August 15th, 2023 | Andrew Hagger | News

NatWest’s 2023 Student Living Index reveals fraud is a major issue for students. A third of students have been targeted by criminals in the last year.

Delivery scams are the most common kind of fraud that students have encountered over the past year, with 14% having experienced this scam according to NatWest’s annual survey of over 3,000 students.

Other common scams targeting students include social media and HMRC tax scams, while the instances of bank scams decreased significantly from 2022, with only 10% of students encountering this type of scam.

In contrast to last year’s results, women were slightly more likely to have encountered a scam in the last 12 months and over twice as likely to lose money to fraudulent activity, while the amount of money lost by a victim of fraud was around £80.

The top location for student scams this year was Bournemouth, with 44% of students having been the target of a scam. Last year’s most targeted city, Edinburgh, and Oxford were next in the rankings, with 41% of students encountering a scam with over four in five in each of these areas having experienced fraud. While students in Bristol and Leicester were the least likely to be subjected to fraud, one in four students had still encountered a scam.

The NatWest Student Living Index surveyed over 3,000 students across the UK. Students were asked a range of questions, on fraud and scams, how much they spend on essentials such as food, rent and bills, and how much time they spend studying, working, and socialising. The full 2023 NatWest Student Living Index will be revealed on 11 August.

Jaimala Patel, Head of NatWest Student Accounts, said: “It is really important that students remain vigilant and are on their guard when they receive an unexpected text message, email or phone call asking for personal details.”

The NatWest Student account offers a £100 cash incentive within the first 10 days of opening the account, a four-year tastecard membership and a £3,250 interest free overdraft. NatWest also offers free Financial Health Checks and Know Your Credit Score to help students with their finances.

Find out more at www.natwest.com/students

NatWest tips to become more fraud proof

• Be sceptical of unsolicited phone calls, texts or emails asking for personal or bank details. Banks or the Police will never ask for a full PIN or password, card reader codes, or ask you to move money from your account
• Do not recycle passwords and use a unique password for your bank accounts and email accounts
• Don’t give away your personal and bank details too easily. Criminals often use online competitions or offers of free shopping vouchers as a way of harvesting information from potential victims
• Try to shop online with websites you know and trust, using your debit or credit card
• If you see a deal online that looks too good to be true from a website you’ve never heard of, it’s probably a scam. If you have doubts, don’t make the purchase
• If an online seller asks you to send money direct from your bank account to theirs, this is probably a scam. If they fail to deliver the goods you will lose your money
• When it comes to buying online, use your credit or debit card to pay, or carefully follow the scam advice on auction sites such as eBay to help you avoid falling victim.
• Be careful of social media investment scams. These often use fake celebrity endorsements and the promise of getting rich quick.
• Pass this information on to your family and friends, especially anyone you think might be vulnerable.

August 15th, 2023 | Andrew Hagger | News

A new YouGov survey commissioned by TotallyMoney investigated consumer credit confidence and found:

• 9.8 million adults (19%) are not confident in making financial decisions
• Almost a third (29%) would find it difficult to cover an unexpected £100 expense
• Two in five (41%) don’t understand how credit companies make lending decisions
• Just one in five (19%) believe lenders make it clear that if accepted for a credit product, you may not receive the offer originally advertised
• Worryingly, 17% of people wrongly believe that seeking debt advice could negatively impact their credit score

With 20 million UK adults locked out of accessing mainstream financial products, a lack of lender transparency could be driving low consumer confidence, resulting in poor customer outcomes.

 Low confidence highlighting deeper issues

Over the past two years, persistent inflation has driven household finances to the brink, with almost one in three adults (29%) saying they would be unable to cover an unexpected £100 expense*. At the same time, 11 million people are struggling to keep up with bills and credit agreements — an increase of 3.1 million in just six months. During the same period 5.6 million people missed payments three or more times‡.

Although regulators expect lenders to provide flexibility and support to struggling borrowers, 17% of survey respondents wrongly believe that seeking debt advice could negatively impact their credit score. However, missed payments can — and they could stay on your credit file for up to six years. Ending up in mortgage arrears can also lead to court action and even property repossession. So

The research also found that one in five adults (19%) don’t feel comfortable with making financial decisions. This is higher in the 18-24 age group (31%), more common among women than men (21% vs 16%), and the unemployed (31%).

As people look to plug the growing gap between earnings and expenses, demand for credit is growing§. However, two in five adults (41%) are unsure of how credit companies decide who to lend to, and a third (31%) don’t understand credit reports. In both cases, Gen Z (18-24 year olds) index the highest, followed by 25-34 year olds.

With current regulations requiring lenders to only provide 51% of successful applicants with the advertised credit card offer, 41% of respondents feel that lenders don’t make this clear enough before applying. This means they could be in for a post-application shock when they’re given a very different product to the one they applied for.

Separate research from the FCA found just 42% of all adults have confidence in the financial services industry, with only 35% agreeing that firms are honest and transparent. This lack of confidence increases for the vulnerable, and over-indebted¶.

 Alastair Douglas, CEO of TotallyMoney comments:

“Inflation is piling pressure on people’s finances, and millions are struggling to manage their money with confidence. They’re missing payments, and with little support available elsewhere, many more are turning to credit to help cover the increased cost of living.

“However, customers don’t know what the information in their credit report means, how banks choose who to lend to, or why they might receive a different offer to the one they applied for. Missed payments, rejected applications and credit confusion can have a long term impact on people’s financial wellbeing, forcing them to turn to high cost and unregulated borrowing.

“The industry needs to be proactive in its approach. It’s kept people in the dark for too long, when they should know what their data means, and how it’s used. They should know how best to apply for products without impacting their credit file, or why a lender has rejected them. We need to build trust, improve transparency, and provide people with the information they need to create financial momentum..

“Our focus is on the UK’s 20 million adults who find themselves under-served by the financial services industry. The free TotallyMoney app puts people in control of their own personal data so it works for them, not against them and provides personalised plans and products to help them unlock a life of more choices.”

August 7th, 2023 | Andrew Hagger | News

Property investments can incur a lot of disputes if you’re not careful. Here’s our top tips on how to avoid them.

Investing in property can be a lucrative strategy. However, it can also involve a lot of risk-taking and parties can sometimes find themselves in conflict over property disputes as a result.

Those involved with common property disputes may need the help of specialist right-of-way lawyers, especially in built-up areas or cities such as London. Property investment is meant to be a way of making money, so the last thing an investor needs is a dispute preventing potential sales and profits from being made.

With this in mind, let’s take a look at what you need to know in regard to reducing the chance of a property dispute…

Carry out Research and Due Diligence

The first thing you should do is conduct extensive research on the property prior to making an investment. This is called doing your due diligence, so you know what to expect.

You will want to research the property itself, making sure you know about its location and market conditions. This will help you with making an investment to decide if it’s the right choice for you.

Obtain Clear and Detailed Contracts

When you sign a contract to invest in the property, you need to make sure that you’re working with a good standard of contract. Imprecise wording and poor detail often make for areas of weakness in your contract.

You should make sure that your lease is clear and detailed. Any agreements that you sign should be legally sound and checked by a professional. If you enter into any kind of agreement with another party, it needs to be in writing rather than a verbal agreement.

Practice Regular Communication

You need to make sure that you engage in regular and proper communication with all stakeholders involved in the investment process. You should also keep close contact with tenants, property managers and other investors.

These lines of dialogue will allow you to stay up to date on what’s going on, and also know if anybody is unhappy with the arrangements currently in place. A lot of disputes arise due to poor communication between parties, so it’s important to remain in touch.

Maintain Compliance with Regulations

National laws and regulations surrounding property will change from time to time, so you need to ensure that your legal experts are up to date on these regulations at all times.

Try and make sure you are aware of regulations at all levels, from local to national. This will make sure that you are not caught out by a change in policy that triggers a dispute.

Check The Details of Your Insurance Cover

Always make sure that you have the correct insurance for your property investment. Insurance might seem like a lot to pay for, but it can pay for itself many times over if you run into any problems.

Ideally, you will want to secure property insurance, liability insurance, and landlord insurance. However, the exact combination of insurance policies that you will need will depend on your personal situation.

Seek Legal Advice

You should always seek legal advice when you are investing into property. A qualified solicitor is the best resource you can possibly have.

You should speak to your solicitor about reviewing contracts to make sure that they are legitimate and have them look over any terms on the lease. It’s important to identify any potential issues, and have constant support when you need it.

Stay Informed About the Market

If you’re going to invest in property, it’s important that you understand what the market is doing at any given point. Staying informed is a very sensible strategy.

You should be aware of any shifts or changes in the market. This will help you to make the right decisions with your investment and know about any dangers ahead of time.

Reducing the risk of a dispute in property investment…

It’s important to be safe and sensible with property investment. You need to make sure that you are investing wisely if you want to get the best results. The great thing about property investment is that if you do it right, it can be very lucrative.

With that being said, disputes do happen. Taking reasonable measures to prevent this will help you to have a much easier time investing.

Please be advised that this article is for general informational purposes only, and should not be used as a substitute for advice from a trained financial professional. Be sure to consult a financial advisor if you’re seeking advice on your finances. We are not liable for risks or issues associated with using or acting upon the information on this site.

August 2nd, 2023 | Andrew Hagger | News

Insight from M&S Travel Money reveals that the value of the pound has increased against eight of the top ten currency destinations over the last 12 months, with sterling gaining as much as 66 per cent on the Turkish lira – M&S Travel Money’s third most popular currency destination of 2023.

As holidaymakers continue to look for low local costs, as well as favourable exchange rates, Australia has increased in popularity over the last 12 months, having moved up two places, from sixth to fourth, when it comes to the most popular currency destinations, which may have been further bolstered by the pound gaining 10 per cent on the Australian dollar, compared to the same time last year.

However, the Eurozone remains holidaymakers’ top currency destination, despite sterling dipping one per cent against the euro. America also continues to hold its position as the second most popular currency destination, with holidaymakers able to benefit from the pound increasing eight per cent against the US dollar compared to the same time last year.

The pound has gained two per cent on the Thai baht compared to last summer, and with this Thailand has also increased in popularity over the last 12 months, moving up three places to become the seventh most popular currency destination; meanwhile, Mexico is no longer in the top ten for summer 2023.

Despite sterling seeing a ten per cent increase against the UAE dirham, the UAE has dropped from the fourth to sixth most popular destination, while South Africa enters the top ten destinations for summer 2023, with the pound up 11 per cent on the South African rand.

Sterling movements against M&S Travel Money’s top ten currency destinations over the last 12 months:

Nic Moran, M&S Travel Money, said: “We’d always encourage holidaymakers looking for a good deal to consider the total cost of their holiday, including exchange rates and local costs, and it looks like many holidaymakers are considering the value of the pound compared to local currency when considering their summer holiday destination.”

Nic’s top travel money tips:

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

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

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

Top ten currencies (based on M&S Travel Money currency sales over the last 12 months)

August 1st, 2023 | Andrew Hagger | News

This month’s Premium Bonds jackpot winners come from Hereford & Worcester and Essex.

The August draw saw the prize fund rate increase to 4%, and the odds improve from 24,000 to 1 to 22,000 to 1, meaning that each £1 Bond now has its best chance of winning a prize in almost 15 years. This month also saw an extra £30 million added to the prize fund, with 455,390 extra prizes available for Bond holders to win. A prize fund of more than £404 million will be paid out to winners across the country.

The first Bond number drawn by ERNIE for August was 522MP682337 and is held by a winner based in Hereford & Worcester. The winner has the maximum holding of £50,000 in Premium Bonds, and purchased their winning Bond just last year in December 2022. They become the eleventh winner in Hereford & Worcester.

The second Premium Bonds millionaire bought their Bonds just a few months ago and is based in Essex and holds Bond number 535RC655361. The winner has £23,700 in Premium Bonds and purchased their winning Bond in April 2023. This win makes them the 22nd millionaire from Essex.

Jill Waters, NS&I Retail Director, said:
“Congratulations to our two millionaires from Hereford & Worcester and Essex. Both of our winners waited under a year to win the jackpot, with one winning after eight months and the other after just four months. This shows that big prizes can be won at any time, regardless of how long you’ve had your Premium Bonds. We hope each of our millionaires enjoys their winnings.

“The Premium Bonds prize fund rate has now hit 4%, the highest it’s been since 2007, meaning we’ll be paying out over £404 million in prizes this month to lucky winners up and down the country.”

Start a savings habit with Premium Bonds
Premium Bonds are one of the nation’s most popular savings products. They are the perfect way to start a savings habit, with the minimum investment starting at £25. Premium Bonds customers can add to their Premium Bonds holding quickly and securely, both for themselves or their child, via bank transfer or online. By topping up regularly each month, customers are giving themselves further chances to win in the monthly Premium Bonds prize draws. Customers can find out how to make a bank transfer, pay online or set up a standing order into their Premium Bonds here.

July 27th, 2023 | Andrew Hagger | News

• A saver with £1,000 in Premium Bonds still likely to win nothing
• But someone with average luck and £50,000 in savings now stands to return 3.45% over a year in August compared to 3.2% in July
• This would work out as an extra £125 through the year in prize winnings

Analysis by actuarial consultancy OAC (part of the Broadstone Group) of Premium Bonds distribution modelling demonstrates the likely winnings of a median saver after the prize fund rate increases to 4% from August – from 3.7% in July – the highest in over a decade.

What does the prize rate increase mean for savers? The first thing to understand is that the 4% prize fund does not equal a 4% return on a saver’s money.

When you order all the prize winners over a year, the person in the middle with average luck – the median saver – would get a lower return than 4%. For example, if you have the maximum £50,000 saved, the median saver’s likely return is just 3.45%.

However, the odds of savers winning a prize in August will increase by 9% with the odds falling from 24,000-1 to 22,000-1 compared to July due to the rate increase.

While a median saver with £1,000 in savings will still likely win nothing over the course of a year, because the odds of winning any prize have lowered, the saver’s median return for those with around £9,900 or more invested in Premium Bonds is now larger.

For example, the median saver with £25,000 in Premium Bonds in August would have a median return of 3.4% which works out at an average annual return of £850. This compares favourably to July where a median saver was likely to see 3.1% returns equalling just £775 over a 12-month period.

Those with larger savings pots similarly benefit from larger, more frequent wins – a £50,000 median saver sees their returns rise from 3.2% to 3.45% amounting to a £125 increase (change from £1,600 to £1,725).

Table shows likely return based on Premium Bond savings

July 20th, 2023 | Andrew Hagger | News

More than a quarter (29%) of people have not yet booked a summer holiday, but more than three quarters of them are still planning to go away, according to a new survey* by travel insurance provider, Multitrip.com.

Almost half (48%) are hoping to travel to Europe, more than a quarter (26%) worldwide, 7% UK, and 19% are still unsure.

Two fifths (38%) say they are waiting to see if they can get a good last-minute deal, three in ten (27%) can’t decide what to do and 16% have been too busy.

Of those who have booked to go away this summer, a third (35%) booked last year, 31% booked in the first three months of 2023, 26% in the last three months, and 7% booked in July.

Two thirds (68%) are travelling to Europe, and more than a quarter (28%) worldwide.

Jason Whelan of Multitrip.com, said: “’Many people are leaving travel plans until the last minute and there is lots of availability still out there. However please don’t leave buying your travel insurance until the last minute. A fifth of our customers claim before their holiday even starts, for things like cancellation, or illness, so it needs to be bought at the time of booking.”

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

* 436 adults took part in the online survey of Multitrip.com customers between 12 – 14 July 2023.
**£19.99. Online price for Essential European Cover for person under 60 years. Price excludes £3.95 handling fee.

July 11th, 2023 | Andrew Hagger | News

Over half (55%) of hire car drivers pay for their holiday using a credit card, and a third (32%) use their usual credit card for purchasing things whilst abroad, according to a new survey of over 1,000 hire car drivers, carried out by Opinium on behalf of iCarhireinsurance.com, a leading supplier of car hire excess insurance,

Whilst it is a good idea to pay with a credit card because of the protection it gives consumers, for those planning to hire a car, the car hire company will generally insist on taking a pre-authorisation on the hirer’s credit card for the excess amount, which can be up to £2,000.

If there isn’t enough credit available on the card, drivers won’t be able to rent a car unless they purchase the rental desk excess insurance, which costs on average £213 for a week (£163 Damage waiver, and £50 tyre and windscreen cover) according to iCarhireinsurance.com’s 12-country study of car hire costs.

Ben Wooltorton from iCarhireinsurance.com said: “If drivers have recently paid for their holiday or had another big expense, they could find themselves without enough credit on their card to cover the security deposit on their rental car. Even if you’ve already got a car hire excess insurance policy from a specialist insurance company, like iCarhireinsurance.com, the excess amount still has to be held by the rental company.”

He continues, “It can be a good idea to have a couple of credit cards available, as debit cards are usually not accepted for making a security deposit. It also means that you’ll still have enough for holiday spending and emergencies, whereas once the excess is held, it could leave you with limited funds for your trip.”

July 5th, 2023 | Andrew Hagger | News

Holidaymakers are once again likely to face a summer of travel disruption. Whilst the recently announced strike by 2,000 security officers at Heathrow has now been called off, it follows BA’s IT meltdown and the electric passport gates failure during half term, as well as ongoing disruption caused by French air traffic control strikes, which caused hundreds of UK flights to be cancelled on 6 June, including 400 by Ryanair.

Dubbed the ‘Summer of Chaos’, thousands of passengers missed flights last summer due to significant queues at UK airports caused by security and check-in staff shortages.

Jason Whelan of Multitrip.com, said: “We’ve seen an increase in sales* of Multitrip.com Travel Insurance policies in combination with our Travel Disruption Cover, which is an add-on to our standard policy, which suggests that holidaymakers are more aware than ever of the risks posed by events like airline strikes and are taking precautions to protect their pre-paid costs or potential expenses.

“European airlines are obliged to refund or rearrange flights if they are cancelled, but this doesn’t extend to cover customers for lost accommodation costs. Multitrip.com’s Travel Disruption add-on cover gives additional coverage up to £1,000 for accommodation and travel expenses (including switching airlines) that you might incur or lose out on. While current strike action would only be covered if ‘Travel Disruption cover’ was booked seven days in advance of the announcement, holidaymakers, can cover themselves for future unannounced strikes or disruptions,” Jason Whelan added.

Annual Multitrip travel insurance policies start from £19.99. Travel Disruption Cover starts from £17 per person.

Travel Disruption is an optional extra that can be added to Multitrip Travel Insurance for an additional premium. It tops up the cover over and above the regular policy in the event of cancellation, delay and missed departure, holiday abandonment and accommodation due to strikes, severe weather, natural disasters, disease outbreaks and other circumstances for costs and expenses that are not recoverable from any other source.

Although regular travel insurance covers cancellation and curtailment, it does not provide cover in the event of emergency situations listed above. The cover is extended to include these when you add extra Travel Disruption.
Unforeseen emergency situations covered by Travel Disruption Cover include Strikes, Volcanic Ash, Hurricane/Earthquake, Airspace Closure, Flood/Storm, Explosion, Tsunami, Landslide, Avalanche, Tornado, Public Transport Failure and Fire.
There is a seven day moratorium period. This means that if a strike is announced within seven days of a policy being purchased, a customer would not be able to pursue a claim under the insurance even though they purchased the policy prior to the public announcement, because the announcement was made within the moratorium period and this has not been served.

July 3rd, 2023 | Andrew Hagger | News

HSBC UK has unveiled its new student account offer for those starting university, offering a mix of benefits to support students with their finances and help student wellbeing with free access to the meditation platform Headspace.

The account offer, which is now available, includes:

·         £100 in cash, to be transferred directly into the opened account

·         A one year subscription to Headspace to help provide support with mental wellbeing through its meditation and mindfulness tools

·         A guaranteed £1,000 interest-free overdraft buffer in the first year, which could increase to £2,000 in year 2 and £3,000 in year 3

·         Savings accounts that could encourage a savings habit, like the Regular Saver at a 5% interest rate

·         Access to a full set of online tools to support financial wellbeing, including tips on budgeting, and how students can make their money go further at uni.

HSBC UK’s Student Account seeks to support students with their financial and mental wellbeing as they venture into higher education, where many begin to live away from home for the first time and are required to manage their finances and studies independently.

The addition of the subscription to Headspace aims to help support students with their wellbeing through its science-backed meditation sessions and mindfulness tools. Headspace is easily accessible at home or on-the-go via its web platform and mobile app.

The emphasis on supporting student wellbeing comes as young people face financial pressures exacerbated by the increased cost of living and climate of economic uncertainty.

Findings from recent YouGov research commissioned by HSBC UK highlight concerns for student welfare, revealing that more than half of students (54%) reported they felt their standard of living had suffered as a result of the increase in the cost of living, with over half (55%) looking for ways to reduce their outgoings.

Pella Frost, HSBC UK’s Head of Everyday Banking said: “We know it’s been a particularly challenging time for young people, many of whom will be heading off to university and living independently for the first time. Managing personal finances, juggling study, part time work and looking after their wellbeing can be a big ask.