December 19th, 2016 | Andrew Hagger | News

More than 1.5 million people have lived more than 45 years having never borrowed a penny from a bank or lender.  However, this commendable existence could come back to bite as many of these credit virgins may struggle to secure a mortgage or even a mobile phone contract.

A credit score is a three digit number between 0 and 999 which is allocated to every adult in the UK and is used by banks to determine whether they should trust someone to pay back a mortgage, loan or credit card

However, there is a common misconception that opting not to use a credit card or loan makes you a more trust worthy borrower to a bank.  In fact, it does the opposite.

According to the research from Amigo loans, more than 13 million UK adults are oblivious to the fact that it is actually more difficult to secure credit, including a mortgage, if you’ve never used credit in the past.

The reason for this is that banks want trustworthy borrowers with a proven history of paying back debts – credit virgins simply don’t have the credentials.

The ignorance surrounding credit scores is apparent on a wide scale with only 12% of people in the UK having ever checked their own personal credit score.

With increasing financial pressure, families are buckling under the costs of everyday life. Missing bills may seem menial, but these can dramatically affect your credit score.  Nearly a quarter (22%) of those in the 45-54 age bracket have missed a payment, such as mobile phone payment or gas bill, which has affected their credit score and one in 20 have held a joint account with someone with

Glen Crawford, CEO at Amigo Loans, which commissioned the study said: “It’s so often that we hear customers ask why their bank wouldn’t lend to them when they’re so good with money – they’ve never had a credit card in their life, they’d say.  However, as ironic as it sounds, if you’ve never used credit, it’s often hard to access it.

“Many banks and lenders use credit scores as an indication of how likely you’d be to repay a debt, whether that be a £5,000 loan or a £5 overdraft.  But, if like millions of credit virgins, you’ve never demonstrated that you can be trusted, they shut the door. This is unfair and leaves lots of deserving, trustworthy people without access to finance such as a mortgage.” 

December 19th, 2016 | Andrew Hagger | News

Metro Bank, the UK’s newest high street bank, today reveals that half a million people are expected to lose, misplace or have their debit or credit cards stolen over the festive period. In addition to the stress of not being able to access cash, consumers could have to wait up to ten days for a replacement card from other high street banks.

Almost a quarter of Brits have lost, misplaced or had a bank card stolen within the last five years, losing an average of two cards per year. Of those that have lost their card, one million (9%) did so between Christmas and New Year. Over 800,000 were at a Christmas party and more than 600,000 did so when out Christmas shopping. As the festive party season heats up, Metro Bank’s research revealed 18 – 34 years olds are the worst culprits, losing an average of three cards a year.

Just over half of those who lost their card (52%) got it back, however almost a third (31%) were unable to use it as they had already cancelled it, often causing huge frustration. What’s more, a massive five million people (11%) have had a banking issue over Christmas, most commonly not being able to access cash or deposit their Christmas money into their account as their branch was shut.

Paul Riseborough at Metro Bank commented: “We know how easy it can be to misplace your card or even worse have it stolen. Not being able to access your cash when you need it most is undoubtedly frustrating, and what’s worse is having to wait up to ten days or more over the festive period for a replacement card. Today’s research highlights a disconnect between the needs of customers and the priorities of many banks.

“Unlike any other high street bank, Metro Bank is able to print cards instantly in-store and through our mobile app customers can block and unblock their card in one swipe, giving them the flexibility to safely retrieve misplaced cards, rather than being forced to cancel cards that they may later find.”

December 19th, 2016 | Andrew Hagger | News

Nearly 7 million  homes could be at risk of burglary this Christmas, as one in four people plan to spend the festivities outside of the home, according to new research from Policy Expert.

Of the 5,619 people surveyed, 21% will be celebrating Christmas at a friend or family members’ home, with a further 4% stating they will be at a restaurant, or holidaying abroad or elsewhere in the UK, meaning millions of homes will be left empty and unattended on Christmas Day.

Furthermore, over half of people put presents under Christmas Trees before Christmas Eve, potentially leaving hundreds of pounds worth of items on display for over a week. 31% put their presents out in the third week of December, 12% in the second week and 6% in the first week. 31 people even admitted they get into the festive spirit as early as November and put presents out then.

Despite this, Policy Expert research has also revealed that many homes do not have adequate security measures in place to protect their homes while they’re empty. Only two in five (40%) of those surveyed have timed lights and just a third (35%) have a burglar alarm fitted, while 5% admitted they had no security in place at all.

Adam Powell, Head of Operations, Policy Expert commented: “Christmas can be a tempting time for opportunistic burglars, who know Brits’ generosity means homes will be filled with even more valuables than usual, so it’s unsurprising we see thefts rise over this time. Longer winter nights and shorter days mean that there are more opportunities for crime to take place under the cover of darkness, so it’s important to remain vigilant and ensure your home is adequately protected.

Any way to make your home look occupied or any visible deterrents, such as lights on timers, CCTV and burglar alarms should go some way in preventing a break in. It’s likely the value of contents in your home will increase over the festive period, so it’s important to remember to check any valuables or big ticket items are covered in your home insurance policy. Policy Expert offers an additional 10% contents cover during December as standard, preventing a nightmare before or after Christmas.”

Tips on protecting your home:

• Install a timer to set lights inside your home to come on once it gets dark – choose a light in a visible room at the front of the house, not the hallway, as this will create the impression that someone is inside
• Invest in sensor-activated, external lighting for the garden and around the front of the home
• Install a burglar alarm – not only is this a visible deterrent, if someone does attempt to break in the alarm would alert neighbours and the police before any damage could be done
• Don’t leave curtains closed – during the day this makes it look like there’s no-one at home
• Make sure any outbuildings or sheds are locked and that any tools are hidden away – these could be used to break into your home
• Ensure any valuables are out of sight – remove the temptation and make sure these items cannot be seen from outside the house through the windows
• Never leave a spare key anywhere near the front door, for example under a doormat, flower pot – thieves know all the usual hiding places
• Similarly, don’t store house/car keys just inside your front door, as burglars could try to fish for the keys through the letterbox

-Ends-

December 14th, 2016 | Andrew Hagger | News

The cost of living is the most common single factor preventing people who live in cities in the UK from saving more into their pensions – and it is savers in Brighton, Bristol and Cardiff who are feeling the pinch the most, according to new research by Prudential.

The findings – which are taken from Prudential’s exclusive research comparing attitudes to finance and the preparations workers are making for retirement in the UK’s biggest cities – show that nearly half of pension savers blame the cost of living for not being able to save more. However, in some places around the country the picture is much worse, for example, the figure for those living in Bristol is 66 per cent, in Brighton it’s 62 per cent and 60 per cent in Cardiff.

The research identified Sheffield as the city where savers contribute the highest proportion of their monthly income to their retirement savings. Savers in the South Yorkshire city pay on average 11 pence out of every pound they earn into a pension, totalling £211 per month.  Meanwhile, up the M1 in Leeds, savers contribute the smallest proportion of their income to pensions – under five pence per pound earned.

Across the UK’s largest cities the average monthly pension contribution is £150, representing 6.5 per cent of the average monthly wage of just over £2,300.

Stan Russell, a retirement income expert at Prudential, said: “Saving for retirement can seem like a luxury when the cost of living is putting household income under pressure. However, it is important to remember that pension saving is for the long term and even the smallest amounts saved have the opportunity to grow significantly over your working life.

“With a large proportion of people in some cities admitting that they could afford to save more towards their retirement, many could benefit from a consultation with a professional financial adviser to help them set a savings budget and a retirement income goal.

December 13th, 2016 | Andrew Hagger | News

Just one in four mortgage-paying homeowners understand how cuts to the Bank of England’s (BoE) base rate could affect their mortgage payments, according to new research from Trussle, the UK’s first online mortgage broker.

In August 2016, the BoE made the first adjustment to the rate in over seven years, cutting it from 0.5% to 0.25%, and mortgage rates soon fell as a result. Tracker rates dropped by 0.25% in line with the BoE’s action, while fixed rates also hit record lows, with two-year fixed rates available for as little as 1.39%.

However lender SVRs, the ‘default’ rates that borrowers often find themselves on as soon as an initial rate has ended, did not drop nearly as far. The average SVR before August’s base rate change was 4.8%, but by November had fallen only 0.17% to 4.63%.

Borrowers could save £3,500 a year by remortgaging

As a result of the widening gap between the best and worst rates on the market, people stuck on expensive Standard Variable Rates (SVRs) could now save a further £380 per year by switching to a market leading fixed rate. What had been an average annual saving of £3,120 has grown to £3,500, as a result of August’s base rate cut.

Just over one in 20 have considered switching mortgage

In the study, borrowers were also asked if they were happy with their mortgage. Only a third (36%) of borrowers said they were content with what they were paying in the current environment of rock-bottom mortgage rates. This could be explained by the one in three borrowers currently on an SVR. Despite the high proportion of people unhappy with their mortgage, just over one in 20 borrowers have considered switching to a better rate since the Bank of England cut the base rate to 0.25% in August. When asked what had ever stopped them from switching, 20% said the process would be too much hassle, while 14% said that it all seemed too complicated.

December 13th, 2016 | Andrew Hagger | News

M&S Bank is encouraging motorists to check their car insurance before heading out shopping this festive period, ensuring the Christmas gifts they’ve purchased aren’t at risk from opportunistic thieves.

Research from M&S Bank has shown that the average Christmas shopper is expecting to spend just over £600 this year (£364 on presents and £241 on food and drink), which could be put at risk if left in an underinsured car.

Paul Stokes, Head of Products at M&S Bank explained: “The Christmas shopping period is now well under way and the festive excitement is building for many.

“However, the contents of the vehicle can prove a target for opportunistic thieves, particularly at this time of year. That’s why it’s crucial that shoppers make sure they’ve got adequate car insurance in place to cover their Christmas shopping, should the worst happen.”

On average, festive shoppers will make at least three trips to the shops to stock up for Christmas this year. The main shopping trip for presents alone is expected to increase the vehicle’s contents by £216, with the main outing for food and drink likely to boost its value by an average of £189.

However, nearly two in five (38 per cent) will put their Christmas shopping at risk over the next few weeks by leaving it in the car. This includes taking presents back to the car in between shops to reduce the amount they have to carry (26 per cent), taking presents back to the car before heading out to dinner, to the cinema or to Christmas markets (7 per cent), or keeping presents hidden in the car when they get home (5 per cent).

Top tips for keeping your shopping safe this Christmas:

• Keep shopping bags covered and locked in the car boot – they could be tempting for opportunistic thieves if left visible
• Don’t leave expensive electrical items in view – make sure smartphones, tablets or satnavs are safely locked away or removed from the vehicle
• Don’t make it easy for thieves – be sure to fully close all windows and roof panels and always lock the vehicle, even if you’re just getting a ticket for the car park
• Don’t leave receipts in shopping bags – that way, you’ve got them to hand should the worst happen
• Check your car insurance policy – make sure you know what your policy covers

December 7th, 2016 | Andrew Hagger | News

Almost half of premium digital pay TV customers in the UK are watching less than a fifth of the channels included in their TV packages, according to new research by uSwitch.com.

And yet, the average yearly spend for premium pay TV is £508, or £42.30 per month, with almost a third (32%) spending more than £50 a month. A quarter of Sky customers and 28% of Virgin Media customers pay more than £60 a month per household for their packages.

TV customers signed up to Sky, Virgin and BT say that, on average, they only watch a third of the channels included in their packages. Almost four in 10 watch less than 10% of the channels on offer, while 71% are watching less than half of the channels they pay for, suggesting many people may be signed up to the wrong service for their telly watching habits.

TV series and box sets have proved most popular on pay TV, with 54% of customers naming these as their favourite genre to watch, closely followed by films (51%). Less than a third of viewers say that they watch sports most, falling to 26% among 18-34 year olds and rising to 36% amongst viewers aged 55 and over.

Ewan Taylor-Gibson, TV and broadband expert at uSwitch.com, says: “It’s irksome to have to flick through dozens of channels you never watch. If you’ve found yourself sitting on the sofa questioning whether you’ve made the wrong decision to sign up to a bells and whistles pay TV package, you know it’s time to look at other options.

“Providers have recognised our appetite for greater flexibility when it comes to both content and payments and are responding accordingly. Sky Q, Virgin’s V6 and Netflix allow you to  download some content and watch it on the move, while Sky is now advancing on streaming services with its Now TV Combo available on monthly rolling contracts.

December 6th, 2016 | Andrew Hagger | News

According to the latest YouGov research commissioned by credit information provider, Equifax, over a third of Brits (35%) are very or fairly concerned about being able to meet their financial commitments in 2017.  The new research also reveals that 30% think their financial situation will worsen next year; only 15% believe it will be better.

It is the lower paid workers that feel the least confident about getting a pay rise next year.  53% of those earning £5,000-£9,999 per annum and £10,000-£14,999 per annum do not expect to get a pay rise.  Those earning £40,000- £59,999 per annum appear to be the most confident, with 54% expecting to get a pay increase in 2017.

With four out of ten Brits believing they will not receive a pay rise in 2017, it is probably not surprising that there is a lack of confidence in the economy as a whole. When asked what concerned them most about their financial situation for 2017, the state of the UK economy came top of the list at 26%, followed by the impact of interest rates falling on savings at 17% and having enough saved for retirement at 12%.

Lisa Hardstaff, Equifax credit information expert, said:   “There’s no question that 2016 has been a significant year for the UK.  So it is perhaps not surprising that people are concerned about the strength of the UK economy as we head into 2017.  Although it is somewhat unfortunate to see that nearly a third feel their financial situation will be worse next year, it is positive to see that 46% believe it will stay the same. This means they are somewhat confident that they are not going to be in a worse position. 42% are going to review their current financial commitments in a bid to get better deals and save themselves some money.”

December 5th, 2016 | Andrew Hagger | News

One in five Brits are scared of being scammed at Christmas, new research by Nationwide Building Society has found, with many people failing to take simple precautionary steps.

The study of 2,000 UK adults found that nearly half (48%) admit to not checking their current account or credit card statements regularly to compare the details against what they know they have bought – therefore running the risk of not spotting a fraudulent or unknown transaction on their account.

While 55% say they avoid the high street and do the majority of their Christmas shopping online, almost two in five don’t know how to spot if a website is secure or not – identified through a padlock symbol (see top tips below).

For those that do hit the high street to shop at Christmas, one in ten admitted to not shielding their PIN number at all at the cash machine when withdrawing money or paying for a purchase by card, while a further three in ten admitted to only shielding it sometimes.  This creates a risk, especially as close to a fifth have experienced shoulder surfing – someone trying to see their PIN from behind.

And when an offer seems too good to be true, it more than likely is.  More than one in five  have been left disappointed after purchasing fake gifts, or have not received anything at all, after making an online purchase in the hope of grabbing a Christmas bargain.

In the spirit of sharing at Christmas, 15% of Brits share details on social media of what they are up to when either on holiday or making overnight visits to friends and family over the festive period – but experts warn this is potentially giving criminals the opportunity to strike.

Stuart Skinner, Nationwide’s Head of Fraud, said: “Our research reveals people are at risk of being scammed at Christmas if they don’t take some simple preventative steps. With fraud, often the most frustrating thing is that a lack of awareness or lapse in concentration can lead to someone being successfully targeted. We hope that by being aware of a few top tips that shoppers will be in a safer place this Christmas.

“Nationwide, like other financial institutions, has a range of measures in place that are highly successful in protecting our members from becoming fraud victims. However, scammers are always looking for ways to deprive people of their hard-earned cash.

“For example, criminals target ATMs at this time of year because of the increase in use, tied with the fact that in the holidays, people tend to be less likely to check their balances.  This is why we recommend customers check their accounts regularly and shield their PINs in order to limit their chances of being defrauded.”

November 29th, 2016 | Andrew Hagger | News

One in four Brits, equivalent to 13 million people, say they have been the victim of a scam, according to new research from Santander UK, while almost three quarters (73%) said they were concerned about falling victim to a scam.

With the latest figures showing losses of almost £11 billion to the UK economy as a result of fraud, the survey also revealed the nation’s relaxed attitudes towards personal security with one in eight (12 per cent) admitting they would reply to an email from somebody they didn’t know, and four per cent confirming they were comfortable giving personal, security or banking details to a stranger. Santander took to the streets to test this further, with alarming results. With the help of Paul Wilson, host of the BBC TV show The Real Hustle, the bank’s video shows that in fact 85% of the people asked readily gave over their bank details.

The survey findings also reveal that over 4.6 million adults (nine per cent) believe their bank would ask for their full PIN, password or other private security details. One in 14 (seven per cent) also believe their bank would ask them to transfer money out of their account for security reasons, or ask for remote access to their computer (six per cent).

Santander’s Top 10 Tips to Protect Yourself from Scams

1.   Never give out personal, account or security details (including One Time Password codes). Santander, the police or any other organisation will never ask you for these in full.

2.   Never allow someone remote access to your computer following a cold call. Never log onto online banking if someone is remotely accessed to your computer.

3.   Don’t rely on caller ID – numbers can be spoofed by fraudsters to make it look like they’re calling from a trusted number.

4.   Always validate requests for new payments or changes to payment details face to face or by calling on an independently verified number.

5.   Santander, the police or any other company, will never call to ask you to transfer your money out of your account for security reasons.

6.   Never log on or enter/reveal a security code (One Time Password) in order to process a refund to your account.

7.   When buying/selling online always keep within the website guidance and advice – never communicate offline with a buyer/seller.

8.   Be wary of all cold calls purporting to be from banks, police, or other trusted organisations – if you have any concerns, call back on an independently verified number.

9.   Never log onto online banking after clicking on a link in an email or text message.

10. Install anti-virus software that includes an anti-phishing programme. Install Trusteer Rapport, it’s free and provides an extra safeguard when you are banking online.