October 4th, 2016 | Andrew Hagger | News

Research from Sainsbury’s Bank into the cost of a wedding has revealed that couples who have married in the past five years claim to have spent on average £13,200 on their wedding, and those younger hitchers aged between 18-34, who are more likely to be first-timers are spending an average of £21,109.

Analysis of Sainsbury’s Bank’s loans data shows that the average amount borrowed for a wedding, according to borrowers is £8,936.

However, the true cost of the wedding is closer to £52,000, when all the expenses – including those incurred by the guests are added together.

On average, guests can spend up to £423 on attending a wedding – when all the following expenses are calculated.

For those who attend the stag or hen do, an average of £92 can be added to this total, bringing the full wedding-guest experience to over £500.

With the average number of wedding guests now put at around 92, this could mean that the true cost of a wedding is well over £52,000 – not including any stag or hen festivities. This is almost four-fold the reported average wedding cost.

Simon Ranson, Head of Banking, Sainsbury’s Bank says: “Our research shows that weddings are expensive for guests as well as the hosts, so planning ahead and budgeting is a must for anyone planning or attending one.

”Loans are a popular way to fund a wedding but credit cards provide another option. For example, there are cards available offering no interest on purchases – including ours which offers 27 months.  If you take out one of our cards, make sure you pay the balance off in the promotional period to avoid paying any interest.”

The research showed that paying off a wedding takes on average, four months, rising to a mean of 10 months for 18-34 year-olds. However, 4% of those who had married took one-two years to pay of their wedding, and 3% took two to three years.

Sadly, 6% of those who got married became divorced or separated whilst they were still paying off their wedding, though for 29% who got married then split up, at least the wedding had been paid off by this time. Happily, most respondents were still together.

October 4th, 2016 | Andrew Hagger | News

A brand new credit card name has hit the best buy tables today – namely nuba – powered by card giant MBNA.

There are two cards to choose from – a market leading 41 month 0% balance transfer deal with a one off fee of 3.49% – the good news is that if you qualify and transfer at least £1000 you’ll be entitled to a £20 Amazon gift card.

nuba has also launched an all round card with 25 months interest free on purchases and balance transfers – the transfer fee is 2.39% but again there’s an option to get your hands on a £20 Amazon gift card if you switch at least £1000 within 60 days of opening your nuba card account.

Mark Elliott from MBNA said: “With nuba, what you see is what you get. nuba is a no-fuss brand. Simple products with competitive rates and attractive benefits. nuba allows us to use the strength and experience of MBNA to do some exciting new things.”

For more details www.nubacards.co.uk

October 4th, 2016 | Andrew Hagger | News

Your credit score is the three digit number that helps everyone from mortgage companies to mobile phone providers decide how trustworthy you are when it comes to paying them back the money you owe them.

A survey of 1100 people by MyCreditMonitor (www.mycreditmonitor.co.uk) found that 42.5% of those questioned expected their credit score to have some impact on their financial decisions in the coming year.

However, while this seems to demonstrate a general awareness of how important credit scores might be, the survey also finds that others seem to contradict this what with an astonishing 6 out of 10 people admitting to not knowing what their credit score was.

Moreover, 40% of those consumers who use credit wouldn’t check their credit score before applying for a credit card, loan or other type of borrowing. This is despite the process being quick and easy to do online.

These figures from the survey suggest that while consumers seem to know that their credit score is important, most of them don’t actually know what their credit score is!

MyCreditMonitor wants to get rid of this contradiction, urging consumers to become savvier when it comes to keeping their credit activity in good shape.

Jenny Walker of MyCreditMonitor, said, “Credit scores are nothing new and we all have one. It seems that a large percentage of consumers are aware of how significant their credit score is, and the impact it could have on the important decisions they make. Yet the majority of people don’t actually know what their credit score is. Worse still, it seems many of us are still applying for credit without even checking our credit score to find out what chance we have of being accepted, or if we’re in a position to get a better deal than the one we were applying for.”

September 27th, 2016 | Andrew Hagger | News

Prudential and Unbiased.co.uk, the site that connects millions to advice, this week launched the eighth annual  ‘Write a Will Week’, with new research* which reveals  that 59 per cent of UK adults have not made a will.

When a Will is not in place, a deceased person’s estate is subject to intestacy laws, which may not reflect their final wishes.  Write a Will Week is part of the annual Tax Action campaign, which revealed that £4.6billion was due to be paid in unnecessary tax in 2016, including £595million in Inheritance Tax, some of which can be avoided through proper financial planning.

Unsurprisingly, it’s the younger generation who are least prepared, with only 17% of those aged 18-34 having a Will in place and only 29% of those aged 35-54.  Older people are more prepared, yet still 36% of people aged over 55 do not have a Will and risk dying intestate.

The most common reason people gave for not yet having a will was simply that they are putting it off until they are older (23 per cent), but 16% said they didn’t think they would have enough left to be worth passing on when they die. Other reasons for not having a Will in place include it never having occurred to them (13%) and assuming that their estate will automatically go to the right person when they die (11%).

Les Cameron, tax specialist at Prudential, said: “Whether you have a will in place or not is one of the things that will be at the forefront of any financial planner’s mind. It’s important to have an up-to-date will to ensure that your estate passes to those you want it to, as tax efficiently as possible, when you die.  Trusts are often created in wills to control an estate beyond death, perhaps due to complicated family circumstances or when considering the financial position of the beneficiaries. Making a will can range from being a fairly simple to a very complex area of financial planning and an adviser can work together with a solicitor to make sure you have the right will in place for your personal circumstances.”

To find a local solicitor or financial adviser to help organise your will, go to www.unbiased.co.uk and enter your postcode.

September 26th, 2016 | Andrew Hagger | News

New findings from Endsleigh’s 2016 Student Survey show that many parents are in the dark about their child’s spending habits, as more than a quarter (28%) believe their child never uses an overdraft, when in reality, less than 2% of students surveyed said they never use the facility.

The study of over 4,300 students and parents also reveals a majority (70%) of parents believe their child does not have a credit card in their first year of studying, despite 94% of students saying they do own one. And those who have a credit card make good use of it – over half (58%) of students in this group said they use it always or regularly.

Likewise, students are failing to budget properly, with over a quarter (26%) admitting their first student loan instalment lasted less than a month, whilst almost two-thirds (60%) of students admitted it only lasted a couple of months. The first loan payment is usually made just a few days after registration in move-in week.

Two out of five (41%) parents admit money management is their main concern for their children’s first year of university; and the majority (70%) believe their child also worries about finances. Although managing their money ranks high on many (44%) students’ list of concerns, it comes second after achieving academic success, followed by applying for jobs after graduation (40%).

To add further potential worry, the survey finds UK households are hit by £683.30 of unexpected costs when a student goes to university. Food is the highest of these – for almost a third of students and a quarter of parents; followed by course book costs which took nearly a fifth of students and a quarter of parents by surprise.  After food and course book costs, the price of travelling to and from university was unexpectedly costly for over one in ten students and one in five parents.

September 26th, 2016 | Andrew Hagger | News

Younger people are more willing to buy a home prone to safety, flood or crime risks in order to get on the housing ladder, new research from Aviva reveals, as the ‘ideal’ home is replaced with what people can afford.

According to the findings, a third of would-be homebuyers aged 34 and under say they would buy a home in a high crime area (34% for both 18-24s and 25-34s). Across all age groups, only 19% would do the same, falling to just 7% of those aged 55 and above.

Despite widespread coverage of damage caused by flooding in recent years, almost half of 18-24s  and a third of 25-34s would consider living in a flood-risk area, compared to 23% across all age groups, and only 8% of those aged 55 and above.

Anxiety over being able to afford a property could be leading younger buyers to make sacrifices when it comes to the safety and location of their home. Previous research from Aviva highlights the continued importance of homeownership in the UK, with four fifths (79%) of people agreeing becoming a homeowner was important to them. However, a quarter (27%) fear they will never be able to afford to buy a property.

September 21st, 2016 | Andrew Hagger | News

It’s been a good week so far for borrowers with two new best buy deals launched in the last couple of days.

Tesco Bank is now offering a credit card with 28 months interest free on purchases – a great option if you’ve got a major purchase planned and want to spread the cost without it hitting you in the pocket.

On the personal loans front, TSB has made an aggressive move by lowering the interest rate on its loans of between £7,500 to £14,999 to just 3,2% APR representative. This is equal lowest in the UK alongside Ikano Bank and on a loan of £7,500 over 3 years will cost you £218.62 per month to repay.

September 21st, 2016 | Andrew Hagger | News

Yorkshire Building Society has today called on the Government to consider reforming stamp duty land tax to make it paid by sellers not buyers, removing the tax burden entirely for more than 225,000 people getting on the housing ladder every year.

Changing property tax rules in this way would save first-time buyers in the UK excluding Scotland an average of £3,791, with Londoners saving the most at an average of £13,171.

Based on putting away £250 per month, this equates to the average first time buyer avoiding 15 months of saving, or 4 years and 4 months in London.

Yorkshire Building Society, one of the country’s biggest mortgage lenders, will outline the case for reforming stamp duty in a formal submission to the Government today on what should be included in the Chancellor’s Autumn Statement due in November.

A total of 225,200 first-time buyers paid stamp duty between June 2015 and June 2016, having purchased a property above the £125,000 minimum threshold, representing 75% of all first time buyers.

The reform would lead to an additional 16,000 additional property sales in the first year, including 6,000 first time buyers, based on a 2% increase in transactions.

New build properties for owner occupation could be exempted from the rules, ensuring the supply of homes is not prevented by the additional tax.

Andrew McPhillips, Chief Economist at Yorkshire Building Society, said:

“More than 200,000 first time buyers paid stamp duty last year and removing this tax burden from them would give the younger generation a major leg up the property ladder. This would be felt most of all in London where on average our members pay a staggering £13,171 in stamp duty for a first home.

“The benefits would not only be felt by those looking to get on the property ladder as anyone moving up it would be better off too.”

September 20th, 2016 | Andrew Hagger | News

Car insurance costs are continuing to race ahead rising 13.5% in the past year to an average £788, new research from insurance market research experts Consumer Intelligence shows.

A combination of another rise in Insurance Premium Tax to 10% – which takes effect on October 1st – and increased claims is driving the rise in premiums.

But Consumer Intelligence’s figures – used by the Government’s Office for National Statistics to calculate official inflation statistics – show huge differences across the country and between age groups.

Drivers in the North West and London are paying up to 50% more than the national average – the average bill is £1,177 after a 17.3% increase in the North West and £1,068 in London after a 16.7% rise.

Younger drivers are paying the highest bills – average premiums for under-25s are £1,831 although prices are rising slightly slower than average at 9.4%.

Older drivers are seeing higher price rises at 15.3% but their average annual bill as calculated by the five cheapest premiums is just £348.

Younger drivers are seeing some benefit from telematics – so-called black box technology – which rewards safer driving with lower prices. Around 55% of the most competitive premiums for under-25s come from telematics policies. Just 8% of the best deals for those aged 25-49 come from telematics.

Consumer Intelligence’s data shows the cheapest place to insure a car is Scotland where average premiums were £562 which is around £40 cheaper than the second lowest; Wales at £605.

Ian Hughes from Consumer Intelligence said: “The latest increase in Insurance Premium Tax which takes effect next month as well as rising claims are driving the rise in premiums.

“We are seeing a real acceleration in shopping around and all customers need to ensure they are receiving the best value for money from their insurer which should be easier as providers need to make it clear what last year’s premium was when they send renewals.

“Under-25s who pay the highest average premiums at £1,831 need to seriously look at black box technology as a way of limiting price rises but can take some comfort from the fact that prices are still lower than they have been.”

September 15th, 2016 | Andrew Hagger | News

Over half (54%) of students have lost personal belongings from their university accommodation according to new research by Sainsbury’s Bank Home Insurance.  The most common items which have been lost include phones (44%), jewellery (33%) and clothes (28%).

Technological appliances remain the most popular items amongst students with 91% owning both a smartphone and laptop. Other popular technological items include iPads/tablets (47%), cameras (37%), iPods (35%), games consoles (34%) and E-readers (15%).

However despite high-tech items becoming increasingly common in student accommodation, one in three students (33%) does not have their possessions covered by a home insurance policy, and a further 14% don’t know if their possessions are covered or not. Just 12% of students living away from home say they have cover on their parents’ home insurance policy.

Further analysis by Sainsbury’s Bank shows that it would cost students on average £1,566 to replace a suite of popular tech items; comprising  a laptop (£574), PlayStation 4 (£300), digital camera (£189), tablet (£171); smartphone (£154), E-reader (£125) and MP3 and digital media player (£53).

Alan Sanderson of Sainsbury’s Home Insurance commented: “Having the latest technology is important for students to keep up with their studies, but can be expensive. Parents should make sure their home insurance policy provides contents cover for their children’s student accommodation as this doesn’t need to come at an additional cost, although jewellery and other valuable items may require additional cover.”

Sainsbury’s  Bank Home Insurance, which offers protection for student home contents as part of its regular home insurance cover, is encouraging parents and students to protect their possessions against burglary, fire and vandalism. The policy applies to those in rented accommodation as well as halls of residence.  It also offers an additional option for personal possessions which can cover jewellery, sports equipment and other valuables when away from the home.