March 11th, 2016 | Andrew Hagger | News

Top tips for protecting your home from winter weather:

• Check your boiler and heating system – If you haven’t done so already this year, get your boiler checked and/or serviced by a Gas Safe registered plumber.
• Roof tiles– Check for any cracked, missing or loose tiles and replace them. If a roof is in disrepair the weight of snow or high winds can prove to be hazardous.
• Keep the central heating on – Set the central heating to a minimum of 14 degrees Celsius throughout the winter. It helps prevent pipes freezing and frost damage.
• Repair damaged chimneys– Look for cracks around chimney pots and at the roof join, also for loose render and render that’s come away from the stack. Extreme weather can damage chimneys even further, so make sure they’re properly stable before it hits.
• Windows– Take a look at your window frames and fill any cracks and put on a coat of paint if needed. Extreme temperatures and wet weather can cause untreated wood to expand and rot, treating the window sills helps prevent water and frost damage.
• Insulation – Lag any pipes and water tanks in exposed areas such as lofts, garages and utility rooms to prevent pipes freezing and bursting.
• Guttering and drains – Clear your guttering and drains of any debris such as leaves, mud and stones; they can block easily and freeze up.
• Walls – Check the pointing in brickwork both on the main house, all outbuildings and garden walls, look for any loose stone or areas that are in need of repair.
• Fuse box and electrics– A home’s electrics are a major source of insurance claims. If you haven’t done so in a while, get a registered electrician to check your home’s fuse box and wiring.

Adam Powell from insurance provider Policy Expert commented:“It’s important to prepare your home as much as possible for whatever the weather might throw at it. A cold snap can ravage buildings so take the time this week to make sure you have the correct level of home insurance cover. Check the small print too – some policies may not cover sheds and outbuildings.”

March 11th, 2016 | Andrew Hagger | News

An alarming number of the UK’s working over-60s population are unprepared for their retirement, according to findings from a new white paper published by wealth management firm Sanlam.

The Which Way Forward? report, released a week ahead of the Government’s spring budget, suggests that an increasing ageing population, the demise of generous final salary schemes and the pension freedoms introduced last April are all contributing to a radically shifting retirement landscape. As a result, as many as 40% of non-retired over-60s today feel unprepared for their future.

The report, which uses qualitative research, compares the attitudes of 1,000 people who have retired in the last five years with 1,000 over-60s approaching retirement. It suggests there are many who still feel in the dark about their retirement, with 29% saying they weren’t aware of the new pension freedoms which the government introduced in April 2015.

The results are surprising, particularly given the new freedoms were intended to give future retirees more autonomy with their savings. Some 39% of over 60s admit that they are unaware of how much they currently have in their pension pot.

Running concurrently with this uncertainty, future retirees also now envisage a longer working life than previous generations. Less than 2% of pre-retirees anticipate retiring before the age of 61 and around 30% expect to still be working at 70 and beyond. In stark contrast, nearly half of those that were in retirement when questioned for the report had retired before the age of 61, and almost all had retired by 67.

The report suggests that fixed-age retirement has already become an outdated concept and will no longer be possible for the majority of the current working generation. Whilst Britons have traditionally worked towards a fixed retirement date, nearly half of pre-retirees now envisage partial retirement which is phased in over a few years, with only 3 in 10 expecting to retire outright or over a short period of time. The remainder of those questioned were undecided.

March 3rd, 2016 | Andrew Hagger | News

UK consumers are set to be back in the black this week as the balance of their current accounts begin to return to pre-Christmas levels.

According to data from TSB, March is the month when the Bank expects shoppers start to get back on top of their Christmas spending, having paid off their Christmas credit card bills and managed to come out of the un-festive red of their overdrafts.

However, the picture is not quite the same across the whole of the country with shoppers in Liverpool and Birmingham tending to pay off their Christmas debt quickest in January, compared to those in Essex and Thames Valley who won’t have paid off their spending until May.

By the time this month’s payday comes around, it is expected that only people in North and West London, East Anglia, Essex and the Thames Valley will still be battling with their festive spending as all other regions will have paid off their additional Christmas shopping.

Looking at credit cards alone, last year saw the average Brit increase their card balance by 2.7 per cent between October and December, the usual time for Christmas shopping. This is an increase from 2.1 per cent between the same period in 2014, showing a rise in consumer willingness to spend on plastic.

A spokesman for TSB, said: “Getting back in the black after Christmas can be difficult, particularly with temptation to spend in the January sales and the long weeks between December and January paydays, but it’s good to see many borrowers able to stay on top of their debts, even paying them off early.

“For those who are struggling to pay off any excess spending, it’s useful to make a monthly budget, keep a track of your daily spending and stick to a realistic plan to pay off the debt as soon as possible, making additional payments where possible. If people have high interest rates on their credit cards or overdrafts, it might be useful to shop around to see if it’s worth switching their debt to a lower rate.”

March 3rd, 2016 | Andrew Hagger | News

Since it launched in 2011, the Co-operative Insurance has saved its Young Driver policyholders over £7.4m in their first year of driving*.

Latest data from the Co-operative Insurance has found that on average its Young Driver policyholders receive £120 back in their pockets in the first year of taking out their policy.

The Young Driver Insurance policy works by rewarding policyholders for safe driving and the Co-operative Insurance was one of the first mainstream insurance providers to bring telematics to the mainstream market. It prices discounts based on four factors:

• Speed – keeping within limits
• Acceleration and Breaking – not accelerating/ breaking suddenly
• Cornering – driving in a controlled manner around corners
• Time of driving – certain times can be risker to drive at

Conversely, policyholders who drive badly may also see an increase in their premium policy price.

Steve Kerrigan, Head of Telematics at the Co-op Insurance said: “Young drivers can be labelled as being bad drivers, often unfairly. Our telematics-based product has enabled us to give back over £7.4 million to customers since 2011, who have proved that they are safe drivers.

“Keeping communities safe is one of our priorities. By offering a policy which aims to improve road safety as a result of incentivising good driving behaviours and giving driving tips to people who need driving improvement is a positive step to achieve this.”

February 24th, 2016 | Andrew Hagger | News

Mortgage and re-mortgage customers in their 40s are being caught by age restrictions, new research for the Nottingham Building Society warns.

Its study among mortgage brokers shows nearly two out of five have seen a rise in customers over 40 struggling to be approved for mortgages or remortgages.

And the research shows the problems will continue this year – more than a third (34%) expect the number of over-40s struggling to secure home loan deals will rise again in 2016.

The scale of the issue is underlined by research among customers who have been turned down for mortgages or remortgages in the past two years – around 17% of those who have been rejected say their age was a major reason. That rises to 21% among those aged 45 to 54.

Around one in four of those whose age counted against them say they were not able to borrow for long enough while the rest were turned away because either they or their partner were too old.

Older borrowers are suffering as lenders need to be able to prove customers have the income to afford loans which is not certain once they retire meaning people in their 40s wanting to borrow past retirement can struggle to get a mortgage.

Mortgage lenders are working hard to ease the rules which count against older borrowers – the Council of Mortgage Lenders and Building Societies Association are both working with members to make it easier and some lenders have increased their maximum ages.

Ian Gibbons, Senior Mortgage Broking Manager at Nottingham Mortgage Services (part of The Nottingham), said: “It is baffling for people in their early 40s to be told they are too old to have a mortgage and particularly so when the average age of first-time buyers is rising which means some could even be first-time buyers.

“There is no doubt creditworthy customers are being rejected and some are facing restrictions on their choice of mortgages.

February 24th, 2016 | Andrew Hagger | News

New research to support the launch of Sainsbury’s Bank’s  ‘Family Finance Report’ this week shows that, despite the emergence of green economic shoots and low inflation, the majority of people in the UK are not overly optimistic about their finances when compared to last year.

Despite wages increasing by around 2% in the past 12 months and consumer price inflation averaging 0.02% last year, the findings reveal that almost half of those interviewed claim they feel no better about their money matters this year than they did in 2015 while a quarter say they feel less confident.

73% of us admit to having some financial concerns whilst for 26% of people, their biggest money worry is the cost of living, and that’s not surprising with higher Council Tax bills on the way and the additional Insurance Premium Tax taking a further bite out of household budgets.

Nearly one in ten people said their main financial concern was not receiving a good enough return on their savings – I’m surprised that figure isn’t much higher considering the appalling rates currently on offer.

As if these concerns weren’t enough we’ve now got the possibility of the UK voting to leave Europe this summer and the potential financial implications that may bring.

February 24th, 2016 | Andrew Hagger | News

Two months into the New Year and it feels like deja vu with the credit card companies’ hell bent on pushing interest free cards.

One of the downsides of this strategy is that that some of the more versatile credit cards offering a range of flexible features are often overlooked.

If you’re considering a new credit card, all the adverts continue to try to lure you towards the longest interest free plastic on the market.

For some people these won’t be a good fit and they may be better off with a low rate credit card, with no introductory gimmicks – plastic they can they can stick with for years to come.

While promotional switching offers can cut your interest costs if used wisely, there are too many people simply ‘treading water’ and continually shifting their debt just to keep repayments manageable.

It’s now possible to get up to 40 months on free credit on balance transfers, but watch out for the balance transfer fee – hitting almost 3% in some cases.

Another issue often overlooked in the rush to sign up for an interest free deal is the ‘go to’ rates when the introductory deal finishes. In some cases these are touching 20% APR.

If you’re financially disciplined enough to take advantage of the 0% period and repay your balance at minimal cost that’s fine, but if you’re looking for a card to remain in your wallet for the longer term, there are some alternatives with a wider range of attributes and benefits and a more favourable long term interest rate.

No gimmick low rate cards such as Lloyds Bank Platinum at 6.4% APR, AA Low Rate card at 6.9% APR or Tesco Club card charging 7.8% APR all make a good longer term companion for your wallet.

Other examples of excellent all round cards include the MBNA Everyday Plus at 7.4% APR with no charges for using abroad or ATM charges and the Nationwide Building Society Select at 15.9% APR with 0.5% cashback and commission free purchases overseas (for Nationwide current account customers).

The Halifax Clarity credit card, a long standing holidaymakers favourite is worth a look too, although less of a standout deal since it increased its rate to 18.9% APR in line with the vast majority of cards.

When you weigh up the sum of the component parts of these cards, they deserve to be highlighted in the shop window rather than hidden away under the counter.

February 16th, 2016 | Andrew Hagger | News

Home insurance premiums have climbed sharply in the past three months as tax rises take effect, new analysis from insurance market research experts Consumer Intelligence shows.

Average premiums have risen 3.1% to £119 in the past three months following the introduction of Insurance Premium Tax increases in November.

Consumer Intelligence’s analysis – which is used by the Government’s Office of National Statistics to calculate official inflation statistics – found the tax rise is being passed directly to homeowners reversing years of falling premiums.

Recent storm and flood damage could exceed £1.5 billion, according to analysis, and will increase the pressure on premiums.

Consumer Intelligence’s research monitors the five most competitive home policies across price comparison websites and direct insurers and underlines the need for homeowners to review their premium at their next renewal.

Homeowners aged 50-plus are paying slightly less on average than younger customers – average premiums for over-50s are £110 compared with £127 for the under-50s.

But price rises are relatively similar in the past three months – for the over-50s premiums are up 2.9% compared with 3.3% for the under-50s.

Home insurance customers can take some comfort from recent price falls – average premiums are still slightly below the rate of a year ago but only by 0.8%. However they are 9.5% lower than in 2014.

February 16th, 2016 | Andrew Hagger | News

New research reveals that 1.2 million Millennials (18-34) have ignored a payment such as the last month of a phone contract or a household bill. Nearly a third (31%) of this age group has been rejected for a financial product such as a mortgage or store card because they have defaulted on a repayment.

This is despite the average outstanding amount being less than £8. Defaulting on any payment – big or small – can cause difficulties in the future because of the negative impact it has on someone’s credit score.

Phone contracts are the most readily ignored bills. 16% of young people admit to ignoring the last payment of a contract, this figure is three times higher than the proportion of older people who admitted they had done this.

A lack of knowledge could be the route of the issue: 62% of the UK population don’t feel informed about the repercussions of missing a payment and this number rises to 70% amongst the Millennial generation. The most common reason people gave for missing a payment was that they already thought the final payment had been paid (27%) but almost a quarter thought it didn’t matter.

CEO and founder Justin Basini comments, “Missing a minor payment may seem harmless at the time, but it can come back to haunt you.

The consequences of defaulting on a payment – even it’s just a small amount – can be huge. A lender will take into account the information in your credit report before giving you a mortgage or a credit card. This isn’t just about how much you owe or earn, but more importantly how you have managed your credit in the past.

Unless it’s a bank or credit card firm, organisations aren’t legally required to let you know you’re about to default on a payment. The onus is therefore on us to keep track of what we owe to whom. If you’re not sure whether there could be an unpaid bill lingering, arm yourself against the disproportionate punishment of being rejected for credit by checking your credit report online for free.”

February 15th, 2016 | Andrew Hagger | News

New research from Amigo Loans reveals over one million sole traders have been given the cold shoulder by mainstream lenders, with nearly a third of one man bands admitting they’ve been turned down for a loan.

Of those who have been refused, a quarter think they would have a better chance seeking funding by asking a stranger on the street, with a quarter preferring to look down the back of the sofa!

The survey of 500 sole traders found that when refused credit, entrepreneurs are turning to their nearest and dearest for financial support. Two fifths (40%) turn to family and almost a third (30%) look to their friends to give them a helping hand.

Despite support from loved ones, a worrying two fifths (42%) of business entrepreneurs are also dipping into their overdraft to fund their aspirations. This comes despite the fact authorised overdraft fees have hit record highs this summer as the banks introduce new usage fees. These fees have forced the cost of using an overdraft up to six times that in 2009 with the typical cost of an authorised overdraft now £140 a year. If the overdraft isn’t authorised this can be substantially higher with charges of up to £35 for each payment made.

However, what is perhaps more alarming is that over 1 in 20 business start-ups which have been turned down by mainstream lenders didn’t look anywhere else to support with funding. This means nearly 73,000 potential businesses may have simply faded away because they haven’t been able to access the funding they needed.

Glen Crawford, CEO of Amigo Loans, commented: “It’s a disgrace that the people who keep our society operating, the mobile hairdressers, the wedding photographers, cleaners, cafe owners, mechanics, driving instructors and a whole host of other ambitious sole traders are being alienated by banks –the bankers have forgotten why they exist.”

“Whilst some responses may be tongue in cheek, our findings outline the clear lack of confidence people have in high street lenders. At Amigo we have the flexibility to lend to microbusinesses because of the way we lend. If a borrower’s family and friends trust them and they can afford the repayments, we’ll support any business. We have already helped over 6000 businesses across the UK”