March 31st, 2025 | Andrew Hagger | News

A new study has found that less than half (48%) of drivers are aware of April’s increase in first-year rates for Vehicle Excise Duty (VED) – despite facing potentially substantial increases. As a result, drivers buying new cars this year might not fully understand the costs involved, meaning they could be choosing vehicles they can’t afford without realising it.

VED is the yearly tax on all vehicles that use public roads, and can vary depending on their car’s environmental impact and when it was first registered. Drivers who buy a brand new car usually have to pay an additional “first-year rate” for the first 12 months they own the vehicle.

First-year rates significantly increase from the start of April, with the cost of some tax bands doubling. This means drivers who buy a new car are likely to pay much more tax than they are used to.

According to the new research, an estimated 21.2 million drivers are unaware of the changes. If 2024 buying habits continue this year, drivers will buy almost 200,000 new cars without realising the extra tax involved. This is equivalent to an estimated £83.5 million in additional tax payments that drivers won’t have known about.

The statistics come from the latest research by Go.Compare car insurance. The comparison site says drivers who buy a new car between April and September will pay an average of £418 more tax than last year, although the increase could be in the thousands for some buyers.

Women displayed an especially low level of awareness of the change in the survey. Just over a third (39%) of women know about the VED increases, compared to 58% of men, indicating that women might be more likely to make this mistake.

Younger drivers are also less aware of the changes. Around one-quarter (24%) of drivers under 25 said they knew about the rises, compared to roughly a third (34%) of 25 to 34-year-olds, and half (49%) of 40 to 59-year-olds. Older motorists had the highest awareness, with nearly two-thirds (62%) of over 60s stating they knew about them.

The vast majority of drivers, 83%, also stated that they don’t know their car’s CO2 output – a key factor in determining its tax band. Women and younger drivers were also less likely to know this. Around a quarter (26%) of male drivers said they knew their car’s CO2 output, compared to 8% of women. Similarly, only 7% of drivers under 25 said they know this, compared to a fifth of 40 to 59-year-olds.

Tom Banks, car insurance expert at Go.Compare, said: “The increase in first-year rates for VED could mean a substantial tax rise for anyone who decides to buy a new car this year. It’s imperative that drivers are aware of this before they head to the showroom, or they could end up choosing a car that comes with a tax bill that they can’t afford.

“The increases apply to new cars and are based on CO2 output, so if you want to avoid them altogether, buy a ‘nearly new’ car that’s just a few years old instead. Or, if you’re set on a new vehicle, consider a low-emissions car, as that will place you in the cheaper tax bands.

“Otherwise, see if there are any other ways you can reduce your motoring spending to make up for the increased tax costs. For example, comparing car insurance policies might allow you to find a provider that offers the same level of cover for a lower price, and driving more economically could help to reduce your fuel costs.”

To find out more about the rise in first-year rates for VED, go to Go.Compare’s website.

March 28th, 2025 | Andrew Hagger | News

Leeds Building Society estimates that an additional 21% of first-time buyers in England face paying Stamp Duty when a freeze on thresholds is removed next week.

Currently, first-time buyers pay stamp duty on homes costing more than £425,000 but from Tuesday (April 1) that will reduce to £300,000.

The Society has assessed 2024 market-wide mortgage data and projects that an additional 59,400 annual home purchases are projected to become subject to the tax in England, alongside 43,000 purchases where taxes will be higher.

The changes mean that 85% of first-time buyers in London would be subject to the charges, along with 55% in the South East, 49% in the East of England, 30% in the South West, 16% in the West Midlands, 15% in the East Midlands, 13% in the North West, 9% in Yorkshire and the Humber, and 6% in the North East.

Leeds Building Society’s Income Plus mortgage range includes improvements in assessing how much borrowers can afford to repay, resulting in first-time buyers being able to borrow up to £66,000 more on average.

Aspiring homeowners with a minimum household income of £40,000 could be able to borrow up to 5.5 times their earnings, compared to 4.5 times on its standard lending. This means the average first-time buyer could borrow a maximum of £356,000 through Income Plus compared to £290,000 under standard lending.

Matt Bartle, Director of Mortgages Leeds Building Society, said: “We all know the value that having a place to call home can add to our lives. As a mutual, we were set up 150 years ago to help people own their own home and save for their future, creating a sense of belonging in communities across the country. 

“This new analysis highlights the impact of changes to stamp duty will have on aspirational homeowners. We’ll continue to do everything we can to put homeownership within reach of more people, generation after generation.”

Discussing the housing market more broadly, Martin Temple, Economist at Leeds Building Society, said:

“We are seeing activity above the expected level at this time of year, as buyers look to complete on any purchases ahead of the changes to Stamp Duty Land Tax at the beginning of April.

“Although the outlook for the housing market remains broadly positive, with expected reductions in interest rates later this year, these changes represent another barrier for first-time buyers in the most unaffordable parts of the country.”  

March 24th, 2025 | Andrew Hagger | News

A new study has revealed that an estimated 6.6 million Brits now rely on their credit cards to pay everyday bills such as groceries and utilities. In total, 17% said they need their card to afford their bills, with 13% stating that the cost of living crisis is the reason for this. This highlights that a substantial portion of the country now needs additional support with household costs.

The research comes from Go.Compare, which used a combination of survey data and ONS figures to uncover how credit card holders have been coping during the cost of living crisis. In response to the results, the insurance comparison site is now sharing support channels for those in financial difficulty.

Groceries, one of the many expenses which has seen an astronomical increase in the cost of living crisis, is the bill that most have had to put on their credit card. Over half (59%) of those relying more on their card for bills said they need it for their weekly shop.

Many other bills to see a sharp rise, such as utilities, fuel and transport costs, were also among the top expenses now being paid for by credit card. Two-fifths (40%) of those relying on their credit card for their bills are now using it to pay fuel and transport costs – the second highest percentage of the expenses listed on the survey. Similarly, around a quarter (24%) said they use it more for utility bills.

A fraction of these respondents even said they have become reliant on their cards for housing costs. One in 10 stated they use it for rental fees, while one in 20 said they need it for their mortgage repayments. This means 15% of these respondents rely on their credit cards just to keep a roof over their heads.

Expenses that Brits put on their credit card (out of those relying on their card to pay bills)

1. Grocery shopping – 59%

2. Fuel or other transport costs – 40%

3. Holidays – 34%

4. Utilities (inc. gas, electricity and water) – 24%

5. Insurance – 23%

6. TV/music/streaming subscriptions – 19%

7. Mobile phone bill – 14%

8. Council tax – 13%

9. Rent – 10%

10. Broadband – 9%

11. Charity donations – 8%

12. Mortgage repayments – 5%

Just under a quarter (23%) of these respondents said they have started relying on their card to pay for their insurance – the fifth highest percentage on the survey. This suggests that rising bills have impacted Brits’ ability to pay for essential protection.

Matt Sanders, credit card expert at Go.Compare, said: “It can be tempting to cut back on insurance when things get tight, but this can land you in an even worse position in the long run. So, it’s important to explore other options. You might be able to reduce your premiums by removing unnecessary add-ons, comparing policies, or increasing your voluntary excess, although this could cost you more if you claim.

“If you’re struggling to keep up with credit card repayments, your first port of call should be to see if you can get a balance transfer onto a card with a lower APR. They often offer 0% rates for an introductory period, so it’s a good opportunity to clear your debt if you can pay it off before this ends, but they also usually charge a fee for making the transfer. They might also offer to reduce, waive or cancel interest and charges, or pause your payments.

“This means it’ll take longer to pay off and can affect your ability to obtain credit in the future, but it could stop things from piling up. A debt consolidation loan could also help you pay off what you owe, as it can work out cheaper if the loan offers a lower interest rate than your cards. This can also involve up-front costs and could lead to more debt if you can’t pay it off.

“All of these options have their pros and cons, so you need to weigh up which one is best for you. If you’re worried about your credit card repayments, agencies like StepChange and the National Debt Helpline provide support with things like budget management plans. Citizens Advice can also help you find support if you are struggling with day-to-day living costs.”

Some residents have turned to their cards so that they can keep enjoying leisure activities. Just over a third (34%) of those relying on their card to pay their bills said they are using it to fund their holidays. Roughly a fifth are using it for entertainment subscriptions, like TV and music streaming services.

This can be problematic if it results in additional charges, but can allow users to claim rewards like points and cashback, making it a good option if there are no extra fees and the balance is paid off on time.

More information on the impact of the cost of living crisis on credit card holders can be found on Go.Compare’s website.

March 21st, 2025 | Andrew Hagger | News

March 18th, 2025 | Andrew Hagger | News

From March 31st many broadband providers hike their prices. If you’re already out of
contract or will be before that date, now is the time to check. MyVoucherCodes tech and
money-saving expert, Nathan Walters, says “Many of our household bills will rise in April,
and not overpaying for your broadband will make a significant impact on your outgoings. It’s
worth taking the time to research now before the price increases come into force”

Nathan shares his tips for ensuring you get the cheapest broadband deal for your needs –
from haggling with broadband suppliers to checking your broadband speed.
Which Broadband suppliers are increasing prices?

● BT & Plusnet (31/03/25)
● Now (01/04/25)
● O2 (01/04/25)
● Sky (01/04/25)
● Talk Talk (01/04/25)
● Three (01/04/25)
● Virgin Media (01/04/25)
● Vodafone (01/04/25)

Switch at the end of your contract: Broadband providers love to lure new customers with
fantastic introductory offers, but these often increase once your minimum contract ends.
Note your end date and shop around to see if you could get a better deal elsewhere before
you switch to an expensive, standard tariff.

Haggle for a better deal: It may sound uncomfortable, but being bold and calling your
current provider could score you a discount. Mention competing offers you’ve seen
elsewhere, and you might be surprised how quickly they’re willing to match or beat a rival’s
price to keep you as a customer.

Slash costs with a social tariff: If you’re on specific benefits (like Universal Credit), certain
providers offer special tariffs that can significantly cut down your broadband bill. These deals
aren’t advertised as loudly as standard packages, so do some detective work or call
customer services to see if you qualify.

Check your speed requirements: Some people pay for lightning-fast speeds they barely
use. You might not need a top-tier package if you mainly browse, stream on one or two
devices, and send emails. Downshifting to a slightly slower speed can shave pounds off your
monthly bill without drastically affecting your internet experience.

Bundle with other services: Sometimes, combining broadband with TV, phone, or even
mobile services under one provider can unlock discounts. For example, you can save money
on your home broadband if you have an EE mobile contract. However, always do the
maths—adding extra services you don’t need just for a “deal” can cost more in the long run.
Look out for cashback offers. Many broadband deals come bundled with cashback or gift
vouchers when you sign up through specific comparison sites. While jumping at the biggest
upfront freebie is tempting, ensure the monthly costs and contract fees make financial sense
overall.

Use comparison sites: A little online research can save you serious money. Tools like
MoneySuperMarket, Uswitch, and Compare the Market let you filter by speed, cost, and
contract length, making it easier to spot the best bargain. Remember to check reviews to
ensure the service quality is decent.

Upgrade your router instead of your plan: Are you struggling with sluggish speeds?
Sometimes, it’s your old router or Wi-Fi extender rather than your broadband connection.
Upgrading hardware or moving your router to a central spot can solve patchy signals. No
pricey contract changes are required.

Watch out for hidden fees: Look beyond the headline price when switching or signing a
new deal. Activation fees, line rental costs, and router charges can creep up. Factor these in
before jumping on what appears to be a too-good-to-be-true monthly rate.

Avoid rolling monthly plans. Rolling monthly or no-contract plans can be handy if you
need short-term broadband, but they’re often pricier in the long run. Locking in for a year or
18 months usually brings the best monthly rates. Just keep track of when the deal ends so
you can re-negotiate or switch.

March 18th, 2025 | Andrew Hagger | News

Santander has today launched a new range of Fixed Rate ISA products, with a £50 voucher offer for customers transferring in £10,000 or more from a non-Santander ISA. 

The new range of competitive ISAs, which can be opened online or in branch, are:

• 1 Year Fixed-Rate ISA – 4.15% AER/tax-free (fixed)
• 18 Month Fixed-Rate ISA – 4.05% AER/tax-free (fixed)
• 2 Year Fixed-Rate ISA – 4.00% AER/tax-free (fixed)

The bank is also offering a £50 cashback e-voucher to customers who transfer an ISA of at least £10,000 from another provider into a Santander Fixed Rate ISA. The voucher can be spent at over 100 outlets, including restaurants, supermarkets and clothes stores. A full list of retailers can be found here. Customers will receive their code to redeem their voucher automatically by email within 30 days of the completed transfer.

Saket Jasoria, Head of Savings at Santander UK, said: “With the new tax year just around the corner, we know many will be considering how they can make their money work harder for them. That’s why we’re pleased to launch our new Fixed Rate ISAs giving customers tax-free competitive returns, along with our £50 e-voucher cashback offer, as an added treat this Spring.”

Santander is part of the industry ISA transfer scheme and has dedicated teams in place to process customers’ ISA transfer requests, making it quick and easy for customers to transfer an ISA from another provider to Santander.

More information about Santander’s fixed rate ISAs and savings product can be found on the Santander website and in branch.

March 18th, 2025 | Andrew Hagger | News

A new study has found that 2.9 million UK drivers pay more for their Vehicle Excise Duty (also called car tax) than necessary, simply because they’re unaware of a 5% surcharge applied to their payments.

Drivers who choose to spread the cost of their car tax through monthly direct debit instalments have to pay this 5% surcharge, meaning they end up paying more overall.

Close to two-fifths (39%) of motorists admit they didn’t know there was an extra cost for paying in this way, according to the research by Go.Compare Car Insurance. Among all vehicle owners who pay in monthly instalments, this amounts to 5.6 million who are unaware of the extra fee included in their tax.

For drivers paying in this way, the 5% fee quickly adds up. In total, UK motorists pay an additional £56.3 million a year without realising. Almost half (49%) of these drivers said they would pay differently if they knew about the surcharge. This means 2.9 million paid more than they needed to because they were unaware of the 5% extra fee, equating to £27.5 million that could’ve been saved.

To put the impact into perspective, a vehicle owner who pays £1,000 a year in car tax by monthly instalments would pay an extra £50 each year in surcharges. Over five years, that’s £250 lost on unnecessary fees. Those with higher vehicle tax rates could be wasting even more.

The surcharge is added automatically to vehicle tax that is paid monthly or every six months, but is not included on annual payments. Because the charge is included in the instalment plan, many motorists don’t notice they’re paying more than necessary.

Despite this extra cost, many people opt for direct debit simply because it’s convenient. But for those who can afford to pay in full, switching to a single annual payment at renewal is a simple way to avoid unnecessary charges – without needing to change their car, mileage, or tax band.

Tom Banks, car insurance expert at Go.Compare, said: “Setting up a direct debit is an easy way to pay for your yearly car tax, but many drivers don’t realise they’re forking out extra for that convenience. For some vehicle owners, paying monthly also makes the most sense as it allows you to spread the cost, but those who can afford to pay in full should consider switching to a one-off annual payment to save on the surcharge.

“Even if monthly instalments are the best option for your budget, it’s important to know exactly what you’re paying – and how much more it’s costing you over time. Checking your payment method before your next renewal could be a simple way to avoid unnecessary costs and make sure you’re getting the best deal.

“While it’s not possible to reclaim past surcharges you’ve paid, you can avoid any future added fees by switching to a single annual payment when your next renewal is due.”

Find more information about car tax costs on the Go.Compare website.

March 16th, 2025 | Andrew Hagger | News

The end of the financial year is a month away, and Hodge is offering their top tips for getting the most out of your ISA.

As the end of the tax year approaches, now is the perfect time to make sure you’re maximising your Individual Savings Account (ISA) allowance.

These tips come after a significant increase in searches for ISAs, which saw an increase of 100% in February according to Google Search Data.

With just a few weeks left, Christie Cook, Managing Director of Retail at Hodge is here to offer expert tips to ensure you’re making the most of your ISA and taking full advantage of tax-free savings opportunities.

• Use Your Full Allowance

“The annual ISA allowance for the 2024/2025 tax year is £20,000. If you haven’t already reached this limit, now is the time to top up your account.

Whether it’s through a Cash ISA, Stocks & Shares ISA, or Innovative Finance ISA, ensuring you fully use this allowance could result in significant tax savings.”

• Consider Moving Funds

“Following the previous tip about maximising your savings by using your full ISA allowance, if you’ve been holding cash in a non-ISA account, consider transferring it to your ISA to benefit from tax-free interest or capital gains.

This will allow you to gain more interest on the money you’ve been storing, by reaping the rewards of tax-free interest.”

• Don’t Forget About the Benefits of a Stocks & Shares ISA

“For those with a longer investment horizon, a Stocks & Shares ISA could provide higher growth potential compared to a traditional Cash ISA. By investing within an ISA, any returns are tax-free, giving you the opportunity to build wealth over time without worrying about capital gains tax.

Additionally, the tax-free nature of an ISA allows your investments to grow unhindered, potentially compounding over time. This makes a Stocks & Shares ISA an excellent option for those looking to build wealth over the long run, especially for retirement or other long-term financial goals.”

• Review Your Current ISA Strategy

“It’s always a good idea to review your ISA portfolio before the end of the tax year. Our recommendation is to assess whether your current ISA investments are aligned with your goals and risk tolerance.”

• Plan for Next Year

“If you’re unable to reach your £20,000 limit this year, our tip is to start planning ahead for the following year.

Setting up regular contributions could help you maximise your ISA contributions throughout the next tax year, ensuring consistent growth of your tax-free savings.”

As the end of the tax year approaches, now is the perfect time to review and maximise your ISA contributions. Whether you’re looking to boost your savings in a Cash ISA or explore higher growth potential with a Stocks & Shares ISA, taking action before the deadline can help you make the most of your tax-free allowance.

March 12th, 2025 | Andrew Hagger | News

March 11th, 2025 | Andrew Hagger | News

A new study has estimated that 5.7 million Brits are struggling to keep up with their credit card repayments. Just over one in 10 (14%) credit card holders said they were finding it hard to meet their repayments, meaning millions could be grappling with debts across the country.

The research comes from Go.Compare, which used a combination of survey data and ONS figures to estimate how many credit card holders are struggling with their finances due to the cost of living crisis. In response to the results, the insurance comparison site is now sharing how those in financial difficulty can get support.

Young adults and parents were found to be among those struggling the most with this. Just over a fifth (21%) of credit card holders with kids said they are finding it hard to keep up, compared to only 12% of those not supporting a family.

Similarly, around a fifth (22%) of those aged 25 to 34 said they’ve been having difficulty meeting their repayments – the highest proportion of any age group. A similar percentage (19%) of 35 to 54s said the same thing, while only one in 10 others reported having this issue.

Some credit card holders are not struggling to keep on top of their bills completely, but have had to reduce their repayments. One-fifth (19%) reported that they have reduced their repayments because of the cost of living crisis, meaning it’s likely taking Brits a lot longer to pay off what they owe. It could also result in increased debt and a poorer credit score if they drop below the minimum repayments.

The analysis also revealed that card holders across all income levels have had to trim their repayments, not just those on low incomes. Just under a quarter (23%) of those on lower or middle incomes have had to make this reduction, only slightly more than those on a higher income – 18% of which have had to cut back.

Once again, parents were among those most likely to be doing this. Close to a third (30%) of those with kids have done so, in comparison to just 17% of those without kids.

Middle-aged credit card holders and those in their late 20s are also some of the most affected. Just under a quarter (24%) aged 25 to 64 have reduced their repayments, compared to roughly a fifth (19%) of under 25s and just 8% of over 64s. Those in their late 20s and early 30s have been especially affected, with 30% stating that they have cut back on their repayments.

Matt Sanders, credit card expert at Go.Compare, said: “Credit card debt can build up quickly, but there are plenty of things you can do to get back on top of it. So, as difficult as it may be, try not to panic. For instance, your provider could offer you an affordable ‘repayment plan’, so don’t be afraid to reach out. Just keep in mind that they may stop your card if you don’t agree to the plan.

“Your first port of call should be to see if you can get a balance transfer onto a card with a lower APR. They often offer 0% rates for an introductory period, so it’s a good opportunity to clear your debt if you can pay it off before this ends, although they also usually charge a fee for making the transfer. They might also offer to reduce, waive or cancel interest and charges, or pause your payments.

“This means it’ll take longer to pay off and can affect your ability to obtain credit in the future, but it could stop things from piling up. A debt consolidation loan could also help you pay off what you owe, as it can work out cheaper if the loan offers a lower interest rate than your cards. This can also involve up-front costs and could lead to more debt if you can’t pay it off.

“All of these options have their pros and cons, so you need to weigh up which one is best for you. If you’re worried about your credit card repayments, agencies like StepChange and the National Debt Helpline provide support with things like budget management plans. Citizens Advice can also help you find support if you are struggling with day-to-day living costs.”

More information on the cost of living crisis’ impact on credit card holders can be found on Go.Compare’s website.