September 18th, 2023 | Andrew Hagger | News

New research from London IT support provider Amazing Support reveals that the UK has lost a total of £1.6Bn to fraud and cyber-related crime since the start of the year.

Analysing data drawn from Action Fraud’s website, figures show that from a total of 240,067 reports made, 212,343 of these have come from the UK’s general public, amounting to losses of £1.2Bn. Meanwhile, UK businesses have lost up to £395.3M from a total 26,663 reported cases, while further loss of £4.5M has been reported from 1,061 cases of unknown origin.

The latest figures show August as having the largest number of reported cases across the year, with 34,929 reports amounting to total losses of £192.3M. This marks a current high in continually rising figures since April.

UK Cyber Crime & Fraud stats, 2023 overview

The largest named platform for fraudulent activity toward individuals throughout the year relates to activity involving online shopping and auctions, of which the 47,300 reported cases account for one in five (22%) of all reports made by the general public this year. The highest losses, however, come from activity relating to cheque, plastic & online banking activities.

The primary group affected by these transactions are those between the ages of 20-39. Looking at the statistics, those aged 30-39 appear most at risk, however, criminal activity relating to Advance Fee Frauds has been shown most prevalent amongst those aged 60-69, who have reported losses of £6.5M across a total of 3,255 this year.

UK Cyber Crime & Fraud stats, 2023 by named category

In all, the split between reports made by men and women through the year has been balanced, with 38% of reports being made by men, 37% being made by women and a further 24% being uncategorised. Across all personal cases reported through the year, however, only half (53%) requested support after raising their issues.

Commenting on the findings, Amazing Support Co-Founder and Director David Share said:

“Fraud and cyber crime continue to be a major issue for the UK’s general public and businesses, and these latest statistics from the National Fraud Intelligence Bureau show a worrying increase in activity over the course of the year. As we head into Black Friday, Christmas and a period in which online shopping will undoubtedly see an increase in activity, it is important to take all the necessary precautions to ensure any online transactions are safe and secure.”

September 18th, 2023 | Andrew Hagger | News

To mark UK Savings Week, the Saffron Building Society launched a survey to better understand the UK’s generational saving habits, and the findings highlight a significant financial reliance on parents and grandparents.

While the bank of Mum and Dad is helping to keep today’s young people afloat, data suggests that unless savings habits change, it may not be open for the next generation.

Reliance on parents and grandparents 

Findings reveal that a quarter of 18–34-year-olds save less than £100 per month, while over a quarter (27%) of 35-55+-year-olds save more than £1,000 per month.

Because of the cost-of-living crisis, the younger generation is not able to save larger sums of money, causing them to be more likely to rely on parents and grandparents for substantial financial support.  One in five 18-34-year-olds have significantly benefitted from money from parents compared to only 1 in 10 (11%) for 35-55-year-olds and 55+-year-olds respectively.

The financial support received by older generations was to help with major life expenses like housing and education.

Stress and pressures felt by parents 

While the younger generation is accessing financial support from their parents and grandparents, the survey reveals that the pressure to deliver this support is being felt by parents across the UK.

Only 1 in 10 (12%) of parents surveyed said that they felt very confident that they could financially support their children through their savings, with many citing concerns about how this may impact their offspring further down the line.

Over a quarter (27%) of respondents said that it might cause their children to delay purchasing a house, with a further quarter (25%) saying that they might take on extra debt to cover their education.

It appears that parents are growing concerned that other large life decisions will also be impacted, with nearly a fifth (17%) saying their children might even delay having a family.

The intergenerational shift 

The survey reveals a seismic intergenerational shift in the financial support being offered, with today’s younger generation much more likely to receive help than their parents and grandparents were.

To get a clear understanding of the change across generations, the survey asked people who are now parents and grandparents themselves what support, if any, they received in their youth.

Parents today are significantly more likely (59%) to have received money from their parents or grandparents when they were younger, in comparison to just 48% of grandparents.

Parents are also significantly more likely to have received substantial financial support towards financing major expenses like education or housing (35%), compared to grandparents (21%).

Healthy saving habits start young 

With the youth of today more reliant on support from their elders, and the apparent strain and pressure this is causing for parents, it’s fair to say that our younger generation needs to start thinking about how they can plug that gap.

As previously stated, the survey shows that a quarter of 18-34-year-olds are saving less than £100 per month, which is a stark difference from their older counterparts, but all is not lost.

Young people may not have as much disposable income as the older generations but every little helps – by starting small and saving little and often, that savings pot will soon add up.

But how do we combat that firefight attitude?  Real change comes from forming and nurturing healthy savings habits from a young age.

Data reveals a third of those who had a savings account as a child said it had a major influence on their choice to save as an adult.

Furthermore, providing children and grandchildren with a savings account in their childhood could help them be better financially equipped for their future. Of those who had a savings account as a child 86% said it positively influenced their savings habits later in life.

Kelly Bixby, Head of Retail at Saffron Building Society said: “Our research shows that establishing healthy saving habits from a young age can increase your ability to save into adulthood.  Saving during a cost-of-living-crisis can feel like a big challenge, and for some, it may not be a viable option at all, but at Saffron Building Society, we are actively encouraging people, where possible, to save little and often as those small pots of money can really add up over time.

“The reliance that the population has on the older generations is startling but understandable given the economic instability we’ve felt as a nation over the last four years.  We’d encourage parents with children to think about opening a children’s savings account because creating and nurturing that habit for your offspring will go a long way towards setting them up in the future.”

September 14th, 2023 | Andrew Hagger | News

Leeds Building Society will reward homeowners for energy efficiency with the launch of a new green mortgage.

The new mortgage product factors in a property’s Energy Performance Certificate (EPC) rating to offer preferential rates for the most energy-efficient homes. Benefitting mortgage applicants for EPC A-C rated homes, the improved rate recognises the tangible savings the most energy-efficient new build homes bring.

The mortgage will be available up to 90% loan to value, at a fixed rate of 6.34%.

Jonathan Thompson, Leeds Building Society’s Senior Mortgage Manager, said:

“Ensuring we are building a greener planet is at the heart of our purpose, putting home ownership within reach of more people, generation after generation.”

“As a responsible business we are committed to the orderly transition to a greener, net zero economy by 2050. We have reduced our carbon footprint in recent years, and we hope this new mortgage product will support our members to do so too by rewarding those choosing to live in the most environmentally friendly homes.”

Residential Green 2 Year Fixed Rate Mortgage (up to and including 30^th Nov 2025):

• Fixed Rate of 6.34%.
• Available on Residential property purchases with an EPC rating A-C
• No application or completion fee
• Available up to 90% Loan to Value
• Free Standard valuation
• Tapered Early Repayment Charges
• 10% Penalty Free capital over repayment allowed each year

September 13th, 2023 | Andrew Hagger | News

‘Retirement anxiety’ is increasingly becoming an issue for over 40s, due to the financial pressures of the rising cost of living on income and savings, according to new research launched today from financial planners, abrdn.

abrdn’s latest research into the nation’s retirement anxieties highlights that nearly two thirds (58%) of UK adults aged 40 years+ are anxious about retiring, up from 54% in 2022. A fifth (20%) admitted they are ‘very anxious’, a 70% increase on 2022’s figures (12%) with 18% saying that anxiety is severe enough to keep them awake at night and one in ten (11%) said it is affecting their personal life and relationships.

The research unveiled both financial and emotional reasons behind this growing trend, with more than two fifths (43%) citing their retirement anxiety was driven by not having saved enough to be able to afford to retire.

Nearly four in ten (39%) are worried about the rising cost-of-living impacting retirement plans, while almost a quarter (24%) are worried about how the current economy will impact their investments and pension and over a quarter are embarrassed about not starting to plan earlier (27%).

Further causes for the anxiety included being worried about being pigeonholed as ‘old’ (17%) and losing their identity when they stop working (14%).

abrdn’s research also found more than one in eight (13%) have delayed retirement plans as a result of feeling anxious, increasing to 18% for those aged 55+.

Across the population, the areas of finances people feel most concerned about when it comes to leaving the world of work are not having enough money to last throughout retirement (39%), not being able to afford to do the things they want to do (33%) and how to save for retirement while still having enough money to live on now (29%).

Despite these concerns, almost half (41%) have done nothing to prepare for retirement.

Shona Lowe, financial planning expert at abrdn said: “The prospect of retiring can be a daunting one, whatever your age, particularly against a backdrop of rising interest rates, high inflation levels and an ongoing cost of living crisis. It is completely normal to experience anxiety about retirement; you’re gearing up for a big change that has a number of variables and factors to take into consideration. But it is concerning to see an increase in the number of people that are experiencing retirement anxiety in our latest research and to find that for some, the level of that anxiety is affecting their ability to sleep and their relationships.

“While many will be thinking about the financial aspects of retirement, others will be worried about the lifestyle and emotional impacts. To ease retirement anxiety, there are a number of steps you can take, including talking to a loved one about your plans, putting a robust plan in place or even continuing to work flexibly in retirement to ease financial concerns and give you a sense of security.

“There are also benefits for many in seeking advice from a professional adviser in order to get a clearer understanding of your financial situation and how to best prepare for this important life stage.”

Shona’s four tips to ease retirement anxiety

1.Understand how much money you have and what you’ll need

Many people think of their pension and the state pension as their only sources of retirement income. But don’t forget about ISAs, other savings and investments, or rental income from any property you let out. You may have more than you think.

Next you’ll need to estimate how much you’ll need to spend each year in retirement. This amount differs for each person depending on the type of lifestyle you want to lead, so there is no one size fits all answer.

2.Consider working in retirement

For many, gone are the days where retirement meant stepping back from the world of work altogether. Instead, there are an increasing number of retirees that intend to do some sort of work even once they’ve officially ‘retired’.

Whether it be setting up businesses, pursuing a ‘flexi-retirement’ and working part-time, or doing whatever it is that makes you happy, retirement really is what you make of it so don’t feel pressured into stopping work if that doesn’t feel right for you.

3.Take advantage of the support available to you

Retiring is one of those ‘big steps’ that we see in our futures but for many, it always feels like it’s ‘further down the line’, even when we are fast approaching it.

People experiencing retirement anxiety may be thinking about it constantly, be unable to sleep, and generally feeling overwhelmed – it can impact their relationships and performance at work. To help with all of this, it’s really important to seek support from people you trust.

There is also a lot of great free information and support available that may help to you to feel more informed and in control.

The Money Helper website is a free and impartial source of guidance on pensions and retirement, including phone and online support from their team of pension experts.

4.Seek financial advice

Navigating retirement is no easy feat, especially with the continued high cost of living at play and many are worrying whether they will be able to afford the retirement they want.

Speaking to a financial adviser could help you to understand what you will have available to fund retirement, how that compares to your spending needs and give you peace of mind when mapping out your future. Advisers work every day to give retiring clients, clarity, control and confidence about their future.

September 13th, 2023 | Andrew Hagger | News

Leeds Building Society has announced the launch of a new online tool designed to help members monitor and manage their home energy usage, reduce their environmental impact, and save money.

The tool, developed in collaboration with Energy Saving Trust, offers users tangible solutions to promote energy efficiency and help residential borrowers and landlords to make improvements to the Energy Performance Certificate (EPC) rating of their home. 

Leeds Building Society was amongst the first lenders to factor in energy savings when assessing affordability, benefitting mortgage applicants choosing to move into greener homes. The assessment means that borrowers may be able to access increased affordability on the basis that their energy bills will be lower.

With pressure on landlords mounting, the launch of the tool will be welcomed by those concerned with the impact of the government’s EPC targets on their rental portfolio. Landlords will be offered tangible advice to help improve energy efficiency and meet new regulatory requirements.

Richard Rothwell, Commercial Development Manager at Leeds Building Society, said:

“At Leeds Building Society, we are committed to making a positive impact on the environment. Working in partnership with the Energy Savings Trust, we are proud to launch this new tool which will empower our members, providing them with the knowledge and resources to improve their home’s EPC rating.

“We hope that this tool will improve the EPC ratings across the UK’s housing stock, meaning that those looking to get onto, or move up, the property ladder can unlock better affordability and get the home they want.”

To access the online tool, users must input their postcode, when the home was built, how many people live there, and other information to help create a picture of energy consumption. The tool will then generate personalised advice and practical tips to save money and contribute to a greener planet.

For more information visit Home Energy Saving Tool | Home Page (leedsbuildingsociety.co.uk)

September 13th, 2023 | Andrew Hagger | News

Smoke alarms are an essential safety feature in any home, and regular maintenance is crucial to ensure their efficiency. In the UK, where fire safety regulations are strict, it is especially important to keep your smoke alarms in good working order. This article will explore the importance of regular maintenance for smoke alarms in the UK and provide practical tips for ensuring their efficiency.

1. Understanding UK Fire Safety Regulations

In the UK, fire safety regulations are stringent, and smoke alarms are a legal requirement in all residential properties. The Regulatory Reform (Fire Safety) Order 2005 mandates that landlords must install smoke alarms on every floor of a rented property and test them regularly to ensure they are in working order. Homeowners are also encouraged to have smoke alarms installed and regularly maintained to protect their families and property.

2. The Importance of Regular Maintenance

Regular maintenance of smoke alarms is crucial for their efficiency and effectiveness in detecting smoke and alerting occupants to potential fire hazards. Here are some reasons why regular maintenance is essential:

1. Early Detection of Faults: Regular maintenance allows you to identify any faults or issues with your smoke alarms promptly. This includes checking for loose connections, damaged wiring, or depleted batteries. Addressing these issues promptly ensures that your smoke alarms are always ready to function when needed.

1. Maximising Performance: Regular maintenance helps to maximise the performance of your smoke alarms. Dust, dirt, and debris can accumulate over time and hinder the sensors’ ability to detect smoke effectively. Cleaning the smoke alarm regularly ensures that it operates at its optimal level.

1. Compliance with Regulations: Regular maintenance ensures that your smoke alarms comply with UK fire safety regulations. Landlords have a legal obligation to ensure that smoke alarms are installed and maintained in rental properties. Homeowners should also take responsibility for the maintenance of their smoke alarms to ensure the safety of their homes and loved ones.

3. Practical Tips for Regular Maintenance

To ensure the efficiency of your smoke alarms, here are some practical tips for regular maintenance:

1. Test Your Smoke Alarms: Test your smoke alarms at least once a month by pressing the test button. This will verify that the alarm is functioning correctly and that the sound is loud enough to alert occupants in the event of a fire.

1. Replace Batteries: Smoke alarms in the UK typically use 9-volt batteries or are hard-wired to the mains. If your smoke alarm uses batteries, replace them annually or as recommended by the manufacturer. Some smoke alarms have a low battery warning feature, which alerts you when the battery needs replacing.

1. Clean Your Smoke Alarms: Dust and debris can accumulate on the sensors of your smoke alarms, affecting their performance. Use a soft brush or vacuum cleaner to remove any dust or cobwebs from the smoke alarm. Avoid using water or cleaning agents, as these can damage the alarm.

1. Check for Damage: Regularly inspect your smoke alarms for any signs of damage, such as cracks or loose connections. If you notice any damage, contact a qualified electrician or replace the smoke alarm immediately.

1. Follow Manufacturer’s Instructions: Each smoke alarm may have specific maintenance requirements outlined in the manufacturer’s instructions. Familiarize yourself with these instructions and follow them accordingly.

4. Additional Safety Measures

While regular maintenance is crucial, it is also essential to take additional safety measures to enhance fire safety in your home. Here are some recommendations:

1. Install Sufficient Smoke Alarms: Ensure that you have smoke alarms installed on every floor of your home, including the hallway and bedrooms. This provides maximum coverage and early detection in case of a fire.

1. Interconnected Smoke Alarms: Consider installing interconnected smoke alarms, which are wired together so that when one alarm detects smoke, all alarms in the house will sound. This ensures that everyone in the home is alerted, even if the fire starts in a different area.

1. Have an Escape Plan: Develop a fire escape plan for your household and ensure that everyone is familiar with it. Practice the escape plan regularly, especially if you have young children or elderly family members.

1. Regularly Service Your Heating Systems: Have your heating systems, such as boilers or furnaces, serviced annually by a qualified professional. Faulty heating systems can increase the risk of fire, so regular maintenance is essential.

Conclusion

Regular maintenance is crucial for ensuring the efficiency of smoke alarms in the UK. By adhering to fire safety regulations, conducting regular tests, replacing batteries, cleaning the alarms, and checking for damage, you can maximize the performance of your smoke alarms and ensure the safety of your home and loved ones. 

Remember to follow the manufacturer’s instructions and take additional safety measures, such as installing sufficient smoke alarms and having an escape plan in place. By prioritizing regular maintenance, you can have peace of mind knowing that your smoke alarms are ready to protect you in the event of a fire.

September 4th, 2023 | Andrew Hagger | News

Santander UK has today (Monday 4 September) launched a ‘top of market’ easy access account, the Easy Access Saver Limited Edition (Issue 3), which pays 5.20% AER/ 5.08% gross (variable) on savings up to £250,000 for 12 months.

Customers with £5,000 deposited in the account will typically earn £21.66 in interest every month and £260 annually.

The Easy Access Saver Limited Edition (Issue 3) lets customers deposit as often as they like, as well as withdrawing their funds without any fees or restrictions.

Customers do not need other accounts with Santander to be able to open the new account which can be opened online, in app, over the phone, or in branch.

Any Santander customer with an existing Easy Access Saver can also open an Easy Access Saver Limited Edition (Issue 3) account and benefit from the higher rate.

The account is available from now until 17th September, but may be withdrawn sooner if there is high demand.

Santander has also today increased the rates on its fixed term ISA products. The one year fixed ISA now pays 5.05% AER/gross and the two year fixed ISA pays 5.10% AER/gross.

Andrea Melville, Director of Current Accounts, Savings and Business Banking, Santander said: “We’re pleased to deliver this top of market product for our customers, providing the convenience of an easy access account, to help build up their savings. We know now more than ever people want their money to go further and this account is one of the ways we are helping customers maximise their savings income.”

September 4th, 2023 | Andrew Hagger | News

National Savings and Investments (NS&I) shocked the UK savings industry this week when it launched its highest ever rate of 6.20% for a 1 Year Guaranteed Growth Bond.

The deal went straight to the top of the best buy tables and is the highest rate by some margin, with 6.00% the next best rate on the market.

NS&I has an annual financing target set by the government and has been struggling to attract enough new money, in what has become a highly competitive UK savings space.

This move has thrown down the gauntlet to savings providers but it’s unlikely that any players will be able to compete with 6.20%.

However, this aggressive move is likely to prove an attractive option with cash savers eager to bag the very best rate they can.

Essential details at a glance

What’s the interest rate?

Issue 72: 6.20% gross/AER, fixed for 1 year

Can I take money out?

No, you cannot take money out until the Bond reaches the end of its term

Is the interest taxable?

Yes, in the tax year your Bond matures

How much can I start with?

£500 for each Bond you buy

What’s the max. I can save?

£1 million per person in this Issue

August 22nd, 2023 | Andrew Hagger | News

A new Issue of NS&I’s Green Savings Bonds has been released today paying 5.70% gross/AER fixed-rate over a three-year term. Savers putting money into Green Savings Bonds will be helping fund vital green projects across the UK as part of the UK Government Green Financing Framework.

Dax Harkins, NS&I Chief Executive, said: “I’m really pleased that we can offer a new Issue of our Green Savings Bonds at a higher rate from today. This is a great opportunity for savers who want to see a guaranteed return on their investment while also making a difference with their savings by helping to make the world greener, cleaner and more sustainable.”

The projects funded through Green Savings Bonds will include making transport greener, using renewable energy over fossil fuels, preventing pollution, using energy more efficiently, protecting natural resources and adapting to a changing climate. The first Issue of Green Savings Bonds went on sale on 22 October 2021. Since then more than £915 million has been invested in them.

The minimum investment in Green Savings Bonds is £100, with a maximum limit of £100,000 per person for each Issue. Investors need to be aged 16 or over to purchase the Bonds from NS&I. The full amount deposited will be held for three years and cannot be withdrawn during this time.

August 15th, 2023 | Andrew Hagger | News

Data from 321 insurance products shows that millions of people in the UK could be paying extra fees for their car insurance.

NFU Mutual, which does not charge any extra fees, analysed data from Defaqto and found that only 9 of 321 products – just 3% – do not charge any extra fees to customers.

The most common fees charged are direct debit fees, with 95% of products charging customers more to spread payments throughout the year, and cancellation fees, which are present in 90% of products. The average cancellation fee is £57, with the highest charge a massive £400, which includes a broker fee and a charge for installing the related telematics device.

Adjustment fees are also charged in over three quarters of car insurance products, reducing the ability of consumers to make changes to their insurance without incurring costs. The highest adjustment fee was £175, which includes a broker fee and a charge for installing a new telematics device, with the average fee coming in at £39.

Well over 40% of products charged set-up and renewal fees, effectively penalising customers for setting up insurance. From products which charge the fees, the average set-up cost is £58 and the average renewal fee is £47.

Many insurance providers – 51% of products analysed – also charge customers for cancelling during the 14-day cooling-off period. This cooling-off period is a legal requirement during which a customer can cancel their policy for any reason. However, over half of insurance products charge customers to do this, at an average of £41 and reaching £400 at the higher end, with this covering cancellation, a broker fee and the cost of installing the related telematics device.

With so many car insurance products charging for common things, with the average fees representing not-insignificant amounts, customers could find themselves on the hook for substantial costs on top of their insurance premiums.

Wendy Yeomans, car insurance expert at NFU Mutual, said:

“With the cost of living crisis hitting all our pockets, it’s more important than ever to keep on top of our budgets. Many households have cancelled media subscriptions or altered their buying habits to keep spending under control, but many will not be aware they are paying the equivalent of this in extra fees for their car insurance.

“Extra fees like this, which many consumers aren’t aware of, make budgeting more difficult and effectively mean the prices many pay for their car insurance creep up beyond what they expected. That is why, at NFU Mutual, we are proud to say we don’t charge any extra fees at all, nor do we penalise customers for paying in the way that suits them best – whether this is a monthly direct debit, lump sum or by cheque.”