September 20th, 2022 | Andrew Hagger | News

One in three mortgage customers in the UK say that rising interest rates mean they cannot afford their repayments, new research commissioned by Butterfield Mortgages has found. 

The independent survey of 2,000 UK adults found that a third (33%) of mortgage holders believe the interest rate hikes over the past year have made their mortgage repayments unaffordable. Among younger mortgage customers (18-34), the figure rises to 48%.

Since December 2021, the Bank of England has made six consecutive hikes to interest rates, with the base rate rising from 0.1% to 1.75% in the past nine months. On Thursday (22 September), Monetary Policy Committee is expected to increase rates by 0.75 percentage points to 2.5%.

Butterfield Mortgages’ research showed that rising interest rates top many mortgage customers’ financial concerns – 44% said they are more worried about rates than inflation. A similar number (42%) said they are considering switching to a different mortgage provider offering a longer fixed-term mortgage.

Over half of UK mortgage customers (53%) feel locked in with their current mortgage provider, while more than a quarter (27%) are actively shopping around for a new mortgage.

The study also uncovered a desire for greater support from lenders to help navigate the current economic landscape. Less than half (45%) of respondents believe their mortgage provider has been proactive in providing guidance or communication about the implications of rising interest rates.

Alpa Bhakta, CEO of Butterfield Mortgages, said: “Borrowers are facing sharp shifts in the economic landscape. Our research has shown the extent to which six consecutive interest rate hikes by the Bank of England have impacted mortgage repayments and people’s wider financial concerns.  

“As lenders, we must do everything we can to help mortgage customers navigate the best possible financial path through these mounting challenges. This includes taking proactive steps towards anticipating borrowers’ evolving needs and offering greater flexibility with long-term and fixed rates, which may provide a sense of security over the potentially uncertain times ahead.”

September 6th, 2022 | Andrew Hagger | News

As rising living costs leave households £249 poorer a month on average, research from Nationwide Building Society reveals one in eight people are putting off getting the help they need.

The poll comes a month after Britain’s biggest building society launched its freephone cost-of-living hotline¹ (0800 030 40 66) and as it gears up to provide financial health checks to members in October, ahead of the incoming price cap – offering appointments in branch, over the telephone or video.

According to the survey² of more than 2,000 people, more than eight in ten (83%) people are worried about the rising cost of living on their household finances, with six per cent saying they are already in serious financial difficulty. Despite many already having cut back on costs, more than seven in ten (71%) feel they have cut back as far as they can.

Despite this, around one in eight (12%) are avoiding seeking any additional support and are instead relying on their situation naturally improving, with younger people nearly five times more likely to avoid seeking help (19% for 16-24-year-olds vs 4% for those aged 55+).

While getting support early for financial difficulties can often resolve the issue sooner, when it comes to talking to banks or building societies, half (50%) of people worry about the ramifications. Worries include having their credit score impacted (30% worried), being charged higher rates for credit (27%), prevented from getting credit (26%) or having their credit limit cut (21%).

Fewer than a fifth (19%) would speak to their bank or building society if they were struggling. This compares with 24 per cent who would go to their partner or spouse and 22 per cent who would turn to their parents. However, one in six (17%) wouldn’t seek any help from anywhere.

Nationwide, which pledges to answer calls within ten minutes on its cost-of-living hotline, is handling a range of calls from members at this time. Around one in ten calls are being referred to Nationwide’s specialist money worries teams, who are able to offer support to those in financial hardship by understanding their individual circumstances and working through solutions, as well as putting people in touch with third party debt organisations and charities who can provide independent advice. With costs continuing to rise, Nationwide expects call volumes to its hotline to accelerate in the coming months.

September 1st, 2022 | Andrew Hagger | News

Gatehouse Bank has today revealed new research that shows young adults are still prioritising ethical savings options despite the cost-of-living crisis, marking a shift in attitude compared to older generations.

The research shows that almost two thirds (65%) of those aged 18 to 24 would continue to choose an ethical savings account in the current economic climate. This would remain the case even if it would offer lower financial returns than a non-ethical alternative.

Considering this, Gatehouse Bank has today relaunched its Easy Access Cash ISA and Easy Access savings account with a minimum deposit of £1 – a change designed to benefit young people looking to create healthy, but ethical, savings habits. Both Easy Access Cash ISA and Easy Access savings account products are now offering competitive rates of 1.75% and 2.00%, respectively.

Similar attitudes were not observed amongst other age groups, where just over a quarter (27%) of those aged 45-54 would prioritise ethical savings and less than a fifth (18%) of both the 55-64 and 65+ age groups said they would do so. The difference in generational attitude is clear and welcome.

However, the cost-of-living crisis is straining people’s ethical commitments, with over a third (36%) of all respondents revealing that the current economic pressure had lowered their interest in ethical savings options. While many feel that strong financial gains and ethical choices are mutually exclusive, this is incorrect, as lenders can and should provide options that allow people to align their finances with their values.

Gatehouse Bank offers award-winning Woodland Saver Accounts and Woodland Cash ISAs, which support the creation of new woodlands in the United Kingdom by planting a tree for every account opened or renewed. All Woodland Saver and ISA rates have recently increased.

August 25th, 2022 | Andrew Hagger | News

Savers can help fund vital green projects across the UK while earning an improved rate of interest from today, with the third Issue of NS&I’s Green Savings Bonds paying 3.00% gross/AER fixed-rate over a three-year term.

The Bond is available to purchase online at nsandi.com, having increased from 1.30% gross/AER for the second Issue released on 15 February 2022, which has now been withdrawn from sale.

The Economic Secretary to the Treasury, Richard Fuller, said: “By increasing the returns on Green Saving Bonds to 3.00% we are demonstrating our commitment to green infrastructure in the UK.

“This will drive investment in projects to tackle climate change, improve sustainability and increase renewable energy capacity.”

Ian Ackerley, NS&I Chief Executive, said: “I am delighted that we can offer UK savers an improved Green Savings Bonds rate. Savers who are green-minded can invest in the new 3.00% Bond Issue, fixed over three years and at the same time, they also benefit from a 100% guarantee from HM Treasury on their investment.”

Green Savings Bonds will continue to help finance the Government’s green spending projects designed to tackle climate change and help make the UK greener and more sustainable. Reflecting the product’s green ambitions, Green Savings Bonds are an online only product; however, exceptions can be made for customers unable to transact online.

The projects will include making transport greener, using renewable energy over fossil fuels, preventing pollution, using energy more efficiently, protecting natural resources and adapting to a changing climate. More information can be found at nsandi.com/green.

The minimum investment in Green Savings Bonds is £100, with a maximum limit of £100,000 per person for each Issue. Investors need to be aged 16 or over to purchase the Bonds from NS&I. The full amount deposited will be held for three years and cannot be withdrawn during this time.

Key features of Green Savings Bonds are as follows:

• 3-year fixed term with an interest rate of 3.00% gross/AER.
• Designed to be held for the whole term, but with a cooling-off period in the first 30 days of investment.
• Access to your investment after three years.
• Open to savers aged 16 and over.
• The minimum investment in Green Savings Bonds is £100 with a maximum limit of £100,000 per person per Issue. Investors in the first and second Issue can also invest in the new, third Issue.
• Available to purchase and manage online at nsandi.com
• Investment limits apply per Issue: minimum of £100 and maximum of £100,000 per person, and can be made individually or jointly.
• Customers must have a UK bank account capable of receiving BACS payments.
• Fixed-rate is guaranteed for the whole term. Interest is earned daily and added once a year on the investment’s anniversary, and paid on maturity.
• Interest is earned without deducting any tax at source. Interest is taxable at maturity and will count towards the customer’s Personal Savings Allowance and may need to be declared by the individual. Customers who are concerned about how this might affect them should consider either contacting HMRC or seeking professional advice.

August 17th, 2022 | Andrew Hagger | News

A wave of ‘retirement anxiety’ is sweeping the nation, fuelled by concerns over the impact of the cost-of-living crisis, according to new research launched today from abrdn.

The abrdn research highlights more than half (54%) of UK adults aged 40 years+ are anxious about retiring, with the 40-44 age group reportedly the most anxious (61%), despite being further away from retirement age.

The research unveiled both emotional and financial drivers behind this growing trend, with the majority experiencing retirement anxiety (58%) attributing it to not having saved enough money throughout their lifetime.

More than half of consumers blaming the cost-of-living crisis (57%), with worries about the current economy and its impact on investments and pensions cited by almost half of those surveyed (45%).

On the more emotional side, respondents are worried about being pigeonholed as old (20%) and losing their identity when they stop work (17%).

Planning for retirement is now regarded as a ‘stressful life event’, ranked more stressful than divorce by the 40-44 age group. Meanwhile, across all ages job loss and moving house are still among the most stressful life events.

Psychologist Dr Linda Papadopoulos, says: ‘Retirement anxiety is an emotion of concern or worry, experienced by people yet to retire, about the prospect of retirement. This could be a concern about how they will fill their time, financial worries or perhaps feeling a loss of identity. It’s a significant issue that a growing number of people are seeking medical help with.

“There are two key reactions to issues that cause stress, one is to ignore them which just delays finding a solution to the problem.  The other is to panic which can also exacerbate it.  People experiencing retirement anxiety may be thinking about it constantly, be unable to sleep, and generally feeling overwhelmed – it can impact their relationships and performance at work.”

The research from abrdn underpins this, revealing that almost one in ten (9%) have sought medical help for their worries, with 16% saying feeling anxious about retirement has kept them up at night.  Work life and personal relationships are also suffering, with 13% stating that their personal life and relationships are being impacted and 14% saying it’s affecting their work.

Almost one in five (18%) say they will delay retirement due to the anxiety.

Dr Linda urges people to open up about retirement anxiety and face it head on.  “The key to conquering any stressor is to address the issue by first acknowledging it, and then seeking constructive and informed support to deal with it. Retiring is one of those big steps we know we’ll take at some point in our lives and we can reduce the risk of ‘retirement anxiety’ by starting to prepare as early as possible.”

Another factor in the increase in ‘retirement anxiety’ is people’s concern about their lack of planning with over a fifth (23%) saying they were embarrassed about their lack of planning and 15% are nervous about seeking advice.

Colin Dyer, Client Director at abrdn says: “It’s clear that this growth in retirement anxiety is being fuelled by the cost-of-living crisis and worries about the economic landscape. We are seeing more and more of this every day with our clients.  Planning for retirement early can help alleviate worries and anxiety and people shouldn’t be embarrassed to raise issues they are not sure or concerned about – ‘it’s ok not to know’. There are enormous benefits to seeking advice from a professional adviser, in order to get a clearer understanding of income and savings and how to best prepare for this important life stage. We work every day to give retiring clients, clarity, control and confidence about their future”

August 10th, 2022 | Andrew Hagger | News

NatWest is issuing an urgent scam alert as over half of all students have been actively targeted by criminals this year. The alarming statistics are revealed in the 2022 NatWest Student Living Index, due to be released in full on 12 August.

Over the last year, fraudsters have been increasingly posing as bank staff and have attempted to con a quarter of students, according to the findings of NatWest’s annual survey of nearly 3,000 students. These criminals are reported to have engaged in increasingly refined fraudulent activity, carrying out stings including fake text messages, calls or emails in which they pose as bank staff to collect money or personal details. Nationally, men are much more likely to be conned with these types of scams with one in three male students reporting having experienced this compared with one in five women.

A further one in six students experienced an HMRC Tax rebate scam over the past academic year with 16% of students saying they had been contacted by crooks via fake emails, texts, or calls, claiming entitlement to a tax-rebate. Criminals engaging in these activities attempt to gather personal details such as name, date of birth, address, and sometimes payment card details. The fraudster often goes on to phone the victim, impersonating their bank, using these details to build trust and confidence that it is a genuine bank call.

The top locations for student scams are Edinburgh, Cambridge, and Coventry with over four in five in each of these areas having experienced fraud. Whilst Durham comes in lower down the table, students are still likely to be targeted, with almost one third (29%) having been subjected to fraud.

The NatWest Student Living Index surveyed nearly 3000 students across the UK. Students were asked a range of questions, on fraud and scams, how much they spend on essentials such as food, rent and bills, and how much time they spend studying, working, and socialising. The full 2022 NatWest Student Living Index will be revealed on 12 August 2022.

Laura Behan, Head of NatWest Student Accounts said: “This year’s NatWest Student Living Index reveals a concerning number of students being targeted by criminals. We’d advise students to be on their guard when they receive an unexpected text message, email or phone call asking for personal details.”

NatWest tips to help students stay safe and secure.

Tips to become more fraud proof

• Be sceptical of unsolicited phone calls, texts or emails asking for personal or bank details. Banks or the Police will never ask for a full PIN or password, card reader codes, or ask you to move money from your account
• Do not recycle passwords and use a unique password for your bank accounts and email accounts
• Don’t give away your personal and bank details too easily. Criminals often use online competitions or offers of free shopping vouchers as a way of harvesting information from potential victims
• Try to shop online with websites you know and trust, using your debit or credit card
• If you see a deal online that looks too good to be true from a website you’ve never heard of, it’s probably a scam. If you have doubts, don’t make the purchase
• If an online seller asks you to send money direct from your bank account to theirs, this is probably a scam. If they fail to deliver the goods you will lose your money
• When it comes to buying online, use your credit or debit card to pay, or carefully follow the scam advice on auction sites such as eBay to help you avoid falling victim.
• Watch out for social media investment scams. These often use fake celebrity endorsements and the promise of getting rich quick.
• Pass this information on to your family and friends, especially anyone you think might be vulnerable.

NatWest is also offering customers free Malwarebytes anti-virus software to help with added online protection.

The NatWest Student account offers an £80 cash incentive, a four-year tastecard membership and a £2000 interest free overdraft. NatWest also offers free Financial Health checks to help students organise their finances.

Find out more at www.natwest.com/students

August 2nd, 2022 | Andrew Hagger | News

Over 55s are the most cost savvy holiday-makers, says a new Opinium survey, apart from when it inconveniences them.

The survey of 1,000 UK adults who have hired car, was carried out on behalf of iCarhireinsurance.com, a leading provider of stand-alone car hire excess insurance, and reveals travellers’ top tips on saving money when holidaying abroad.

While over 55s are the most likely to shop around (41%) and book flights and holidays early (41%), they will not fly at unpopular times, with only a quarter (26%) of over 55s willing do this, compared to a third (34%) of 35 – 54yrs. Also, only 7% of over 55s choose the cheapest travel option, compared to almost one in five (17%) under 34s. The over 55s are the most cost-savvy age group for the majority of the top 10 tips.

The top ten list of holiday saving tips are below in order of popularity:

1. Book flights and holidays early to get a good deal (40%)
2. Shop around and book things in advance, such as holiday money and airport parking (36%)
3. Book travel, accommodation and excursions directly (30%)
4. Fly at unpopular times (28%)
5. Use a bank account / card or app with no fees for spending abroad (27%)
6. Take a packed lunch on flights (20%)
7. Stay at an airport hotel to take advantage of parking offers (20%)
8. Buy car hire excess insurance from a standalone provider, not the rental desk (14%)
9. Sign up to air miles programmes (12%)
10. Book the cheapest travel option regardless of mode of travel or duration (10%)

Another tip, which did not make the top ten, is flying to a remote airport (7%), which again over 55s (5%) are less inclined to do, and turning on private browsing when booking holidays and flights online (8%) to stop cookies tracking activity.

Ernesto Suarez, founder and CEO of iCarhireinsurance.com, said: “Holidays are significantly more expensive than they used to be, so it’s important to save money where you can. Many of these tips travellers are already doing but hopefully there are some new ideas to try, like turning on private browsing when booking holidays and flights. It’s rumoured that some companies save their best deals for new customers, so it’s a good idea to look like a new customer, by deleting your cookies or switching on private browsing, when you’re researching online.”

He continues, “When hiring a car, excess liability is now more than £2,000 in some countries so if you damage the vehicle, even if’s not your fault, you could be liable for this amount. Excess waiver cover sold at the rental desk costs on average around £190* this summer, so it’s great to see that at least one in eight car hirers are buying car hire excess insurance from a specialist insurance company, like iCarhireinsurance.com, before they leave. The savings you can make if you buy excess insurance in advance and take a sat sav and child car seat with you, for instance, can be considerable.”

July 25th, 2022 | Andrew Hagger | News

A survey of 2,000 UK adults was conducted by WEALTH at work, a leading financial wellbeing and retirement specialist. It asked people if there was anything they wish they had done differently when it comes to their finances, and what they wish they had known.

It revealed that over a third (37%) of UK adults wish they had started saving or investing at a younger age and almost a quarter (24%) wish they had been more careful when it came to spending money rather than spending frivolously.

A fifth (21%) wish they had set aside more money for emergencies and nearly a fifth (18%) wish they had been taught about the benefits of saving when they were younger. Nearly a fifth (18%) wish they hadn’t got into debt, and 17% wish they had researched or been taught about the importance of budgeting and how to manage money when they were younger.

However, 29% don’t wish they had done anything differently.

When asked about where people learn about financial matters such as managing a monthly budget, debt and managing savings, the most popular ways include through friends or relatives (35%), by searching online (32%), through TV programmes (18%) and through formal education including school, college or University (17%).

Nearly a fifth (17%) have never learnt about financial matters.

Just under half (49%) of working UK adults are not provided with any support from their employers on how to understand their finances. Only one in ten (12%) say their employer puts on financial education seminars or webinars, and only one in ten (12%) say their employer provides access to a regulated financial adviser.

Jonathan Watts-Lay, Director, WEALTH at work, comments; “It can be easy with hindsight to look at the financial decisions made in your life and wish that you had done things differently. But many people lack the knowledge to understand their finances as they’ve never been taught about it, or rely on information from their friends or relatives who are unlikely to be financial gurus.”

He continues; “Understanding how to budget, the importance of saving, and how mortgages, debt and pensions work, are crucial life skills. Our research shows that unfortunately, many people have never learnt about financial matters and whilst some workplaces offer support, there is still some way to go.  It therefore isn’t surprising that so many people have regrets about not starting to save earlier and getting into debt.”

Watts-Lay comments; “If you are lucky enough to have a forward-thinking employer who provides financial education and guidance for their employees, make sure you access it as it can prove crucial especially during these current times when household finances are stretched. Even if they don’t, it’s always worth asking them to consider what they can do to help, as they may not realise this is something that people want.”

He concludes; “Alternatively, debt charities such as Stepchange and National Debtline can help people to with serious debt problems. Also, Citizens Advice can help you to work out what benefits or grants you may be eligible for and there are many budgeting tools available online to help such as MoneyHelper’s budget planner.”

July 19th, 2022 | Andrew Hagger | News

With 160 days to go before Christmas and just five pay days left*, Tesco is helping its customers get ahead for the festive season with its Clubcard Christmas Savers.

The saver account allows Clubcard members to save the vouchers they collect as they shop throughout the year. With the average weekly shop for a family of four costing £99.40**, shoppers could save at least 1,292 in points if they start saving today, which is the equivalent of £12.92 or an extra present under the tree.

Lightning-fast shoppers who sign up by 21^st July will see an additional benefit. Those who opt into Christmas Savers before this date can put all the points they receive in their August Clubcard Points Statement, earned on shopping and fuel purchases from May to July, towards their Clubcard Christmas Savers fund. Helping them to be even more prepared for the festive season.

What’s more, customers can save even more by topping up their account with cash to turn into vouchers and get a bonus from Tesco. The bonuses range from £1.50 for a £25 top up, through to £12 for a £200 top up – that’s up to 6 per cent added to their savings.

In November, just ahead of the big festive shop, account holders will be sent all their vouchers. Shoppers can then use their Clubcard Christmas Savers balance to spend on groceries, fuel and presents, such as toys in-store or with Clubcard Rewards partners to give the gift of family days out, spa days or magazine subscriptions. Vouchers are also worth up to x3 time more with Clubcard Rewards, so customers can really spoil their loved ones with an experience this Christmas.

Alessandra Bellini, CCO at Tesco said: “We know that many of our customers are feeling the financial squeeze this year and could do with a little help towards Christmas. The Clubcard Christmas Savers is a savvy way to spread the cost of Christmas, without compromising on the things that bring us joy at such a special time of year. It’s just one of the ways we’re helping customers to spend less at Tesco.”

Terms & Conditions:  

For more information, visit tesco.com/clubcard/christmas-savers. To sign up today, visit tesco.com/clubcard/myaccount/AccountManagement/VoucherSchemes. 

*Christmas 2022 final opt-in and top-up date is 19 October 2022 to receive your savings in November. Bonus given for top-ups over £25. £360 max cash top-up per year, and £12 max top-up bonus per year. Top up in-store only. Clubcard vouchers and top-up vouchers are valid for 2 years, and bonus vouchers are valid for 2 months. When you top up your Christmas savings you can rest assured that your money is safe. It is held in a trust until the point it is used to provide your Christmas vouchers. The trust is managed by trustees one of which is a professional trustee company that is independent of Tesco. Once your cash top ups are transferred to the trust they are held for your benefit by the trustees in a separate bank account.

July 11th, 2022 | Andrew Hagger | News