re hoping the Chancellor will recognise this and make the necessary adjustments to keep the dream of homeownership alive.”

Economic Uncertainty and Mortgage Rates: A Balancing Act

The UK’s economic outlook continues to play a significant role in determining mortgage rates. While the recent cut in the Bank of England’s base rate offered some respite, persistent inflation is creating uncertainty.

Choudry adds: “The economic picture is still a bit murky. Borrowers are caught between hoping for further rate cuts and the risk of inflation staying higher for longer. The Spring Budget’s economic forecasts will be key in setting the tone for the mortgage market in the coming months.”

Navigating the Budget: Expert Advice is Crucial

Given the potential changes and economic uncertainties, getting expert mortgage advice is more important than ever.

Mojo Mortgages recommends:

• Stay Informed: Follow the Spring Budget announcements closely and understand the potential implications.

• Get Personalised Advice: A mortgage broker can assess your individual situation and recommend the best course of action.

• Shop Around: Compare mortgage deals to ensure you’re getting the most competitive rates.

March 16th, 2025 | Andrew Hagger | News

The end of the financial year is a month away, and Hodge is offering their top tips for getting the most out of your ISA.

As the end of the tax year approaches, now is the perfect time to make sure you’re maximising your Individual Savings Account (ISA) allowance.

These tips come after a significant increase in searches for ISAs, which saw an increase of 100% in February according to Google Search Data.

With just a few weeks left, Christie Cook, Managing Director of Retail at Hodge is here to offer expert tips to ensure you’re making the most of your ISA and taking full advantage of tax-free savings opportunities.

• Use Your Full Allowance

“The annual ISA allowance for the 2024/2025 tax year is £20,000. If you haven’t already reached this limit, now is the time to top up your account.

Whether it’s through a Cash ISA, Stocks & Shares ISA, or Innovative Finance ISA, ensuring you fully use this allowance could result in significant tax savings.”

• Consider Moving Funds

“Following the previous tip about maximising your savings by using your full ISA allowance, if you’ve been holding cash in a non-ISA account, consider transferring it to your ISA to benefit from tax-free interest or capital gains.

This will allow you to gain more interest on the money you’ve been storing, by reaping the rewards of tax-free interest.”

• Don’t Forget About the Benefits of a Stocks & Shares ISA

“For those with a longer investment horizon, a Stocks & Shares ISA could provide higher growth potential compared to a traditional Cash ISA. By investing within an ISA, any returns are tax-free, giving you the opportunity to build wealth over time without worrying about capital gains tax.

Additionally, the tax-free nature of an ISA allows your investments to grow unhindered, potentially compounding over time. This makes a Stocks & Shares ISA an excellent option for those looking to build wealth over the long run, especially for retirement or other long-term financial goals.”

• Review Your Current ISA Strategy

“It’s always a good idea to review your ISA portfolio before the end of the tax year. Our recommendation is to assess whether your current ISA investments are aligned with your goals and risk tolerance.”

• Plan for Next Year

“If you’re unable to reach your £20,000 limit this year, our tip is to start planning ahead for the following year.

Setting up regular contributions could help you maximise your ISA contributions throughout the next tax year, ensuring consistent growth of your tax-free savings.”

As the end of the tax year approaches, now is the perfect time to review and maximise your ISA contributions. Whether you’re looking to boost your savings in a Cash ISA or explore higher growth potential with a Stocks & Shares ISA, taking action before the deadline can help you make the most of your tax-free allowance.

March 12th, 2025 | Andrew Hagger | News

March 11th, 2025 | Andrew Hagger | News

A new study has estimated that 5.7 million Brits are struggling to keep up with their credit card repayments. Just over one in 10 (14%) credit card holders said they were finding it hard to meet their repayments, meaning millions could be grappling with debts across the country.

The research comes from Go.Compare, which used a combination of survey data and ONS figures to estimate how many credit card holders are struggling with their finances due to the cost of living crisis. In response to the results, the insurance comparison site is now sharing how those in financial difficulty can get support.

Young adults and parents were found to be among those struggling the most with this. Just over a fifth (21%) of credit card holders with kids said they are finding it hard to keep up, compared to only 12% of those not supporting a family.

Similarly, around a fifth (22%) of those aged 25 to 34 said they’ve been having difficulty meeting their repayments – the highest proportion of any age group. A similar percentage (19%) of 35 to 54s said the same thing, while only one in 10 others reported having this issue.

Some credit card holders are not struggling to keep on top of their bills completely, but have had to reduce their repayments. One-fifth (19%) reported that they have reduced their repayments because of the cost of living crisis, meaning it’s likely taking Brits a lot longer to pay off what they owe. It could also result in increased debt and a poorer credit score if they drop below the minimum repayments.

The analysis also revealed that card holders across all income levels have had to trim their repayments, not just those on low incomes. Just under a quarter (23%) of those on lower or middle incomes have had to make this reduction, only slightly more than those on a higher income – 18% of which have had to cut back.

Once again, parents were among those most likely to be doing this. Close to a third (30%) of those with kids have done so, in comparison to just 17% of those without kids.

Middle-aged credit card holders and those in their late 20s are also some of the most affected. Just under a quarter (24%) aged 25 to 64 have reduced their repayments, compared to roughly a fifth (19%) of under 25s and just 8% of over 64s. Those in their late 20s and early 30s have been especially affected, with 30% stating that they have cut back on their repayments.

Matt Sanders, credit card expert at Go.Compare, said: “Credit card debt can build up quickly, but there are plenty of things you can do to get back on top of it. So, as difficult as it may be, try not to panic. For instance, your provider could offer you an affordable ‘repayment plan’, so don’t be afraid to reach out. Just keep in mind that they may stop your card if you don’t agree to the plan.

“Your first port of call should be to see if you can get a balance transfer onto a card with a lower APR. They often offer 0% rates for an introductory period, so it’s a good opportunity to clear your debt if you can pay it off before this ends, although they also usually charge a fee for making the transfer. They might also offer to reduce, waive or cancel interest and charges, or pause your payments.

“This means it’ll take longer to pay off and can affect your ability to obtain credit in the future, but it could stop things from piling up. A debt consolidation loan could also help you pay off what you owe, as it can work out cheaper if the loan offers a lower interest rate than your cards. This can also involve up-front costs and could lead to more debt if you can’t pay it off.

“All of these options have their pros and cons, so you need to weigh up which one is best for you. If you’re worried about your credit card repayments, agencies like StepChange and the National Debt Helpline provide support with things like budget management plans. Citizens Advice can also help you find support if you are struggling with day-to-day living costs.”

More information on the cost of living crisis’ impact on credit card holders can be found on Go.Compare’s website.

March 10th, 2025 | Andrew Hagger | News

Multitrip.com, a specialist travel insurance provider, reveals travellers’ top five insurance claims  and how much they can cost, demonstrating what can go wrong when people are away from home. The most common reason is claiming for medical costs, with this accounting for almost a third (30%) of claims .

One in five claims are for cancellation (21%) usually because of illness or injury to the traveller or a travelling companion. This is closely followed by claims for travel delays (16%) often due to a customer not being able to use pre-booked accommodation or transport due to a flight delay.

One in ten claims are for lost baggage (10%) and one in twenty for curtailment (5%) which is when someone has to cut short their holiday. Typically, the highest value claims are for medical, cancellation and curtailment. For example, a fracture in Europe could cost over £27,000 , and over £87,000 in the USA.

Christian Bennett from Multitrip.com comments, “Unfortunately things can and do go wrong when we’re away from home. Travel insurance is there to provide financial protection if your holiday doesn’t go as planned.”

He continues, “It’s important to check that the policy you buy provides sufficient cover for your needs. Our Essential cover provides great protection as standard, with Premier and Premier Plus Cover offering extended benefits for those who want even more protection.”

Multitrip.com offers a range of policies to suit different needs and budgets. The Annual ‘Essential Cover’ policy, starting from just £19.99 , includes up to £1,000 per insured person for cancellation or curtailment and £1,600 for baggage or baggage delay.

For those looking for added reassurance, Premier and Premier Plus Cover provide additional benefits beyond the Essential Cover, offering greater flexibility and protection for your trip. ‘Premier Cover ‘ provides up to £3,000 per insured person for cancellation or curtailment and up to £2,000 for baggage. The ‘ Premier Plus Cover ‘ offers the most extensive protection, with up to £5,000 for cancellation or curtailment and up to £3,500 for baggage or baggage delay.

March 5th, 2025 | Andrew Hagger | News

From wonky weekends and flying at anti-social times, to out of peak travel, nine in ten holidaymakers (89%) have taken steps to save money on their holiday, according to an Opinium survey* of 1,000 holidaymakers, by Multitrip.com, a specialist travel insurance provider.

The top ten money saving holiday hacks

1.    Travel out of peak holiday seasons (60%)
2.    Travel midweek (46%)
3.    Holiday during school termtime (32%)
4.    Go self-catering (32%)
5.    Fly at anti-social times (30%)
6.    A wonky weekend – e.g. Saturday to Tuesday (29%)
7.    Use loyalty points / programmes (29%)
8.    Book last-minute (28%)
9.    Choose holiday destination based only on the best flight and accommodation price (25%)
10.    Wait for flight sales (23%)

Another popular hack (20%) is booking a surprise trip where the destination is unknown when you book. Incredibly a third (32%) of 18–27-year-olds are planning to do this.  One in five (21%) are also planning to stay in cheaper accommodation than usual to get the destination they want.

Christian Bennett of Multitrip.com said: “Holidays remain a top priority for many and when budgets are tight there are some creative ways to cut the cost. However, it’s risky to cut corners and travel without sufficient cover in place’’.  He continues, “We also urge holidaymakers to arrange their travel insurance as soon as they book. This is to ensure your holiday is covered from the outset.” 

Annual Multitrip.com travel insurance policies start from £19.99**.

February 28th, 2025 | Andrew Hagger | News

Some of the UK’s favourite charities are working with local solicitors to allow people to write or update their Wills free of charge this March. The campaign is called Free Wills Month and it has run, with tremendous success, since 2005, and each year it raises £30 million in future income and now the campaign is running in Aberdeen, Barry, Bedfordshire, Berkshire, Birmingham, Blackpool, Bristol, Buckinghamshire, Cardiff, Chesterfield, Chichester, Coventry, Crawley, Darlington, Dundee, Eastbourne, Edinburgh, Essex, Fife, Glasgow, Harrogate, Hastings, Hertfordshire, Horsham, Inverness, Kent, Kilmarnock, Leeds, Liverpool, London, Mid Wales, Middlesbrough, Newcastle upon Tyne, North Wales, Northamptonshire, Norwich, Perth, Peterborough, Sheffield, Sunderland, Surrey, Swansea, Wirral, Wolverhampton and Worthing.

The Charities are paying for a limited number of Wills to encourage more people to leave charitable gifts in their Wills (legacies), although there is no obligation for people using the service to leave a gift to the charity.

The Free Wills Month charities are Age UK, Alzheimer’s Research UK, British Heart Foundation, Guide Dogs, Marie Curie, Mencap, NSPCC, Oxfam, The Royal British Legion, The Salvation Army, Stroke Association, Versus Arthritis, RNID, RNLI, Breast Cancer Now, Mind, PDSA, Children’s Hospices Across Scotland, Dogs Trust and Help for Heroes. They all depend on legacies for a huge part of their income – which means their vital work is only made possible by the gifts left in Wills.

The beauty of leaving a legacy gift is that it costs nothing now. People are often surprised how far a gift in your Will can go, even a small percentage of your estate could make a big difference. Most people who use the service choose to leave a gift to one or more of the charities sponsoring the campaign.

The campaign is open to anyone aged 55 or over (in the case of a couple making mirror Wills it is sufficient if one has reached 55). All people have to do is call one of the participating solicitors shown in adverts in the local press or listed on our website www.freewillsmonth.org.uk before 5pm on Monday, 31st March.

Appointments are limited and can fill up quickly, so we recommend calling to book your Free Wills appointment sooner rather than later to avoid missing this opportunity to put your affairs in order while doing something good for charity.

Campaign runs from 3rd-31st March

Free solicitor written Will for anyone aged 55 and over

Visit www.freewillsmonth.org.uk for more information

February 27th, 2025 | Andrew Hagger | News

The UK continues to experience financial pressure, with rising living costs and diminishing disposable income affecting many households. Recent search data indicates over 1.1 million monthly searches for ‘cost of living,’ signalling heightened financial anxiety across the country.

To understand where residents are coping best and where financial advice may be in higher demand, The Co-operative Bank analysed financial-related search volumes, employment rates, and median pay across 30 UK cities. This research highlights which cities demonstrate greater financial resilience and where demand for financial guidance is more pronounced.

Gloucester is the most financially resilient city, boasting the highest employment rate at 91%

Gloucester ranks first for financial resilience, driven by the highest employment rate of 90.8% among all cities studied. Residents in Gloucester conduct an average of 35 searches per 10,000 people each month for financial-worry-related terms, significantly lower than in cities where financial anxiety appears to be higher.

Other high-ranking cities for financial resilience include London and Oxford. London, ranking second, has a median weekly pay of £968, the highest in the UK, and a stable employment rate of 75.1%. Despite facing a higher cost of living, residents conduct 67 financial-worry-related searches per 10,000 people each month, reflecting moderate financial concern.

Oxford ranks third, reflecting relatively low financial concerns and positive economic indicators. Residents conducted 22 financial-worry-related searches per 10,000 people monthly, one of the lowest figures across the UK.

While these cities show signs of greater financial resilience, individuals and households across the UK continue to face financial challenges. This highlights the ongoing need for accessible financial support and guidance.

Newcastle residents are the most likely to seek financial advice, with 107 searches per 10k people monthly

Newcastle ranks first, with 107 financial-related searches per 10,000 people each month. Popular search topics include cost of living and interest rates, reflecting residents’ heightened financial concerns. With a weekly median pay of £600 and an employment rate of 69.4%, some residents may be seeking advice to help manage rising costs.

Birmingham follows closely, with 99 searches per 10,000 people each month. A notable search term is ‘food bank near me,’ indicating that residents may be actively seeking local support services. Birmingham’s median weekly pay is £629, slightly below the UK average, while its employment rate of 66.1% suggests challenges in job availability or stability.

Manchester, also with 99 monthly searches per 10,000 people, ranks third. Despite a weekly median pay of £679, above the UK average, the city’s employment rate of 65.9% may explain why financial concerns are prevalent. Many residents appear proactive in seeking financial advice.

Karen Davison, Head of Unsecured Arrears & Bereavement, shares key tips on how to cope with the cost of living rise:

“Effective financial management starts with planning. The 50/30/20 rule is a helpful guide: 50% of income goes to essentials, 30% to wants, and 20% to savings. For example, if you earn £2,000 per month, that’s £1,000 for essentials, £600 for wants, and £400 for savings, adjusting as needed to fit your situation.

To cut energy costs, review bills for better rates and practice energy-saving habits like turning off unused appliances or cooking in batches. If needed, contact your supplier about support options such as payment breaks.

Smart shopping can also reduce expenses. Use loyalty cards, seek discounts, plan meals, and pack lunches to save money while reducing waste.”

February 25th, 2025 | Andrew Hagger | News

Up to £14.9 million could have been lost due to avoidable MOT failures in the 2023/24 financial year, according to new research. The figures say there were 7.5 million failed tests during this period, of which roughly 2.59 million could easily have been prevented with better preparation. Drivers are now being urged to perform a few simple checks before their vehicle’s MOT for the peak testing month.

The statistics come from Go.Compare car insurance, which used a combination of survey data and official DVSA testing figures to estimate how much is being needlessly lost at testing centres last year. Overall, there were 32.6 million MOTs for class three and four vehicles (cars, vans and passenger vehicles with up to 12 seats) in the last financial year, around a fifth (23%) of which were failed.

It states that just under 1.4 million failures were due to issues with lamps, reflectors and electrical equipment, while roughly 710,000 were because of problems with the  vehicle’s tyres. Another 461,000 failures came under the visibility category (i.e. the windscreen and wipers). Yet, each of these parts can easily be checked and rectified ahead of the MOT itself.

The comparison site found around one in 10 motorists miss the window for a free retest when their car fails, meaning they have to pay for a second test. As the maximum cost of an MOT is £54.85, just under £15 million could have been lost due to avoidable MOT failures within a single year.

Despite being easy to check, the “lamps, reflectors and electrical equipment” was the most common defect category for MOT failures in the last year. A quarter of failures involved issues with these parts.

The second most common factor was issues with the vehicle’s suspension, which contributed to just under a fifth of all failures, while problems with brakes was a factor in 16%.

Other categories like tyres and visibility were also frequent factors, leading to 12% and 8% of failures respectively, even though they’re easy to check at home beforehand. This places them fourth and fifth on the list of most common causes.

Tom Banks, car insurance expert at Go.Compare, says: “Taking your car to get its MOT done can be a nerve-wracking experience, so it’s important that you prepare for it properly to avoid incurring any needless extra costs. Our research shows that millions are lost every year just because drivers fail to do a few simple checks before the test, so make sure you don’t make the same mistake.

“Check that all the bulbs are working properly and replace any that you need to, then measure the tyre pressure and take a look at the tread depth to see if it meets the minimum requirements. You should also look for damage to the car’s windscreen and wipers, before testing the washers. Remember to remove any parking stickers, like those from festivals, from the windscreen, too.

“Remember, your car won’t be road legal if it fails its MOT, meaning your insurance will become invalid as well. If it fails, you’ll need to get the issues rectified before you can drive it again.”

More information on preventing avoidable MOT failures can be found on Go.Compare’s website.