March 12th, 2024 | Andrew Hagger | News

With holiday bookings for Easter and summer sun holidays in full swing, leading travel insurance provider Multitrip.com is reminding holidaymakers of the importance of purchasing holiday cover as soon as they book, or “ASAB”, to ensure their coverage begins immediately.

Almost two thirds (63%) of travel insurance policies purchased from Multitrip.com in 2023 were bought less than seven days prior to departure, meaning a significant number of holidaymakers run the risk of not being able to recover the cost of their holiday should they have to cancel their trip.

Jason Whelan, from Multitrip.com, warned: “If you wait until closer to departure to arrange your travel insurance, you run the risk of something happening that could lead you to cancel and losing out on the cost of your trip. That’s why we always urge holidaymakers to take out travel insurance as soon as they book their flight or holiday.

“When arranging your travel insurance, it’s crucial to consider the level of cancellation coverage you require to ensure your trip is protected in case you encounter any obstacles or need to shorten your journey due to an unexpected event like a medical emergency,” he concluded.

Multitrip.com offers various tiers to suit all type of travellers, ranging from Essential Travel Insurance from £19.99* with cancellation cover that pays up to £1,000 per insured person, all the way up to the Premier Plus plan that covers up to £5,000, ensuring holidaymakers are prepared for unforeseen circumstances that may arise during your travels.

According to the Multitrip.com Annual Travel Survey^**, meanwhile, 92% of holidaymakers do plan to purchase travel insurance in 2024.

To view policy types and exclusions in full visit, Multitrip.com.

*£19.99 is the online price for Essential European Cover per person under 40 years. Prices excludes £3.95 handling fee.

March 11th, 2024 | Andrew Hagger | News

A recent study has revealed that many used car buyers skip vital checks before making a purchase. In fact, one in ten Brits admitted that they make no checks at all when buying a used car, leaving them unaware of any potential vehicle issues.

The survey, conducted by online car-changing marketplace Carwow, uncovered just how common it is for used car buyers to skip essential checks. Despite being free and crucial in determining a car’s condition and history, 38% said they didn’t consult the vehicle’s logbook (V5C) and 37% didn’t assess the MOT history.

Overall, only 64% of respondents believed they performed the correct checks before buying their used car. This suggests that of those who bought a used car in 2023, more than 2.6 million of them could be inadequately informed about their significant purchase.

Link to chart

While aspects like the bodywork and engine are examined by a significant portion of buyers, safety-related checks like testing brakes and checking tyre tread depth are less commonly performed.

Similarly, only 29% of respondents said they asked about modifications to the vehicle. Missing this type of assessment could lead to potential performance, insurance, or safety issues being overlooked.

Despite the availability of professional services such as HPI checks and independent vehicle inspections, only around a third of respondents used these options. Carwow says that relying solely on personal inspection might not uncover all potential issues, and obtaining a professional opinion can make all the difference.

John Rawlings, Consumer Editor at Carwow, said: “It’s concerning to see so many used car buyers skipping vital checks before making their purchase. The reality is that buying a used car is a significant decision, and overlooking these crucial steps is a huge gamble.

“Moreover, the rise of free online resources has made it easier than ever for buyers to access information about a vehicle’s history and condition before they finalise their purchase, such as our Car Check tool. So, it’s puzzling that so many buyers do not consider these resources.

“Taking the time and effort to conduct proper checks is an investment in peace of mind and financial security. It’s crucial for buyers to take control of the buying process and not leave their decisions to chance.”

For more information on conducting the right checks when buying a used car, visit Carwow’s website.

March 4th, 2024 | Andrew Hagger | News

According to a new study, younger residents might be at a much higher risk of being underinsured for their home contents. Over two-thirds (68%) of under-25s said that they were unfamiliar with the potential pitfalls that could leave their contents underinsured. Only 17% of over-54s said the same, suggesting that younger generations are far more vulnerable to missteps.

The findings come from a recent survey by Go.Compare home insurance, which asked respondents about the issues that could leave them without full protection. It found that a much greater proportion of younger residents lacked awareness of these factors, meaning they might not receive the funds needed to replace their possessions in a worst-case scenario.

Underinsurance, the comparison site explains, occurs when a policy does not provide enough protection to cover everything it needs to. For contents insurance, this can happen when the possessions valuation given on a policy does not match the true value of what someone owns. As a result, a claim would not provide enough funds to replace everything.

According to Go.Compare’s research, only 15% of under-25s know how to calculate an accurate valuation of their possessions, leaving the majority of them at risk of underinsurance. In comparison, around a third (34%) of over-54s said they know how to give an accurate valuation.

Just 15% of under-25s also said the value of their possessions is up-to-date on a contents insurance policy, compared to over half (57%) of over-54s. This suggests that their valuation has a higher risk of being outdated, another issue which could leave them short when making a claim.

A similarly low percentage (14%) of under-25s said they know about single-item limits, meaning many might not have protection for the most high-value items in their homes. More than half (53%) of over 55s were aware of this.

The study also revealed that renters might be more likely to fall foul of these potential pitfalls – despite contents insurance being the main policy they need. The survey found that just under half of renters (47%) were unaware of all three issues, compared to a fifth of homeowners.

Ceri McMillan, home insurance expert at Go.Compare, says: “It’s shocking to see that so many might not have the coverage they need to keep their possessions safe, particularly younger generations and those living in rented accommodation. Millions of pounds are at risk of being lost, highlighting that many of us need to take action to make sure our possessions are properly protected.

“While it might not be the first thing on your mind, it’s critical that you update the value of your contents regularly. Otherwise, you risk being underinsured and might not get the funds you need in a worst-case scenario like a fire, flood or theft. This results in the cruel double-whammy of losing your possessions and having to absorb the financial cost of replacing them.

“A good way of getting into the habit of updating your insurance is to make sure you revalue your possessions whenever your policy renews. You should also consider updating it after you’ve made any big purchases, such as jewellery or tech, or after big occasions like Christmas and birthdays where you might have an influx of new possessions.

“If you do make any big purchases, be wary of single article limits that might be on your, too. For anything you buy that might be worth more than £1,000, double-check that your policy will provide sufficient coverage. You might need to inform your provider about these so that they can be listed individually.

“Many people find it difficult to provide an accurate estimate, but there are ways you can get support with this. Our online contents insurance calculator can help you come to a realistic valuation, so consider trying this if you’re struggling.”

February 28th, 2024 | Andrew Hagger | News

Holiday packages during school breaks can cost an extra £804 on average for a family of four, according to a new study. The research finds that this rises even more during the summer holidays when travel costs increase by an average of 23% – equivalent to an additional £276pp (per person).

By comparing holiday package prices for the upcoming year, Go.Compare reveals just how much extra it’s costing parents to travel during school breaks due to the rules around unauthorised absences.

It’s no secret that travelling during term time is much cheaper than during the school holidays, but the comparison site unveils just how much parents have to fork out to take their little ones abroad.

Term time packages to popular destinations like Spain, Italy and France have average prices starting as low as £289pp. Meanwhile, the lowest average package price during school breaks sits at £398pp – over £100 more per person.

Trips to Greece saw the largest increase in package prices with an additional 28% per person being charged for travel during school breaks. However, the most expensive destination for school break getaways is France with a median price of £1,208pp.

This increase in costs forces families to choose between paying high holiday prices or taking their kids out of school to travel, which could result in a hefty fine. A fifth (20%) of Brits said that they would consider or have taken their children out of school for travel and 38% of these stated that they did this to cut down on expenses.

With fines costing as much as £480 for families of four depending on your local council, parents put a lot at risk by taking their children out of school without authorisation. Only around a tenth of parents who took their children on holiday without permission said they avoided a fine, showing that this might be a more common occurrence than many realise.

Manon Jones, travel insurance expert for Go.Compare, said: “Family travel choices become increasingly daunting during the holiday price surges. The financial contrasts are stark, particularly during the summer holidays.

“It’s no surprise that travel during term time proves to be much cheaper. However, these insights provide a way for families to make the most of the school breaks without breaking the bank. It’s also worth considering the costs that come with travelling outside of just accommodation and flight prices alone.

“Travel insurance is something else to consider, especially as premium prices can vary depending on when you’re travelling as well as with who and the kind of cover you require. Additionally, there will be extra costs added once you arrive at your destination, so consider how much you’ll need to spend on amenities as well as food and local travel.

These considerations can help travellers to prepare and weigh out their options in full before booking.”

Find out how to make the most of travel this year as well as more information about the research on Go.Compare’s website.

February 28th, 2024 | Andrew Hagger | News

Yesterday, the Financial Conduct Authority launched a new campaign, urging customers to compare deals to ensure the best savings rates on their deposits. And to save people time and money, TotallyMoney has crunched the numbers and highlights some of the best and worst places to put their money:

• For the mean average* savings, a poor-value, easy-access savings accounts returns just £201.43 interest per year, compared to £896.03 for one of the best — a difference of £69.60†
• Meanwhile, savvy savers can earn £913.40 with a leading 1 year fixed-rate bond and make £920.35 with the best in market 90 day notice saver†
• Millions could be missing out on the best rates, as 37% of people haven’t switched for five years, while 27% have never switched‡
• In addition, just 52% of savers have switched or plan to switch accounts‡

Below, we continue with tables for various savings amounts in different accounts, and provide commentary from Alastair Douglas and Andrew Hagger.

 Savings: a matter of interest

14 successive Bank of England rate hikes should’ve signalled good times for millions of UK savers, but banks were slow to pass the benefits on to customers, leading to the FCA setting out a sets out 14-point action plan§ on cash savings last summer, and following it up with a £600k campaign‡ to encourage savers to switch accounts earlier this week.

And while the cost of living crisis has meant 56% of adults have stopped saving, lowered their amounts, or used their deposits to meet their daily expenses, 37.1 million (70%) still have a savings account of some type. The majority (54%) of these are held with savings accounts, building societies or NS&Is, 28% in cash ISAs, and 26% in premium bonds¶.

However, 37% of savers haven’t switched for five years, and 27% have never switched, while just 52% of savers have switched, or plan to switch accounts#.

The tables below compare a variety of accounts, and the amount of interest paid out on various levels of deposits, including the mean average held in a UK savings account of £17,365.

Both the Barclays EveryDay Saver and Easy Access Cash ISA pay a measly 1.66% on savings below £10k, and even less (1.16% and 1.21%) on anything over. For the mean average balance, this means earnings of £201.43, compared to £896.43 on the market-leading easy access Beehive Money saver, paying 5.16%.

For those looking to get a bit more for their money, the SmartSave 1 year fixed rate bond pays £913.40 interest on the average deposit — and if that seems like too long a time to lock away your money, there’s the StreamBank 90 Day Notice Saver, paying £920.35.

 Alastair Douglas, CEO of TotallyMoney comments:

“In recent months, the UK’s biggest banks have banked billions of pounds and recorded record profits from charging high rates on debt while paying low interest on savings. And with inflation at 4% — still double the target rate — some are paying as low as 1.16%, meaning some deposits are losing value every single day.

“But millions of customers unwittingly think their banks are doing right by them, and a quarter haven’t switched accounts because they trust their bank. But loyalty doesn’t pay, and if you’re one of the 10 million people who’ve never moved their money, then the chances are your bank will have been profiting from paying you a pittance. So work out which savings option works best for you, and switch accounts to a provider who’ll help your money grow.

“While the regulator is right to campaign for people’s money to work harder, they should be pushing banks, not people to change. The role of the Consumer Duty is to set higher and clearer standards of consumer protection across financial services, requiring firms to put their customers’ needs first. Not vice versa.”

February 27th, 2024 | Andrew Hagger | News

As inflation has slowed and expectations of the Bank of England’s base rate have risen, mortgage lenders have slashed APRs in a bid to grab the headlines and attention of would-be borrowers.

This week, borrowers can lock in rates as low as 4.63% for a 75% LTV two-year fixed rate deal. However, often these eye-catching offers only mention product fees (of c. £1,000) in the small print.

Fees become more of an issue with a 2-year fix compared with a 5-year fix, when the cost is spread across 60 months. They will also add up over time with customers locking in back to back short term deals, and when they choose to pay the fees over the lifetime of the mortgage (as they will accrue interest) instead of paying them up front..

While a low-rate high fee deal can work for larger mortgages (the table below shows Londoners could save £81 over two years), they’re often more expensive for homeowners borrowing smaller amounts (for example, an extra £639 for those in the North East).

The above table compares the cheapest two-year (Halifax 4.63% plus £999 product fee), and the cheapest two year fee-free fixed rate (Lloyds 4.84%) deals. And it shows that for all regions bar London, the cheapest two-year deal is more expensive than the cheapest fee-free mortgage offer.

 Alastair Douglas, CEO of TotallyMoney comments:

“Over the past three years, more than a third of people taking out a mortgage or changing to a new rate decided not to use a broker or advisor, and instead found it themselves. And this figure could rise, as 1.5 million cheap mortgage deals come to an end this year, and people look to cut costs as they’re faced with higher rates and the increased cost of living.

“The worry is that without expert advice, some might be distracted by the eye-catching headline rates, without having a real understanding of their cost over time. Costs which could continue to grow as more than half of customers lock in short term two year deals.

“Back in 2022, the FCA introduced new rules for overdrafts — removing fees and charges, so banks could only charge a flat rate. In simplifying overdrafts and making them easier to understand, the FCA estimates that customers are saving between £473 million and £525 million per year§.

“And with a mortgage being a far bigger commitment, we need to see similar action, making them simpler to understand and compare, while offering fair value and delivering better customer outcomes. That way people can make their financial future as safe as houses.”

 Andrew Hagger, founder of Moneycomms adds:

“The mortgage market is a potential minefield for would-be borrowers, with thousands of products and different rate and fee combinations — if you don’t use the services of an independent broker, you can easily come unstuck.

“The best ‘rate only’ or rate plus fee combination isn’t a straightforward choice and you’ll need an expert number cruncher to make sure you get the cheapest deal for your circumstances.

“Your mortgage is the biggest financial transaction that you’re likely to make in your lifetime, so don’t go in blind otherwise you could end up paying way more than you need to in repayments.”

February 22nd, 2024 | Andrew Hagger | News

A new study has revealed that a staggering £276 billion worth of possessions are uninsured in the UK. The research estimated that the total value of the UK’s contents is a jaw-dropping £827 billion, but said around 9.3 million households do not have any contents insurance. As a result, it’s likely that only a few of these belongings are properly covered, and could disappear should the worst happen.

The calculations, produced by Go.Compare home insurance, come from census data on the number of residential properties in the UK and FCA statistics on the number of contents insurance policies in place. Using these figures, the comparison site estimated that billions’ worth of our belongings are at risk of being lost.

The research also found that many of those who are insured do not have the right amount of coverage. Approximately 5.6 million homes in the UK are underinsured for their contents, meaning that millions will not receive the funds they’d need to repair or replace their possessions – even if they claim.

The comparison site says a possible reason for this is that many people might be falling foul of insurance pitfalls. Less than a quarter know how to calculate an accurate valuation of their possessions, according to the report, meaning 76% are at risk of having insufficient coverage from their policy.

Similarly, only 43% said the value of their possessions is up-to-date on a contents insurance policy, and just 39% said they know that contents insurance policies often have a single-item limit. Overall, a third of respondents said they did not know about any of these three issues – all of which could lead to underinsurance.

Ceri McMillan, home insurance expert at Go.Compare, says: “It’s shocking to see that so many might not have the coverage they need to keep their possessions safe. Millions of pounds are at risk of being lost, highlighting that many of us need to take action to make sure our possessions are properly protected.

“While it might not be the first thing on your mind, it’s critical that you update the value of your home’s contents regularly. Otherwise, you risk being underinsured and might not get the funds you need in a worst-case scenario like a fire, flood or theft. This results in the cruel double-whammy of losing your possessions and having to absorb the financial cost of replacing them.

“A good way of getting into the habit of updating your insurance is to make sure you revalue your possessions whenever your policy renews. You should also consider updating it after you’ve made any big purchases, such as jewellery or tech, or after big occasions like Christmas and birthdays where you might have an influx of new possessions.

“If you do make any big purchases, be wary of single article limits that might be on your policy, too. For anything you buy that might be worth more than £1,000, double-check your policy will provide sufficient coverage. You might need to inform your provider about these so they can be listed individually.

“Many people find it difficult to provide an accurate estimate, but there are ways you can get support with this. Our online contents insurance calculator can help you come to a realistic valuation, so consider trying this if you’re struggling.”

More information can be found on Go.Compare’s website.

February 21st, 2024 | Andrew Hagger | News

American Express has launched its first-ever limited time offer on the Platinum Cashback Everyday Credit Card, offering new Cardmembers 5% cashback up to an increased £125, over an extended five month welcome period.

This is £25 more than the usual £100 limit on the 5% introductory cashback rate, and runs over an extended five month period versus the usual three months, giving Cardmembers more time and opportunity to benefit from the 5% rate. Customers must apply for the Card between 21 February and 9 April, 2024 to receive the offer.

Following the extended 5% cashback period, Cardmembers can then earn up to 1% cashback, as usual. They receive 0.5% cashback on spend up to £10,000 and 1% cashback on spend over £10,000, each Card membership year. With no annual fee, there is no cap on how much cashback Cardmembers could earn from their spending each year.

On top of this, Cardmembers can continue to earn up to £150 additional cashback through referring a friend who is approved (£20 for each successful referral).

Dave Edwards, Vice President, American Express, commented: “Recent research in our latest Amex Trendex Report showed that 45% of UK adults are factoring in personal finance when making resolutions for the year ahead, so we know many of us are embracing the early months to look at ways we can get more from our spending. This limited time offer will provide new Platinum Cashback Everyday Cardmembers with a chance to kick-off the year positively, by earning boosted cashback on every purchase they make.”

American Express^® Platinum Cashback Everyday Credit Card benefits

The Platinum Cashback Everyday Card comes with a host of benefits beyond purely cashback. With Amex^® Experiences, Cardmembers enjoy exclusive access to some of the most sought after sports, music and theatre events before tickets go on general sale. Alongside this, Cardmembers can make the most of Amex Offers; discounts from a range of popular dining, entertainment, retail and travel brands.

By adding family members or partners to their Account, Cardmembers can earn cashback even faster. Platinum Cashback Everyday Credit Cardmembers are entitled to up to 5 complimentary Supplementary Cards (subject to approval), with spend on all Cards earning cashback.

Full terms and conditions apply. 18+. Subject to status. For more information please visit https://www.americanexpress.com/en-gb/credit-cards/platinum-cashback-everyday-credit-card/

The American Express Platinum Cashback Everyday Credit Card has a Representative APR 31.0% Variable.

February 19th, 2024 | Andrew Hagger | News

A new study by Carwow has found just how severely mileage impacts the value of used cars. The study reveals car valuations can drop by a staggering 27% once they tip over the 60,000-mile mark. As a result, owners looking to sell are now being advised to do so before their vehicle hits this 60k mileage milestone.

Carwow’s research also reveals that 42% of people want to sell their car as quickly as possible once they’ve made the decision to change vehicles. However, delaying the move to sell may prove costly for consumers once the vehicle has reached higher mileage.

How much value (£) a car loses per 10,000 miles:

Chart image link

The graph above highlights three points where the value lost increases significantly. These sit at 30,000, 60,000, and 110,000 miles.

The most value is lost when cars surpass 60,000 miles, dropping by an average of 27% compared to their value at 50,000 miles. This could be because the industry standard car warranty lasts for three years, or until a car reaches 60,000 miles, whichever is sooner. Cars that have clocked over six figures will then see a further drop of 24% – an average loss of £945 when hitting 110,000 miles.

Carwow’s data also shows that cars with between 100,000 and 150,000 miles on the clock could fetch an average valuation of £3,259, yet owners run the risk of much lower valuations if they rack up more than 150,000 miles.

The loss in value per mileage bracket shows that a timely sale could save car owners from a sizable drop in valuation prices, showing the importance of keeping a close eye on mileage.

Paul Barker, Managing Editor at Carwow, said: “Our data highlights just how crucial it is for car owners to act quickly. Waiting around to sell could result in a substantial drop in valuation price, and owners selling at the right time becomes key to get the best valuation for their car.

“Of course, there are many factors that can affect the value of a car, such as the model and any modifications that have been made. However, mileage is one of the key factors that affect a car’s value and understanding just how much will help car owners in their decision-making.

“With a considerable proportion of sellers looking to sell their cars as soon as possible and a notable decline in their valuations, it’s crucial for owners to weigh their options and consider making the most of the current used car market before further depreciation takes its toll.”

February 14th, 2024 | Andrew Hagger | News

M&S Travel Money insight reveals the value of the pound has increased against nine of the top ten currency destinations over the last 12 months, meaning families heading away for some winter sun may see their travel money go that little bit further, compared to the same time last year.

While sterling has gained ten percent or more on half of the destinations in the top ten, the Eurozone remains holidaymakers’ top currency destination, despite a smaller sterling gain of three per cent on last year.

For those looking to travel further afield, America remains the second most popular currency destination, with UK holidaymakers benefitting from the pound also increasing three per cent against the US dollar.

Barbados has dropped out of the top ten currency destinations for Brits heading abroad this February, compared to the same time last year, with Switzerland moving into the top ten currency destination, at tenth place, despite the Swiss Franc gaining three per cent on the pound.

The pound has seen the biggest movement against the long-haul destinations in the top ten, compared to the same time last year, with sterling gaining 10 percent on the Australian Dollar, the third most popular currency destination, and 13 per cent on the Thai Baht, the fourth most popular currency destination.

Sterling movements against M&S Travel Money’s top ten currency destinations:

Nic Moran, M&S Travel Money, said: “With Sterling gaining on many of our most popular currencies, holidaymakers looking for some winter sun should consider the total cost of their holiday, including exchange rates and local costs, to ensure they’re making their holiday budget stretch even further.”

Nic’s top travel money tips:

• Plan spending money early: Get your spending money organised ahead of time; order your currency online, or visit a high street bureau de change, to secure a rate in advance – and travel with both local currency and a credit card, to ensure you’re covered for all eventualities.

• Don’t leave yourself short when it comes to currency: Ensure you have enough cash for snacks, taxis and tipping, ATMs may not always be readily available.
• Consider local costs when budgeting: ensure you factor in the cost of things like meals, shopping and tipping; sterling gains on some destinations can mean your holiday budget goes further on arrival

The M&S in-store travel money bureaux, alongside its euro and dollar Click & Collect travel money service, means an M&S currency service is available in more than 450 M&S stores. The service offers a Click & Collect facility, so customers can order using their Smartphone or tablet – whether at home or in-store – and collect in as little as 15 minutes.

Top ten currencies 2024 YTD