August 9th, 2016 | Andrew Hagger | News

New research from Sainsbury’s Bank Credit Cards reveals on average, each person planning a summer holiday this year is likely to spend £974 on it. Many people would consider booking the vacation itself as being the most expensive part of the holiday, however the research reveals that it’s just over a third of the total spend.

On average, UK holidaymakers say they’ll spend £288 on spending money; £96 will go on buying new clothes; and £58 getting to and from the airport or train station.

Holidaymakers also say they’ll spend an average of £21 paying for a home-sitter whilst they are away.  Those with pets also face extra costs, as the research reveals an average of £32 will be spent on kennels or catteries.

Around 23% of the total holiday spend will be placed on credit cards. A quarter (25%) of people using a credit card plan to transfer some of their balance to a 0% interest free balance transfer card after their holiday, with these people estimating they will transfer over half (54%) of their spend after their summer holiday. This equates to a total of £2 billion that holidaymakers intend to transfer to an interest free balance transfer cards after their summer vacation.

Simon Ranson, Head of Banking at Sainsbury’s Bank, commented: “The true cost of a holiday is much greater than just the upfront cost of booking it in the first place, with lots of add-ons to consider by the time you’re ready to set off. Holidaymakers choosing to use a credit card should carefully consider their options. Some cards may be more cost-effective for overseas spend, some are better for large purchases, like the holiday itself, and others if you’re transferring a balance.”

August 2nd, 2016 | Andrew Hagger | News

1.    Make sure you are on the electoral register. Lenders use the electoral register to help fight identity fraud and confirm a person is who they say they are and that they reside at that address.

2.    Pay bills on time or ahead of schedule, a good credit score needs to be built up over time – lenders will look favourably on this.

3.    If you notice anything on your credit report that could be incorrect or you think you might be the victim of identity fraud, i.e. you think someone has applied for credit in your name, contact the credit reference agency who will work with the lender to try and resolve the issue.

4.    Avoid keeping a high balance on your credit card. Lenders may view it as excessive debt and be concerned about your ability to repay.

5.    Only apply for products when you really need them – applying for more than four forms of credit in a year can lower your credit score.

6.    Do not make multiple applications for credit as this can have a negative impact on a credit record.

7.    Close down out of date credit cards and make sure you cancel old agreements, such as store cards you never use, as these will still appear on your file. Lenders may be wary about the potential size of your debt.

8.    Sever old financial relationships if you are divorced or separated, making sure your former partner’s details are removed from any joint accounts. The credit history of all financial associations such as a spouse or anyone else you have a joint bank account or loan with can affect your credit rating.

August 2nd, 2016 | Andrew Hagger | News

More than 16,000 people failed to get on the property ladder last year because of their poor credit score, according to a study from Amigo. Most affected are those who embarked on higher education who are 10% more likely to be rejected for a mortgage because of poor credit scores than those with just A-levels

In 2015, there were around 310,000 successful first-time buyers – however 5% of all applicants were rejected for a mortgage because of their shabby credit rating.

Common reasons for being turned down include previous unauthorised overdrafts and blank credit histories, but the late payment of a bill dating back years is also enough to produce a rejection – even if the money owed is just a few pounds.

According to the research, a staggering three quarters (76%) of all first time buyer applicants admit they were turned down by at least one provider because of their poor score.

While most went on to be successful with other providers, the vast number of initial rejections highlights a major lapse in knowledge when it comes to the credit scoring system.

Each mortgage rejection can damage an applicant’s score, meaning those that apply to several lenders could be hampering their prospects of getting on the property ladder.

The lack of understanding around credit scores is most profound among 18-24-year-olds – with a third (33%) claiming they were unaware that having no credit history could affect their chances of getting a mortgage.

Interestingly, higher education seems to lessen your chances of being granted a mortgage. The research shows that Undergraduates, Masters and Doctorate graduates are 10% more likely to be rejected because of poor credit scores than those with just A-levels, possibly a result of the higher levels of debt associated with student life.

Broken down by family status, those with one child were 30% more likely to have suffered mortgage rejection because of a poor credit rating than those with no children.

Glen Crawford, CEO at Amigo Loans, which commissioned the study said: “Owning your own home is an aspiration many people have, but actually getting on the property ladder is becoming more and more unachievable. Ensuring people are aware of what can affect their chances has never been so important, as this is difference between having the key to your dream property and being declined for a mortgage. What many people don’t realise is that having no credit history can be just as damaging as having missed payments on your record, this is why it’s paramount that people begin using credit responsibly at the earliest possible stage.”

August 2nd, 2016 | Andrew Hagger | News

Over one in five people who have hired a car (21%) said they had found damage on the car which was not highlighted on the check-out sheet, according to a new YouGov survey, commissioned by iCarhireinsurance.com, the leading provider of stand-alone car hire excess insurance.

Any damage to a hire car, even if it isn’t your fault, can lead to the hirer having to pay the first part of the cost of repair, up to the excess amount, which can be as much as £1200.  

The survey found that whilst half (57%) of hire car drivers always check their car for damage before they drive it, and almost a quarter (24%) have taken a picture of the hire car to prove it was damaged before they used it, only 38% check the condition of the wheels and tyres, despite the fact that these items can account for approximately one in five charges for minor damage made at the rental desk.  

Claims for damage to wheels and tyres, for instance, can cost from €120 to €400 so they are just as important as the rest of the car to check before driving the car away.

It isn’t just on pick-up that drivers need to be vigilant.  A quarter have had to return their hire car without seeing a hire car representative.  With 7% of renters believing they have been wrongly accused of damaging a rental car, not getting it signed off by a company representative is a risky move that could end up costing a small fortune.

The survey found that one in ten drivers have returned a rental car with damage which wasn’t their fault, and 6% have returned a rental car with damage which was their fault.

Excess insurance can be bought to protect drivers from paying for damage, but the rental company policies cost up to £17 a day, five times more expensive than a policy from iCarhireinsurance.com (from £2.99 a day).  Rental company policies also often exclude damage to windows, tyres and undercarriages, areas that are most likely to be damaged, but iCarhireinsurance.com policies automatically include these vulnerable areas as standard.

“When you pick up a hire car always check it thoroughly. Make sure that you note down every mark, no matter how insignificant on the checkout sheet, including damage and scuffs to the wheels. We hear of many people getting charged for minor damage, which they say was on the car when they picked it up, but which they didn’t mark on the paperwork. Sadly in the modern world of vehicle rental this can be tantamount to writing a blank check to the rental desk,” said a spokesman for iCarhireinsurance.com.

He added: “Many people protect themselves by buying a stand-alone excess insurance policy in advance. These policies are usually much better value than those offered by the rental companies and, in addition to the bodywork, they also cover tyres, wheels, roofs and windscreens, which are often excluded from the rental desk policies. It’s still important to check the car for damage though, as whilst claiming is easy it’s always easier not to have to claim at all.”

July 26th, 2016 | Andrew Hagger | News

A new survey has given a snapshot of the UK’s banking habits and revealed that the British public has never been so in touch with their bank balance. The results show that technological advances within banking have resulted in people using online and mobile banking apps to check their spending more than ever.

This fast, instant access means more people are now keeping on top of their finances regularly with four in five (83%) now checking their bank balance once a week or more and over half (52%) like to check their spending all the time, wherever they are, meaning people no longer have to wait for a statement to fall through their door.

The rise of mobile banking allows people to organise their finances easily, and in 2015 a total of £2.9 billion* was transferred each week alone with mobile and tablet banking. With this rise, Nationwide Building Society has uncovered the five places that people are now most likely to check their finances;

1) 68% use mobile banking from the comfort of their sofa

2) 50% do their online banking from their bed

3) 42% use work time to sort their finances using mobile banking

4) 21% like to keep on track of their spending whilst they’re shopping

5) 4% like to browse at the gym

The survey of 2,000 UK adults found that Brits believe they would have greater control of their money if they were able to see how much they spend daily on impulse purchases such as coffee (15%). Searching transactions by dates and periods of time (14%) and being able to search transactions by location (13%) would also allow more financial control. A further 1 in 4 (25%) admit they have a fair to non-existent ability to stay on top of their finances.

New banking apps are allowing consumers to keep on top of their spending – and saving – with constantly evolving new features. Nationwide’s Impulse Saver service enables customers to save up to £100 into their savings account without the need to log in. Since its launch, over £18.5m has been saved this way. The research also found that on average we spend £55.77 per month on things we hadn’t budgeted or accounted for, which is almost £700 a year.

July 26th, 2016 | Andrew Hagger | News

7 in 10 people taking trips in the UK this summer could be doing so uninsured, leaving thousands of pounds worth of valuables at risk of theft, loss and damage, according to new research from home insurance provider Policy Expert.

Of the 2,500 people surveyed, 63% admitted they didn’t have away from home cover included in their home insurance policy, while only a third (32%) would take out travel insurance for ‘staycations’ in the UK, such as camping, festivals or walking holidays.

Despite a quarter of people taking trips in the UK to keep costs down (24%), day-trippers and holidaymakers risk expensive dilemmas by travelling with an average £676 worth of valuables uninsured. Other reasons for holidaying in the UK included because it’s easier (46%), visiting family in the UK (28%), because there are great places on our doorstep (60%) and a worry about terrorism/safety abroad (11%).

8% of those surveyed have damaged, lost or had valuables stolen while travelling in the UK, of which a third (31%) didn’t claim on their insurance. The most common items were mobile phones, cameras, wallets/purses and jewellery.

A spokesman for Policy Expert commented: “Wherever you’re holidaying this summer, whether that be on the white shores of the Caribbean or a pebbled beach in Wales, it’s important to ensure you’re properly insured and that your belongings are covered against loss and theft. If you don’t want to take out a separate travel insurance policy, checking the small print in your home insurance to make sure it includes away from home cover is a good place to start.”

July 26th, 2016 | Andrew Hagger | News

Holidaymakers planning to go to Europe in the summer months – June, July, and August – could be collectively missing out on €265 million by not buying their money in advance, according to new analysis by Sainsbury’s Bank Travel Money.

The supermarket bank found that Euros are on average 7.3% cheaper bought from a local bureau than from an airport kiosk, highlighting the importance of purchasing holiday money in advance and not leaving it until the very last minute.

Sainsbury’s Bank Travel Money estimates that in 2015, €8.4bn was purchased by people in the UK with 43% of these sales taking place in June, July and August.

A spokesman for Sainsbury’s Bank said: “As peak holiday season is here we’d encourage anyone travelling to Europe this summer to plan ahead so they don’t miss out on the best rates. Our analysis shows on average holidaymakers could save €42 per transaction by getting their money in advance – enough for a lunch for two in Spain or perhaps a few drinks in France.”

July 19th, 2016 | Andrew Hagger | News

Britain is a nation of debt jugglers, constantly moving large balances between cards until we hit ‘money maturity’ in our fifties and decide to stop playing a game of loans.

According to a survey from the AA, 5.4 million people (11%) have transferred balances between credit cards.

On average, people have made three transfers. 2.6 million (20% of balance transfer card users) have made more than 5 balance transfers in the past year.

People are juggling an average of £2,353 worth of debt between cards and 1.6 million (10%) Brits are playing the game with over £5,000 worth of debt.

The research reveals that it’s not until we are in our fifties that we reach money maturity, with a long term plan in place to pay off our debts.

A fifth of adults (21%) said they would like to pay off their borrowing but are not currently in a position to do so.

A spokesman for the AA, said; “Of those that are borrowing, 14 million (47% of those in debt) do not know how much interest they are paying in total. Whilst low cost loans and balance transfers can be a good way of consolidating debt, many risk paying a price for missed payments.

“People need to be aware of the rules of the game, knowing how long introductory rates last and what might cause them to end early, for example missing a payment. Setting a calendar reminder for when your introductory rate ends can ensure you don’t sleep walk into paying higher interest and experience an unwelcome addition to your monthly commitments.

July 19th, 2016 | Andrew Hagger | News

M&S Bank is bringing back its most rewarding current account offer; from today (Tuesday 19^th July), new M&S current account customers can enjoy up to £220 to spend in M&S if they switch and stay with M&S Bank. 

Customers who switch to one of the M&S current accounts using the Current Account Switch Service (CASS) with two active Direct Debits, will receive a £100 M&S gift card. In addition, customers depositing £1,000 a month into their account will also receive £10 to spend at M&S each month for the first year.  

Customers switching to the M&S current accounts will also have exclusive access to a high rate monthly savings account with a rate of six per cent AER/ gross, customers can save between £25 and £250 a month, with the potential to earn over £96 in interest over a 12 month period.

M&S current account customers also earn loyalty points on their M&S debit card spend, with one point earned for every £1 spent in M&S (both in-store and online). Customers receive £1 in M&S vouchers for every 100 points earned; the equivalent of one per cent back in M&S vouchers. Points are automatically converted into M&S vouchers and sent to customers each quarter.

A spokesman for M&S Bank, commented: “We want to make banking with M&S as rewarding as possible, so we’re delighted to be able to welcome new customers with a £100 M&S gift card, and the potential to receive a further £120 in the first year they bank with us, plus access to a high rate savings account and debit card reward points.”

M&S current account customers also benefit from a transparent account structure with an automatic £500 overdraft, the first £100 of which is interest-free and the remainder is charged at 15.9 per cent EAR. The M&S Current Account has no overdraft fees and customers receive free text alerts as they approach their overdraft limit.

July 19th, 2016 | Andrew Hagger | News

A report this week from Sainsbury’s Pet Insurance shows that more pets are going abroad on holiday with their owners than ever before, in part to avoid both parties suffering from ‘separation anxiety’.

For many pet owners, dealing with being apart from their beloved pet can prove challenging. Six out of ten pet owners claim to have felt sad when leaving their dogs and cats at home when they go on holiday. They also believe their pets have also suffered as a result of this, with 40% claiming that their pets developed separation-related behavioural problems. The findings indicate that their pets became withdrawn and some reported that their pets became aggressive or started to chew furniture and belongings.

An analysis of the latest government data by Sainsbury’s Pet Insurance reveals an increase in the number of pet passports issued over the five past years.

In 2015 the Animal and Plant Health Authority issued 127,657 pet passports, which represents a 287% growth across the five-year period between 2011 and 2015.

A spokesman for Sainsbury’s Pet Insurance said: “Many pet owners cannot bear the thought of going on holiday and leaving their loved one behind and are avoiding the emotional strain of separation by taking their pet with them. If you are taking your pet abroad make sure you specify optional holiday cover with your pet insurance to cover accident and illness, and make sure you’re aware of any exclusions that apply.”

Pet owners must ensure they meet the pet travel requirements when taking their pets on holiday. Research from Sainsbury’s Pet Insurance reveals that 13% of pet owners who took their pet abroad were refused entry to the country as they did not have the correct documentation. Of the 21% of people who have taken their pets abroad, by far the majority travelled by car (65%) although a high 19% travelled by plane.

However, whilst taking a pet on holiday prevents them from suffering separation-related distress, travelling with pets is not always straightforward as many animals find the change in routine, environment and the travel stressful, which can lead to illnesses.