May 12th, 2016 | Andrew Hagger | News

We’re a nation of competitive gardeners, investing more than £17,000 in our gardens over a lifetime to impress neighbours and keep up appearances, according to new research from Policy Expert.

Nearly one in four (23%) of the 2,205 people surveyed complained of a green-fingered neighbour whose garden always upstages the rest of the street, with over one in ten (13%) claiming it’s their own garden that’s the talk of the town.

People admitted to gardening because they’re worried about what their neighbours might think of unkempt lawns, with more than a third (37%) of those surveyed stating they pulled weeds and potted plants in fear of others thinking their garden looks a mess. A further 40% admit that they keep their garden pruned out of sheer pride. 3% of those surveyed admitted they spent time and money in their garden just to win competitions.

The research found that the average UK homeowner spends £350 a year on flowers and ornaments for their garden. When asked what would be at the top of their gardens wishlist, nearly a third (30%) would opt for the perfect lawn, with 20% plumping for a water feature.

Top features that embody an English garden as voted for by Policy Expert customers:

Reassuringly, 86% of us have a fence at the very least to protect these cherished gardens, but only 57% have installed lighting as a precaution and just over half (58%) have locked gates. Further still, one in three of those surveyed were unsure if they were covered against garden damage and theft in their home insurance policy – leaving thousands of pounds worth of hard work left vulnerable across the UK should burglars come calling.

Adam Powell, Head of Operations at Policy Expert commented:

“Thousands of Brits choose to spend serious time and money on their gardens – whether it’s for a genuine love of the pastime, or a case of keeping up with the Jones’. Either way, it’s always best to err on the side of caution and keep your garden and its contents secure. It’s also really important to make sure you’re clued up on what your insurance policy covers, so you can sit back, relax and enjoy your green fingered efforts… as long as the British weather holds up.”

Tips from Policy Expert to keep your garden safe:

• Make sure you protect your garden with security measures e.g. outdoor lighting or a locked fence
• If you have a shed or outbuilding, make sure your home insurance policy includes outbuilding protection, and check exactly what this includes
• Make sure valuable items such as BBQs or sports equipment are shielded from view, under a cover or stored in a shed or garage
• If you’re taking gadgets outside such as tablets or smartphones, ensure that they’re covered in your home insurance policy in case they’re lost or damaged

May 4th, 2016 | Andrew Hagger | News

Half of people in the UK have never checked their credit score, according to research from RateSetter, with 53% doing something which may actually harm their credit score – potentially making it difficult or impossible for them to borrow money in the future.

In addition, three in ten (30%) people are worried about their creditworthiness and a similar number (32%) intend to take action to improve their credit score within the next 12 months.

Credit scores help lenders decide whether to lend money, how much to lend and how much interest to charge. By not knowing their credit score, people risk paying more interest when they take out a loan and may face limits on the amount they can borrow. In extreme circumstances, they may find themselves “locked out” of credit.

While eight in ten people (83%) know what a credit score is, half (50%) do not know their personal credit score and had never checked it. A further quarter (25%) say that they did not know their current score but had checked it in the past. Just one in five (20%) know their score exactly or approximately.

More than half of respondents (53%) are doing things which may harm their credit scores. For example:

• One in five (22%) have paid a bill late in the last five years.
• One in seven (15%) are not on the electoral register.
• One in ten people under 35 (10%) have moved house more than twice in the last two years
• One in fifty (2%) have a joint bank account with an ex-partner

Many other respondents were also doing things which may prevent them from building up a good credit history: for example, one in ten (11%) have never taken on any debt, which can result in what’s called a “thin file”, where underwriters do not have access to enough information to assess someone for creditworthiness due to a lack of borrowing history.

“Credit scoring is an imperfect science” commented Jay Magee, head of retail underwriting at RateSetter, “but it is a really important part of the decision of whether to give someone a loan.  By checking your credit score, which the likes of ClearScore, Equifax and Call Credit allow you to do for free, and taking a few easy steps such as getting on the electoral register, you can really improve your score and with it, your chances of borrowing more cheaply.”

Jay added “Some people think that by never getting into debt, they will automatically be seen as creditworthy.  But in reality, it’s by borrowing and paying back on time that you can build up a good score.  Our list of the seven deadly credit scoring sins is a mini-guide to help people improve their scores.”

Seven deadly credit scoring sins

• Not being on the electoral register
• Moving home too often
• Not paying bills on time
• Not building up any debt, ever
• Sharing a bank account with someone with poor credit history
• Having too much outstanding debt
• Remaining a “financial associate” of an old personal or business partner

RateSetter has published a free guide designed to help people to improve their credit score, which is available at www.ratesetter.com/blog/article/know-your-credit-score.

May 4th, 2016 | Andrew Hagger | News

The foundation of any strong relationship is said to be trust, yet apparently the principle doesn’t quite extend to your finances.

According to research from Defender Note, more than two thirds (67 per cent) of UK adults keep their bank card PIN hidden from their partner.

Men appear to be more careful with the numbers, with just 31 per cent sharing their PIN with their other half, compared with 35 per cent of women.

Split by region, couples living in London are the least likely to share their PIN with each other, with just 30 per cent doing so, while those living in the East Midlands are most trusting (42 per cent).

Londoners are more trusting when it comes to the workplace however, with four per cent admitting they had told a colleague their PIN before – a higher proportion than any other UK region.

The study also found that 54 per cent of UK adults have never told anyone their PIN, only five per cent have trusted their friends with the information, while four per cent have trusted their siblings.

Worryingly, five per cent of people surveyed admitted to storing their PIN on their phone to help them remember it, while two per cent keep a note in their wallet or purse.

Men are three times as likely as women to use an anniversary to remember their PIN, while more women choose to keep the random digits allocated to them by their bank.

Morgan Rothwell, CEO of counter-fraud company Defender Note, said: “It’s a little surprising that so many couples don’t trust each other with their PIN, but people are right to be careful when it comes to sharing their personal information.

“Criminals continue to come up with new and covert ways of defrauding consumers and the less people that have access to your account the better.

“In the last year alone, there’s been 26 per cent rise in card fraud in the UK, with last year’s total bill reaching £755million.”

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May 4th, 2016 | Andrew Hagger | News

Average price rises for drivers renewing their car insurance have doubled in the past year as shopping around hits a three-year high,  independent data Consumer Intelligence shows.

Its data – used by the Government’s Office of National Statistics to calculate official inflation statistics – shows average renewal quotes have increased £22 on average compared to an £11 increase last year.

The price rises – driven by Insurance Premium Tax rises and wider market movements – have boosted shopping around to a three-year high with up to 11 million drivers expected to move insurer this year.

Consumer Intelligence’s data shows around 40% of motorists will switch and it advises all motorists to shop around at renewal to try to secure a more competitive deal.

A spokesman for Consumer Intelligence said: “The message on rising car insurance premiums is really hitting home and drivers are making the sensible decision to look around for the best possible deal.

“We are seeing a real acceleration in shopping around and up to 11 million of the UK’s 27 million private car owners will move this year.

“Customers really should be shopping around  which is being made easier as insurers need to make it clear what last year’s premium was when they send renewals.”

Consumer Intelligence’s analysis shows average car insurance premiums have increased 13% in the past year to £683 with more than half of that rise coming in the past six months.

Average premiums for over-50s are up by 15.3% compared to 9.3% for the under-25s but older drivers still pay considerably less than younger drivers – the average premium for over-50s is £298 compared to £1,600 for the under-25s.

One way for younger drivers to limit price rises is to look for telematics policies – so-called black box technology – which rewards good driving.

Consumer Intelligence’s analysis which focuses on the most competitive quotes from insurers for age groups shows 48% of the best deals for under-25s are from insurers offering telematics policies compared with 33% in October 2013.

Insurance Premium Tax was increased in the Summer Budget from 6% to 9.5% and again in last month’s Budget to 10%

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April 27th, 2016 | Andrew Hagger | News

At least one in every seven (14 per cent) people retiring this year has made no provision for their retirement and will be either totally or heavily reliant on the State Pension to provide a regular income when they retire, according to newly released research.

The findings are parts of a unique annual study carried out by Prudential which tracks the finances, future plans and aspirations of people planning to retire in the year ahead. This year’s retirees – the Class of 2016 – provide the ninth set of comprehensive insights into the post-financial crisis retirement landscape.

Prudential uses the Joseph Rowntree Foundation’s (JRF) Minimum Income Standard for a single pensioner of £182.98 a week2 as the benchmark income to support an acceptable minimum standard of living in retirement. To illustrate the risks of relying solely on the State Pension, a pensioner whose retirement date is after 6 April this year and whose only income is the full new flat-rate State Pension will have a weekly income of £155.65, or nearly £8,100 a year – a significant shortfall on the JRF standard of £27.33 a week or over £1,400 a year.

Vince Smith-Hughes, retirement income expert at Prudential, said: “We are in the midst of some once-in-a-generation changes to pension rules – change that the State Pension has not been immune to. Most of this year’s retirees will be eligible for the State Pension under one of two very different arrangements depending on their retirement date. It is very important that they understand what this means for their total income after they give up work.”

The results of Prudential’s research also highlight the value of the State Pension to all of this year’s retirees – even those with retirement savings of their own. On average, members of the Class of 2016 estimate that the State Pension will account for more than a third (35 per cent) of their income in retirement.

Vince Smith-Hughes added: “Even those who receive the full new flat-rate State Pension will find that it alone doesn’t provide the level of income required to sustain a comfortable retirement. However, given the significant contribution the State Pension makes to most retirees’ incomes it is important to make sure people do everything they can to make sure they qualify for the full amount – for example by making voluntary National Insurance contributions to cover any career breaks.

“The clear lesson from our figures for anyone saving for retirement is that someone expecting to live in any degree of comfort needs to have made some sort of pension provision of their own. There are very few better alternatives than saving as much as possible as early as possible in our working lives and the majority of people will benefit from professional financial advice when planning for retirement.”

April 27th, 2016 | Andrew Hagger | News

Hull, next year’s City of Culture has come bottom of a league table revealing average broadband speeds in 42 major UK cities and towns, according to price comparison service uSwitch.com.

The data, which shows actual speeds rather than available top speeds – and therefore provides an indication of fibre broadband take up across the UK – reveals that residents in Hull recorded average download speeds of just 12.42Mbps for a six-month period between August 2015 and February 2016. Meanwhile, Aberdeen and Milton Keynes are the UK’s second and third slowest cities for broadband, with speeds of 15.67Mbps and 17.10Mbps respectively.

While industry and Government have made ‘superfast’ broadband available to 90% of the country, 20 of the towns and cities in the league table have average speeds slower than the 24Mbps superfast threshold​. This suggests that barriers to the take up of fibre broadband, including awareness of availability as well as pricing, could be improved in urban areas.

Worryingly, the data also reveals that three in 10 tests (30%) logged actual speeds of less than 5Mbps​. Those attempting to spend a night in with a movie might have to resort to traditional TV – as downloading a high definition film at 5Mbps would take two hours​. At the other end of the spectrum, just one in ten (10.4%) consumer tests recorded speeds of above 50Mbps​.

Meanwhile, 22 towns and cities are enjoying superfast average speeds above 24Mbps, with Middlesbrough (34.46Mbps), Belfast (34.34Mbps) and Brighton (33.8Mbps) currently the UK’s fastest cities for surfing the web​.

Two glaring omissions from the superfast 22 are London and Edinburgh. Both capital cities fall short of expectation with residents recording average speeds of 22.44Mbps and 21.07Mbps​.

Some residents may find they have a very different broadband experience to friends and family in neighbouring towns and cities. In Huddersfield, for example, broadband users enjoy superfast speeds of 27.71Mbps, yet just 15 miles away Wakefield residents and businesses are recording a sub-superfast 17.49Mbps. And Brighton, known as ‘Little London by the Sea’ and less than an hour away by train, has starkly different speeds to the capital – 33.8Mbps compared to London’s 22.44Mbps​.

April 27th, 2016 | Andrew Hagger | News

Ahead of the upcoming bank holiday weekend, please see below comment and stats from home insurer Policy Expert around the amount of DIY Brits will be attempting.

· 67% of Brits will be doing DIY this bank holiday

· 57% are confident in their abilities, but 20% have had a costly disaster in the past

· Over half of those surveyed (51%) think men are better than women at DIY

· 40% don’t or aren’t sure if they have accidental damage included in their home insurance policy

· Gardening is the most popular task, with painting & decorating following closely second

Policy Expert customer survey carried out in March 2016, with a sample size of 2936 adults.

Adam Powell, Head of Operations at Policy Expert commented:
“DIY can be rewarding and a great money-saver, but it can also end up costing you dearly if you’re too ambitious or have an accident. Simple DIY projects, such as painting or putting up shelves won’t affect your home insurance, but for much larger projects – i.e. ones that require a considerable amount of knowledge and skill, such as re-wiring a house, or even building an extension – it’s important to tell your insurer before you begin. If something goes wrong you may be exempt from making a claim as the original terms of the policy may no longer apply.

“The chances are any damage your insurer considers to be caused by your own actions won’t be covered under a standard policy – fire damage caused by electrical DIY projects for example, or flooding/water damage caused by plumbing could all leave you out of pocket.

“If you’re not confident with your toolbox but want to have a go yourself, it’s a good idea to check with your insurance provider first. Ensuring you have accidental damage included in your policy is a cost effective and straightforward way of making sure you’re not in for an expensive surprise this bank holiday.”

April 21st, 2016 | Andrew Hagger | News

Using a mobile phone in EU countries will cost Brits less from the end of this month, as the European Commission (EC) reduces mobile roaming charges further by introducing lower caps on charges for calls, texts and data. However, price comparison and switching service u-switch says people still need to keep a close eye on the new charges to avoid getting caught out, as over a quarter  incorrectly believe it does not cost extra to use a mobile in other EU countries.

The cost for Brits making and receiving calls in the EU has dropped substantially since 2007, with charges set to be abolished completely in June 2017. The new caps, introduced on the 30^th April 2016, restrict mobile providers to charging a maximum of the domestic price plus €0.05 per minute for a call, €0.02 to send a text and €0.05 per MB of data used.

But despite falling roaming charges, more than six in 10 (62%) UK mobile customers are still afraid to use handsets in other EU countries for fear of bill shock when they return home – and 34% don’t use mobile phones abroad full stop.

A spokesman from USwitch said: “These price drops are especially good news for any Brits planning a summer trip to the Continent – and football fans heading to France for the Euros, too ­– but until EU roaming charges are fully abolished consumers should still be aware of the pitfalls.

“For example, a £40 cap applied by networks and designed to protect mobile users from bill shock only covers charges for data, and not calls or text messages. Our research reveals that more than a quarter of mobile customers who know about the £40 cap are completely unaware of this.

“Although some networks are going above and beyond to make sure roaming is affordable, like Three’s Feel At Home and iD’s TakeAway plan, networks across the board could do more to reduce consumer vulnerability to additional charges.

“We’d like to see more transparency in the form of real-time updates on out of tariff charges and reminder notifications after users have opted out of automatic caps.

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April 19th, 2016 | Andrew Hagger | News

Comparison website GoCompare is urging travellers heading to unfamiliar destinations to plan ahead and make sure they know the laws of and have the required travel documents and inoculations for the country they are visiting.

Intrepid travellers are also warned not to assume that all hotels, retailers and ATMs in the country they are visiting will accept international credit cards or travellers’ cheques.

The warning comes as ABTA’s 2016 Travel Trends report shows that 18% of British holidaymakers are planning to travel to a country they’ve never been to before.  The report, which was compiled in association with the Foreign & Commonwealth Office, identified 12 destinations that are expected to capture the public’s imagination in 2016 including; Abu Dhabi, China, Hawaii, Iran, Peru and Sri Lanka.*

Alex Edwards from Gocompare.com Travel Insurance commented, “Travelling to far-flung, exotic places is becoming easier and more accessible thanks to low cost air operators and the availability of more direct flights.  But, the culture, laws and criminal justice systems of some of the destinations highlighted by ABTA’s report are very different to the UK.  So, it is crucial tourists understand and respect the local traditions, customs, laws of the country they are visiting to ensure they don’t cause offence or act illegally.  Otherwise, the penalties can be severe.

“Travel insurance, which covers medical expenses, lost baggage and documents, cancellation and delays is also a must for any trip abroad.  But, insurers will expect you to take care of yourself and your possessions and, not behave recklessly or illegally.  So, for example, if you’re heading to an area which has life-threatening infectious diseases you need to make sure you have the right vaccinations.  Otherwise, if you fall ill with a disease for which you haven’t been vaccinated against or taken the required medicine – your insurance may not cover your medical treatment.”

Alex Edwards continued, “Money is another important consideration.  Some countries like China, are mainly cash economies with limited use of ATMs and credit cards.  Not all shops, restaurants and hotels in Peru accept international credit cards or travellers’ cheques and, in Sri Lanka travellers’ cheques aren’t normally accepted.”

“While most travel policies include cover for money, cover limits, excesses and exclusions vary considerably.  So, if you need to travel with a large amount of cash, you need to make sure you buy a travel policy which has the appropriate cover.”

April 19th, 2016 | Andrew Hagger | News

New research from Moneycomms shows that customers with the big banks could make massive savings on their loan and overdraft costs – simply by making use of the money transfer facility offered by a handful of credit card providers.

The money transfer facility is currently offered to new customers by MBNA, Virgin Money and Tesco Bank gives borrowers the opportunity to clear costly overdrafts and smaller personal loans and save hundreds of pounds in interest in the process.

A money transfer gives you the flexibility to transfer funds from the card to your current account with a low one off transfer fee – for example the current offer with the MBNA Platinum card it is just 1.49% with 0% interest for 32 months.

If you’re credit rating is in good order then this option gives borrowers the chance to wipe out that nagging and expensive bank overdraft once and for all.

The latest research shows that those permanently in the red by £1,000 could be paying as much as £365 per year for the privilege. The 32 month 0% money transfer option gives you the opportunity to clear the £1000 balance at a total cost of just £14.90 (Money Transfer Fee).

If you’re financially disciplined, 12 monthly payments at £84.58 or 24 months at £42.29 would see your £1000 overdraft totally cleared and without paying a penny in interest.

It’s also a much cheaper option than a personal loan if you’re only looking to borrow a relatively small sum.

The MBNA money transfer option along with peer to peer providers Zopa and RateSetter offer by far the cheapest options for a loan of £3,000 – streets ahead of the 20% plus APR charged by some of the big high street banks.

Even though there is a personal loan price war going on at the moment, the ultra-low 3.5% APR rates are only on offer if you want to borrow £7,500 or more whereas the average rate if you want to borrow £3000 is more than for times that, with Lloyds Bank advertising a rate of 24.9% APR

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