SimplyFinance

Is Debt Affecting Your Relationship?

2010-03-12T00:00:00Z

It seems as though the old adage that 'a problem shared is a problem halved' does not necessarily apply to financial worries. Research carried out by the Financial Services Authority (FSA) showed that 74% of British couples find money the hardest subject to talk about with their partners. So why do we find it so hard to discuss our cash concerns with the ones we love?

Many people in relationships find that broaching the subject of money with their partner ends up causing conflicts. In fact, 27% of couples surveyed for the FSA's research admitted to regularly arguing when trying to discuss their finances. However considering that 35% of British couples are apparently kept awake at night through worrying about their money situation, it's clear that communication must improve.

There are a number of reasons why money is be a tricky subject to tackle. The first is that our finances are typically seen as quite a personal matter, not often discussed with friends or family, and extremely rarely with colleagues. Since we're not used to discussing money, this reticence can carry through into all but the most open of relationships. Seeking help when we find ourselves in financial difficulty can therefore seem embarrassing, and as if we are crossing over into forbidden social territory.

How we manage our finances when in a relationship can also have a profound effect on the relationship itself. The joint bank account is often perceived as a serious commitment, and therefore many couples put this off until they are actually living together or have been together a number of years. Other couples choose to have a joint account for rent and household bill payments only, keeping the bulk of their earnings separate.

This means that unless you have taken the plunge and completely pooled your resources, your finances remain the one thing in your life that you are not sharing with someone else. The most compatible of couples can find that they have different attitudes towards spending, and research from AXA has found that as many as 24% of UK adults are hiding some form of credit (such as overdrafts, credit cards or store cards) from their partner. Feeling the need to justify any impulse buys and less-than-sensible credit card binges to a partner can lead to defensiveness, lying and secrecy.

Another common cause of domestic conflict is the stigma that is still attached to debt. If you are struggling to pay back the interest on credit cards and other loans, or if you are regularly spending more than you're earning, this can quickly become the 'elephant in the corner' in a relationship. In this context, telling a partner that you cannot cope is often seen as an admission of failure, rather than a sensible step towards facing up to and eventually resolving the issue.

If you're feeling that money is negatively affecting your relationship with your partner, you're certainly not alone. However, the issues are not going to go away on their own, so the first step is to open up and start communicating. Plan a time to talk, and try to keep the discussion calm. Hopefully together you will be able to work out a solution to the issue and decide whether seeking professional debt help is necessary.

Don't let money worries build up, and don't deal with them alone. If you would like to speak to a professional adviser, simply fill out our short debt form and a debt adviser from the SimplyFinance network will call you back to discuss your options.

Why it is important to stay on top of Gas and Electricity deals this March

2010-03-11T00:00:00Z

March is usually the black month for Britain's bill payers, as it is the time when suppliers send out statements that cover winter energy usage. And hasn't it been cold this year! Freezing weather, plus sky-high energy prices are guaranteed to make you feel afraid of your next bill. If you have recently received such a statement, you will know what this is about. 500 GBP or more will be a common quarterly charge for a normal household this time around.

The first thing to do after you have picked yourself up from the floor, will be to ask yourself: when was the last time I looked for a cheaper energy supplier and am I still getting value for money? If you have switched energy supplier before, you know how easy it is to find a better deal and switch to it. You will also know that customer loyalty is not rewarded by most suppliers. Staying on with your supplier means that you may be missing out on a better deal that has come along since.

The table below looks at some of the market leading deals that were available at this time last year, and compares to the best offers today. Not surprisingly, most of those deals are now far more expensive than the best deals around today. It pays to keep on top of energy, just look at these examples below.

Supplier*               Q1 2009 Lead Discount Tariff         Difference to Best Offer today

British Gas             Click Energy 5                                   14% more expensive
E.ON                    Energy OnlineExtra Saver v13         15% more expensive
EDF Energy           Annual Fix v1                                    19% more expensive
npower                   Sign Online v15                                16% more expensive
ScottishPower        Online Energy Saver v7                    10% more expensive

So for your own peace of mind, visit SimplyFinance's easy Utilities Comparison Tool, which compares 14,000 up-to-date live tariffs across the country, in seconds. More likely than not, you will find a big saving for your home.

For the most accurate comparison, look at your last bill and take note of the exact name of the tariff that you are currently using. If it is not clear which tariff you are on, call your supplier and ask.

And here is our final piece of advice: Customers often ask us when the best time to switch is? The common sense answer is - typically you should look in autumn before it gets cold, because you want to be on the best available rates by the time you need to heat your home. But there never is a bad time!

* Scottish and Southern Energy did not have a comparable discount tariff available in Q1 2009, and are therefore not included. Calculations based on 20,500kWh gas usage and 3,500kWh electricity usage in London. Results may vary in other parts of the country.

__________________

Florian Ritzmann is Product Director at online comparison service Xelector.com and has been working with energy suppliers for ten years.

Give Up Smoking and Save up to 43% on Your Life Insurance

2010-03-11T00:00:00Z

If you're a smoker and have been inspired to quit following the national No Smoking Day on Wednesday, you could see significant financial benefits from kicking the habit in addition to the improvements to your health.

However, cleaner lungs and a healthier lifestyle are only two of the positive physical changes you'll notice. If you have life insurance protection to protect your family, you may also be surprised to learn how much difference being a non-smoker makes to your premium costs once you have been smoke-free for 12 months.

Katie Jenkins, Site Editor at SimplyFinance commented, "People should be aware that quitting smoking has a really positive effect on all areas of their finances. The most immediate consequence is being better off each month to the tune of several hundred pounds; money that can be put into a savings account, used for paying off debts or to treat the family."

"However in the longer-term, if you hold a life insurance policy, you could be saving on your monthly premium payments too from 12 months after kicking the habit. This can add up to thousands over the term of your policy. " Male and female non smokers would save 43%* on their premiums when compared to those paid by smokers. The premium for a non smoking male falls to 14.31 GBP from 25.45 GBP for a smoker, and a female 11.30 GBP rather than 20.40 GBP.

While applicants must not have used tobacco or nicotine replacement products for 12 months to qualify as a non smoker, existing policyholders could start saving straight away. "Many policyholders will not be aware how far the cost of life assurance has fallen in recent years, so even if they don't yet qualify as a non smoker, they could still make substantial savings" said Richard Morea of London&Country.

If you'd like to talk through your life insurance options with an experienced adviser, simply fill out our short life insurance form and we will connect you with an adviser from the SimplyFinance network.

To find out more about the free advice and support that is available to help you quit smoking, visit the No Smoking Day website or apply for a free NHS Quit Kit. For more information about the types of Life Insurance available to you, please visit the SimplyFinance Life Insurance pages.

*Based on a 35-year old taking 200,000 GBP level term assurance over 25 years.

Do You Know which Mortgage Rate You're Paying?

2010-03-04T00:00:00Z

A mortgage is likely to be the most significant expense that most of us will face in our lives, and yet a surprising number of people would not be able to say which rate they were currently on. According to recent research by the Post Office, 28% of mortgage holders do not know what interest rate they are paying on their home loan. This amounts to a staggering 3 million UK borrowers who could potentially be paying back their mortgage loan at an uncompetitive rate.

Over a third of borrowers (35%) are currently on their lender's Standard Variable Rate (SVR). Some may be on this rate because in fact they have decided that it is the best decision for the moment. However, at least a third of these SVR borrowers are assuming that the lender's 'default' rate is the best one for them.

The problem is that if you rely on the goodwill of your lender to put you onto the most competitive rate for your circumstances, you are likely to lose out. Banks have absolutely no incentive to make their SVR competitive because it is never available to potential new borrowers. Instead, this is the rate that you will be moved onto when your fixed rate mortgage deal, your discount rate mortgage deal or your stepped rate mortgage deal has come to an end.

Post Office Personal Lending Director, Marco Hughes, said: "Although it might seem that staying on your current SVR is the easiest thing to do, you are much more vulnerable to interest rate rises. Some providers have increased their SVRs quite significantly even though the Bank of England base rate has not moved and as a result many borrowers are seeing their monthly mortgage repayments increase more quickly than they thought.

"If you're thinking about switching mortgage, now is the best time to do it, before rates rise further. With many SVRs at or above 4% there are already better deals to be had out there. Switching mortgage does not have to be a stressful experience and spending a bit of time searching and comparing deals could save you a significant amount of money in the long term."

If you try and move your mortgage to another provider (or to a different product at the same lender), you'll probably be subject to charges for doing this within the introductory period. This is because the bank can only afford to offer you a cheap fixed, discount or stepped rate deal if they can guarantee your business (and those lovely interest payments) for a certain period of time. However, once you are out of this introductory period, you can have your mortgage with whomever you choose, and you (usually) have absolutely no obligation to stick with your current provider. In the world of personal finance, loyalty definitely does not pay.

The first step should be to find out from your lender which interest rate you are currently paying on your mortgage loan, if you do not know already. If you've been with a lender for a few years, don't assume it's the same rate you started on. If you are tied into an existing mortgage deal, find out how long you have left on this deal and make a note to start shopping around several months before it runs out. Whichever stage you are at currently, it makes sense to shop around and see what else is available in the market.

If you'd like to talk through your options with an experienced adviser, simply fill out our short mortgage form and an adviser from the Simply Finance network will be in touch with you shortly to give you no-obligation advice and quotes tailored to your current circumstances.

How Long Could You Cope without an Income?

2010-03-04T00:00:00Z

If you are currently employed, or your partner generates the household income, it's worth giving some thought to how you would manage if the money dried up. Most of the time, this happens very suddenly and unexpectedly, either through redundancy, illness or the death of the 'breadwinner' in the household. Whatever else you are going through at this time, you need to ensure that you have sufficient funds to cover the living costs of you and your family.

Ask yourself the following question; if my income stopped today, how long would I be able to manage financially? Consider not only groceries and other day-to-day expenses, but also rent or mortgage bills, school fees and credit card repayments. If the answer is 'I'd be lucky to manage an entire month', the alarm bells should be ringing.

Research carried out by life insurer Friends Provident shows that you certainly wouldn't be alone if you've failed to make provisions for the loss of the breadwinner in your family. As many as 24 million people in the UK have absolutely no insurance in place to protect themselves and their families against loss of earnings. Of those that do have some degree of protection, many were found to be underinsured by an average of 14,500GBP per year or around 1,200GBP each month.

Of the people surveyed, a third thought that they could live on less than 35% of their take home pay in the event of losing their income, which in practice would be nigh on impossible to manage. The problem in many cases where people do have insurance is that they took this out at an earlier stage in their life and have not updated the policy as their circumstances changed. In a relatively short period of time, marriage, children and mortgage commitments can completely change your priorities, and it's essential to make sure that your dependents and your lifestyle are protected.

Ed Stuart-Brown, head of protection sales commenting on the Protection Oversight research (carried out for Friends Provident) said: "The findings in the Protection Oversight research are very worrying. Imagine being told that you had just been given a 66% cut in your income - the impact of that for most people would be catastrophic. It's time people took control of their future and looked at this in a responsible way, instead of burying their heads in the sand, especially in today's environment. Ignorance is not bliss, it's irresponsible."

So what should you do to ensure that you're properly covered? Firstly, if you have any existing policies, dig them out and have a read through them to see what level of cover you currently have. Make an appointment with your financial adviser and talk through your options based on your current income, the number of dependents you have, and the scale of your monthly financial commitments.

If you do not have an adviser, you can request a callback from an experienced insurance adviser by filling out our short life insurance form. This adviser will be able to give you quotes and advice, all of which will come with no obligations to proceed.

Before you make the call, you can also visit our Life Insurance pages to read more about the types of cover that are available or use our Life Insurance Needs calculator to estimate the level of cover that you should have.

Credit Action Launches Money Advice Map Service

2010-03-03T00:00:00Z

Money education charity Credit Action has just launched a service to make it easier for people in financial difficulties to seek help. The Money Advice Map is a new Internet search facility that enables users to search for their nearest money (or legal) advice centre simply by entering their postcode. For added convenience, the listings for each centre will also include details of the centre's opening hours.

Chris Tapp, Director of Credit Action, comments, "Commercial operators have the budget to advertise and market their services whereas charities are more likely to rely on word of mouth and local awareness. The Money Advice Map will enable people to know what sources of free help and advice are available locally." Currently the Money Advice Map incorporates over 6,000 money or legal advice centres, and this number will grow over the coming weeks as more partners join.

As Credit Action's Debt statistics from March show, the average household debt in the UK currently stands at 58,040 GBP (including mortgages). Interest repayments on personal debt such as credit cards and unsecured loans have reached 68.3bn GBP in the last 12 months, with an estimated 187m GBP paid in interest every day.

As an indication of the scale of the issue, an average day sees the Citizens Advice Bureau (featuring on the Money Advice Map) dealing with 9,500 new debt issues and 1,841 people made redundant. A property is repossessed every 11.4 minutes, and someone is declared bankrupt or insolvent every 3.69 minutes.

It is so important that if your debt is getting out of control you acknowledge the problem. In some cases, you may be able to get your finances back on track by careful budgeting and talking to your creditors to make manageable repayment plans. See Credit Action Director Chris Tapp's advice about talking to creditors "Approaching the Debt Dragons".

Visit the Money Advice Map to find the nearest help centre in your area, or read through the Debt articles on the SimplyFinance website for more information about the solutions available to help you get back on track.

The ISA Deadline Comes Early this Year

2010-03-03T00:00:00Z

Easter could throw a spanner in the works for those who like to leave their savings to the last minute. If you're planning to take advantage of your tax-free ISA allowance in time for the end of the tax year (5th April), it's worth noting that the Easter holidays leave UK savers with two fewer days in which to make arrangements this year. Clydebank and Yorkshire Banks have estimated that on average 10% of ISA applications are made within the last two days of the tax year, which represents a total savings pot of approximately 1.5m GBP.

This year, Good Friday falls on the 2nd April and Easter Monday on the 5th. The new tax year starts on the 6th, directly after these two public holidays. Therefore, if you have some money saved up and would like to make use of this year's ISA allowance, your application needs to be received by 1st April in order to be processed in time.

ISA stands for Individual Savings Account, and it is a specific type of savings account that does not charge any tax on the interest that you earn from your savings. The current allowances for UK residents are as follows: 7,200 GBP for savers under 50, and 10,200 GBP for savers aged 50+.

From April 6th 2010, everyone will move to the new higher allowance. This allowance can be split between cash savings and stocks and shares investments if you choose, and you can read more about cash ISAs and stocks and shares ISAs on our website. You are free to use different providers for these different types of ISA and so you should shop around for the best deals.

Steve Reid, retail director, Clydesdale Bank said:" With Easter falling so early this year, if you haven't already done so the opportunity to invest in an ISA this year is that little bit less. The ISA allowance isn't flexible so beat the deadline and pay less tax."

Since the rate of interest you would earn on your savings with most banks is currently pretty low, it is definitely worth considering using your ISA allowance up before any extra savings accounts so as to get the most out of your money. A stocks and shares ISA constitutes a financial risk, since you are investing money in the stock market. Therefore, if you are unfamiliar with this product we'd advise speaking to a professional financial adviser before proceeding.

Women are Failing to Plan for Retirement

2010-03-03T00:00:00Z

Women fall behind in the retirement planning stakes, leaving themselves vulnerable to financial difficulty once they are no longer working, according to new research by insurer Standard Life.

Statistically, women live on average nine years longer than men in retirement. However, only 38% of women plan for their long-term finances, compared to 50% of men.

Women are overall less than half as likely as men to have a personal pension, and twice as likely to admit to having only a vague idea of what a personal pension involves.

Many women will rely on their husband's private pension fund to support them through retirement. However, worryingly, half of married men at the point of retirement will choose to buy a single life annuity, rather than a joint life annuity.

A common reason for choosing this particular product is that a single life annuity will often yield a higher income at the outset. However, the wife is at risk of losing their income from that private pension fund if their husband dies first.

Mark Polson, Head of Customer Management at Standard Life said: "Women will most likely outlive men, yet are least likely to have a plan for their money in the future, creating a pension income gender gap. It's just not enough for a woman to rely on their partner's pension plans and by not taking control of their own future, they put their future income at risk. We are asking women to reality check their long-term plans now to secure the future they hope for themselves."

The first step is to talk to your partner, and establish which retirement plans are currently in place. Following this, both of you should make an appointment with a financial adviser to discuss the best options to ensure that you are both covered throughout your retirement.

Read more about Pensions and Annuities on the SimplyFinance website.

Happy Birthday to the Fixed Rate Mortgage

2010-02-25T00:00:00Z

Originally introduced in the late eighties, the fixed rate mortgage has recently celebrated 21 years in the mortgage marketplace. Back in 1989, when there were a mere 12 fixed rate mortgage products on the market, the average UK house price was 68,933GBP and the average earnings stood at 12,678GBP, according to UK lender Halifax.

Since then, fixed rate mortgage products have come to dominate the UK market, with a total of 68% of UK mortgage lending based on fixed rate products in 2009, according to figures from the Council of Mortgage Lenders. We take a look at the fixed rate mortgage, and why it may be a suitable product for you.

What is a Fixed Rate Mortgage?

A fixed rate mortgage is a mortgage product that offers an introductory rate of interest for a fixed number of years, before the loan interest reverts to the lender's standard variable rate (SVR). If you take out a fixed rate mortgage, you are tied into the mortgage contract for the duration of the fixed rate, and are charged a fee for changing products. However, once this initial period has ended you are free to remortgage to another product or another provider.

You can get a Fixed Rate mortgage for almost any length of time from 1 - 30 years. Usually you'll find that the longer your fixed rate period, the better the interest rate on the loan will be. This is because it is in the lender's interests to keep you tied into a Fixed Rate mortgage for as long as possible, to stop you from going elsewhere.

Click here to request a callback from an experienced fixed rate mortgage adviser.

What are the alternatives to a Fixed Rate Mortgage?

If you did not want to fix your mortgage rate for a set period of time, there are a number of different products to choose between. Another product that offers new customers an attractive introductory rate is the discount rate mortgage or discounted rate mortgage. Unlike the fixed rate mortgage, this product offers an interest rate that is directly linked to the lender's standard variable rate, usually several percentage points higher.

For example, if the lender's standard variable rate (SVR) mortgage was set at 5.5%, the discounted rate mortgage might be available at 3.5% for the first 2 years, after which time it would revert to the SVR. As with the fixed rate mortgage, you would be tied into the mortgage contract for that initial 2 year period, and would then be free to look around to potentially improve your deal either with the same provider or a completely different one.

Tracker mortgages, that track the Bank of England's base rate (again, usually offering several percentage points above this rate) have been a popular choice in recent years with the base rate being held at a historic low rate. There is a certain element of risk involved with a tracker mortgage, since the rate will go up within a month or two following a base rate rise, and you are tied in for an initial period at the start of the agreement. If you have savings you can also choose a mortgage product known as an offset mortgage, which usually must be from the same provider, which reduces the interest rate that you must pay according to the amount of interest you would otherwise be earning from your savings.

Why would you choose a Fixed Rate over a Tracker Mortgage?

People choose a fixed rate mortgage when they want the financial security of knowing exactly what they will be paying towards their mortgage repayments each month. Over the initial fixed period at least, they can guarantee that these repayments will not change. If you choose to fix your rate over a long period of time, say 30 years, you may find that in the short-term a tracker mortgage would work out cheaper. However, low rates always rise again and so the overall repayments for the two mortgage products are likely to work out to be similar over the 30-year period.

The type of mortgage product you choose depends on how risk-averse you are when it comes to your finances. Tracker mortgage interest rates have the potential to rise significantly, according to factors that are out of the control of your mortgage lender, and as customers of some smaller UK building societies found out recently, even standard variable rates that are 'guaranteed' to be capped at a maximum rate can go up in special circumstances. A fixed rate mortgage is really the only mortgage product where you can be certain about how much your monthly repayments are going to be and budget accordingly.

Are you looking to buy a property or improve on your existing mortgage? Click here to fill out our short mortgage form and request a callback from an experienced mortgage adviser.

Is it Really Possible to Write Off your Debts?

2010-02-24T00:00:00Z

You may have come across debt management companies offering to help you write off a percentage of your debt. But is this offer too good to be true?

On the contrary, it is possible to write off over half of your debt by signing up to a formal debt management programme called an Individual Voluntary Arrangement (IVA). This is known as a 'Trust Deed' in Scotland. An IVA is not a quick process and it does involve a substantial amount of commitment from you, but it can help you to get your finances back on track relatively quickly, usually within 5 years. Below, we explain how an IVA works, and how you can find out if you qualify.

What is an IVA?

An IVA is a repayment agreement that you make with the people you owe money to, and it must be set up by a licensed professional known as an Insolvency Practitioner or IP. The difference between an IVA and other debt management plans is that an IVA is actually legally binding, whereas a debt management plan is facilitated by a professional but relies on cooperation from both you and your creditors to make it work.

How does it work?

You need to be approved for an IVA first of all. The Insolvency Practitioner will sit down with you and work out how much you owe in total and how much you can afford to pay back each month (without making a large dent in your living expenses). They will also ask you a number of questions about your financial situation. If an IVA seems like an appropriate solution for your circumstances, the IP will then draw up a repayment agreement with you and ask for your approval.

Once you are satisfied with the repayment agreement and have signed it, the IP will then apply for an 'Interim Order' through the county court, which prevents any of your creditors (the companies to whom you owe money) from taking legal action against you to recover these debts. The next step is for your creditors to all vote on whether they are happy with the arrangement, which they will do at a 'creditor's meeting' organised by the IP, or by fax or post. As long as creditors representing at least 75% of your total debt are happy with the arrangement it will proceed.

Do I qualify for an IVA?

You are usually eligible for an IVA if you meet certain conditions. You must owe a minimum of 15,000GBP (or usually 10,000GBP in Scotland) and owe money to at least 3 separate creditors. You must also have a disposable income of at least 120GBP per month, and be able to satisfy the IP that you will be able to keep to the terms of the arrangement for the whole 60-month period.

Click here to request a free callback from an IVA specialist and see if you qualify.

How much will I pay back?

An IVA will usually involve you making one repayment per month (which the IP will then divide up between your creditors), typically over a period of 60 months. The repayment amount will be based on your disposable income - your income minus your living expenses. This means that the amount you pay back will be affordable, and should not result in you getting into any further debt. At the end of the 60-month period, you will be free from the arrangement and will no longer owe money to those creditors, regardless of how much you still owe.

A win-win situation?

Creditors are usually happy to accept an IVA, because it shows that you are taking responsibility for the debt. Usually they will get more of their money back in this way than they would if you were to file for bankruptcy, so they are prepared to receive only a percentage of their money back again.

From your point of view, you are protected from legal threats and will no longer be hounded for money by creditors (and the rather more aggressive debt collection agencies who they sometimes sell your debt on to). You also can make one payment each month, rather than having to juggle repayments to multiple creditors.

It is important to note that an IVA stays on your credit record for six years from the start of the arrangement, and that you are not allowed any unsecured borrowing (such as credit cards or unsecured personal loans) while the arrangement is in place. You can however take out a mortgage or change an existing mortgage whilst under the arrangement.

Click here to request a free callback from an IVA specialist and see if you qualify.

8 websites that will save you money this weekend

2010-02-24T00:00:00Z

During your weekends, is it often a bit of a rush to get everything done that you didn't have time for in the week? If so, your plans may include a spot of shopping (and maybe a big grocery shop), a telephone chat with friends and family, sorting out those pesky bills, planning this year's holiday and maybe a night out. Phew.

Below are a list of websites that can save you money on everything from the weekly shop to finally sorting out that issue with your phone bills this weekend. And getting all that 'life admin' out of the way means that you can treat yourself too, and save money once again! So get clicking...

Skype.com

Whether you need to catch up with friends and family overseas, or just spend a lot of time chatting on the phone to people in the UK, why rack up hefty phone bills each month when you can chat for free instead? As long as you have a decent internet connection, you can download Skype for free at Skype.com and be chatting within minutes. Get all your contacts to download Skype too, and you'll never be faced with another massive phone bill again!

Toptable

If you're out for a meal over the weekend, you can do your party a favour and get everyone up to 50% off the total food bill by booking it through Toptable. They feature thousands of restaurants all across the country, and you can check out sample menus and prices and read reviews from other diners before you book.

if you're a regular user, you can collect points by booking meals through the site a number of times and by leaving a short review of the experience afterwards. Once you have collected enough points, you can earn free meals and other rewards. And best of all, it's completely free to use!

Quidco

Quidco is arguably the best-known of the cashback websites, which are sites that will give you money back on purchases you would have made anyway! The way they work is by establishing relationships with shops, service providers (such as mobile phone and broadband companies) and banks, and by providing links for them on the site. Other top cashback sites include GreasyPalm.co.uk and Topcashback.co.uk.

You have to become a member of the cashback site (most offer free membership), and then when you click through to these sites from the cashback site, you are rewarded for the transaction and paid either a percentage of the cost of the item you've just bought or a flat fee. That money is then saved in your account and you can use it on future purchases. So for just a few more clicks each time you shop online, you can save yourself potentially hundreds of pounds over the course of a year.

Saynoto0870.com

This gem of a website lets you find the landline equivalents for all those premium rate numbers that companies use for their customer service phone lines. Simply type in the name or the telephone number of the company you'd like to call, and the site will return a list of the alternative numbers for that company that don't cost the earth. It can't reduce the time you'll spend on hold, and the hold music may still be dodgy, but at least you know that the wait will not cost you a fortune.

Lastminute

A regular in the committed bargain-hunter's repetoire, Lastminute has long been helping people find cheap deals on holidays and flights. However, did you know that you can also use it to find deals on entertainment a little closer to home? Lastminute run dinner and theatre offers from as little as 20GBP, spa days from 10GBP and even half-price cinema tickets during the week. If you're looking for a quirky gift, you can even buy a loved one a chocolate making experience, some wine-tasting or a day out racing cars, all at pretty decent prices.

Travelzoo

A slightly newer addition to the discount travel circuit, Travelzoo releases a weekly 'Top 20', featuring the best deals on UK and international breaks from all over the Internet, and you can sign up to receive this from them by email. Although the Top 20 comes out on Wednesday, you can find the list on their website all week, and can also browse for additional deals and offers. As well as tempting worldwide offers, their selection of deals includes cheap UK train tickets and discounted stays in top UK hotels, so even if you are 'staycationing' this year you'll still find something to get excited about!

Savoo.co.uk

The rise of the voucher code has been unstoppable, and Savoo is one of the UK's largest voucher code sites. You can find vouchers for everything from clothing to food and computers, so before you go shopping for something, have a quick browse and see if you can save yourself some money. Just remember, it's only saving you money if you were going to buy the item anyway - voucher codes can be a dangerous thing if you are a bit of an impulse shopper!

SimplyFinance

OK, we had to put ourselves in here didn't we? But if you are looking for mortgage advice, a better deal on your loan, new life or health cover or debt management advice, you can find hundreds of informative articles on SimplyFinance. If you'd like to speak to an experienced adviser, you can even request a free callback through one of our forms here.

Using the site costs you nothing, and there is no obligation to proceed with any of the quotes you are given. Plus we have hundreds of calculators, helping you to plan a household budget, work out the true cost of a new mortgage deal, and even work out how much your gym membership is really costing you. Check out our full list of calculators here.

Why it's not always good to share

2010-02-19T00:00:00Z

"I'm just getting off the plane in Los Angeles, can't wait for two weeks of Californian sun!" Sound familiar? We've all gotten into the habit of alerting our friends and family whenever something happens in our lives, through Twitter, Facebook and a variety of other social media websites.

It now seems pretty normal to let the people in our lives know exactly where in the world we are at any given moment. Most of the time, you're not likely to share that information if you're just sitting at home in front of the telly, and therefore you are effectively broadcasting the fact that you're out and about, leaving your castle unguarded. Unfortunately we cannot always control who else sees that information, and our audience may not always have our best interests at heart.

PleaseRobMe.com is a new tongue-in-cheek website that highlights the safety issues caused by all this sharing. It does this by trawling the web to find posts where people are revealing a little too much about their current location. It's a big wake-up call for all of us; rhapsodising about the view from your hotel in Bolivia is great for making your mates at home jealous, but it's also a red flag for opportunistic burglars looking for an easy target.

You may be surprised by the amount that a total stranger can learn about you from social networking sites. As an experiment, type your name into a search engine, and see what comes up. LinkedIn and other business networking sites will reveal your current place of work (and it's only a short step from there to find out the office postal address), and many people post their phone number, email address and postal address on their Facebook, Bebo and Twitter accounts - even if it is just in response to a friend's request for contact information.

The first step is to remove any personal information from these sites that you would not want a complete stranger to see. The second is to make sure that only your contacts can view the information that you post, block others from seeing your profiles pages. Next, go through your contact list on sites such as Facebook and take out anyone that you don't know - it's too much of a security risk to have random people following your life via your profile page. Sites like Twitter are obviously set up for people to build up a following, but just be extremely careful about what you share and never use applications that display your current location.

All of this personal information washing around the Internet can have a number of negative outcomes. One of these is a rise in identity theft, a type of fraud to which millions of Britons have already fallen victim. This means that you may find it extremely difficult to get approved for loans or other credit in the future - and often you will not realise until the damage has been done. Another is a rise in home and office burglaries, and it may be that home insurance providers will refuse to pay out on a contents insurance claim if it transpires that you have been broadcasting your whereabouts to all and sundry on Facebook. After all, if the burglar can check what you have been posting, your insurer will be able to as well.

If you're concerned about identity theft, you should check your credit rating through one of the UK's credit reference agencies to see if any credit applications have been made fraudulently under your name. You can get a free 30-day trial subscription to your credit report through Credit Expert by clicking here.

5 Ground Rules for Avoiding Bank Charges

2010-02-18T00:00:00Z

Make friends with your Bank

We're not suggesting that you invite your local bank manager over for a Sunday roast. However, if you have a history of managing your money well and rarely exceed your overdraft limit, you'll have a much better chance of avoiding a charge on the rare occasion that this does happen.

If you know that a one-off charge is likely to leave your account that will cause you to exceed your overdraft, don't just wait for the inevitable, get on the phone to your bank and explain the situation. Take a reference number, or the name of the person that you spoke to, and you will then have a record of the fact that you gave the bank warning of the transaction going through. There is no guarantee that the bank won't still charge you for exceeding your limit, but they are more likely to look favourably on your situation.

Actually read your bank statements

OK, so bank statements are not exactly stimulating bedtime reading, but if you take five minutes to open and read your statements when they arrive, you will get a much clearer idea of what you have been doing with your money. Mistakes can sometimes be made by the bank, or by companies that you have direct debit arrangements with, that may result in you being charged twice or overcharged.

By noticing these mistakes in 'real-time', you can act before you either exceed your overdraft limit or have a payment fail. You might also notice direct debits that should have been cancelled but that are actually still leaving your account. Don't rely on the companies to ensure these direct debits have been cancelled correctly - it's not in their interests to be too vigilant!

Keep all of your paperwork

When you communicate with the bank by post to cancel direct debits and other agreements or change the terms of your overdraft, always keep a copy of the letter and make sure that it is dated. When you open a new account or sign up for a new credit card, make sure that you file away the paperwork, because you have no guarantee that the bank or credit card will not lose that information.

If you speak to a customer service representative at your bank, ask them for a reference number or some other way in which you can keep a record of the call. This is in case you have asked for a service to be amended or cancelled and it is not done. You can avoid being charged erroneously for banking errors by keeping a file of this type of communication so that you have proof if you should ever need it.

Are you in control of your Debt?

2010-02-17T00:00:00Z

A new poll by Asset Management Group F&C shows that more than 50% of Britons between the ages of 35-45 do not feel fully on top of their finances. Out of the 3,000 respondents to the survey, just under 50% said that they felt in control of their finances, 36% said that they felt 'a degree of control', and worryingly, 14% claimed to not feel in control of their financial situation at all.

Planning for the Future

61% of male respondents expressed confidence about their finances, compared to 43% of women. This confidence is likely to be due to having planned for the future, since men were more likely to have made a will and 13% more likely to have emergency cash saved up. Women however, were 12% more likely to have life insurance.

20% of men and 25% of women are relying on the State pension to keep them in old age, although a third of respondents of both sexes are contributing to an occupational pension scheme to supplement the State pension that they will eventually receive. 38% of women admitted to being 'not at all confident' that their retirement provisions would be sufficient to maintain their lifestyles in retirement, compared with 23% of men.

Worrying about Debt

Out of those respondents with debt, almost a third were struggling to meet repayments, or were at least concerned about their level of borrowing. Respondents in Northern Ireland seem to be the most worried, with 44% worrying about their debt levels.

Scott Stevens, Head of Global Wholesale and Marketing at F&C Investments, said: "While some of the results of this survey are encouraging, there is a real need for people in this age group to sort their financial lives out. It is unthinkable that almost a quarter of people are still planning to rely on the State pension, when it is entirely possible this safety net will not even exist in its current form by the time they retire. And with life expectancy continuing to rise, leaving it until later middle age to start saving for retirement is not a viable option."

The F&C have written a Financial Life Guide for 35-45 years old, designed to help people plan for a more secure financial future. You can download this guide here.

Top Tips for taking control of your Debt

* Know how much you owe

It might be that the problem is actually smaller than you have been imagining, but you won't know until you sit down and work out exactly how much you owe, and to whom. It might be a painful step, but you can then work out a payment plan for paying back the money that you owe. Pretending it is not happening will only result in a gradual increase in your debt. Take back control of your finances.

* Use our Debt Payoff Calculator

Use our free 'Time to Pay Off Debt Calculator' to work out how long it will take you to pay back your debt. You can choose different amounts to set aside for paying back your debt each month, to work out where your financial priorities should lie.

* Speak to an Expert

If you would like to speak to an experienced debt adviser about your debt, you can request a free callback by filling out our short debt form.

Are you using your ISA allowance?

2010-02-17T00:00:00Z

Only a few months remain until the second wave of savers can benefit from the higher ISA allowance introduced in the last Budget. On the 6th April 2010, everyone is eligible for a higher tax-free allowance, meaning that 10,200GBP per year, up from Â£7,200GBP, is the amount that each of us can save completely tax-free. Â£5,100GBP of this allowance can be invested into each of a cash ISA and a Stocks and Shares ISA.

Savers over the age of 50 were able to increase their allowance from 6th October last year. Both for these savers, and for others not yet eligible for the increase, there is still plenty of time to benefit from tax-free savings during tax year if you have money to invest. An ISA (or Individual Savings Account) is a saving product introduced in 1999 to replace PEPs and TESSAs, and you can either use an ISA to save cash at a competitive interest rate or to invest in stocks and shares. The popularity of ISAs stems from the fact that any interest you earn from an ISA account will be tax-free, and likewise any capital growth you see from investing in shares or funds will also be tax free (with no tax to pay on any dividends you receive).

Previously, the most you were allowed to save in a cash ISA and in a stocks and shares ISA was 3,200GBP in each, totalling Â£7,200GBP of tax-free savings each year. Now that this limit is on the up, it's well worth making use of the increased allowance, especially with savings accounts offering lower returns across the board than those available a few years ago.

Money that is saved in the current tax year can be added to a cash ISA or a stocks and shares ISA in the next tax year (starting April 6th 2010), but you must transfer the full amount into the ISA at the same time. It's worth noting that you can transfer savings from a cash ISA to stocks and shares, but you cannot transfer in the other direction. Also, a great rate on an ISA may be dependant on you taking out another product with the provider, and that additional product may not necessarily be as competitive - so make sure the combined offering is worth your while before signing up.

Putting at least some of your savings into an ISA could save you a considerable amount in tax. Normally at the basic tax rate, you would pay 20 per cent tax (in the 09-10 financial year) on the interest that your money earns. At the higher rate, you're looking at a tax of 40 per cent on your savings interest, although the 'saving rate' of tax (outside of an ISA) is 10 per cent.

Always consider using your ISA allowance before anything else. Despite their relatively low contribution limits, they still present themselves as one of the most effective savings schemes available. As long as you are a UK resident and over 18 (or 16 for a cash ISA) you are eligible to open an ISA account. The account must be in your name, and joint accounts are not an option. Don't forget that you do not need to have your cash ISA and your stocks and shares ISA with the same provider, so shop around for the products offering the best returns on your money.

For more information about moving your money from one ISA provider to another, read our article about the ISA 'transfer rules'.

How to Spend Less on Buying Clothes

2010-02-10T00:00:00Z

Clothes and shoes fall into that tricky space somewhere between 'necessities' and 'luxury items', meaning that many of us are guilty of spending more on our wardrobes than we can actually afford. Here are some Dos and Don'ts to help you manage your clothing budget and avoid spending more than necessary.

DO go shopping with cash

Handing over a wad of cash makes that impulse buy seem a lot less appealing. It's less fun perhaps, but shopping with cash forces you to think about the amount you are spending and helps you keep to your budget. You also avoid that moment of panic at the end of the month when the money is actually debited from your card three days after your purchase and takes you over your overdraft limit.

DO shop at sample sales and outlet stores

If you are a designer label addict, there are still ways of saving yourself a bit of cash. Most designer brands will hold sample sales several times a year, to get rid of excess merchandise before the new collections come in. Sample sales are not usually announced with much notice, but you will usually be able to find out where and when they are happening by keeping an eye out in the local papers and signing up to your favourite brands' newsletters. Check out Secret Sales, Designer Sales and Secret Sample Sales for some sample sale listings.

Some of the popular online shops have discount stores where they sell stock that is reaching the end of the season. Check out Asos Red and The OutNet for designer clothes with large reductions. If you'd prefer real-life shopping to virtual bargain-hunting, check out the Shopping Villages website for a list of the UK's shopping outlets. Even better if you can set yourself a budget and only take cash, as this will prevent any overspending!

DON'T use store cards

An extra 15% off at the counter 'just' for signing up for a store card might seem like a no-brainer, but it then takes a herculean effort of will to avoid using it again and again, especially if it happens to be for one of your favourite shops. The interest rate that is charged on these store cards is extremely high - up to twice the average credit card rate - and therefore unless you are prepared to pay off the entire balance each and every month, you will end up negating that initial 15% discount pretty quickly.

DO accessorise to update your look

If you like to change your look each season but can't afford the constant wardrobe updates, invest in a few key accessories each season such as belts or eye-catching jewellery. By keeping your wardrobe classic and buying accompanying pieces that will stand out, you can get away with buying fewer clothes and still keep up with the trends. After all, you know that those harem pants and massive shoulder pads will never see the light of day again once their moment in the limelight has passed.

DO keep yourself 'clothing-neutral'

It's a simple concept, balance out your spending by selling old clothes on eBay. You can shop guilt-free and you get to pass on clothes that you never wear to someone who will make good use of them. Another take on 'feel-good' spending is the online charity shop, such as Oxfam's. You can search for cheap, second-hand clothes and know that your money is going to a good cause. Alternatively, do it the old-fashioned way - go into a real charity shop and hunt for treasures!

DON'T use offers for the sake of it

You need to be a smart voucher shopper, otherwise you are playing straight into the hands of the retailers. The discount vouchers that do the rounds are only a good deal if you already wanted/needed something from that shop. Resist the urge 'just to have a look', because you'll end up feeling compelled to buy something before the offer runs out.

Four Alternatives to the Emergency Credit Card

2010-02-09T00:00:00Z

Many people in the UK keep a credit card just for emergencies, but it can sometimes be too tempting to have between several hundred and several thousand pounds at your disposal, and extra spending on a credit card 'here and there' can quickly result in unmanageable amounts of debt unless you keep a careful check on what you use it for. Here are some alternatives to having an emergency credit card burning a hole in your pocket.

1. Get a prepaid credit card.

Many card providers offer a prepaid credit card that you use on a top-up basis, meaning that you only spend money that is actually yours to spend. Using a prepaid credit card has the added advantages of avoiding credit card-related debt-traps such as having your credit limit raised without your express consent and having high-interest credit card cheques sent to you through the post. Top it up with perhaps 20GBP or 40GBP each time you are paid until you have a few hundred pounds on standby for when you need it urgently. Don't pick a card that charges you a monthly fee, because you might not need it for several months. Do bear in mind that you will usually be charged for withdrawing money at a cash machine using a prepaid card, so keep transactions to an absolute minimum. Apply for one today through Virgin.

2. Consider a second current account.

Open a free current account with a small overdraft limit (make sure that you keep it to around 100GBP and say no to a 'buffer zone' where you could exceed the limit but are charged expensive fees for doing so). Keep your emergency card in a safe place, separate to the PIN, for use if your usual card is lost, stolen, or swallowed by a cash machine and you are unable to get to a bank branch. Unlike a credit card, the interest rate on your overdraft is unlikely to fluctuate, and it will be generally much, much lower than the rates charged on credit cards. You are also not charged that additional penalty fee if you have not made a repayment within a month - just make sure you keep that limit low, or even better, fund the account and stay in credit!

3. Get an Instant Access Savings Account.

This does not solve the problem of being without cash should you lose your bank card outside of branch opening hours, but gives you the flexibility to be able to access your money, the security of keeping your money safely in the bank and the added advantage of earning interest on your savings. Granted, you would earn a higher rate of interest if you agreed to lock your money away in a restricted-access account, but you could perhaps look to have one of these as well, for the longer-term savings. Pay a small amount into the account as soon as you are paid, even 15GBP a month will give you something to fall back on if you need money quickly.

4. Save 1 Pound each day.

This is for those who are disciplined enough not to dip into cash savings unless absolutely necessary. If you only lose your card once in 3-month period, this gives you a potential stash of 90GBP of emergency cash. Keep the money in a container without easy access, a piggy bank would do the trick!

Click here to read our guide to How to Save 50GBP per month. A few lifestyle changes will leave you with a bit more cash - which could be used for a useful emergency fund!

Is your Standard Variable Rate Mortgage rate on the rise?

2010-02-04T00:00:00Z

Last week, Skipton Building Society used the small print in mortgage contracts to raise its Standard Variable Rate (SVR) from 3.5% to 4.95%, breaking a guarantee to its customers. To put this into perspective, this amounts to a monthly repayment increase of around Â£120 for a homeowner on a 25-year Â£150,000 repayment mortgage.

The trend began with Marsden Building Society at the start of the year, and since then, in addition to Skipton, Norwich&Peterborough and Holmesdale Building Societies (to 5.35% and 4.89% respectively) are among those who have announced an SVR hike. More building societies are expected to follow in their footsteps.

Naturally consumers are angry - you simply don't expect a guaranteed maximum payment to be exceeded. But the building societies must have their reasons for risking losing a number of their customers, right? We look at the reasons behind the SVR increases, and what you can do about it if your mortgage rate has become unmanageable.

What is the Standard Variable Rate?

The Standard Variable Rate (SVR) is the 'default' rate of interest that banks and building societies charge customers for borrowing. The SVR is different at every lender, and the lenders can change the rate at any time. Normally, the SVR reflects changes in the Bank of England base rate, although lenders are under no obligation to track the base rate if they choose not to.

If you have been on a mortgage rate with an attractive introductory offer, such as a fixed rate mortgage for say, the first three years of your deal, you would automatically revert to the lender's Standard Variable Rate mortgage product once this fixed rate period is up. In most cases, the lender's SVR is much less competitive than their other mortgage products - after all, new consumers cannot get these rates, so they have no incentive to make them sexy.

How can these building societies change a 'guaranteed' rate?

Even when there are guarantees against raising the SVR above a certain percentage, there are usually clauses in the small print stating that this guarantee can be withdrawn in 'exceptional circumstances'. These could include any circumstances in which the lender's business may be put at risk, and in the current economic climate - with interest rates at unprecedentedly low levels - many other smaller building societies could use this reasoning to increase their Standard Variable Rate.

Why are the building societies doing this?

For the smaller building societies, the majority of their customers are on tracker rate mortgages, which will mean relatively low monthly repayments whilst the base rate remains at 0.5%. The smaller building societies are therefore working on very tight margins where it comes to their lending.

All of the banks and building societies need to attract savers, because these are the consumers that bring regular cash flow into the business. And if smaller building societies are unable to attract new savers because they cannot afford to pay competitive interest rates on savings, they need to find some way of bringing in some extra cash. Although the tracker mortgage rates cannot be put up, the SVR can be changed at any time, and so this is how the small building societies have had to adjust their rates to counteract their earlier low-rate lending.

What can you do about it?

If you are on your lender's Standard Variable Rate at the moment, you can choose to remortgage and find a better deal elsewhere. Choosing a fixed rate remortgage would at least guarantee that the rate would not be able to rise for the period of the remortgage loan, guaranteeing you a higher level of financial security.

The only reason this may not be an option is if you do not have any equity available in your property, as this would make it harder for you to actually improve your rate by moving. However, there is no harm in shopping around to find out whether you could improve your current mortgage situation.

Want free, no-obligation quotes and advice tailored to your personal circumstances?
Request a callback from a qualified remortgage adviser today by filling out our remortgage form.

Five Ways to Bargain your Way out of Debt

2010-02-03T00:00:00Z

It's time we started using our consumer clout! Put your negotiation skills to good use, and start demanding better deals - you could save hundreds each month. Remember, a smile works wonders even when you're negotiating over the phone.

Lower your Credit Card interest rate

Call up your credit card providers (use the free number that you'll usually find on the back of the card, or go on to saynoto0870.com for free versions of premium-rate numbers).   Ask them if they could check to see if you qualify for a lower interest rate - there is no harm in asking, and the representative might move you straight away, especially if you are usually on time with your repayments and generally on good terms with your card provider.

If the representative is not prepared to lower your rate, mention that you have seen a lower interest rate with another card provider (it's worth doing some credit card comparison research first) and that you would like to transfer your balance over. Rather than losing you as a customer, they may then be persuaded to match this other rate or at least offer you something more competitive.

Get a new, improved mobile phone tariff

Coming to the end of your mobile phone contract? Now is the prime time to get a great deal. Mobile phone companies know how much you are worth to them over a lifetime, so they will do what they can to hang on to your business. First, check your phone bills from the last six months. Then ask yourself the following questions: How many minutes and texts do I use on average each month? Where are the additional charges coming from? Which handset would I want to upgrade to?

Then, work out which package would suit you best and how much you can actually afford to pay each month. Again, shop around to see what other mobile phone networks are offering. Phone up your provider and tell them that you have found a better deal elsewhere and would like to move. Give them the tariff and pricing details that you would like to move to, and they will more than likely match these for you. Try and avoid getting tied into an 18-month contract (this will usually be the trade-off for getting the best deals), because this means you're an awfully long time away from the next chance to improve your deal.

Pay less for your Protection

Insurance providers are extremely competitive, and so when you are approaching your insurance renewal date, this is a great opportunity to lower the monthly cost of your car insurance or home insurance.   Call up your provider and explain that you have found a much better deal with someone else, and that you are therefore planning to switch, Give them the details of the offer you have found elsewhere and ask them to match it or improve upon it.

It's important to remember that you need to keep a high level of cover - there's no point switching to a cheaper deal that doesn't actually protect you, and always read the small print, however boring a task it might sound! If you ensure your car and your home with the same insurance provider, ask if you can get a discount for renewing the two insurance types at the same time. This is particularly effective if you have previously used separate providers, because you're proposing to give one company twice as much business.

Bundle Up

Getting your television, broadband and landline telephone through the same provider could save you money. It often works out cheaper for the providers to work in this way, because it cuts down installation time and administration, and the savings get passed on to the customers. Plus, you should consider that it is a big win for a provider to get triple the amount of business out of one customer, so don't be afraid to ask for additional discounts.

Do your research, read reviews and find out what the connection is like in your local area. Don't necessarily opt for the cheapest package, because it might not actually give you the best service. Even if you save a smaller amount each month by switching and have an excellent service, this is better than saving a fortune but having a dodgy service! Also, consider the quality of the provider's customer support - will someone come out quickly if you have issues, and will you be charged for any repairs? Bundles are not always the best deal, so do be prepared to shop around - and remember, you are also perfectly entitled to bargain with individual suppliers, they want your business just as much!

Negotiating with your bank

If you usually avoid bank charges, but you have exceeded your overdraft limit one month, get straight on the phone and explain the situation. Be polite and apologetic and don't get angry - even though the bank charges can be high, they are all outlined in the information you got when you signed up to that account so you did originally agree to them.   Usually if the circumstances can be explained, and you do not make a habit of going over your limit, they will agree to waive the charges.

How to Save at least £50 a month (without getting a pay rise)

2010-01-28T00:00:00Z

One of the main reasons for the financial struggle in the week before payday is not a lack of money as such, it's a lack of organisation. With a small amount of planning you can get to the end of the month before your funds run out, and even have some left over. Below are some tips to get you off to a good start.

1. Have one less cappuccino a week and don't go at weekends

It's just one cappuccino, what harm can it do? Well, it can make quite a dent in your wallet for one thing. If you normally fill up on caffeinated froth every morning, plan to go without on Wednesdays, for example, and go cold turkey at weekends. Check out our free Starbucks habit calculator to see how much your coffee habit is setting you back (equally applicable to other coffee brands obviously!). In the SimplyFinance team, we were pretty surprised by our combined coffee spend and are now taking steps to kick the habit, or at least switch to instant.

2. Bring your lunch into work at least 2 days a week

Let's face it, we are all aware that making a sandwich is cheaper than buying one, especially when you're buying one of those elaborate ciabatta creations every day that will set you back a fiver a time. For most of us, the problem is not a lack of awareness, more a lack of time and a shortage of ideas. Well, it's time to get creative - a homemade lunch doesn't have to be a slightly squashed sandwich in your desk drawer. If your office doesn't have a microwave, bring in a thermos of soup and a big salad in an airtight container. There are some great ideas here, or just search online for 'lunch ideas'.

3. Shop online to avoid the 'magpie effect'

That's right, the moment when something shiny catches your eye, and the sensible winter scarf you went in for turns into three T-shirts (on offer) and a pair of boots. And whichever way you look at it, 3-for-the-price-of-2 is not a bargain. You didn't want three books, you wanted one book, and now you've paid double for it. The best way of avoiding the sneaky false bargains is to not put yourself in temptation's way. Shop online wherever possible, especially for groceries. In some online supermarkets, you can even keep all your regular purchases in one place.

4. Don't buy bottled water

According to consumer champion Which?, tap water costs around 0.22p per litre. When you consider that bottled water starts at 8.5p per litre, and that we're advised to drink around 1.5l of water a day, the costs soon start adding up. It's easy to be swayed by the marketing on bottled water that promises clean, pure and natural water - UK tap water could make exactly the same claims. If you're skeptical, do a blind taste test, and see if you notice the difference. Another reason to switch to 'eau de tap' is an environmental one, think of all the empty bottles that go to landfill each year.

5. Use your consumer muscle

Now more than ever, the companies that provide your insurance need your business. This means that you are in the driving seat, and should see your approaching renewal date as the time to do some serious haggling. Many service providers actually employ 'retention' teams whose sole job it is to talk you out of leaving them. Look at how much you are currently spending on your home insurance, health insurance or car insurance, and set a target renewal premium. It is a good idea to shop around and talk to other providers before making that call - your case will be much stronger if you can get your current insurer to match another quote you have been given. You can request a callback from a health insurance adviser or a home insurance adviser by filling out the short forms - no obligation, free to use, and this will give you a clearer idea of what you can potentially get. One word of warning, all insurance policies are not equal, read the small print before signing up and don't skimp on cover for the sake of a few extra pounds.

6. De-junk your bank account

Are you actually reading the newspaper or magazine that you subscribe to? If not, cancel the subscription. Do you even remember what that monthly Ã?Â?Ã?Â?Ã?Â?Ã?Â£5 direct debit is for? If not, get rid of it, you could still be paying the insurance on a mobile phone that you cancelled a long time ago. Just as you would have a spring-clean of your wardrobe, go through your bank statement with a fine-toothed comb and ruthlessly get rid of anything that you are not using. Use the same logic for your banking 'extras' - if you're paying Ã?Â?Ã?Â?Ã?Â?Ã?Â£7 per month for breakdown cover and roadside assistance when you don't even drive, that's just not a very good deal, is it?

7. Buy own-brand medication

For every 'extra' and 'max strength' product on the shelves, there will be a generic equivalent, and it will have exactly the same effect because it contains exactly the same ingredients. Check the ingredients list on the back of your Anadin Extra, and then compare it with the equivalent own-brand painkiller in Boots, for example. The only difference will usually be in the price, and it may surprise you to learn that you could save Ã?Â?Ã?Â?Ã?Â?Ã?Â£2-3 a packet. However, if it is the pretty packaging that you go for, feel free to keep paying a premium!

8. Never pay full price for going out

One side-effects of the recession is that the voucher culture has exploded. People are going out less, so theatres, restaurants and cinemas are happy to offer deals to attract in the crowds. Try Toptable.com for deals on eating out, and any number of theatre websites can be found by searching online for the play that you want to see. The National Theatre has teamed up with Travelex to offer Ã?Â?Ã?Â?Ã?Â?Ã?Â£10 tickets to most shows, and Lastminute.com offers half-price cinema tickets on some weekdays (search under' Entertainment').

So what should you do with the money you have saved? There are a number of options for stashing your savings, so have a look at our pages on savings accounts, Cash ISAs and Stocks and Shares ISAs for a few ideas on getting the most out of your money.

How much is your Mortgage really costing you?

2010-01-28T00:00:00Z

When you buy a property there are a number of 'hidden' costs that you need to consider as well as the obvious ones. Buying a property is a complicated legal process requiring the involvement of various experts, including a surveyor, solicitor and conveyancer, so you will have to foot these additional bills for a start. This article details the main additional costs you will encounter when purchasing a property, to help you budget and make your purchase as streamlined as possible. You can also use our true cost mortgage calculator to work out your expenses.

Always read the small print on the mortgage rates

Although tighter controls have been imposed on consumer lending in the last few years, competition to attract new mortgage business is still fierce, and therefore lenders publish what seem at first glance to be extremely low rates. As many unfortunate customers of the Skipton Building Society found recently when the lender's Standard Variable Rate shot up by a couple of percent, a 'guarantee' of a capped rate is not necesssarily set in stone. However, be as prepared as you can by looking at the small print before agreeing to the deal.

Arrangement fees

There are other factors to take into consideration when calculating the actual cost of your mortgage. Is your mortgage broker charging an arrangement fee? This will typically be a percentage of the sum borrowed, although it could also be a flat fee. Not all mortgage brokers will charge you an arrangement fee as they get paid an introduction fee by the lender, but it is fairly common so make sure you ask them for full fee details before proceeding with the mortgage.

Valuation fees

A full property valuation is usually required by a mortgage lender before they will approve your application. This enables them to confirm the property's worth, something that is particularly important in the current financial climate when millions of consumers have seen the value of their property fall. Lenders sometimes foot the bill for the valuation themselves, although the cost usually falls on the consumer, and you should expect to pay between £100-200 for this service. An extra point to check with your broker or lender is whether the valuation fee is refundable in the event that your mortgage application is refused.

Surveying fees

It is important to have the property surveyed before you go ahead with the purchase, to protect yourself from making an unwise investment. There are two types of survey, the homebuyer's report and a full structural survey. The homebuyer's report is a more basic survey, costing about £300 and often included for free in the lender's service. This includes a check of the superficial condition of the house, making sure that there are no obvious faults.

Should you find evidence of structural damage, it would be wise to have the full structural survey (which would set you back about £800), because if you later find that you need to carry out serious repairs on the property as a result of any damage, the costs could be far greater. Any damage uncovered by this survey would enable you to push for a discount on the price, that would take any future repairs into consideration. Alternatively, evidence of significant damage or subsidence in the property would warn you against making an unwise purchase.

Stamp Duty

If you buy a property that costs more than £25,000, you must pay a Stamp Duty tax, which is calculated as a percentage of the total purchase price. This increases depending on the value of the property from 1-4%, so if the purchase price is between £125,001 and £250,000 you pay an extra 1% in Stamp Duty, if it is between £250,001 and £500,000, an extra 3%, and an extra 4% if the property costs over £500,000. If the property has a purchase price of £125,000 or less, you are exempt from paying Stamp Duty on the property. Use our Stamp Duty calculator to check the Tax payable on your new property.

Conveyancing fees

Conveyancing is the legal process by which ownership of a property is transferred from one person to another. This is carried out either by a solicitor or by a licensed conveyancer, and both buyer and seller need to have their own conveyancing representation to ensure that there is no conflict of interest. The conveyancer's role is to ensure that the terms and conditions of the contract are fair, and that all the financial information required for the sale is correct.

The conveyancing process can take several months to complete and the costs will vary depending on the company that carries out the work. When the Land Registry costs and other fees for searches are taken into consideration, the full cost of conveyancing can stretch to £600 or more. Due to the complicated nature of the work this process should only be carried out by an expert, so this would not be a good place to cut corners on your purchase costs.

Building Insurance

Lenders almost always require you to have home buildings insurance before they will approve your mortgage application. Buildings insurance protects you (and the lender's investment) should your house be damaged by fire, subsidence or extreme weather conditions such as floods, and would cover the costs of repairing or even rebuilding the property. Depending on the policy, some insurers will also pay the costs of temporary accommodation for you and your family while repairs are being carried out.

Although this insurance is compulsory, there is nothing to say that you have to buy it from your lender. Many insurers offer very competitive rates for buildings insurance (often with a reduced premium for home contents insurance if both are taken out together), so you can often get a much better deal by shopping around. The cost of buildings insurance will depend on many factors, including the size, age and condition of the property and whether you live in an area prone to flooding or subsidence.

If you would like to talk through your options with an experienced mortgage adviser, you can request a free mortgage quote by filling out our short mortgage form.

Give yourself a Lunchtime Money Makeover

2010-01-22T00:00:00Z

Are you finding that you are generally a little strapped for cash by the end of the month? Below are some ways in which you can make a positive difference to your finances with minimal effort.

Get your News Fix Online

Do you use your lunchbreak to browse the main headlines or catch up on celebrity gossip? If so, rather than popping out to buy your favourite paper or magazine, simply log onto their website. As well as free access to interesting articles, the online versions have the added bonus of video, interactive games and quizzes to keep you entertained. Just make sure that you give your eyes a break before starting work again!

Bring in a packed lunch twice a week

We're all guilty of nipping to the shops for a sandwich rather than bringing one in, but thinking about the cost might make you reach for the tupperware. Just Â£3 spent on food each weekday lunchtime amounts to a whopping Â£700 a year! Even bringing in a homemade sandwich or a salad twice a week could leave you with enough change to treat yourself at the end of the month.

Get on the phone to a creditor

Have you been ignoring letters from a company that you owe money to? Take a deep breath and pick up the phone. Even if you need to put off paying that bill until after payday, explaining your situation and agreeing a later payment date will usually make them much more sympathetic. Plus you can stop dreading the arrival of the post each morning! If you are struggling with your debt and want to talk to a debt specialist, request a callback here.

Ditch the added extras

If you went to university, you may have a graduate bank account as a hangover from your student days. Although the interest-free overdraft is often still a big benefit, you may find that you're paying for a number of extras that you don't need or use. Are breakdown assistance (when you don't have a car) and mobile phone insurance (when you have this through your phone provider) really worth Â£7 per month in account fees? Get on the phone to your bank and find out if you can switch to a cheaper account.

Earn money by writing reviews

Are you a budding journalist? Sign up to a local reviewing community such as bview and review restaurants, shops and other services in your local area. By sharing your opinion on services that you use every day, you can both earn money and start getting your writing published online.

Make your great driving pay

It's official, women make the safest drivers! Statistically, we're less likely to become involved in accidents and make car insurance claims, and as a result are rewarded by cheaper car insurance deals. If you're approaching the renewal period for your premium, take 15 minutes and go online to find out if you can save money by switching to another insurer. If you have not made a claim in the last 2 years, most insurers will also give you a no-claims discount, and you might even make extra savings simply by applying online.

Browse freecycle rather than shopping

Online shopping is either the greatest invention ever, or the work of the devil, depending on the state of your finances. If you can't help having a sneaky browse in your lunchbreak, sign up to Freecycle. Members sign up to a group in their local area and offer belongings that they no longer need, and all you pay is the cost of picking the item up. You can find treasures such as computers and antique furniture, just make sure you're quick to reply!

Save your friends money too!

Planning a post-work catch up with friends? Be super-organised and book a table online through a website like TopTable. As a member of this free service, you can book at thousands of restaurants and bars across the UK, often with savings of up to 50% on the food bill. Plus, if you review the place afterwards you earn points towards free meals and other rewards.

Fixed Rate Mortgages now seen as a safer option than a Tracker

2010-01-21T00:00:00Z

As many as 4,800 people could choose to remortgage each day over the next six months, according to research by retail and commercial bank Santander. Due to expected increases in the Bank of England base rate over the coming months, many homeowners could opt to make the most of fixed rate deals rather than taking a risk on a tracker mortgage.

The research comes from Santander's Mortgage Remo Index, which monitors monthly remortgaging trends. They have found that as many as 880,000 people in the UK could be coming to the end of their mortgage deals over the next six months and will need to make the decision about who will manage their home loan from then onwards.

Phil Cliff, Director of Mortgage Marketing at Santander UK commented: "A significant number of people could remortgage in the next six months and among those considering their next deal there is a potential for a fall in demand for tracker deals.

"Borrowers have seen a large number of highly competitive fixed deals come on to the market recently and with many commentators predicting a base rate rise this year, homeowners now seem more inclined to play it safe with a fixed rate deal."

According to the research, over half (51%) of homeowners who will be remortgaging in the next six months say the factor that will most influence their decision on which deal to take is the opportunity to take advantage of a good rate. This is followed by the opportunity to make under or overpayments (9%) and speculation that the Bank of England's base rate will go up (6%).

If you are planning to remortgage and would like to talk through your options with an authorised mortgage adviser, please fill out our short remortgage form. We will then connect you with an adviser who can give you a free, no-obligation quote based on your financial circumstances.

How Healthy is Britain?

2010-01-15T00:00:00Z

Health Insurer Pru Health carries out a twice-yearly survey into the health of the nation, called the Vitality Index. The research aims to pinpoint any areas of concern, and also to find out where improvements have been made. The January 2009 research shows that the same number of adults (69%) as before claim to be in good health, although worryingly, the number of adults who say that their lifestyle is unhealthy has increased from 14% to 18%. In real terms, this means that an extra 2 million people feel that their lifestyle has become less healthy, in just 6 months.

Dr Grainger, who carried out the research feels that the findings may be directly linked to the falling incomes and redundancy that have become an unfortunate feature of our economic climate, since the healthier options are often less affordable. Mintel research from October 2009 shows that gym memberships have also become disproportionally expensive, and this will be a deterrent for many.

Perhaps a sign of the post-Christmas blues, the PruHealth research also shows that over 50% of adults are unhappy with their current weight. Of those adults who admit to being stressed, 50% say that their stress is affecting their home life. 20% also say that their work is being affected by their stress.

61% of people admit that they should do more about their health, and as many as 81% of us state that we know what we should and shouldn't do in order to stay healthy. The smoking ban, and the increase in focus on health issues in the media will have helped to raise our overall awareness of our health. However, overall, it seems that people are not taking as much care of themselves as before, with only 13% of people visiting their GP regularly.

The report draws the conclusion that incentives may be needed in order to encourage people to live healthier lives, exercise more and make choices that benefit their health and wellbeing. When the survey respondents were asked what would motivate them to change their lifestyle, 'being diagnosed with a health condition' came top, followed by 'rewards and incentives for improving health' and 'a close friend/family member being diagnosed with a health condition'.

Some private health insurance policies do reward you for exercising regularly and making healthy choices, because if you are healthier you are less likely to claim. The reward in this case would be cheaper premiums. Many health insurance policies focus on preventative care, that is, keeping you healthy, rather than curing illnesses. If you are interested in finding out more about how much health insurance could cost you, and what incentives you might be offered, please fill out our short form. We'll connect you with a qualified health insurance adviser who will talk you through your options and provide you with a free and no-obligation quote.

How being a Greener Driver can save you Money

2010-01-14T00:00:00Z

It's a common misconception that making more environmentally-friendly choices costs you more. In fact, with hundreds of new 'green' financial services products on the market each year, the cost of being a more conscientious consumer is actually decreasing.

There are also a number of ways to be a greener, cleaner road user every day by making small changes to the way that you drive. An awareness campaign carried out by the EU estimates that the average driver can cut their car's fuel consumption by an impressive 30% simply by adopting 'eco-driving' techniques.

Some examples of more environmentally-friendly driving include avoiding harsh acceleration (high engine speeds use more fuel and increase your carbon emissions), and switching off your engine when you are stationary and it is safe to do so, such as in long traffic light queues.

You should check that your tyre pressures are correct to improve the fuel economy of your car - under-inflated tyres increase the rolling resistance of your car, meaning that the car has to work harder to reach the same speeds than if your tyres were properly inflated. You can find details of the optimum tyre pressure for your car in the owner's manual. Remove any unnecessary weight from the car (such as a roof rack that you do not use), and avoid using air conditioning or electrical devices such as phone or music player chargers where possible.

Other top tips to make your car more fuel-efficient and save you on petrol money include using high-quality fuels and oils that keep the car's engine clean and keeping your car properly serviced. Keeping to the speed limit is not only safe but also improves your fuel consumption.

If you own a 'green' car, that is, one that emits lower levels of carbon dioxide than standard vehicles, or if you are a road user and would like to offset your carbon footprint, there are products available to help you do this without breaking the bank.

Warranty Direct, the UK's largest direct to consumer car warranty provider, has created the Green Warranty, which gives you extended warranty protection against unforeseen repairs beyond the manufacturer's warranty date and also allows you to offset your carbon emissions at no extra cost.

For example, a MINI One comes under Tax Band C with emissions of 128g/km, or approximately 2.3 tonnes of Carbon Dioxide for every 10,000 miles travelled. With a Green Warranty, the company's comprehensive ExtraCare cover would cost £237.11, of which £23.69 is donated in a carbon offset contribution to the Carbon Footprint UK Tree Planting project. For more information about a green warranty or to get a free quote, please visit their website.

Why it's cheaper to Borrow than it is to Save

2010-01-14T00:00:00Z

With mortgage interest rates still at historic lows, and with the lending criteria becoming tougher than a round on University Challenge, lenders have had to reduce the mortgage rates in order to attract new borrowers. But how to plug the shortfall?   

According to new figures published by information provider Moneyfacts, many providers are cutting the rates of interest that they pay out on savings accounts in order to avoid losing money. The data shows that as recently as November 2009, banks were keen to attract new savers and therefore were offering particularly attractive introductory rates.

At the peak of the saver recruitment drive, interest rates were offered that amounted to 10 times the base rate, according to Moneyfacts.   Ever since however, the interest rates have been falling sharply, whilst mortgage interest deals have been getting increasingly competitive. Michelle Slade, spokesperson at Moneyfacts.co.uk, commented: "Providers must strike the right balance between savers and borrowers in order to maintain their balance sheets. No provider will offer market leading deals to both at the same time.

 "Competition is slowly returning to the mortgage market with LTVs and product numbers increasing and rates falling. Many savers have just experienced their worst ever year's returns and 2010 is not shaping up to be much better. The only benefit is likely to come from the forthcoming ISA season that will see providers battling it out to attract savers' tax free allowances."

The data provider looked at a range of savings options, across Instant Access savings accounts (where you have no restrictions on withdrawing your savings), Individual Savings Accounts (ISAs) which offer tax-free savings and savings bonds. As many ISAs pay returns at the end of the tax year (on the 5th of April each year), there is likely to be a rush to encourage consumers to deposit their lump sum savings before the deadline.   

If you have your money in an instant access savings account and you are disappointed with the returns that you have seen this year, there is plenty of time to move your savings to an ISA in order to benefit from this year's tax allowance. Another light at the end of the tunnel for savers is that from the start of the next tax year (6th April onwards), the tax-free ISA allowance is going to increase for everyone (it has already increased for savers over 50) from £7,200 to £10,200. Visit our Tax-free ISA allowance article to find out more about this.

Lowest levels of Income needed for Mortgage payments for five years

2010-01-13T00:00:00Z

If you have just bought a house, or are in the process of completing on a property purchase, you may be interested to know that in November last year home buyers had a record amount of spare cash left in their pay packets after making the monthly mortgage payment.

New data released today by the Council of Mortgage Lenders (CML) shows that the amount of income that home buyers in November needed to use for mortgage payments was a at a record low. Typically people buying properties at the end of 2009 needed only 10.6% of their gross income each month to meet their mortgage payments, down from 11.1% in October of last year.

Commenting on the data, CML director general Michael Coogan said: "It is encouraging to see that mortgage interest payments are so affordable for home movers and first-time buyers. But with substantial deposits still needed to secure a mortgage, the market will continue to be relatively restrained for some time to come.

"With refinancing still unattractive or unnecessary for many borrowers due to continuing low rates, we are now seeing a much more house purchase-focused market, a profile much more like the beginning of the Noughties than its latter years." There were 53,000 house purchase loans granted in November, with loans to pay for new house purchasing accounting for 60% of all new UK lending in November, the highest proportion since 2001.

Remortgages have gone the other way however, due to the tight lending criteria and the fact that with the interest rates as low as they are. For many people, their current mortgage deal cannot currently be beaten. If you'd like to receive a free quote on a remortgage, please fill out our short remortgage form to be connected with a qualified adviser.

For those looking for either a first time buyer or a next time buyer mortgage or a remortgage at the moment, there are plenty of deals to be had, with many banks and building societies offering free valuations, cheaper arrangement fees and even offers on home buildings insurance. When deciding on whether a mortgage offer presents a good deal, make sure you take all of the costs into consideration. Read our article about calculating the true cost of your mortgage.

For a free, no-obligation mortgage quote, please fill out our short mortgage form and we will connect you with a professional, authorised adviser.

Want to get fitter and save Money? Ditch the Gym Membership

2010-01-08T00:00:00Z

It's that time of year when our collective overindulgence during the holidays has sent us all running to the treadmills, planning a 5-times-a-week workout schedule as a form of penance for eating too much turkey and stuffing. However, data from market research group Mintel shows that in fact, we might be far better off - both financially and health-wise - if we simply tried incorporating more exercise into our daily routines.

For a start, a gym membership is expensive. The Mintel report shows that the average revenue that a UK health club makes per member stands at £442 (including VAT) or about £37 per month, although it also makes the point that the fees can be far higher at some of the major health club chains such as Fitness First, LA Fitness or Nuffield Health.

Because health clubs know that the urge to get fit is highest after the festive season, 20% of all advertising is carried out in January (Mintel/Nielson). If you are considering joining a gym, the one benefit of being bombarded with all this advertising is that the health clubs have to compete for your business, and many offer incentives such as waiving the joining fee (usually around £70) or offering free months.

After the flood of signups in January, the usual pattern is that by the time that the summer comes around, people's spend on gym attendance drops significantly because of summer holidays and the fact that it's more pleasant to exercise outdoors. Then in September and October, the attendance picks up again as we all flock to exercise indoors as the long winter nights draw in.

If, like 58% of the population (Mintel) you find that 'exercising in the gym is quite boring or repetitive', or are part of the 48% that lose interest after several weeks, it definitely does not pay to sign up to an expensive yearly contract. If you imagine that you're spending an average of £37 per month, and then perhaps not going along to the gym from May through to August, you are wasting £148 each year. Also, if you go to the gym just once a week, each gym session is costing you almost £10.

In July 2009 consumers were asked if they had changed, or planned to change their exercise habits as a result of the credit crunch/recession (Mintel). 23% of respondents had already cancelled their membership with a further 6% planning to. 38% said that they did exercise that did not require fees, such as jogging outdoors, cycling or exercising at home. People who have cancelled their private health club membership are most likely to be from the 25-34 age range and to have pre-school age children, so increased financial pressures are likely to be a deciding factor.

The most popular type of health club in the UK at present is the public leisure centre, with 25% of all gym-goers choosing to use these facilities (GMI/Mintel). The main attraction of a public gym is the flexibility, you are usually not tied into a yearly contract, meaning that if you do decide not to go, you are not penalised financially.

So what are your options if you would prefer to save the money on gym membership but still make healthy changes to your lifestyle? Within your daily routine, you could decide to walk more, perhaps using Google Maps or a similar service to plan a route to work. Opting to take the stairs at work rather than the lift would provide further benefit.

To avoid the pressure and guilt of a contract gym membership, find out about public health clubs in your area where you can pay as you go. You can find a list on the website of your local council. Alternatively, join a local pay-as-you-go sports club, for example to play football, hockey or netball. You would have the added benefit of a new social scene, which would incentivise you to go regularly.

And how to save money if you are dead-set on heading to the gym? Some health insurance plans will give you free or vastly reduced gym membership when you sign up (to encourage you to stay healthy), so this could be a cost-effective option. Click here to apply to speak to a health insurance adviser and find out more.

If you have work colleagues who are also keen to join, band together and ask for a reduced corporate rate - you'll also probably have more motivation to go along if your workmates are also there. Also, don't be afraid to bargain at the health club, they want your business and are likely to offer you a discount if you ask.

Of course, the more you use the gym the more cost-effective it becomes. If you do plan to go regularly, it is a great way of meeting people, and means that you are likely to spend less time on unhealthy and expensive pursuits like drinking in the pub. However, if the gym is not for you, or finances are tight, you should be aware that there are many other options available when that mince pie-fuelled guilt comes around each January.

Get Prepared for 'the Coldest Winter in 100 Years'

2010-01-07T00:00:00Z

According to the Met Office, we should expect it to be 'bitterly cold' over the weekend. Richard Young, Chief Forecaster at the Met Office says: "Temperatures will struggle to rise above freezing across most of the country by day, with severe and penetrating frosts at night. Sound like fun? Now imagine if your pipes burst or you lost electricity over the weekend. If you have not already prepared your home for the cold, now is the time to do so.

Firstly, you should consider home emergency cover, to ensure that if you do have problems caused by the freezing temperatures, they can be sorted out quickly and at minimal expense. Figures from Halifax General Insurance show that one in six of all home insurance claims to Halifax between Dec 19th and Jan 4th December were due to burst pipes. This is an increase from the one in ten calls during the first two weeks of December.

Pipes burst due to water expanding when it freezes, causing pipes to crack open. Then, when the weather warms slightly, the pipes leak water. Halifax Senior Claims Manager Martyn Foulds says: "The average cost to repair damage caused by a burst pipe is around £2000, so it is worth ensuring the home is properly insured, taking steps to prevent frozen pipes, making sure you have adequate insurance in place and also knowing what to do to limit damage if a pipe does burst."

So how should you prepare for the cold this winter? Firstly, you should consider taking out a home insurance policy which includes home emergency cover. Click here to speak to an independent adviser and get a home insurance quote today.

Secondly, you should make sure that your loft, waterpipes and the sides of your water tank are insulated. Locate the stop tap in your house for the water mains, so that if the pipes to burst, you can easily turn off the water supply and limit the damage to your home and belongings.

You should also keep a kit handy in your home to be used in emergencies, such as being snowed in. This should include a torch, spare batteries and bulbs, warm clothes and blankets, wellington boots, tins of food and a shovel. You should also keep your home insurance details close to hand, including the number that you need to ring for a home callout. When you have emergency home cover, the insurer should have a 24-hour emergency helpline.

Get a free home insurance quote by filling out our short form and speaking to an adviser.

Making New Year's Resolutions about Paying off Debts? You are not Alone.

2010-01-06T00:00:00Z

Getting fitter, spending more time with our families, taking up some hobbies...all of these are likely to feature on our New Year's resolution list at the start of 2010. However, the most popular resolutions appear to be related to our financial situations, as our recent survey shows.

'Managing my money better' came top of the list, chosen by 23% of respondents, followed by 'Paying off my debts', chosen by 20%. 19% of people stated that their main aim is 'Saving some money each month'. In total, money-related resolutions swept the board with a surprising 80% of the vote, showing that the current economic climate has really brought finances to the forefront of our minds.

In comparison, 'Getting fitter/getting in shape' was chosen by just 12% of those surveyed as the main resolution for 2010. 16% of people selected work-based resolutions; 10% planning to find a better-paid job, and the remainder wishing to find a role that was more satisfying than their current one. The effects of the recession on the job market were not overly apparent, with only 2% of respondents resolving to 'Get back into work'.

Two main conclusions can be drawn from these figures, the first being that personal finance is now featuring very highly in the public consciousness, and the second that people seem keen to manage their finances more effectively.

According to recent data collected by Datamonitor (June, 2009), 45% of UK consumers are more likely to shop around for better deals on their finances than they were before the downturn, which is one very positive outcome.

However, the same survey showed that 7% of UK consumers admit to avoiding opening their bank statements, a pattern of behaviour that can lead to anxiety and unnecessary charges. This combined with the finding that 49% of UK consumers do not read the financial news, either online or in the papers, shows that we still have a way to go towards better financial management.

The key to managing money is to be organised, keeping an eye on your balance (however depressing this may be at first), and making sure that bills and other commitments are the first things to leave your account when money comes in.

This will limit the possibilities of missed payments, bounced cheques and failed direct debits, meaning that your credit score will improve and you will be less likely to incur bank charges. We may not be able to keep all of our resolutions, but good money management is achievable with only a little effort all through the year.

Is Home Ownership now less of a Status Symbol?

2010-01-05T00:00:00Z

It seems that one of the effects of the recent property market crash is that more people are choosing to rent, rather than take on a potentially risky housing investment. According to professional advice site Unbiased.co.uk, over 1.75 million homeowners would now consider selling their home in order to start renting.

So what are the main reasons for this shift in the attitudes of British homeowners? Almost a third of those renting (31%) have found that renting gives them more freedom, and that home ownership - or rather, the mortgage that is a feature of house purchasing for many Britons, often presents more of a financial burden than a form of security.

12% of homeowners no longer feel that owning their own home represents a status symbol, and therefore do not aspire to climbing the property ladder to the same extent as before.

As a measure of exactly how much attitudes have changed, 32% of the 1.75 million homeowners wavering about whether to sell up stated that they would not have considered this as an option in the past. A further 31% said that the price that they would get for selling their property would be too low to make it worth considering.

Interestingly however, British renters do not seem to have been put off to the same extent, with 13% of renters stating that they still hoped to purchase their own property. This enthusiasm for home ownership seems fairly concentrated in the 18-34 age bracket, with 22% willing to buy as compared to only 6% in the 35-54 bracket.

For those who have seen the values of their properties plummet in recent years, there is clearly plenty of trepidation about borrowing money for an unstable investment. Renters on the other hand seem to still place a certain value on the ownership of property, perhaps considering it still to be a form of security as Britain slowly comes out of recession.

Karen Barrett, Chief Executive of Unbiased.co.uk comments, "While there are mixed messages as to whether house prices are now starting to rise again, it is clear that the property market crash has had a profound effect on the way people view their homes. For many who own their own home, the worry and stress of this through the property market volatility has caused them to re-think about whether long-term renting is a viable option for them."

"It has also caused renters to think about their long-term options, and while some still want to get on the property ladder despite the recent crash, many have now decided that the British status symbol of owning your own home no longer has the same importance. For those renters who are still looking to get on the property ladder, especially first time buyers, it is vital that they see a whole of market mortgage adviser to ensure they are getting the best possible advice from the whole of the market.

If you would like to talk through your options with an experienced whole-of-market mortgage adviser, please fill out our short mortgage form.

How to Beat the New Year Credit Challenge

2009-12-23T00:00:00Z

If the phrase "New Year, new you" makes you want to crawl back under the duvet, it's time to wake up and smell the coffee - especially if you're planning to use credit to fund your lifestyle.

Cars, homes and even the weekly groceries are set to get more expensive, while borrowing criteria become increasingly tough as the recession bites.

Here are five financial challenges you could face - and some simple tips for tackling them.

Finding it harder to obtain credit

There's less money available to lend and great concern within both government and lenders about people building up amounts of debt that they are unable to pay back. As a result, credit is increasingly hard to get unless you have an excellent credit rating.

* Get to know your credit report - the history of your credit accounts, from cards and loans to catalogue and mobile phone contracts, plus your repayment record. Lenders read it when they assess whether you would be a good borrower, so it's important to ensure that it's up-to-date and accurately reflects your circumstances. Check your credit report is in good health with a free 30-day trial of CreditExpert.
* Look for errors and ask the relevant lender to amend them - for example an incorrect address could affect your credit rating.
* If special circumstances, such as a major illness, were at the root cause of past payment problems, ask to add a note of explanation to your report.

The VAT rate goes back up to 17.5%

New Year's Day sees VAT return to its normal 17.5 per cent level - which means an extra 2.5 per cent on almost everything you buy. It's a minor annoyance when you add more than two pence to every pound you spend on everyday items, such as a take-away coffee or a bar of chocolate, but if you?re planning to buy major items such as a cooker or a sofa, it can really hurt.

* Review your budget and increase the amount you allow for basics such as clothes and dry cleaning - almost everything except kids' outfits and non-luxury food will go up.
* Research the best interest-free or low-interest credit deals on major items carefully before applying. Do not go for every deal in the hope that one lender will say yes, because your credit report will record all of these applications. These can make other lenders nervous that you're overstretched, desperate or even planning a fraud - and that?s bad news for your credit status.
* If you ever go into the red at your bank, get an overdraft limit approved - you'll pay far less interest than on unauthorised overspending and you'll protect your credit rating.

Cars will get more expensive

The government's scrappage deal - which subsidised people swapping an elderly car for a new, more efficient one - is ending and a new showroom tax will increase the duty that you will have to pay on nearly all car models. On top of that, fuel duty will rise by one per cent above inflation from 1 April. It may not be a good time to need a car - but you can still get around.

* Do you really need your own car? A car share, car pool service, public transport and occasional car hire can make a cost-effective alternative. Ask friends and family if you can club together, see if you can share transport with work colleagues and be honest with yourself - a car may be nice but it's often not essential.
* Shop around for car finance, and don't assume that the garage's own finance deal will always be best value. Apply to speak to a car loan adviser through the SimplyFinance website, check price comparison websites and investigate a personal loan from your own bank too - but be aware that you?ll need a great credit rating to qualify.
* Take simple steps to boost your credit score. For example, register to vote at your current address, as lenders use the electoral roll to check that you live where you say you do.

Stamp duty returns for first-time buyer properties

The stamp duty holiday on homes worth between £125,000 and £175,000 is coming to an end and adding an extra one per cent to what you actually pay - that's £1,250-£1,750 more you have to find. But the bigger problem is building up a sufficiently large deposit to qualify for a mortgage in the first place.

* Save every penny and see if your family can help you out with a deposit - it's becoming the norm, now that many mortgages aren't available unless you can put up around a third of the purchase price.
* Boost your credit rating by closing unused accounts, challenging entries in your credit report that you disagree with, making all your repayments on time and resisting the temptation to open new credit accounts unless you really need them. You'll get an overview of what you can do when you check your free Experian credit report.
* Order your Experian Credit Score for just £5.95. It will give an indication of how lenders might regard you and will show the impact your credit history has on your credit rating. Find out more about your credit score.

Credit card repayments will soon be rising

There are concerns that too many people are making the minimum repayments on their monthly credit card bills, which means that even relatively small amounts of borrowing could take decades to clear. As a result, many card providers are set to increase minimum monthly payments.

* Never skip a repayment or pay less than the minimum amount. You could incur penalty charges and fees and, because you've broken your agreement with the credit card or loan company, you might have to pay higher interest in future. On top of that, your missed payment will remain on your credit report for six years, warning other lenders that you may not be a reliable borrower.
* Talk to your card issuer if you think you may have problems making repayments. You may be able to reschedule your payments or take a temporary payment holiday.
* If you're worried that you're in a real financial mess, get debt advice. Reputable organisations include Citizens Advice at www.adviceguide.org.uk, National Debtline at www.nationaldebtline.co.uk or the Consumer Credit Counselling Service at www.cccs.co.uk, or apply to receive a callback from an experienced debt adviser through the SimplyFinance website.

Protect your New Car with an Extended Car Warranty

2009-12-22T00:00:00Z

New research from Auto Trader reveals that the imminent rise in national VAT will have a significant effect on consumers in 2010, with 30% of people admitting they will be forced to reconsider their spending habits.

Unfortunately, if you are looking to make a large purchase such as a new car in the New Year, you will be among the hardest hit by the VAT rate reverting to the previous level of 17.5%.

If you are having to spend more than you wanted on your car purchase, you should consider a car warranty in addition to your standard car insurance policy, as this will protect you from any additional expenses that you may incur if your new toy is damaged or does not wear as well as expected.

Every new vehicle comes from the manufacturer with a basic factory warranty. This agreement states that the manufacturer will repair or replace any part of the vehicle in the event of a mechanical malfunction for a limited period or limited number of miles. However, once this warranty expires you have nothing to protect yourself from expensive vehicle repair costs. Companies such as Warranty Direct will protect you for a specified amount of time and/or mileage.

A car warranty also gives you the flexibility to get repair work carried out wherever you want, meaning that you can shop around for a price that you like at a garage you trust. As with any type of insurance, there are varying levels of cover when you buy an extended car warranty, and it's absolutely essential to read the small print so that you know exactly what is included in the policy.

A basic level of cover will protect you against mechanical breakdown - that is, for faults arising from the engine, ignition, gearbox, steering and suspension. A more comprehensive car warranty will also include you for damage to the bodywork and to the interior of the car, and general 'wear and tear' that would otherwise cost you significant amounts to deal with. You can also be use your car warranty to claim back garage costs in excess of £200 per hour, and receive a contribution towards car hire and overnight accommodation as a result of your car breaking down.

As you'd expect, a basic level of car warranty cover will cost you less, but if you did want to take out a higher level of protection you could counteract the additional cost by agreeing to have a voluntary excess on the policy. This means that if you did need to make a claim, you would have to agree to pay a certain amount upfront before the company would pay for the remainder of the work.

Click here to visit the Warranty Direct website and get a free car warranty quote today.

Are you taking full advantage of your Bank?

2009-12-22T00:00:00Z

The majority of us have at least one bank account, but are we making the best use of our banking?   Since the introduction of online banking and text banking, and with contactless bank cards set to revolutionise the way we pay in 2010, even the most low-maintenance of bank customers can find some extra benefit. Here are some quick tips to help you get the most from your bank.

Get text banking set up

  Do you know how much is in your bank account right now? Have you ever had to take a trip to a cash point to check whether you have been paid? Text banking, now offered by most of the high-street banks, really helps to keep you aware of what is going on in your account.

Sign up either for alerts either whenever a transaction is processed, or for a weekly 'digest' of all your transaction, and you'll be able to see in an instant if there is anything that you do not recognise or if you are low on funds.
 
Use your direct debits and standing orders 

If you're still paying off your credit cards or paying your phone and utility bills by cheque or by card over the phone, you are giving yourself unnecessary hassle. Setting up a direct debit (a varying monthly payment) or standing order (a fixed monthly payment) for each service provider to whom you owe money would enable you to pay your bills at a scheduled time, with no danger of you forgetting to make the payment or leaving it too late and incurring a fine.

Depending on when you set up your phone contract or opened a credit card account, you may find that your bills are due towards the end of the month. If like the majority of folk in full-time employment, you are paid on the last working day of the month, you may then struggle to pay bills on the cash that you have left. Instead, set up direct debits or standing orders to go out as soon as you are paid. This leaves you in no doubt about the funds that you have left to spend, and means that you can therefore budget for the month much more effectively. 

Use your overdraft facility  

So you have no overdraft facility agreed with your bank, and yet you regularly spend money on a credit card? If this is the case, you're probably paying far more money in interest than you need to be. Banks have recently come under fire for expensive charges on unauthorised overdrafts, but if you agree a limit with your bank and stick within it, you can enjoy a much lower rate of interest than you would on a credit card.

  Put your spare cash in a savings account 

If you have leftover money at the end of the month, don't just leave it to build up in your current account. Current accounts are not designed to offer a competitive rate of interest, so you could be losing out on extra cash by keeping it where it is. You have a number of more profitable options available; either put the money into a savings account (instant-access savings accounts would enable you to take it back out whenever you need), or lock it away in an Individual Savings Account (ISA) where any interest you earn would be tax-free.   

If you want to introduce an element of risk and reward into your savings, you could also choose to invest the money or buy some premium bonds. Just don't leave the money in your current account, make it work for you instead - and if you do plan to invest in stocks and shares, always seek professional advice first.
 
Link your bank account to your mortgage  

If you have savings already and are paying off a mortgage with your bank, look into whether you would be better off moving to an offset mortgage. This type of mortgage allows you to enjoy a lower rate of interest on your repayments by counterbalancing your debts against your savings. If you have money saved in the bank, have a chat in-branch or look online for available offset mortgage deals that may save you a bit of money each month.

Alternatively, you can request a callback from a qualified adviser within the SimplyFinance network for a free, no-obligation quote for an offset mortgage by filling out this short form.

  Don't pay for extras you don't use

  Many people took out a student bank account whilst at college or university and forgot to change over to a standard account after leaving. This means that you may have automatically have been switched to a graduate account offering extra services, such as breakdown cover or mobile phone cover. If these are services that you do not need - either through not owning a phone/car or through having the cover elsewhere already, you may be paying a monthly fee for thing that you are not using. Think carefully about whether you actually need the extras on your account, and if not, swap to a free or a cheaper one and spend the money on something you are actually going to use.  

Financial advice on your doorstep! 

Don't forget that there are a number of qualified financial advisers in your bank's local branch that you can make an appointment with, if you are in need of some help with managing your money.   Admittedly, they will only be able to offer you a limited range of financial products, and you need to be careful not to be talked into products that you don't feel you need. However, if you are looking for help with your budgeting, or you would like more information about ways for saving or investing your cash, make use of your bank manager's knowledge and experience.

The Easy Guide to Reading your Credit Card Statement

2009-12-21T00:00:00Z

Let's face it, credit card statements are not the kind of thing anyone looks forward to receiving in the post. Especially after a particularly expensive month it is tempting to slide them under the doormat/pop them in a drawer/feed them to the cat and pretend to have not seen them. However, you should never, ever ignore them, because you are costing yourself serious amounts of money by doing this.

Once you know what to look for on your statements, they are actually fairly simple to read. The trick is to open and pay each one as soon as it arrives (or as soon as you have the available cash), because this means that the credit card provider doesn't make any more money from you than absolutely necessary. Here is a Plain English guide to the terms used in your credit card statement, so that you can easily see what you owe and how the charges break down, and check over the statement for potential errors and overcharges.

Current Balance: This is the total amount that you have spent on your card. This will not just show the amount for the past month, but will include all spending on the card that has not been paid off.

Previous Balance: The amount that you owed in total last month. If you paid off the balance, or just some of the balance, this will usually be acknowledged on the statement with the phrase 'Payment received, thank you' and the date the payment was received.

Credit limit: This is the total amount that the credit card company has allowed you to spend on your card. You need to subtract your Current Balance from this credit limit to see what credit you have available. For example if your credit limit is £2,000 and you have a current balance of £1,500, you have £500 left to spend. Going over this limit will cost you a hefty fee, so keep a close eye on your limit.

Watch out for any letters from your credit card company informing you that they have raised your credit limit without you having asked for this to be done. This happens when the card companies want to encourage you to spend more on your card. If you get your limit raised, call and get it immediately reduced again. You don't need that kind of temptation.

Payment Due Date: Do remember that if the payment is due by this date, you need to have paid earlier than this. To be on the safe side and avoid a possible late payment fee, make your payment at least 3-5 working days before it is due. This gives the money time to settle in the credit card company's account.

If you make a payment later than the due date, you will be charged a fee. The size of the fee depends on the credit card provider, but it's usually quite large. If you have a reasonable explanation for why the payment is late, call and let the company know and they might waive the fee (in which case it would appear on your next statement as a credit).

However, they are much more likely to give you the benefit of the doubt if you are normally a prompt payer, so keep up to date with your payments wherever possible. Setting up a direct debit from your current account is one way to avoid late payments.

Cash Advance Fee: A cash advance fee is applied when you use your card to withdraw cash from an ATM machine, or purchase foreign currency on your card. Check the terms and conditions of your credit card provider, they'll always publish details of these charges.

As a rule of thumb, avoid using your credit card to take out cash wherever possible - it's an unnecessary expense if you can take out the cash for free on a debit card or in-branch.

APR: Short for the 'Annual Percentage Rate', this is the amount of money that you will be charged for spending money on your card over the course of the year.
The higher the APR percentage, the more interest that you are charged for using your card and therefore the more the card is costing you.

Sometimes, the APR will read 'x% APR (variable)' or 'x% APR (typical)'. The 'variable' or 'typical both mean the same thing - that this is the APR that they will charge the average card holder, but rates may vary if you don't make regular payments or pay back some, but not all, of the money you owe in a year.

Different rates are often charged for purchases and balance transfers too, and card providers usually offer a 0% rate on both for an initial period to tempt new customers. 'Variable' or 'typical' APR is just a way of the company telling you that rates may vary from the average', advertised rate according to different circumstances. So how does 'APR' differ from 'interest rate'? Click here to read more about the difference between interest rate and APR.

Minimum Payment Due: This is the smallest amount that you have to pay off on your credit card balance each month to avoid a charge. You should always aim to pay off more than this amount if you can. The credit card companies usually set the minimum monthly payment so that you are just paying off the interest on the money you spent, but none of the actual debt.

This means that if you only ever pay off the minimum balance you never actually start paying off your debt. Work out how much more you could afford to pay off each month - even an extra £5-10 per month will get that debt paid off a little quicker.

Fees and Charges: All of the charges that you have incurred over the course of the month will be separated out. These can include monthly interest, late payment fees (from the previous month, if you didn?t pay off your balance in time), and a fee for exceeding your limit.

The spend on your account may be separated out into 'Purchases' and 'Balance Transfers'. Payments count as any transactions where you have bought a product or service, and balance transfers are where you have used your credit card balance to pay off a balance on another card, or paid money into another account.

If you received a 0% interest-free rate on purchases and/or balance transfers, make a note of when this rate runs out. You'll start being charged for all transactions after the end of this introductory period, and you don't want to be caught unawares.

Credits: These are usually refunds that have been added to your card balance, for example if you have taken an item back to the shop and had the amount put back onto your card. Alternatively, if you were overcharged by mistake in a previous month and pointed it out, the refund would go back onto your balance the following month.

Compare 0% credit card deals to see if you can improve on your current deal.

Top 5 Financial Reasons to Quit Smoking in 2010

2009-12-15T00:00:00Z

Since the smoking ban started, smokers may be feeling a little put-upon. Unfortunately, it doesn't stop with the icy-cold outside smoking area in pubs, as many products and services come at a premium when you smoke.

Here is a guide to some of the ways you could save thousands each year, which will hopefully kick-start your resolutions if you are planning to quit in the New Year!

Cheaper Private Health Insurance

You might have heard the odd rumour that that smoking isn't so good for your health. Since smoking kills around 114,000 people a year, the obvious place you're going to notice the financial burden of smoking is on your health insurance premiums.

Tempting as it is to not tell your insurer that you smoke, you would lose out if you ever had to claim for a smoking-related illness because of course your claim would be invalidated. Even if you have recently quit, in insurance terms you're not considered to be a non-smoker until you have been smoke-free for 12 months or longer, so if you are asked when you last smoked, you'd need to be 100% honest.

When you've passed the year benchmark however, shop around for private health insurance and you'll notice the price difference immediately. Make sure to ask your current provider for a new quote, and if you find a more competitive deal elsewhere as a non-smoker, ask them to match it. They are likely to agree in order to keep you as a customer.

Get a free, no-obligation Private Health Insurance quote here >>

Cheaper Term Life Insurance

Term Life insurance gives your family financial protection if you should die within a certain period (say, 20 years). Statistically, smokers have a lower life expectancy than non-smokers. Therefore, any term life insurance policy you take out will be more expensive if you smoke.

Insurers don't want to lose money by paying out a large lump sum to your family when you have only been paying your premiums for a few years, so they make your premiums much more expensive. The insurance company is then covered if you should die earlier than you expect through a smoking related illness.

We're not talking a couple of pounds of difference, but thousands and thousands over the life of your policy so you could be paying off your mortgage early or living much more comfortably if you didn't smoke.

You need to be smoke-free for a year to qualify for the 'non-smoker' rates, so when you quit, be sure to tell your insurer. Then notify them when you have reached a year without smoking, and ask them to recalculate their premiums.   At that point, you should also shop around to find the best non-smoking life insurance deals in the market.

Get a free, no-obligation Life Insurance quote here >>

Add Thousands to the Value of your House

If you're planning to move home in 2010, it's likely that you'll be showing potential buyers around your place.   If you've smoked in your house for years, you probably will not notice the pervading smell of cigarettes. However, the moment someone new steps over the threshold, they will notice and this could be extremely off-putting when they are trying to visualise themselves in a new home.

If you are planning to quit smoking, make sure that you also thoroughly clean the carpets, walls and furnishings before putting your property on the market because the smell of smoke will linger. If you are a committed smoker, also do the above, and make sure that you smoke in the garden from now on.

Read other top tips on selling your home by property expert Sarah Beeny >>

Home insurance

You may already know that health and life insurance will cost you more as a smoker, but were you aware that home insurance companies also charge higher premiums to smokers?   Households containing a smoker are up to 40% more likely to suffer a fire than those where nobody smokes, and as a result, insurers view smokers' houses as being in a higher-risk category of cover.

If you are not planning to quit smoking, you need to at least make sure that you have a working smoke alarm installed in the house, because the combined risk of smoking and no smoke alarm will cause your home insurance premiums to skyrocket.

Get a free, no-obligation Home Insurance quote here >>

Perform Better at Work

Research by stop-smokingforever.co.uk shows that the average smoker takes two "unofficial" cigarette breaks a day, lasting around 15 minutes each. This means that if you smoke, you're taking half an hour more than your non-smoking colleagues each day, and the company is paying for it. Statistically, smokers take 1.8 more sick days a year than non-smokers, which again, costs the company money.

If you're hoping for a promotion in the New Year, now might be the time to increase your work productivity by kicking the habit and those extra, unpaid breaks. By being healthier, you'll not only feel much better but you'll reduce your sick days (and those lunchtime doctor and dentist trips that can eat into your afternoon), and therefore come across as a more reliable employee and therefore a better candidate for that top job.

More spare cash

If you smoke a pack a day, this amounts to several thousand pounds a year.   Whether you cut down significantly or quit completely, you'll have as much as a few hundred pounds extra to play with each month when you're not spending your hard-earned cash on cigarettes.

You needn't worry that quitting is going to cost you a fortune either, as the NHS offers free help and support to smokers who are trying to quit, via their website. We're sure you don't need any help working out what you would do with £2,000 extra to spend a year!

Who is using your Details?

2009-12-02T00:00:00Z

There has been a 12% rise in the number of cases of identity fraud since the start of the year. Data collected by National Hunter, the fraud prevention database operated by credit reference agency Experian, shows that there were 13.37 cases of identity fraud per 10,000 applications in the July-Sept period. This is compared to the January to March period when there were 11.91 cases per 10,000 applications made.

Fraudsters use the details of unsuspecting consumers to make applications for credit cards, personal loans and mortgages, with many people not realising their details have been used until they unexpectedly get turned down for credit.

Darryl Bowman from CreditExpert.co.uk, the website run by Experian, says: "The surge in cases of identity fraud is very worrying. As we get wiser to protecting ourselves from fraud, it's clear that criminals are working even harder to steal our personal details so they can apply for credit.

"Missing post, unexpected phone calls and strange emails are signs we look out for and know suggest potentially fraudulent activity. Criminals also know this and that's why they use techniques that can take a long time to detect. A new catalogue account at a new address could be the stepping stone to much more significant lines of credit and ultimately a much bigger problem for the victim to resolve."

The best way of preventing identity theft is to ensure that you only enter your details onto trusted websites. Any sites where 'https://" is not included at the start of the address are not secure, and therefore could be accessible by fraudsters.

Never provide any personal details in response to a bank's emails - banks would never ask you to email them with this kind of information, and would never even ask you to provide a full password over the phone. Con artists use a system called 'phishing' to create fraudulent emails and websites that look like they have come from banks and reputable companies, with the aim of fooling you into parting with valuable information. If in doubt, don't divulge any information, and call the bank/company back on the number provided on their website to verify.

However, your details are not just at risk online. Anyone who lives in accommodation with a shared hallway needs to be careful that their post is delivered directly to their door to avoid it being intercepted. Shred any mail giving account details, and other sensitive information such as your place of birth, date of birth or mother's maiden name.

Of course, if you do not tend to make credit card applications very frequently, you are unlikely to find out that you have been a victim of identity fraud until months, even years, after the damage has been done. Therefore, it is advisable to keep an eye on your credit report. If you subscribe, you receive notifications any time a credit check is made (suggesting that an application has been made on your behalf) or any other changes occur.

Even having a one-off glance can make all the difference, because mistakes and recorded transactions that you don't remember making can be sorted out very easily. You can see your credit report for free with a 30-day trial with Experian, or can apply to any of the UK's credit reference agencies (the main ones being Call Credit plc, Experian and Equifax) for a one-off copy for a couple of pounds.

Is an Offset Mortgage right for You?

2009-11-26T00:00:00Z

A survey of homeowners and potential buyers has shown that 40% do not fully understand the benefits of an offset mortgage. The research, carried out by UK online bank first direct, highlights the fact that many consumers may be missing out on a flexible mortgage product that could provide significant savings on their home loans. So what exactly is an offset mortgage, and who is it suitable for?

The main feature of an offset mortgage is that you can reduce the interest that you pay for your mortgage, by offsetting the balance against your savings. For example, if you took out an offset mortgage of £100,000 and you had savings of £15,000, you would only be charged interest on £85,000 of the mortgage balance. As a trade-off, you would not receive any interest on your savings.

The main reason why an offset mortgage should be a consideration in the current climate is that savings accounts are (on the whole) not offering the same returns as they were several years ago. If you do have savings, offsetting them against your mortgage balance may therefore offer a higher rate of interest overall than keeping them in a standard savings account. In addition, any interest that you earn from your savings is not taxed if it is offset against your mortgage. You would be hard-pushed to find an equivalent return on your savings, especially if you are a higher rate taxpayer.

With most offset mortgage providers, you also have the option of including your current account balance in the calculations. This means that if you have a mortgage balance of £100,000, savings of £15,000 and an average current account balance of £1,000, you would be charged interest on £84,000 of your mortgage balance. As you would usually not receive a very high return on money that is kept in your current account (because current accounts are intended for everyday transactions, rather than savings), it makes sense to use this money against your mortgage balance. However, unlike other mortgage types, you would still have access to the savings in case of emergency.

Offset mortgages are most attractive to people with a larger mortgage balance and also some savings (or a salary scheme that includes bonuses), due to the flexibility and the likelihood of paying off the mortgage balance early. However, it's important to note that if you have any other debts, any savings benefits that you enjoy may be cancelled out by the interest you have to pay on your debts. Work out whether it is more cost-effective to pay off the debt first ? this is likely to be the case for high-interest debts such as credit card balances, but not necessarily for student loans or longer-term personal loans where you may be charged an early repayment fee.

With an offset mortgage, you would normally be expected to use the same provider for your mortgage and your savings account. This means that you have to look not only at the rates of interest that you're charged on the offset mortgage, but also at the rate of interest that the provider pays out on current and savings accounts when deciding whether this type of mortgage makes the most sense for you.

The increased flexibility of an offset mortgage means that the interest rate is likely to be higher than say, a fixed rate mortgage. If you do not have many savings, an offset mortgage may not be right for your circumstances and a fixed rate mortgage might actually offer a more competitive rate. Fixed rate mortgages are actually much more flexible than they were in the past, and you have the added benefit of guarding against any interest rate rises. To talk through your options with a qualified mortgage adviser and receive a free, no-obligation quote, please fill out our short mortgage form.

Disappointment for Consumers over Bank Charges Ruling

2009-11-25T00:00:00Z

The week's ruling by the Supreme Court relating to unfair bank charges was a disappointing one for consumers. The case was between the Office of Fair Trading (OFT) and seven high-street banks and one building society, with the aim of determining whether the Office of Fair Trading had the right to decide whether bank charges were unfair. In a judgement that came to a shock to all those who had campaigned for the OFT and consumer fairness, it was ruled that the OFT did not have this right.

Had the verdict been reversed, the OFT has already made it clear that they would have ordered the banks to repay billions of pounds of charges to consumers, for excessive charges made on current accounts. The charges were levied mainly when account holders exceeded their agreed overdraft limits, and could amount to £39 a time. However there have also been substantial fees charged for a bounced cheque ? due to insufficient funds being in the account to honour the payment.

The banks have justified the payments by saying they were necessary to cover administration charges for the failed transactions. However, the actual cost to the banks was estimated to be much lower. Consumers still do have the right to appeal to their banks against charges that they feel to be unfair, however this verdict means that the number of claims is likely to be far lower than anticipated.

The chief executive of consumer organisation Which?, Peter Vicary-Smith says: "The outlook is bleak for anyone with an outstanding claim and we're concerned that yesterday's ruling could drive people into the arms of unscrupulous claims handlers. Beware of companies who contact you promising to get your bank charges back and never pay an upfront fee. If you're in financial hardship, tell your bank. They're unlikely to give you your money back, but they have to take your circumstances into account and may waive any future charges. If your bank refuses to help you, then go to the Financial Ombudsman."

Liberal Democrat leader Nick Clegg made reference to the ruling in a speech this week, saying that "it simply isn't right that someone on a low income should pay £25 or more to their bank just because they're overdrawn by a pound or two.
"It is absolutely outrageous that one third of all profits banks make on their current accounts comes from unauthorised overdraft charges. The only way to protect millions of customers from being ripped off by their banks is to now change the law."

Whether or not any eventual changes are made to the law, a number of banks have already reduced their unauthorised overdraft charges to more manageable levels. This suggests that banks can comfortably process these transactions at much lower prices, and it is hoped that now that attention has been drawn to the issue consumers will see a significant difference in the charges brought by their banks from now on.

However, it is also important to ensure that when you open a new current account you carefully read through the terms and conditions. The charges may be steep, but the banks are legally obliged to tell you about them when you sign up so by knowing in advance, you may be able to avoid a nasty surprise.

How to Maximise your Retirement Savings

2009-11-23T00:00:00Z

Many people aged 55 and above feel that the recession has diminished their retirement savings, according to an online survey carried out by UK insurer Aviva. The survey showed that there is a huge amount of anxiety among those approaching retirement age, with 26% of the 1,200 respondents saying that 'making ends meet' is their main concern for the future.

When asked to specify what was worrying the respondents the most, 32% stated that the rising cost of living was the thing that kept them awake at night. 19% worried about their pension pot being smaller than they had originally expected, and 22% were mainly concerned about the value of their savings falling. Despite the fact that all of the people surveyed by Aviva were within the last 10 years of their working lives, as many as 12% of respondents claim to have started investigating additional sources of income.

Brian Bussell, director of pensions, UK Life, Aviva, comments: "These latest figures highlight just how important it is for people to start saving for retirement as early as they can. Understandably, the recession has forced people to think about their retirement income and many have realised that they may not have sufficient funds to live through their final years in the comfort they have grown accustomed to."

"We would encourage people to make use of their full range of assets, including investments, state benefits, pensions and property, to make sure that they aren't effectively cheating themselves out of the lifestyle they could enjoy. We would also urge people to begin saving as early as possible for their retirement to make sure they do not have to make major lifestyle changes later in life."

But starting to prepare as early as possible is great advice for those at the start of their careers, but what are your options if you are approaching retirement and have concerns about your means? The first step would be to check whether you are entitled to any additional State benefits that you are not currently aware of. You can find out more about the benefits that may be available to you on the DirectGov website here. Also consider tracing any pensions that you may have lost track of, using the Pension Tracing Service.

Aviva recommends that you should take stock of all your assets including investments, state benefits, pensions and property", commenting that, "Many older people are asset-rich but cash-poor, so down-sizing or equity release may be an option for retirees in this position. However, if you are considering equity release or property we would strongly advise you discuss this with your family before making any commitments." To find out more about the different types of equity release programme available, please click on the link.

Another way of making your retirement savings go further is to utilise your Open Market Option (OMO) when buying an annuity with your pension savings. The OMO is simply the process of shopping around for the best deal on annuities, rather than simply choosing the one offered by your pension provider. Although some pension plans have restricting on this, in most cases you are free to choose any annuity you wish. When you consider that choosing the right annuity for your circumstances can significantly increase your retirement income, it is definitely worth taking the time to shop around. If you want to find out more about your retirement planning options, you can find an independent financial adviser in your local area at www.unbiased.co.uk.

Transfer Rules: Moving your Money from one ISA to Another

2009-11-22T00:00:00Z

Transferring within the current Tax Year

If you have money saved up from this tax year and you find a better deal at another provider, you can move money from a Cash ISA to another Cash ISA. However, if you are doing this, you must move the full amount at the same time, and you must move the full amount to the same provider.

If you have money in a Cash ISA for this year and you would prefer to use it for Stocks and Shares, you can move the money from a Cash ISA to a Stocks and Shares ISA. However, again, you have to transfer the full amount at the point of transfer, and you cannot split the amount between providers.

You cannot invest in more than one Stocks and Shares ISA and one Cash ISA in the same tax year. You cannot ever move money from a Stocks and Shares ISA to a Cash ISA.

Transferring money from previous Tax Years

If you have money saved up in a Cash ISA or a Stocks and Shares ISA from a previous year, you can move it to a new provider (or stick to your current provider) without affecting any of this year's allowance. For example, if you have £2,000 in a Cash ISA from last year, you can keep it where it is or move it, and continue to earn tax-free interest on that £2,000 whilst keeping your £3,600 allowance for this year (or £5,200 if you are over 50).

This applies to every tax year in which you have had money saved, so you can continue looking for good deals for your money after each tax year has passed. The above rules apply, so you can transfer a Cash ISA to another one, or to a Stocks and Shares ISA, but cannot transfer Stocks and Shares into cash. If you're transferring an 'old' Cash ISA however, you can split the money between a number of providers.

General ISA Transfer Information

When you have found a better deal and would like to move your money or investments to a new provider, you will need to go to the new provider and ask for them to arrange the transfer. Your current provider may charge you to transfer the ISA, so you should always check the terms and conditions before taking out an ISA to see if this is the case.

You can have any additional questions about ISAs answered by calling the HM Revenue and Customs helpline on 0845 604 1701 (and then choosing option 2) on weekdays.

How Green are your Finances?

2009-11-19T00:00:00Z

Ethical Finance is not currently a priority for more than half of Britons, according to research organisation EIRIS. The online survey aimed to explore the attitudes of the British public towards ethical financial products in the aftermath of the credit crunch.

One of the questions asked was whether those surveyed were interested in the ethical credentials of the products and services they buy. Only 44% said that that they were, and three-quarters of this interested number would take the ethical aspect into consideration next time they looked for financial products and services.

However, the survey seems to have raised the issue of awareness; 62% of respondents could not actually name one ethical financial product or service, and surprisingly almost half of those who said that they would consider ethics as part of their decision-making could not name any either.

So what are the reasons for the lack of knowledge or interest in ethical finance? According to the survey, 46% of people feel that "there is not enough information available on how they make a visible difference in the world", whilst 35% "do not trust the claims of financial providers".

When it comes to perception of the ethically-focused products, only 15% felt that they would perform less well than similar standard products. This shows that although there is a lack of concrete awareness about the products available in the market, people do feel generally positive about ethical finance.

Mark Robertson, Communications and Development Manager at EIRIS said: 'Our survey provides firm evidence of growing interest in ethical finance, suggesting that the message that it is possible to both make money and make a difference when investing ethically is starting to get through to consumers. But levels of awareness, trust and confidence in ethical finance are low. The industry must respond with greater transparency and provide more information on how saving and investing can make a positive difference'.

A new website launched by EIRIS, www.yourethicalmoney.org aims to make it easier for consumers to make ethical and environmentally-friendly choices in their finances. Users can search the site for bank accounts, investment opportunities, credit cards, pensions and other products that match their ethical concerns. There are also tools and letter template for those who wish to make an active difference. So if you feel that you would like to do more, but perhaps did not know where to start, now is the time to act.

Calls for Stamp Duty to Support the Housing Market

2009-11-18T00:00:00Z

As the end of the stamp duty 'holiday' draws nearer, the debate over whether the government should increase the threshold indefinitely becomes increasingly heated. Last year, the level at which homebuyers were liable to pay Stamp Duty on their properties was temporarily increased, in order to help stimulate the ailing property market. This meant that anyone buying a house worth up to £175,000 would not have to pay the Duty until the end of 2009, at which time it will revert back to the previous limit of £125,000.   

The current feeling is that removing the upper limit again in the early days of recovery will cause a dip in the housing market. Gary Smith, President of the National Association of Estate Agents, said: "There is strong demand for property and more optimism in the housing market than we have seen for months. This is good news for the recovery of the market and for the UK economy in general.

"Many buyers are at the very beginning of the house buying process and this is creating a lack of properties in the short term. It is now up to the Government and the banks to do more to keep the momentum of market recovery going. A good place to start would be for the government to extend the Stamp Duty holiday, which mainly affects first time buyers, and is currently scheduled to end in December."

On a more general level, Stamp Duty is viewed by industry professionals as "damaging" and "anachronistic". In a rare act of industry-wide collaboration, organisations including the Council of Mortgage Lenders (CML), the Association of Residential Letting Agents (ARLA) and the Home Builders Federation (HBF) have joined together to form the 1808 coalition. The name comes from the date in which Stamp Duty was introduced for property sales in Britain.  

The coalition believes that the government should do away with Stamp Duty altogether. However, they have also suggested some alternative considerations, such as suspending the Duty on properties fully until the housing market has recovered, and changing the threshold calculation "from the distorting 'slab' system to a more progressive 'slice' system". At the moment, a property that is valued at only several hundred pounds more than another can cost thousands more in Stamp Duty because it falls into a different value bracket.  

A further suggestion for reforming the system is that the threshold should fall far above the current £175,000 to give as much assistance as possible to first-time buyers looking to get onto the property ladder. Adrian Coles, Director General, BSA, said: "The current Stamp Duty system in the UK is archaic and in desperate need of reform and modernisation. A fairer and transparent system is needed that doesn't discriminate against young and first time home buyers, and promotes an effective housing market."  

According to the Rightmove House Price Index, the average UK home cost £162,038 in October 2009, a rise of 0.4% from September. This clearly indicates that should the Stamp Duty threshold revert to its previous level of £125,000, a large number of first time buyers will still be liable. Considering that property deposits are now far higher than they have been in recent years, it is unsurprising that a lull in the market is expected at the start of next year. In order to keep the property market in a state of recovery, it is essential for new home purchases to remain financially viable for first time buyers.

Get Covered for Christmas Shopping Abroad

2009-11-12T00:00:00Z

Now that the decorations are up in the high streets, it's official. Christmas is almost here, and it's time to get shopping. If you are one of the millions of Britons planning to fly abroad to snap up the best deals in the Christmas markets, it's important to avoid potential festive disasters by taking steps to keep your purchases and your money safe and secure.

According to comparison site confused.com, as many as 19% of Britons will travel abroad to visit a foreign Christmas market this year, despite the poor interest rates on foreign currency. However, whether you're trawling the markets for the perfect gift, there are certain safety measures that you should observe so that you are prepared for any eventuality.

Firstly, if you are heading off on a shopping trip, sort out your travel insurance first. Make sure that the cover lasts from the moment you leave the house until the moment you get back to your front door, since lost baggage and delayed flights are only two of the mishaps that can occur in transit. Annual travel insurance is a cost-effective option if you travel frequently. Do make sure when you take out the policy however that it covers you for all the areas you plan to travel to that year.

Steve Williams, head of travel insurance at Confused.com, said: " Insurance, for this type of trip, can often be overlooked as the trips are usually only for a matter of days. Irrespective of the length of trip, things can still go wrong. With this in mind, travel insurance is a necessity to cover the items you take out with you, and more importantly, cover the items and gifts you bring home."

Before taking out travel insurance, read the policy documents carefully to make sure there are no exclusions that will limit your cover. Carefully itemise everything that you plan to take with you (and include the cost of your luggage) to make sure that you have enough cover, should anything get lost or stolen.

In the unfortunate event of your bag going missing on the way back, one key tip to ensure that your insurance claim is successful is to keep the receipts for everything you have bought. Report the loss to the airport authorities or local police and get proof in the form of an incident report. If your insurer has a 24-hour international helpline, call as soon as you possibly can to log the claim. Some travel insurers give you a maximum time frame for making a claim after the incident has occurred, so speed is important.

If you need to provide receipts for your purchases to the insurer, either send copies (if these will be accepted) or make sure the originals are sent via recorded delivery to ensure they are safely received. Also, be as detailed as you can in your claim report, and if you have had money stolen as well, include any bank withdrawal slips and conversion receipts to prove the amounts.

There is every chance that your shopping trip will pass without incident, and you'll return laden down with festive bargains. However it is important to be prepared for the possibility of incidents occurring, so get covered, keep an eye on your belongings at all times, and keep proof of all your purchases and transactions while you are away. For a competitive quote for annual travel insurance, please click here.

Making Saving a Habit from a young Age

2009-11-11T00:00:00Z

If we want our children to avoid getting caught in the same 'credit binge' that our economy has suffered from over the past few years, we need to be doing more encourage saving from an early age, according to Andrew Hagger at finance website Moneynet. So what are the options for saving, if you want to get your children off to a good start as savvy consumers?

Child Savings Accounts on the high-street

Most of the options currently offered in the market by the high-street banks and building societies are Regular Saver accounts, in order to encourage children to get into the mentality of making frequent deposits out of their pocket money (in addition to any contributions the parents make).

Research has shown that interest rates on Child Savings Accounts are not nearly as competitive as those offered to adult counterparts, offering as little as 1.0% or less in annual interest. As a way of encouraging frequent saving, some banks will however reward tiny savers by increasing the interest rate when a certain amount is deposited each year.

How much of the savings are tax-free?

The child savings options available are tax-free to an extent, since children's personal tax allowances are the same as adults' (currently £6,475) and unless they are child movie stars they tend not to be earning over this amount. When you are opening the account on behalf of your child, you'll need to complete form B85 for the account, and this should be available in-branch at your local bank. You can also download this form here.

If a child earns more than £100 in one year in interest from cash added to the account by one or both of its parents, the additional interest earned is taxed at the same rate as a standard adult savings account. However, other family members and friends can contribute to the account without incurring any taxable limit (within reason, £100,000 being added to the account in a year through a string of relatives may incur some suspicion from the Inland Revenue).

Child Trust Funds (CTFs)

If your child was born on or after the first of September 2002, you could consider setting up a Child Trust Fund (CFT), which pays a much higher interest rate and is includes a government contribution of £250 (or up to £500 subject to means-testing). This can provide a viable alternative (or addition) to the standard children's savings accounts run by the UK's banks and building societies. The CTF is a long-term savings investment, and the money cannot be withdrawn until the child reaches 18 years of age. Ownership of the account can however pass legally to the child when they reach 16.

Premium Bonds

A further alternative is Premium Bonds, which can be purchased for a child in the name of a parent of guardian, although the bonds cannot be transferred to the child's name until they reach 16. Between £100 and £30,000 can be invested in the name of an individual child or adult. Premium bonds do not pay interest, but instead every bond (worth £1) is entered into a prize draw each month to win tax-free cash prizes. To find out more about premium bonds, please click here.

Hagger comments, " Much of the UK was caught up in a decade long credit binge before the crunch took hold and only now are some people starting to wean themselves off their reliance on credit. If we want our children to grow up with some savings behind them and to appreciate the value of money rather than reach for the plastic, providers need to offer better rates and incentives to encourage parents and their youngsters to save regularly." So, banks and building societies it is time to take note. If you wish to create an army of dedicated future savers, it's going to take more incentive than a porcelain piggy bank.

Good News for Landlords

2009-11-11T00:00:00Z

There were two pieces of good news released today for landlords, or for those planning to invest in a buy to let property in the near future. Mortgage lending in the buy to let market grew last quarter for the first time in two years, and the level of landlord possessions dropped last quarter from the start of 2009.

The Council of Mortgage Lenders (CML) published data today showing that current lending to landlords reached £2.1 billion in the last quarter, a massive 10% higher than in the previous 3 months. This last quarter also showed a significant increase in the number of buy to let mortgage loans accepted, an increase of 2,100 home loans from the previous quarter.

When looking at these figures, it's worth remembering that the buy to let market peaked in 2007 at far higher levels of borrowing, and that we are still a long way from seeing a full recovery. However, considering the poor condition of the market over the past two years and the difficulties that have been faced by landlords, the growth is encouraging.

The CML's director general Michael Coogan said: "At this stage, the recovery is modest - but the figures show that buy-to-let is here to stay. Buy-to-let lenders are among those facing some of the biggest challenges in raising mortgage funding, so the improved figures are all the more welcome.

He continued, " With funding for social housing under pressure, the private rented sector has a strong future. Mortgage lenders will have an important role to play in it, and will continue to help improve choice and standards for private tenants."

Reassuring too is the news that for the third quarter in a row, the number of landlords in arrears on their mortgage payments has fallen. The Ministry of Justice has released figures showing that the number possessions of buy to let properties has fallen 3% from last quarter, and a total of 9% from the same time last year.

The cost of buy to let mortgages has fallen, which is likely to have contributed to the drop in missed mortgage payments. Although it is still very difficult to find a remortgage without a deposit of at least 80% of your property value, landlords are finding that the standard variable rates of their lenders are actually very competitive at the moment, with the base rate still sitting at 0.5%.

Drive a Hard Bargain: Why you should Haggle for your New Car

2009-11-04T00:00:00Z

It appears that many motorists are shy about haggling over the price of a new car, according to research carried out by Sainsbury's Finance. Out of the 1.14 million people planning to buy a car between September 2009 and February 2010, around 10% said that they would not expect to haggle at all.

These non-hagglers might change their mind about this however if they realised they could get a discount of up to 50 per cent off the shop price for the car. What Car? Actually recommends that the average discount you should expect on a new car is around £1893.

Steven Baillie, Head of Sainsbury's Loans said: "The car industry is still going through a difficult period, with sales of new cars in September for example down around 20% on previous years(5) despite some help from the Government's car scrappage scheme.

"From the buyer's point of view this means that now is a good time to negotiate a significant discount on the price of a new vehicle. Our research suggests that with stereotypical British reserve, many of us don't haggle hard despite the big savings that can be made, so we'd urge car buyers to give it a go."

The government recently announced plans to add an additional £100 million of funding to the scrappage scheme, whereby car dealers that are signed up to the scheme would give car buyers £2,000 off the cost of a new car if they agree for their old car to be scrapped. This means that the scheme will now cover up to 400,000 vehicles in the UK. To check if your car is eligible for the scrappage scheme, read the government's scrappage scheme guide here.

When haggling over a new car purchase, it helps to do your research in advance. What Car? has published a guide showing the average discount you should expect on a particular make of car. Don't fall victim to crafty safes techniques; if you have a set budget and a preference on the make and model of car, a hefty discount on a more expensive car is not a good deal.

Also, if you need a car loan in order to purchase the vehicle, make sure you shop around for the best deal. According to Sainsbury's Finance, around 26% of new cards purchased in the next 6 months will be financed by car loans, and asking for quotes from a number of different providers will ensure that you find a competitive rate. The haggling doesn't necessary have to end at the dealer's yard. If you see a car loan rate that you like, ask your bank if they are willing to match it. You may find that they will do so, in order to win your business.

Would a Cashback Credit Card be right for You?

2009-11-04T00:00:00Z

If you are a credit card user who pays off your cards in full each month, you probably find that you have no real need for the 0% balance transfers and introductory interest rates offered by the big card companies. A cashback credit card could therefore be a good way of ensuring that you get some additional benefits from the card.

So how does a cashback credit card work?

When you spend money on a credit card, the merchant has to pay a commission to the bank or other card provider for taking the payment. Some credit card providers share this commission with the card holder as an incentive for using the card regularly, in the form of air miles, loyalty points or actual cash.

How much money would I get back?

With a cashback credit card scheme, you actually earn a small percentage of your spend (typically between 0.5% and 2% of your purchase amount minus any returns) each time you spend money on the card.

To tempt in new customers, card providers will often offer a particularly good rate for the first 6 months, up to 5% of your net purchases, after which time it decreases. You will also find that some purchases will net you a higher commission percentage than others, so it is worth shopping around for the card provider that favours the type of things that you spend your money on anyway.

How to make sure you don't get into debt

As soon as you open your account and get your card, set up a direct debit to ensure that you repay the full amount each and every month. Unless you specify clearly on your credit card direct debt, credit card companies will automatically deduct the minimum balance from your account each month. Therefore, tick the 'Pay balance in full' box, or write it on the form and call up the provider to check that it has been set up correctly.

The interest rates on credit card debt are some of the highest in the financial services industry (with cashback cards often highest of them all), so only take out this type of card if you're prepared to clear the balance every month. Having to pay interest on your balance will more than eat up any cashback you may have earned over the month.

What are the alternatives to cashback credit cards?

If you feel it's likely that there will be some months when you will not clear the balance, it's better to choose the credit card with the lowest interest rate instead. Alternatively, if you find that you often run out of money before the end of the month, a prepaid credit card might be a more sensible option since you can only spend money that you have already loaded onto the card.

Act now to Avoid Stamp Duty on Buying a Home

2009-11-02T00:00:00Z

Since September 2008, the government has waived Stamp Duty on all properties valued at £175,000 or less. This temporary increase to the allowance (previously £125,000) was aimed at encouraging potential homebuyers onto the property following the crash of the property market. Over this period, it's been estimated that the government have forfeited more than £274 million on Stamp Duty earnings, based on the 174,000 house purchases that have been completed over the same time period.

On 01 January 2010, the threshold for paying 0% Stamp Duty is due to revert to the previous limit, although the Chancellor, Alistair Darling, has not ruled out a continuation of this change. Whatever happens in the new year, if you are in the process of buying or selling a home, you will still be able to benefit from the Stamp Duty lower limit increase, and save up to £1,750, by completing on the property sale by the end of this year.
 
Estate agency Nottingham Property Services, the property broking arm of The Nottingham Building Society is urging anyone in the process of selling a property worth £175,000 or less to hasten along the sale to ensure that the buyer will not be hit with Stamp Duty charges.

Lorraine Giddings, Head of The Nottingham's Branch network said of the uncertainty surrounding the Chancellor's final decision, "On one hand the Government is in a difficult position as it needs the revenue that is generated from Stamp Duty. On the other, the housing market is at the beginning of a long road to recovery and any decision to reintroduce Stamp Duty could hinder progress.

"In my opinion, the Chancellor is going to have to do something - but second-guessing which decision he will make could prove very hard. That's why we are recommending to people who are serious about selling their homes that they should act decisively now." The Bank of England recently published figures showing that the number of mortgage approvals is increasing, due to a combination of growth in homebuyer confidence and a greater availability of first time buyer mortgage products in the market.

  Stamp Duty is the tax that that is charged when you buy property, and the amount that you pay is dependent on the value of the property you are purchasing, with the highest level of 4 per cent payable on properties valued at £500,000 or more. There are a number of ways in which potential homebuyers are being courted in the wake of the housing market decline. Many mortgage lenders are offering free valuations and waiving legal fees, in an attempt to minimise the financial burden of buying a property for those with limited capital.  

For those looking to sell their property, this could therefore be an opportune moment. £1,750 is a significant saving when there are so many other costs involved, and this Stamp Duty window could therefore provider potential buyers with the incentive they need to make the step. Giddings added, "My advice to someone who has decided to sell is ?get on with it!' Providing the house is in reasonable condition, there are a lot of people out there who are seeking homes in the region with a price tag of £175,000, or less."

Fairer Rules proposed for Credit Card companies

2009-10-27T00:00:00Z

The government today announced a series of reforms designed to tackle the growing problem of credit card and store card debt. The proposed changes include improving debt repayment policies and banning the increasing of card credit limits without the card holder's prior consent, among other measures.

The action is being taken as credit and store card companies are accused of imposing "complex and confusing terms and conditions that can leave people baffled" and of increasing credit limits and interest rates without giving consumers fair notice or explanation. There are already plans in place to ban credit card companies from sending out unsolicited credit card cheques to card holders.

Consumer Minister Kevin Brennan said: "It is not acceptable for card companies to impose complex and confusing terms and conditions that can leave people baffled, or to increase interest rates without a proper explanation. Consumers have a real responsibility to manage their finances properly, but they also have a right to clear information to enable them to do that. Consumers should not feel each month as if they've been exploited or disadvantaged."

A document has been published today laying out the proposed changes to the laws governing debt repayment. One of the key proposals is to change the rules about the order in which debts that build up on a credit card are paid off. The policy on repayment at most credit card companies is that the lowest interest debts are paid off first, which of course means that the consumer pays more interest on their debts for a longer period of time.

New rules have also been proposed for the percentage of the actual debt that credit card companies must charge each month as the minimum payment. Currently card companies are able to charge as little as 2 per cent of the outstanding balance, a figure that will just about cover the interest that is charged.

This means that if a consumer pays off just the minimum balance each month, they are unlikely to ever clear their debt. The plan would be to raise the minimum repayment to 5 per cent of the outstanding balance, helping consumers to escape from the minimum payment vicious cycle. The suggested alternative would be to set a time scale within which the full balance had to be paid, and to set the monthly minimum accordingly.

Other measures include changing the regulations so that consumers can pay off the higher-interest debts first, rather than paying off the cheapest debts and being left with unmanageable interest repayments as a result. The practice of increasing a cardholder's interest rate without any proper explanation has come under fire, and the government has suggested that limitations should be imposed on the amount that the interest rate can rise.

According to the proposal document, credit card companies 'have agreed that they shouldn't increase your credit limit more than once every 6 months'. However, credit limits where the consumer has expressly asked for them are one thing, but unsolicited interest rate rises on existing debt are quite another, so a distinction has to be made.

Fairness, transparency and a sense of understanding are desperately needed in order to help UK consumers manage the £230 billion of debt from credit cards, store cards and personal loans that has built up. Ultimately we are all responsible for the personal debt that we incur, but it's important that the credit card and store card companies do not actively work to keep consumers in debt.

Contracting out of your State Second Pension

2009-10-27T00:00:00Z

If you are employed in the UK, you may be eligible to receive a State Second Pension in addition to the basic State Pension that almost every UK resident receives when they reach State Pension age. You'll qualify for this additional pension (known as S2P) if you have been earning above a certain amount (currently £4,940 but liable to change) on which you have paid sufficient National Insurance contributions. If you are self-employed, you are not eligible for the State Second Pension.

At the moment, the government permits S2P holders to leave the scheme and choose to hold their second pension through a private insurer instead. This is known as 'contracting out'. Contracting out is a temporary option; it's likely that all but final salary pension holders will be prevented from opting out by 2012.

If you do decide that you would prefer to have your State Second Pension managed elsewhere, the government will pay some of your National Insurance contributions and the income tax relief that you would have enjoyed through their Pension scheme into a private pension of your choice. The money that the government gives back to you when you contract out is technically a rebate, but you are only allowed to use the funds for the purposes of a pension. This is because the whole point of the State Second Pension scheme is to supplement your basic State Pension upon retirement.

Are you contracted out already? The only way in which you might already have contracted out your S2P without your full knowledge is if you were offered an occupational pension scheme through your employer. Firstly, check with your employer to find out whether you are contracted out. If this is the case, you cannot contract back in while you are a member of this scheme. If you are unsure about the current status of your State Second Pension and you are not part of a company scheme, you can apply for a Pensions forecast from HMRC by calling 0845 3000 168.

So why would you want to contract out your State Second Pension? The main reason that people choose to contract out their S2P is that they feel they are likely to get a better retirement income through a private pension scheme. If you are older and likely to be extremely reliant on your State Second Pension to sustain your lifestyle once you retire, contracting out, and accepting the financial risks that accompany this decision, may not be the right choice for you.

Consumer champion Which? advise treating websites that urge you to contract out with caution, saying that they "suggest that most people under 40 would be better off contracting out". Many of these sites carry no endorsement from the private insurers whose private pensions they recommend, and there is a danger of being worse off if you contract out without having all the information that you need to make the decision.

In order to find out what kind of S2P rebate you would receive from the government to invest in a private pension scheme, you can either apply for a Pension forecast from the government on 0845 3000 168 or talk to a private pension provider. Either way, they need to know your age and earnings (and your National Insurance number, in the case of the government). If you contract out, you should review your decision every three years, according to Which? to ensure that your pension is growing at least at the rate of the government scheme, or preferably faster.

Banning Self Cert Mortgages would Spell Trouble for the Self-Employed

2009-10-19T23:00:00Z

Today, the Financial Services Authority (FSA) laid out its proposals for dramatic reforms in the mortgage industry. The changes are focused on preventing consumers from borrowing more than they are able to pay back, and also on making financial advisers more 'personally accountable' to the FSA.

One of the largest proposed transformations is a ban on self-certification mortgages, also known as self-cert mortgages. This product currently allows consumers to borrow money for a house purchase without background checks being carried out on their income. In the market at large there are obvious benefits from making all consumers prove their income. However, are the self-employed and freelancers, the original target market of the self cert mortgage, going to suffer as a result?

Self cert mortgages are aimed at home buyers without a regular income, such as freelancers and contractors, people who own their own businesses and those with irregular salaries (such as salespeople reliant on commissions). However, during the property boom, many people abused the fact that no proof of income was needed and inflated their incomes to buy more expensive properties. Such is the strength of feeling against self cert mortgages, that they are now being dubbed 'liar loans', due to the unscrupulous borrowing that took place.

In 2007, self cert mortgages accounted for a massive third of all new loans, amounting to approximately £100 billion that was paid out. Due to the higher risk for the banks in lending to people who did not prove their income, interest rates on the loans were also typically higher than for conventional home mortgage loans. The increasing gap between the houses that people bought and what they could actually afford inevitably led to disaster, and since the recent crash in the property market, many consumers have found themselves in serious financial difficulty.

Under the proposed new regulations, consumers would have to provide verification of their income, in the form of pay slips dating back two years, and also possibly a copy of their P60 form. Employers may also need to be contacted for confirmation. However, this could cause problems for the millions of self-employed consumers in the UK who are in a position to purchase a property, but who would not be able to provide PAYE evidence of their income.

If you are a freelancer, a contractor or you work in sales where a relatively low basic income can be boosted by commissions and bonuses for meeting targets, you would be in a rather uncertain position under the proposed new scheme. Previously, if you wanted to purchase a property, you would have needed to provide an accountant's letter showing that you were trading and solvent, but beyond this you were not tied to the standard income proofs demanded by conventional mortgage lenders.

It is a shame that the people who would have genuinely benefited from self cert mortgages would stuffer the consequences of a ban the most, when the issues were largely caused by unscrupulous brokers that encouraged consumers into mortgages they could not afford, and consumers who were not entirely truthful about their earnings. If the FSA do proceed with a ban on self cert mortgages, there will need to be some alternative, so that the many, many people in the UK with 'non-standard' incomes will still be able to take out mortgages.

In retrospect, the almost total lack of regulation left the self-certification mortgage system wide open to exploitation, especially at a time when people were making large returns from investing in expensive property. Therefore the solution would be to retain the features of this mortgage type, with a much higher degree of regulation so that self cert is less susceptible to the abuses of the past.

First Time Buyers, Your Time Has Come!

2009-10-08T23:00:00Z

According to new research from national lender Abbey, it is now actually cheaper for potential first time buyers in the UK to purchase a property than to continue renting. The only exception to this is in London, where it would still work out more expensive to get a first time buyer mortgage than it would be to remain a tenant.

The research found that 1.61 million Britons were looking to buy in areas outside of London, and based on today's first time buyer mortgage rates, the people surveyed would save £624 each or a collective £1 billion over the next 12 months if they did decide to buy a place of their own. Unfortunately for those based in the capital looking to get onto the property ladder, the fact that house prices are still at a premium means that they would actually be £466.19 worse off per month by choosing to buy rather than rent.

For the potential first time buyers outside London, the average monthly rent comes to £434. First time buyer mortgages, as they stand in the market today, would cost an average of £382 per month if taken out with a 25 per cent deposit - a saving of £52 per month. Of course if you are able to put more upfront capital into your property in the form of a larger deposit, your savings could be even greater.

Across the UK, typical first time buyer properties (new-build flats and terraced houses) now cost an average of £92,861, a decrease of 9 per cent from last year. Therefore, if you were looking to take advantage of these lower prices, you would need an average deposit of £23,215 (or 25 per cent) for a first time buyer mortgage. It's particularly good news for potential first time buyers living in Wales, where you would make an average monthly saving of £90.91. This is followed by the North West (£87.43) and Yorkshire (£77.06). Buying a place in East Anglia as opposed to renting would save you a fairly disappointing £2.59 per month.

As the mortgage market is so competitive, many lenders will offer you free valuation and legal fees with first time buyer mortgages, so you should make sure that you shop around to see who can offer you the best deal. If you have a deposit totaling 25 per cent or more of the value of the property you wish to buy, you are hot property for mortgage providers, so if you don't have sufficient savings yet but you want to buy a place, get started as soon as possible. Consider an ISA for tax-free savings or a savings account where you have limited access to your money, as these types of saving usually yield the highest returns.

To find out more about first time buyer mortgages, and talk to an experienced adviser from the SimplyFinance network about your options for getting a mortgage, simply fill out our short first time buyer form and an adviser will be in touch shortly.

Be a Safe Driver this Autumn

2009-09-30T23:00:00Z

Motorists should take extra care this month, according to figures from Virgin Money Car Insurance showing that October is statistically the most dangerous month for drivers. Claims in this month are 25 per cent higher than the average, and a surprising 10.4 per cent of all car insurance claims happen in October, with the 20th of the month standing out as the most dangerous day of all.

Most car insurance claims are made in the last quarter of the year, a total of 30 per cent of the entire year's claims. The relative danger of this Autumn-to-Winter period is put down to the earlier darkness, worse weather and the fact that as a result, driving conditions becoming more hazardous. So what can you do in this perilous Autumn month to limit your chances to having to make a car insurance claim?

Grant Bather, spokesman at Virgin Money, said: "Traditionally Christmas time has been seen as the most dangerous time for drivers but our research shows that Autumn into Winter is treacherous for motorists. Car owners should make sure that they regularly check fluid levels, including brake fluid, oil levels, coolant and screen wash. "

As well as making sure your car is fully topped up and comprehensively serviced though, you need to be on top form as a driver to ensure you are constantly on the alert for possible hazards. According to a Department for Transport study, the top three causes of car accidents are failing to look properly, failing to correctly judge another driver's speed and driving carelessly due to being in a hurry.

Don't rush

It sounds obvious, but always leave yourself plenty of time to get to your destination. If you're going somewhere you have not been before, allow an additional 30 minutes on top of the Sat Nav recommendation - accurate as these gadgets usually are, they have been known to direct people into lakes in the past! Leaving enough time for a comfortable journey will also reduce the urge to speed or to drive recklessly in order to gain some extra minutes.

Keep alert

Never drive tired, since this will impact on your reaction time and dull your concentration. Pull into a service station for a 20 minute nap wherever possible, and if this is not an option, turn up the air conditioning or open the window for a blast of fresh air. It goes without saying that you should never, ever drink alcohol before driving. If you're tempted, especially approaching the Christmas party season, leave your car and make other arrangements for getting home.

Don't make it easy for thieves

Most car theft and other car-related crime is opportunistic. Fitting an immobiliser to your car actually makes it 10 times safer, according to Home Office research. Any other steps you can take to make your car less appealing to potential thieves, such as keeping your car in a garage and getting a wheel lock and car alarm fitted, will have the added bonus of reducing your car insurance premiums. Also, park in well-lit areas wherever possible, to keep you and your vehicle safer.

Keep covered

Regardless of how careful you are, accidents will sometimes occur. To ensure that you, your passengers and your car are fully covered in the event of a car accident, you should ideally have comprehensive car insurance. Due to increased competition between car insurance providers, a comprehensive car insurance policy will often cost you as much or even less than a third party fire and theft car insurance policy, but with many more benefits. When you consider the costs of repairing a vehicle, or of resolving a legal dispute with another driver, comprehensive car insurance is money well-spent. Get a car insurance quote with up to eight weeks' free insurance a year.

The best way to Compare Cash ISAs

2009-09-27T23:00:00Z

Each year, everyone in the UK aged 16 and above is given two Individual Savings Account (ISA) allowances, one for cash (Cash ISA) and one for investments (Stocks and Shares ISA). You are not obliged to use this allowance, but if you have savings it is well worth doing so, since any interest or dividends that you earn are tax-free. For basic rate taxpayers, this means that you effectively get an extra 20 per cent on your savings, and higher-rate taxpayers enjoy a massive 40 per cent extra.

ISAs have been in the news recently because the allowance is being raised from £7,200 to £10,200 per year, split equally between a Cash ISA and a Stocks and Shares ISA. If you are over 50, you can make use of this extra allowance from October 6th 2009, but if not, you have to wait until April 6th of next year. You can only have one of each ISA in any tax year, although they do not have to be with the same provider. So what is the best way to compare the cash ISAs offered by different providers, to make sure that you make the most from your savings?

ISAs are a government initiative to encourage people to save. They replaced Personal Equity Plans (PEPs) and Tax-Exempt Savings Accounts (TESSAs) in 1997. There used to be a difference between mini ISAs and cash ISAs, but now there is no distinction made, they are all simply ISAs to make it that bit simpler. Just as there are a number of different savings accounts, there are a wide range of ISAs on the market, and it's important to know what the distinctions are so that you can make an informed choice about which one is best for growing your money.

Compare Cash ISAs: What Criteria should you Use?

Access to your Money

Firstly, do you need to be able to access your money once it is in the cash ISA? If so, you should consider what is known as an 'Easy Access Account' where you can take money out or pay it in at any time without any charge. Interest rates for Easy Access Cash ISAs are usually variable, meaning that they will rise and fall according to the Bank of England base rate. Easy Access ISA providers sometimes offer a bonus period to encourage new savers, meaning that you would enjoy a higher rate of interest for a set period of time. Make the most of this, but keep an eye out to ensure your rate is still competitive after the honeymoon period is over.

Interest Rate Security

If you are able to tie up your money for a number of years without accessing it, a fixed rate cash ISA will be more suitable for you. As the name suggests, this account will offer you a fixed interest rate for the period in which your money is in the account, and this rate is usually more competitive than that of an Easy Access ISA account. With a fixed rate cash ISA, you are usually only able to make one deposit, so it is only suitable for you if you already have a lump sum of cash to invest. The benefit of a fixed rate cash ISA is the security of knowing that for the agreed period, your interest rate cannot change. If you are on a variable rate cash ISA on the other hand, the provider can cut your interest rate at any time so it is a far less stable means of saving tax-free. The downside is that if you find a more competitive cash ISA during your tie-in period, you are unable to move.

Make regular payments

A regular saver cash ISA may be a good alternative if you do not have a lump sum ready to invest, and instead would like to add to your savings in regular installments. Typically, you would be expected to add money to the regular saver cash ISA once a month for a period of a year, over which time your interest rate would be fixed. Since you have a fixed annual allowance for any type of cash ISA, the amount you can deposit in any one month is capped. You cannot usually withdraw money from the account within the year without incurring a penalty; either a fee or a drop in the interest rate.

Click here to find a cash ISA today.

Keep Track of your Extra Cash

2009-09-21T23:00:00Z

New research shows that there are thousands of tracker mortgage holders who could be taking advantage of the historically low interest rates to pay off their home mortgage loan faster. Advice website Unbiased has found that 53 per cent of tracker mortgage borrowers surveyed have not taken the opportunity to overpay on their monthly repayments, thereby potentially missing the chance to reduce their mortgage term.

So what are households doing with this extra, unexpected cash? 19 per cent are seeing the money as a boost to their day-to-day living expenses, while 24 per cent are using the savings to pay off other debt and 20 per cent are moving their extra cash to savings accounts. Two facts stand out as being a cause for concern; that 7 per cent are letting the balance build up in their current account, and that 12 per cent of the total surveyed do not want to overpay for fear that they will be charged by their provider for doing so.

If you are on a fixed rate mortgage deal, mortgage lenders will usually charge an early repayment fee in the first few years of your mortgage term. However for tracker mortgages, most lenders give you an overpayment allowance of up to 10 per cent more on your monthly repayments. Beyond this 10 per cent and you may also be liable for a charge, but check with your mortgage provider about this.

If you have the cash available and you will be charged for going beyond your 10 per cent allowance, consider putting the extra into a savings account that you keep specifically to help you out should mortgage rates increase significantly during your mortgage term.

Never keep spare cash in your current account, because the interest rates are rarely competitive and you could be missing out on earning valuable interest. It's also worth noting that the annual allowance for Individual Savings Accounts (ISAs) is increasing in April from £7,200 to £10,200 (and has already done so for everyone aged 50+).

David Elms, chief executive of Unbiased.co.uk comments: "Tracker and standard variable rate mortgage borrowers have watched interest rates plunge to record lows during this year, presenting an ideal opportunity to pay off their outstanding mortgage more quickly. Such action would enable many thousands of borrowers to take years off their mortgage repayment term, or enjoy a greater level of repayment comfort down the line, should the economy take longer to recover.

"Our research suggests most tracker borrowers are not taking this action, however we're encouraged by the large number who are using their repayment savings to erode their more costly credit card and personal loan debts. If you are confused about how to best manage your mortgage and take advantage of low interest rates, professional and personal mortgage advice can make a clear difference. Only a whole of market mortgage adviser will be able to advise borrowers on the best deal for their circumstances."

To speak to an experienced mortgage adviser from the SimplyFinance network, simply complete our short mortgage form, and someone will be in touch shortly to talk you through your options.

Find the Best Student Bank Account

2009-09-16T23:00:00Z

If you're heading off to university, you're a dream come true for high-street banks. As few as 20 per cent of people ever switch their bank account, so you represent many years of custom - and more than likely a few years of debt. Student accounts are different from standard current accounts in that they offer you an interest-free overdraft of up to £3,000, usually for the duration of your time at university and for several years after you graduate, although the maximum will usually diminish over time.

They will also usually offer useful extras such as mobile phone insurance or a USB memory stick as a way of standing out from the competition. It's easy to be tempted by great freebies and offers, but since your student bank account is going to play a very important role in your university career, it's important to make your choice for the right reasons; good value for money, account features that fit your lifestyle and a high level of customer service.  

An overdraft is a 'safety net' that means you are basically borrowing money from the bank, and most student account providers will allow you to pay no interest for an agreed period of time. As loans go, it is likely to be the best value unsecured loan available aside from a loan from the Student Loans Company, but as with any consumer credit product, you need to be disciplined in your finances to make the best use of it and avoid the fees and charges. Pick a student account that lets you have some leeway after you graduate, and that offers a competitive interest rate once your interest-free period runs out. Also make sure that you are aware of how much you are likely to be charged if you exceed your agreed overdraft limit.

The overdraft facility is likely to be the reason you choose a student bank account. For those living on a shoestring budget, having that extra cash available can seem like a godsend. However, it's important to remember that even though you will not have to pay the money back any time soon, you will do when you leave university and get a job. The last thing you want to do when you are starting to pay off your student loan and starting your first job is to have to pay back £3,000 in monthly installments, with interest.

Rather than simply removing your access to funds at the end of your limit, many banks will give you a buffer zone. Ostensibly, this is to ensure that you can get hold of money if you need it, but going beyond your limit also gives banks the option of charging you large fees (up to £50 daily). As with a standard current account, you are also likely to be charged a fee for unpaid cheques, direct debits and standing orders where the transaction cannot go through because of a lack of available funds.

Most student accounts come with a standard administration fee that is charged monthly while you are overdrawn. Banks will often offer extra benefits such as discounts on student-friendly products and services to make this fee more palatable to new customers. However it's rarely worth taking out an account purely on this basis - extras such as breakdown cover are only worth paying for if you are actually going to use them. Alternatively, consider opening a savings account or an ISA to run alongside your student account, so that you can transfer any spare funds to an account that earns you some money.

Student accounts are unlikely to be the most competitive on the market if you are in credit, since the overdraft benefits are seen to be the main reason that students find these accounts appealing. If you are careful with your finances and feel that you will probably not use an overdraft limit, shop around and see if a standard current account can offer you a better rate of interest on the money in your account. Whichever account you choose, remember that it is key to keep an eye on your money to ensure that you do not incur fees and penalty charges.

Below is an overview of the current crop of student bank accounts, freebies and all:

Natwest Student Account

Overdraft limit: Up to £1,250 in your first year, £1,400 in your second year, £1,600 in your third, £1,800 in your fourth and £2,000 in your fifth.
Other facilities: Chequebook, debit card/cheque guarantee card. Student credit card with a credit limit of up to £500 and up to 56 days interest-fee credit.
Banking Options: Mobile banking, telephone banking, in-branch and text banking.
Fees and charges
- No account charge as long as you stay within your agreed overdraft limit.
- Exceeding your overdraft: £28 per month
- Paid referral fee: £30 per day up to a maximum charge of £90 in any one month
- Guaranteed Card Payment Fee: £35 per transaction (maximum of £105 per day)
- Unpaid item fee: £38 per item (maximum of £114 per day)
Interest earned: 25% AER for balances up to £10,000
Freebies: 16-25 Young Person's Railcard, 4GB memory stick, discounts on mobile broadband, Asus laptops and 20 per cent off at lots of high-street shops.

Find out more and apply...

Royal Bank of Scotland Student Account

Overdraft limit: Up to £1,250 in your first year, £1,400 in your second year, £1,600 in your third, £1,800 in your fourth and £2,000 in your fifth. Also, up to £2,750 at any time, subject to application (and a credit check)
Other facilities: Chequebook, debit card/cheque guarantee card. Student credit card with a credit limit of up to £500 and up to 56 days interest-fee credit.
Banking Options: Mobile banking, telephone banking, in-branch and text banking.
Fees and charges
- No account charge as long as you stay within your agreed overdraft limit.
- Exceeding your overdraft: £28 per month
- 'Paid referral fee': £30 per day up to a maximum charge of £90 in any one month
- Guaranteed Card Payment Fee: £35 per transaction (maximum of £105 per day)
Unpaid item fee: £38 per item (maximum of £114 per day)
Interest earned: 25% AER for balances up to £10,000
Freebies: 2-for-1 Vue cinema card, discounts on gigs, shows and holidays, card protection, 4GB memory stick, discounts on mobile broadband and Asus laptops

Find out more and apply...

Barclays Student Account

Overdraft limit: Up to £2,000 interest-free with the option to extend it to £3,000 at a rate of 8.9 per cent
Banking Options: Online banking, telephone banking, mobile banking and in-branch banking.
Other facilities: Contactless debit card/cheque guarantee card, chequebook.
Fees and charges
- Reserve usage fee (£22 per 5 consecutive days when you exceed your overdraft)
- Returned transaction fee: £8
- Guaranteed transaction fee: £8
Freebies: 25 per cent off Orange mobile broadband (saving of up to £112.50 over an 18-month contract).

Find out more and apply...

HSBC Student Account

Overdraft limit: Up to £1,000 in your first year, £1,250 in your second year, £1,500 in your third, £1,750 in your fourth and £2,000 in your fifth.
Other facilities: debit card/cheque guarantee card, chequebook
Fees and charges
- Stopped cheques: £12 per cheque
Freebies: Two years free worldwide travel insurance, free TalkMobile SIM card with £5 preloaded, discounts on travel guides, music and Dell computers
Interest earned: 2 per cent AER on the first £1,000 during your first year

Find out more and apply...

British Saving Habits Revealed

2009-09-15T23:00:00Z

The average amount put away by savers has increased by 26 per cent since the start of the year, although 40 per cent of Britons are not saving anything at all, which is also an increase on previous figures. Research carried out by Abbey Savings suggests that those with savings and investment accounts are saving an average of £206 per month, compared with £163 at the start of 2009. Using average savings rates as a guideline, this means that British savers will be putting a total of £59.5 billion into UK bank accounts this year.  

So how are these savings being made? 20 per cent of savers polled have regular savings accounts, which are likely to have restrictions on how many times money can be withdrawn each year. 65 per cent of savers have an instant access savings account, giving them more flexible access to their money. Flexibility on access can lead to a lower interest rate, so it's worth thinking carefully about how likely you will be to need to get to your cash and then looking around at what the banks can offer.

An Individual Savings Account (or ISA) is a popular option for British savers; 42 per cent hold a cash ISA whilst 14 per cent have a Stocks and Shares ISA. ISAs can offer extremely reasonable returns on your money, especially considering that any interest that you earn will be completely tax-free (or any gains on your investments and dividends if you have a Stocks and Shares ISA).   

There is a maximum amount that you are able to invest into ISAs, currently totalling £7,200 - split into £3,600 for cash and £3,600 for stocks and shares. However, this is set to increase to a total of £10,200, in October 2009 for savers over 50 and from April 2010 for everyone else. Reza Attar-Zadeh, Director of Savings&Investments, comments: "At a time when it's never been more important to put money away for a rainy day, it's encouraging that the amount being set aside by savers each month has risen by more than a quarter. "  

"And it's not too late for those Britons who haven't yet kick started their savings habit to make a start - putting aside even a small amount each month will quickly add up to help provide them with a safety net in today's difficult economic climate. Opening a cash ISA offers savers one way of achieving this through a tax-free rate of interest to help make their money go further." Find out more about Individual Savings Accounts, or ISAs by clicking on the link.

Reduce your Car Insurance by Up to 30 Per Cent

2009-09-13T23:00:00Z

So you've just passed your driving test? Congratulations! However, getting out on the road as a new driver can be difficult when you factor in the cost of car insurance. Statistically, new drivers present a greater risk than more experienced road users, hence the hike in premiums. If you'd like to prove your driving skills, improve your confidence on the road and save money on your premium at the same time, you should consider taking a Pass Plus course.

Pass Plus is a driver training course that is specifically aimed at new drivers (although it is open to anyone with a full UK drivers licence), and has been designed through a collaboration between the Driving Standards Agency (DSA), the driving instruction industry and some of the car insurance industry's largest insurers. There are a series of modules that you can choose to take, several of which will help you get used to driving on UK motorways and dual carriageways; something that you may not have practiced since passing your test.

The six Pass Plus modules cover town driving, all-weather driving, driving out of town, night driving, driving on dual carriageways and driving on motorways. There is no need to take all six modules, so you can pick and choose the sections that are most relevant to the problems that you are most likely to face on the road. You would normally spend a minimum of six hours on the road over the duration of the course (although not necessarily all at once!), followed by a test at the end of the module.

Eighteen of the UK's insurers, including Direct Line, Endsleigh and Zurich, offer discounts to drivers that have achieved a Pass Plus qualification. Even when you factor in the cost of a Pass Plus course (around £180, but this will depend on where you live and the instructor or driving school you choose), you will still receive a substantial discount on your car insurance. The reason that insurers are prepared to do this is that you have proven your commitment to safe driving, and have also learned a number of additional skills that will make you safer on the road and therefore less likely to make a claim.

To make it even easier for you to become a more confident driver, a number of local authorities have agreed to help new drivers to cover the costs of the Pass Plus course, providing up to 50 per cent of the tuition fees. To see a list of borough, town, city and county councils that have offered sponsorship to drivers in their area, visit the Pass Plus website here. You can find out more about Pass Plus by calling the organisation on 0115 936 650.

Participating insurers will offer a discount on comprehensive car insurance, third party insurance and third party fire and theft car insurance. Although any of these motor insurance types are legal types of cover, it is highly recommended that you choose comprehensive cover so that you, your passengers and your vehicle are all covered in the event of an accident. The car insurance industry is a competitive one, and you should therefore find some great deals on comprehensive cover.

Do make sure that you compare prices for car insurance premiums both with and without the Pass Plus discount, and only take this advanced driving course if it will actually save you money, and help you become more confident on the road. If you are already totally confident in your driving environment and you will not benefit from significantly reduced insurance, Pass Plus may not be for you. Talk through your options with an insurer, who will be able to give you a good idea of how beneficial the scheme would be to you.

Landlords Losing Sleep Over the Housing Market

2009-09-10T23:00:00Z

New research shows that buy to let landlords are still very much concerned about the current state of the housing market. The research by Direct Line for Business shows that one in five landlords surveyed are particularly worried about their cash flow, with around 30 per cent concerned with 'rising interest rates' and how a further increase would affect their businesses.

Worryingly, nine per cent of landlords included in the survey have cancelled insurance policies as a way of saving money, leaving themselves and their tenants more exposed to financial risk in the event of market-related difficulties. A lack of suitable cover can have a number of implications for both landlord and tenant, so this is one area where cost-cutting is to be strongly discouraged.

Landlord insurance is also known as buy to let insurance, property owners insurance or rented property insurance. The most basic level of landlord insurance would cover the property owner from financial losses incurred as a result of renting out their property. This cover protects the building itself from damage (for example, by fire, damage caused by extreme weather conditions such as lightening, flooding and storms, malicious damage or subsidence. Additional insurance can then be taken out to cover the fixtures and fittings and the contents of the property, particularly suitable if you are letting out a furnished property. Tenants would usually be required to insure their own belongings with a home contents insurance policy.

As well as covering the landlord against damage to the property, landlord insurance plays an important role in protecting both landlord and tenant(s) against financial difficulty, making it an essential product particularly in economic climates as uncertain as these. Property Owners Liability cover (also known as Public Liability cover) should always be included within a landlord insurance policy, because when you rent your property out you take responsibility for the safety of the property and any building or maintenance work carried out on the premises.

For example, if tools equipment used in essential repair work to the property caused injury to your tenant or anyone else, the injured party could claim for sizeable compensation that would have to come from your own pocket unless you had adequate insurance. On the other hand, pursuing costs for damages caused to your property can be an expensive undertaking, and a comprehensive landlord insurance policy should cover the legal fees of this.

An aspect of landlord cover that is crucial in times of financial uncertainty is Rent Guarantee insurance. Unfortunately, when you rent a property, there is always the possibility that your tenant will not pay their rent. They may lose their job and therefore the means of paying you, they may withhold the funds due to a dispute or simply refuse to leave the property once evicted. Whatever the reasons, the effects of a sudden halt in your rental income can be extremely damaging for you, especially if you are left out of pocket with mortgage payments to meet. Rent Guarantee insurance pays the rent for you in this event, although the length of time the rental payments are covered will depend on your insurance policy. Click here to take out a landlord insurance policy or find out if you could improve on the cover offered by your existing policy.

Tax-Free ISA Allowance: Use it or Lose it

2009-09-06T23:00:00Z

Only a month remains until the first wave of bank customers can benefit from the higher ISA allowance introduced in the last Budget. On the 6^th October 2009, savers over the age of 50 can increase their allowance from £7,200 to £10,200, of which £5,100 can be invested into each of a cash ISA and a stocks and shares ISA. Everyone else can benefit from the increase from 6^th April 2010.

An ISA (or Individual Savings Account) is a saving product introduced in 1999 to replace PEPs and TESSAs, and you can either use an ISA to save cash at a competitive interest rate or to invest in stocks and shares. The popularity of ISAs stems from the fact that any interest you earn from an ISA account will be tax-free, and likewise any capital growth you see from investing in shares or funds will also be tax free (with no tax to pay on any dividends you receive).

Previously, the most you were allowed to save in a cash ISA and in a stocks and shares ISA was £3,200 in each, totalling £7,200 of tax-free savings each year. Now that this limit is on the up, it's well worth making use of the increased allowance, especially with savings accounts offering lower returns across the board than those available a few years ago.

Money that is saved in the current tax year can be added to a cash ISA or a stocks and shares ISA in the next tax year (starting April 6^th 2010), but you must transfer the full amount into the ISA at the same time. It's worth noting that you can transfer savings from a cash ISA to stocks and shares, but you cannot transfer in the other direction. Also, a great rate on an ISA may be dependant on you taking out another product with the provider, and that additional product may not necessarily be as competitive - so make sure the combined offering is worth your while before signing up.

Putting at least some of your savings into an ISA could save you a considerable amount in tax. Normally at the basic tax rate, you would pay 20 per cent tax (in the 09-10 financial year) on the interest that your money earns. At the higher rate, you're looking at a tax of 40 per cent on your savings interest, although the 'saving rate' of tax (outside of an ISA) is 10 per cent.

Daniel Clayden of IFA firm Clayden Associates, says "Always, always, always consider using your ISA allowance before anything else. Despite their relatively low contribution limits, they still present themselves as one of the most effective savings regimes available. In addition, recent legislation now makes it possible for those considering an ISA but initially not wanting to invest, to effectively park their savings in cash (subject to limits) and transfer into an investment at a later date."

As long as you are a UK resident and over 18 (or 16 for a cash ISA) you are eligible to open an ISA account. The account must be in your name, and joint accounts are not an option. Don't forget that you do not need to have your cash ISA and your stocks and shares ISA with the same provider, so shop around for the products offering the best returns on your money.

Make sure you are Covered when Going It Alone

2009-09-03T23:00:00Z

The collapse of another airline earlier this week left more passengers stranded, many of them without enough travel insurance to cover them for making alternative arrangements. Slovakian airline SkyEurope, which flew out of London Luton and Manchester, suspended flights on Tuesday with immediate effect leaving many passengers out of pocket and far from home.

The rise in low cost flights has meant that many people have chosen to book their flights and accommodation independently of a travel agent. In fact, according to a Minitel report on the travel agency industry, package holidays now account for only 41 per cent of the overseas holiday market. However, although being an independent traveller may offer significant savings on your holiday, it does mean that you need to pay extra attention to the level of cover that your travel insurance offers you.

If you book your holiday through a reputable travel agency, they will have taken measures to protect you against commercial failure, either their own or that of one of their suppliers (such as the airline or hotel company). They are then known as a 'bonded' travel agent which effectively means that they have taken out an insurance policy that you, as one of their clients, are able to benefit from. In the UK, travel agencies are bonded with the International Air Transport Association (IATA) or the Association of British Travel Agents (ABTA).

According to the Minitel report, 2.72m independent holidays were booked last year by UK travellers. Considering the number of low cost airlines that have folded since the credit crunch began and taking into consideration that the travel products on the market do not all reflect this increased independence, it's likely that many of these travellers will have fallen victim to a lack of travel cover.

Steve Price, M&S Head of General Insurance, said: "Whilst passengers booking flights as part of a package holiday enjoy protection in the event of an airline collapse, travellers booking flights independently can often find themselves stranded and out of pocket. Traditional policies may not cover the increasing variety of eventualities faced by the modern traveller. M&S are among the providers offering an 'Independent Traveller' insurance policy.

Policies that target the self-sufficient traveller should include, but not necessarily be limited to compensation to cover accommodation and travel expenses as a result of flight delays, unused accommodation costs if you should cancel your flight, and protection against the company going bankrupt, natural disasters or disease outbreaks in your destination of choice. If you are planning a trip without the assistance of a travel agency, make sure that the travel insurance you choose does specifically cater for your needs, because many will assume that you'll have a certain level of protection from a travel agency.

Don't Ignore Your Debt

2009-09-01T23:00:00Z

In today's society, debt is a part of everyday life. House prices are at such a level that most people would not be able to buy a house without the aid of a mortgage, and bank overdrafts become a habit for many from their teenage years onwards. However, there is a massive difference between necessary debt (mortgage, student loans) and destructive debt that ties you into paying back the same loan or credit card for years after you first needed the money.

Credit Action, a money education charity, recently found that £181m is paid in interest in the UK each day, and that a property is repossessed every 11.5 minutes. These are worrying figures, indicating a level of personal debt that is becoming increasingly unmanageable. A common reaction to excessive debt is to pretend that everything is fine. However, ignoring the problem will only make it worse. A greater awareness of your financial situation can mean cutting your interest payments in half and avoiding serious repercussions like losing your house.

Face up to the debt

It's easy to get into the habit of spending beyond your means, especially if you spend a lot of time with friends or family members who earn more than you do. However, credit is not bottomless and your creditors will soon lose patience if you continually borrow more than you are able to pay back. It seems obvious, but you have to start by admitting that your debt has become a problem.

Write a list of the people or companies that you owe money to, and work out how much interest you pay to each company per month. The debts with the highest interest rates are the ones that will get you into the most trouble, so these need to be your focus. Also, unwilling as you may be to admit to others that you have debt issues, your lifestyle needs to change immediately. That means no more expensive nights out, new clothes and grocery shopping in Harrods, at least until you're earning enough to afford it.

Don't ignore your post

If you 'forget' to open the bills that come through the letterbox, your creditors are not going to go away. In fact, the pressure on your to make your repayments will only increase, and you will soon be bombarded with telephone calls from debt collection agencies.   Some can be pretty aggressive in their communications, so try and sort something out before it gets to this stage.

Look over your bank statements and work out where cutbacks can be made. Be ruthless and cut any 'luxury' spending such as magazine subscriptions and Sky TV. When you know how much money you have available to start paying off your debts, call everyone on your creditors list. Starting with the ones to whom you owe the highest-interest debts and the ones where you have missed the largest number of payments. Explain that you have been having some financial trouble, but that you want to sort out the situation.   They should respect the fact that you are being proactive, and either agree to freeze your interest or enable you to make manageable payments towards your outstanding debt. If they are unhelpful at first, do keep trying. It might take a couple of phone calls to get through to someone sympathetic.

If communication has broken down completely, you may need to resort to a debt management plan or an Individual Voluntary Agreement (IVA), where a debt specialist liaises between you and your creditors to put together a repayment plan. Do be aware though that both a debt management plan does cost money, so if you are considering this route make sure you also contact a free service such as the Citizens Advice Bureau to find out what services are available to you. Also, the consumer credit counselling service is free to call on 0800 1381111. For Scottish debt solutions, please follow the link.

Keep a record of everything

If you have a large number of creditors, chances are that you will be speaking to a lot of different people. Make sure that you always get a reference number for each call and if possible the name of the person that you have spoken to. When you get letters and phone calls, keep the letters in a file and make a note of the dates, times and content of the phone calls. The reason for doing this is to protect yourself if you should have to go to court.

One way for companies to reclaim money that they are owed is to apply for a county court judgment (CCJ) against you. This means that you will be summoned to your local court and, if you lose the case a judge will order you to pay back the money. This type of judgment is recorded on your credit report for six years, so if it gets to this stage you may have trouble borrowing money in the future ? so do your best to sort out the situation before this happens.

If it seems too good to be true?

Although debt consolidation loans can be a temporary solution to high-interest debt, you should be extremely careful about choosing this option. After all, you are effectively swapping one debt for another. If you do decide to go down this route, you need to commit to making every payment in full and on time. There is one situation where you should consider this option; when you have credit card debt or another type of high interest short-term loan and you are stuck in the 'minimum payment' vicious circle.

Credit cards in particular are happy to let you make a minimum payment each month (usually £5) because you are then paying off the interest and therefore stay in debt much longer.   The longer that you don't pay off any of your balance for, the harder it is to do because the interest mounts up. Therefore, if you are unable to ask family or friends for help and simply do not have the funds to pay off the cards, a longer term loan with a lower interest rate will give you some breathing space, and preserve your credit rating.

Pensioners hold £654bn of Home Equity in the UK

2009-08-25T23:00:00Z

Home equity among homeowners in England and Wales aged 65 and over amounts to £611 billion of equity, with a further £43bn held by pensioners in Scotland. These figures come from Prudential's Equity Release Index, a report that tracks the amount of equity held in property by those aged 65 or above. The report shows that older homeowners are now seeing gains in their property value as the housing market begins to show signs of stabilising, following two years of decline.

In Wales, the over-65s saw values rise by £3,448, followed by London's over-65s who gained £3,296, while in the West Midlands retired homeowners gained £2,789 and the North West saw increases of £818. The Index showed that Scottish home equity is on a steeper increase than the rest of the UK, with a rise in value of 3.7 per cent, compared to a decrease of 0.03 per cent in England and Wales although the total value of property equity for the over-65s is still more than £3billion lower than it was a year ago.

The positive growth in house value in this age bracket is particularly good news for those planning to follow an equity release programme. Equity Release is a financial product whereby you can raise capital from the value of your property without having to move out of it. Only available to those over a certain age (typically 55), equity release involves either taking out a loan that is secured against your property or selling all or part of the property and continuing to live there. Either option would provide you with a cash lump sum that could be used to provide a steady retirement income, or in any other way you wish.

Keith Haggart, Director of Lifetime Mortgages at Prudential, said: "A good many pensioners will be cheered by the news that property values appear to be stabilising and in some parts of the country are even increasing. This could bode very well for people considering using their home as an asset to boost retirement income.

"Of course falling property prices have affected every homeowner but it's important to remember that many homeowners now aged 65 and above bought their homes years ago and have benefited from longer term growth in the housing market. Many people in this age group have lived in their home for twenty years or more. The fall in house prices over the last couple of years appears to have slowed and, if house prices do rise in the future, the retired population could expect to see their wealth increase.

Haggart continued, "For many people, selling up and downsizing isn't an especially attractive option, and they don't want to face the emotional wrench of moving house. Equity release has an important role to play in providing retirement funds particularly when other sources of income are under pressure." In response to the recent housing market crash that left many in a state of negative equity, all Safe Income Home Plans (SHIP)-approved equity release providers offer a no-negative equity guarantee. This ensures that no matter what happens to property values in the future, you would never experience additional costs if your property fell into negative equity nor would you lose the right to live in the property.

Equity release is a complicated financial product, and so we would highly recommend talking through your options with a qualified equity release adviser before proceeding with a lifetime mortgage or a home reversion plan. If you would like to find out more about equity release or talk through your options with an experienced adviser, please fill out our short equity release form. We will then put you in touch with an equity release specialist from the SimplyFinance network who will give you advice specific to your financial circumstances.

Invest Time as well as Money in your Pension

2009-08-23T23:00:00Z

As many as 2 million UK adults do not know which provider is managing their pension, and which investments are being made with their money. Research by asset management company Lincoln Financial Group has also found that a surprising 48 per cent of UK pension holders do not review their pension options once the initial investment has been made. This indicates that pension holders are not fully aware of their rights and of the benefits that can be gained from shopping around. So what are you losing out on by not paying enough attention to your investments, and how can you maximise your return on the money that you have so carefully saved?

If you are a UK personal pension holder, you would usually purchase an annuity with some or all of the savings that you have accumulated through your personal pension scheme, so that you will have an annual income throughout your retirement. You don't have to do this straight away, although you are required by law to purchase an annuity product by the age of 75. The majority of pension contracts that are in place now have an 'open market option'. This means that you could buy an annuity from any provider on the market, rather than sticking with the company that provided your pension.

Although a few pensions plans will have restrictions, it is usually your right as a consumer to choose the open markets option, although these figures from Lincoln suggest that very few people exercise this right. Unfortunately, this could mean losing out on thousands of pounds in retirement income, since the fact that a company offers a good pension scheme doesn't guarantee that their annuity rates will also be competitive.

Simon O'Connor, Head of Products and Marketing at Lincoln Financial Group, said: "With people not taking the time to review their pension options, it's not surprising that the majority are still unaware of the Open Market Option and so fail to shop around to get the best annuity for them on retirement. More needs to be done by the Government and the industry to ensure consumers are aware of their annuity options and make sure they get the best retirement product for their circumstances.

O'Connor continues: "Flexible annuity products carry increasingly important benefits in the current climate, such as helping to protect a pension pot against the effects of inflation and providing the option of an income guarantee." It's particularly important to choose the most financially beneficial annuity, because you cannot change providers once you have made your decision, or even alter the type of annuity that you have chosen.

One example of where you might be benefiting from swapping providers is if you suffer from a health condition such as asthma or a heart condition. You may qualify for what is known as an Impaired Life Annuity or an Enhanced Annuity, which pays the annuity holder a higher income to allow for increased healthcare and treatment costs. Not all providers offer this, so you would be in danger of missing out on this option if you only looked at the products offered by your pension provider.

If you accept the annuity that is offered by your pension provider, you're likely to only have to sign a few forms and the rest is then taken care of for you. Providers rely on the fact that most of their pension holders are going to take this easy option, rather than going down the more complicated route of shopping around. However, for the sake of a few months of research, you could be adding significant amounts onto your retirement income, so it is well worth getting quotes from a number of providers. If you are approaching retirement and would like use your open market option to find the best annuity for your financial circumstances, we would recommend speaking to an experienced financial adviser to determine the most suitable product for you.

Hands off those HIPs

2009-08-19T23:00:00Z

When you are selling your home, you would be forgiven for thinking that Home Information Packs (HIPs) would come at a standardised price. Not so, according to new research from consumer publication Which? Money, claiming that there is a shocking gap of almost £300 between the most expensive and the cheapest HIPs on the market.

The packs were introduced in 2004 as a way of reducing the number of house sales that are called off by the buyer before completion, a practice known as "gazumping". By law, a HIP must now be provided before a property in England and Wales can be put on the market, a requirement that caused plenty of controversy in the property industry when it was brought in due to the additional costs involved. The Home Information Pack (also known as a 'Seller's Pack') comprises a set of documents giving details about the property such as its Energy Performance Certificate, title documents and, since April 2009, a Property Information Questionnaire. You can find out more about Home Information Packs on the official website.

According to the Which? Money survey of 10 direct HIP suppliers and 8 major UK estate agents, the average cost of a HIP was £99 lower by buying directly, rather than through an estate agent. James Daley, Editor, Which? Money, says: "It's now compulsory to get a Home Information Pack before you put your house or flat on the market - in fact, you could be fined up to £200 a day if you don't get one.

"But don't be fooled into thinking that you have to buy it from your estate agent. Our research shows that the most expensive high street agents charge over twice as much as the cheapest online HIP providers - so you could save hundred of pounds by shopping around for the best deal."

The report also reveals that homeowners looking to sell can save potentially thousands of pounds by using an online estate agent rather than the traditional high-street equivalents. Selling a property online incurs far lower commissions, due to the reduced overheads. At online agent House Web, the popular 'Platinum' package costs £199, and this includes a For Sale Board, an advert in HotProperty magazine, and a unique 0870 phone number. Adverts stay on the site until the property is sold and enquiries go directly to the vendor in the form of an email or a phone call.

Although SimplyFinance would strongly advocate shopping around to find the best deal on your Home Information Pack, saving money shouldn't come at the expense of a high level of service. If you're not planning to buy your HIP from an estate agent, it's important to ensure that your HIP provider subscribes to an industry code of standards such as the HIP code. Otherwise, you may not be protected if you have a complaint about your pack. Look up the provider on the Association of Home Insurance Pack Providers website , or that of the Independent Pack Providers Association before buying to make sure that they are a reputable provider.

Get the Most from your Child Trust Fund

2009-08-18T23:00:00Z

Although the 'green shoots' may be showing now across the world's economies, parents are clearly worried about the future effect that billions of pounds' worth of debt is going to have on the lives of their children. The Yorkshire Building Society has reported a 20 per cent rise in applications for Child Trust Funds in the past month.

A Child Trust Fund is an investment product that ensures that parents can use to provide their children with a cash lump sum when they reach 18, which will ensure that, whatever the financial climate, they have a head start with their savings.

However, the Yorkshire's research also shows that a sizeable number of parents are using other savings accounts to prepare for their children's future. Brand recognition is cited by parents in the survey as the main factor when choosing a child savings account, with 'the interest rate offered' coming in a surprising second. However, by using a well-known brand for their savings purely out of familiarity, parents could be losing out on valuable interest.

How can a Child Trust Fund benefit my child?

A Child Trust Fund is a long-term savings and investment account for children. It was introduced by the government for children born on or after 1^st September 2002. There is no tax charged on interest earned through the account, and £250 is added to the child's account when it is opened. Although the fund must be started by a parent or guardian, the money legally belongs to the child, and they can access the savings when they turn 18. Lower income families may be eligible for an additional £250 payment from the government. Visit the Child Trust Fund website for more information about this.

There are three different types of Child Trust Fund to choose between; savings accounts, accounts that invest in shares and stakeholder accounts. Click on the link to find out more about the different types of Child Trust Fund. The type that you should choose depends on whether you are prepared to take a financial risk in order to potentially see greater rewards. As with other investments and savings accounts, the highest interest rates can be found on the higher-risk accounts, but you can move between accounts at any time so your initial decision does not have to be final.

Shop Around for the Best Interest Rate

Your choice of provider does not need to be set in stone either, and therefore parents are encouraged to be proactive and shop around at regular intervals to ensure that they are getting the best possible deal for their children's savings.

Chris Edwards, Yorkshire's Head of Savings&Mortgages said: "Child Trust Funds are a really good way for parents to save for their child's future. However, we're urging parents who have existing Child Trust Funds or those who are in the process of choosing a provider, to shop around for a good deal". According to the Yorkshire's own data, over half of all parents surveyed (52 per cent) who have children eligible for a Child Trust Fund do not realise that they can transfer to another provider.

One current offering is the Yorkshire's own Child Trust Fund. According to Edwards, just £10 per week saved in a Yorkshire Building Society Cash Child Trust Fund since the child were born would be worth approximately £11,740 when the child reaches 18 but a provider paying just 1 per cent less in interest [in total, over the life of the fund] would mean that they would get just £10,870, an £800 reduction in lost interest over the duration of the fund." This example illustrates the need to be proactive in order to get the best savings - the Child Trust Fund can be moved at any time, so it's up to the providers to remain competitive. The child can themselves make decisions about how the money should be managed from the age of 16.

Check with the fund provider about any fees that you will be charged over the duration of the account. Unless you are completely certain about the type of Child Trust Fund that is best for you, it's best to consult an independent financial adviser before committing to an investment.

Top Tips for Dealing with Identity Theft

2009-08-03T23:00:00Z

It's a shock to discover that your identity had been stolen and used to borrow money and run up debts in your name. Perhaps you receive a letter demanding payment for an account you didn't set up, your credit card statement shows a series of unfamiliar transactions or a lender turns you down on the grounds that you've not been paying your bills. Identity theft affects hundreds of thousands of people in the UK each year, and the numbers are constantly growing.

If you don't check your credit report regularly for suspicious transactions, it could be a long time before the companies notice that there is something untoward happening, by which time your finances and credit rating could have seriously suffered. Research by Experian's Victims of Fraud team shows that it takes an average of around 500 days to discover the crime - and a further 300 hours to set the record straight. In the meantime, you could find it impossible to borrow what you need because your credit status has been trashed by criminals. Here's what to do if you suspect you might be one of the unlucky ones.

Check your credit report

This is your personal credit history and details the loans, cards, mortgages and other credit accounts in your name, along with your repayment record. If you spot anything you did not apply for or see an outstanding balance far higher than you can explain, someone is probably using your identity to commit a fraud. You can see your Experian credit report for free with a trial of the credit monitoring and identity protection service CreditExpert.

Report your suspicions

Tell the police if you think your identity has been stolen and used fraudulently and get a crime number or incident number. You should also tell one of the credit reference agencies that holds your credit report - Experian is the UK's largest.

Get help

The Victims of Fraud service will help you to investigate and put matters right. They can tell you what to do and help you to set the record straight. If appropriate, they can also add security features to your credit report to obstruct the fraudster and prevent him or her from running up more debts in your name. Call the Victims of Fraud service on 0844 481 8000 to report a possible case of indentity theft.

Contact the organisations who have been duped

Your credit report contains a list of all the lenders who've given you credit, along with their contact details. Get in touch with them and explain what's happened. Be prepared to provide proof - for example, that you could not have been in the place where credit card transactions occurred or that you do not live at the address given for a fake account.

Tell the Post Office

The most common way of stealing an identity in the UK is intercepting your post, so unless you've already identified the cause of your problems you should contact the Post Office and ask them to investigate. In the meantime, make sure your mail isn't left where anyone else can take it, like in a shared hallway.

Take precautions

Your identity is a precious commodity, so take every precaution to ensure that it isn't abused again. For example, you should shred sensitive documents before throwing them away and always report the theft of items such as credit cards, passports and driving licences as soon as possible after the incident occurs.

Know your EAR from your Interest rate when comparing Financial Products

2009-08-02T23:00:00Z

When you are shopping around for banking products, it's easy to be swayed by the attractively low interest rate because the advertising is designed so that it is the first figure that you see.

However if this figure is the only one advertised, this is misleading because it does not take into consideration the additional fees, account charges and any mandatory insurance that have been added on. EAR, APR and AER were introduced by the British Bankers Association and the Building Societies Association to stop banks and other lenders from getting an edge on the competition by advertising unrealistic rates, and to simplify the process of choosing an account or loan for the consumer.

You should always use the APR as the basis for comparison when looking to borrow money on credit cards or via a mortgage or personal loan, and use the EAR and the AER when looking at bank accounts, because this will make a genuine, like-for-like comparison much easier. This article explains what they mean, and why using them will mean that you make more informed choices and save yourself money.

Although most people do not use them for this reason, current accounts can earn you interest if your account is in credit. The main interest rate that the bank will therefore advertise is the illustration of what your money can earn you if your account is always in the black. However, this does not take into account the interest rates that you have to pay when you go overdrawn, or the charges that the bank applies when you go over your overdraft limit. EAR stands for Equivalent Annual Rate, and should be used to compare bank accounts where there is the chance that you owe money to the bank, calculating the 'true' interest rate when all these potential charges have been considered.

When you are applying for a mortgage or another type of loan, there should always be two figures advertised, the interest rate and the APR. APR stands for Annual Percentage Rate, and takes into account the loan arrangement fee, any loan protection insurance that the loan provider makes compulsory and any additional charges. It could be that a mortgage with a lower-than-average interest rate works out the most expensive when the £1000 arrangement fee is taken into consideration.

AER stands for Annual Equivalent Rate and is usually applied to savings accounts and other interest-based investment products. It shows you the true rate of interest that you will have earned by the end of the year, taking into account how often interest is actually added to the account. Therefore, it will provide all rates as if the interest was compounded (i.e. where you will earn interest on your interest as well as on your capital) and paid annually, rather than monthly or quarterly.

If the AER is lower than the gross rate (also usually advertised), then this suggests that the account pays an introductory bonus rate which lasts up to a year. If the AER is the same as the gross rate, then this suggests that the account pays interest once a year (so no compounding of monthly, quarterly or half-yearly interest takes place). If the AER is higher than the gross rate, then this suggests that the account pays interest more often than once a year. Using the AER as well as the gross rate means that you are not misled by short-term special offers meant to attract new consumers.

Why home insurance restrictions will keep you safer and save you money

2009-07-30T23:00:00Z

According to new information published by the Association of British Insurers (ABI) and the Home Office, almost half of burglary victims do not have home insurance. This means that all of those uninsured households have to spend money out of their own pocket to replace their stolen and damaged possessions.    With the average contents insurance premium working out to little more than £10 per month (and lower for social tenants), it makes much more sense to take out a policy than to risk a bill running into the thousands if you are unlucky enough to be a victim of crime.

When you shop around for home contents insurance policies, you'll notice that many insurers ask for a certain level of home security to be in place before they will provide you with a quote. Although they should always ask you about your current security arrangements before they quote you, you should also read the small print very carefully before taking out a policy, to ensure that your property meets all their safety requirements. Otherwise, you may find that your insurer will not pay out for your claim, and that is not something you want to discover after the burglary has taken place. Far from these restrictions being a way for the insurer to duck out of paying out on your claim however, they are actually doing you a huge favour as they makes your house much less likely to be broken into in the first place.

As a minimum requirement, all your ground-floor windows should have key-operated locks, and there should be a deadlock or mortice lock (meeting British Standard BS3621) on the back door.   If you live in a high-risk area, or if you have been broken into already in the past 3 years, there will be further security requirements such as a burglar alarm and external doors that are at least 44mm thick before the insurer will agree to cover you. If you own the house, but do not live there all the time, there may also be restrictions on the security you need to provide, or even on the length of time that you can leave the property empty.

Most insurers will give you a discount if you have burglar alarms, British standard locks on all external doors and security lighting. Make use of your insurer to get your house security up to scratch - the larger insurers will work in association with burglar alarm providers and other specialists and will be able to get you a discount on purchasing these items. In turn, taking these measures will enable you to get a discount of up to 10 per cent on your home insurance quote.

According to the ABI/Home Office research, 36 per cent of burglaries are committed by opportunists. Therefore, it's your job to make your house look secure to someone taking five minutes to snoop around, with good lighting, no visible ladders or tools, and no spare key hidden under the doormat. For the more committed intruder, the locks and doors need to act as a real deterrent.   Home Insurance companies know statistically which security features are more likely to foil a burglary attempt, so see them as a free resource for home security advice. And after all, the more security you have, the cheaper your insurance will be, so making your home safer will pay dividends.

To find a great deal on your contents insurance policy and find more ways of saving money on your insurance, visit our home insurance page.

Are Premium Bonds a viable alternative to a Savings Account?

2009-07-28T23:00:00Z

Premium Bonds are government-backed savings run by National Savings and Investments (NS&I) where, instead of earning interest on your money, your bonds are entered into a monthly draw to win cash prizes from £50 up to one top prize of £1million tax-free. There is no risk at all to the money that you have put into premium bonds, and unlike many savings accounts, you can take your money back at any time.

So how do they work? You buy bonds for £1 each, and you can buy a minimum of £100 of bonds at any one time (or £50 worth, if you have decided to buy them each month via a standing order). Bonds can be purchased from the Post Office, or on the NS&I website. Anyone over the age of 16 is eligible to buy them, although if you are younger than that bonds can be bought for you and held in the name of a parent, guardian or grandparent. The maximum that can be held by one person is £30,000, and you can keep the bonds for as long or as short a time as you like before cashing them in. All premium bonds that have been held for at least a full calendar month from the date of purchase will be entered each month.

Premium Bonds were introduced in 1956 by the then Chancellor, Harold Macmillan, with a top prize of £1,000. According to the NS&I, the bonds were introduced " to reduce inflation and to encourage thrift among those who were attracted not by earning interest but by winning prizes". Since then, the prize fund has increased significantly, with the million pound prize being introduced in 1994 (bond sales, unsurprisingly, increased massively).

Every bond, worth £1, is entered into the monthly draw, and winning numbers are generated by the NS&I computer, Ernie (Electronic Random Number Indicator Equipment) and matched against the existing bonds. Winners are notified by post or telephone, and you can choose to take out the winnings or re-invest them (up to the maximum £30k limit). If you have bonds but have out-of-date contact details for them, you can check your bond numbers on the website to find out if you have won a prize.

In the current financial climate, and with interest rates still very low, savers cannot get the same favourable rates on ISAs and other savings accounts that they had only three years ago. The best returns usually come with the lowest level of flexibility, locking your money away for a set period of time usually being the best way of getting a higher interest rate on your savings. Therefore, if you are a saver looking for increased flexibility, premium bonds may be an answer for at least a proportion of your savings, since you are able to reclaim your investment (plus any prizes) at any time.

However the downside of premium bonds is that the cash prizes are issued in the place of interest, so the only danger is that you will buy bonds and never see a return. The NS&I website publishes the probability of winning a prize (estimated at 36,000 to 1), but of course, the likelihood of being a winner will increase the greater the number of bonds that you have bought. As premium bonds do not guarantee a return, cash ISAs and other savings accounts are still a better option for the bulk of your savings. However, premium bonds do give savers the opportunity to have a flutter without any risk to their original stake, and therefore it's worth considering them as a complement to your savings.

Are you a Debt Diva?

2009-06-25T23:00:00Z

If you're one of the many women in the UK who loves to shop, you may be in for a surprise when it comes to your credit rating. A recent survey by Cosmopolitan found that 64 per cent of its readers were in debt, with more than half of these owing upwards of £5,000 on credit or store cards. This new generation of debt divas thinks nothing of splurging on designer labels even when they're spending more than they earn. As a result, the Consumer Credit Counselling Service says that the proportion of young women asking for help with debt has doubled in the past ten years. These tips could help you avoid serious financial trouble.

Face up to the facts

Debt is a big issue - collectively, British adults owe more than a trillion pounds. But it doesn't have to get out of control. The first step is to clarify how much you owe. Go through your bank statements and bills and factor in anything you owe to friends and family. Check your credit report, which contains details of your credit accounts, such as loans, cards and mortgages. It can also remind you of borrowing you'd forgotten about. You can see your Experian credit report for free with a 30-day trial of CreditExpert.

Go on a debt diet

Take at close look at where your money's been going over the past year. You have to find ways of cutting back, so approach this as you would a conventional diet. Instead of counting calories, write down everything you spend, from bus fares and coffees to home insurance and your TV licence. Work out a new weekly budget but remember you also need to treat yourself occasionally or you'll eventually fall off the wagon. Set aside a little extra cash to compensate for this.

Change your spending habits

Go through your wardrobe - you will probably be shocked to see how many clothes you own compared to how many you actually wear. When you're desperate for a new clothes fix, try charity shops instead of hitting the high street. Consider swapping clothes for others at an event set up by the Swishing organisation, or indulge in some 'negative spending' by selling some of your unwanted clothes on eBay and then spending the proceeds.

Use the stats to your advantage

On average, women under 40 pay about 17% less on car insurance than men. Forget all the clichés that exist about women drivers - women are much less likely to have accidents and to make expensive claims than men. Shop around for the best deals, and pay particular attention to insurance companies that specifically target female customers.

Get the best out of the web

Price comparison sites exist for almost every product imaginable and can save you a lot of money. Don't ignore voucher sites either - they offer discounts on everything from restaurants to holidays - and money-saving tips from other web users on forums. Finally, search online for specific items you've spotted in the shops. They will probably be cheaper in cyber-space than they are on the high street.

Think like your bank manager

You wouldn't lend money to someone you suspected couldn't pay it back - nor will banks, mortgage and credit card companies. A key part of their process is to review your credit report and assess whether you're a responsible borrower and can afford a new set of repayments. You should do the same. Ensure that all the information your report contains is up to date and accurately reflects your circumstances, as a single slip or misunderstanding could affect your chances of getting the deals you want.

Climb the credit status ladder

There are several easy steps you can take to improve your credit rating. Register to vote at your current address, get any clerical errors corrected by the relevant lender, close down unused accounts and spare credit cards and add a note to your report to explain any periods of financial difficulty. Finally, check your credit report every month to monitor your progress and look for unfamiliar entries, such as new applications you didn't make - these could indicate attempted ID fraud and should be queried immediately.

Stand on your own two feet

If you share a joint account, such as a card or mortgage, it creates a financial association and means that lenders may check your partner's credit report when you apply to them - the logic is that his or her financial situation could affect your ability to make repayments. If you've split from someone with whom you had a joint account, get it closed, reapportion any debt and inform the credit references agencies that hold your credit report - Experian is the UK's largest.

Get free advice

If you're finding it hard to keep up your repayments, don't be tempted to skip them. Missed payments stay on your credit report for at least three years and can affect your ability to borrow. Talk to your lenders and arrange a more affordable schedule or a payment holiday, if possible. Don?t think you can walk away from your debts and forget them by taking out an IVA or going bankrupt - the evidence stays on your credit report for at least six years and will make lenders ultra-cautious for the duration. Before taking such drastic action, get free advice on how to manage and reduce your debts from Citizen's Advice, at www.adviceguide.org.uk, National Debtline at www.nationaldebtline.co.uk and the Consumer Credit Counselling Service at www.cccs.co.uk.

Keep your spirits up

See this as a positive process - you are taking charge of your life and your money. If you want to monitor your progress, you can order your Experian Credit Score for £5.95 to get an idea of how your credit rating is doing - and how lenders may react to any new requests for credit. You'll be a lot happier once you know you're on top of your debts - and you'll feel a real sense of achievement. You can check your Experian Credit Score with a 30-day free trial of CreditExpert, the online credit monitoring and ID protection service.

Insurance: A Battle of the Sexes?

2009-06-24T23:00:00Z

Before insurance companies can give you a quote, you will be asked to fill out a form providing them with personal information such as your date of birth, your gender and whether or not you are a smoker. The cost of your premium will totally depend on the information that you provide, since the insurer will match this against statistical data to determine how likely you are to make a claim.

One of the major factors for insurance products such motor insurance and private medical insurance is your gender. To ensure that this is all above board, sex discrimination regulations were put into place in April 2008 stipulating that insurers are only allowed to base gender-related price decisions on accurate statistical data, and the rules also state that this data must be regularly updated and published. Looking at these statistics would not necessarily help you to predict the exact cost of your premium, however they do throw some light on the differences between the sexes where it comes to insurance claims.

Motor Insurance

It is an oft-published fact that women have fewer motor accidents than men and make fewer claims. Many insurers have women-specific motor insurance products, and some go so far as to base their entire product range around women, on the basis that women make safer drivers. Data published by the Association of British Insurers shows that between the ages of 17-35, the cost of a female policy claim cost as little as 47% of a male claim. However, the premium costs do start to balance out above this age, showing that it is specifically younger male drivers that are seen as a risk by the insurers.

A study by the social issues research centre* shows that the psychology of male and female drivers can differ greatly, and that levels of aggression and risk-taking behaviour when driving can contribute to the gender bias when it comes to premiums. However in reality, motor insurance premiums are based on a number of 'risk rating' factors, of which sex is just one. These include age, postcode, mileage driven, the type of vehicle and whether you have built up a no-claims discount. Therefore, all the male drivers out there will be pleased to hear that as long as you save the Formula One driving for the Xbox, the gender gap shouldn't cost you more on your premiums.

Private Medical Insurance

According to a recent survey by life and pensions company Friends Provident shows that men are less concerned about their health than women. This manifests itself as an unwillingness to visit the doctor to get symptoms checked out, a lack of knowledge about checking lumps and moles for cancerous signs and a lack of concern about addressing hereditary conditions. Mark Jones, head of protection at Friends Provident said "A significant majority (61%) of men acknowledge that they take more risks with their health than women. Despite this men don't seem to be taking the relevant actions to improve their health and we are urging them to do so."

The survey also found that 87% of men have no private medical insurance, at a time when private medical insurance policies have never been more readily available. Interestingly, the average cost of a private medical insurance claim for a woman is statistically much higher than a male claim (according to the association of British Insurers) meaning that private medical insurance is often cheaper for young and middle-aged men than it is for woman of the same age.

Of course many factors are taken into consideration when insurers are working out your 'risk rating' before offering you a quote. Where in the country you live, whether you smoke and how healthy your lifestyle is could all affect the cost of private medical insurance, and if you are generally in good physical shape, you will reap the benefits regardless of your gender. Nonetheless, the cost of private medical insurance for men may be cheaper than you would expect, so it may pay to take a bit more interest in your health and get a quote today.

*http://www.sirc.org/publik/driving_risk.shtml

Calculating the True Cost of your Mortgage

2009-05-10T23:00:00Z

A new home is likely to be the most expensive purchase that most of us make. In the current economic climate, lenders are reluctant to lend more than a maximum of 90 per cent of the value of the property, so the upfront costs are already higher than they have been in recent years. However, there are a number of 'hidden' costs that you need to consider as well, as buying a property is a complicated legal process requiring the involvement of various experts, including a surveyor, solicitor and conveyancer. This article details the main additional costs you will encounter when purchasing a property.

Always read the small print on the mortgage rates

Although tighter controls have been imposed on consumer lending in the last few years, competition to attract new mortgage business is still fierce, and therefore lenders publish what seem at first glance to be extremely low rates. However, these introductory rates will only last for several years, after which time the rate will rise significantly. Therefore it is important to calculate the interest that you will pay as an average of your initial low rate and the remaining repayment period.   Also make sure that you are aware of any 'early redemption penalties' should you be in a position to repay your mortgage early, or any fees incurred if you want to move to a different lender after the introductory period.

Arrangement fees

There are other factors to take into consideration when calculating the actual cost of your mortgage. Is your mortgage broker charging an arrangement fee? This will typically be a percentage of the sum borrowed, although it could also be a flat fee. Not all mortgage brokers will charge you an arrangement fee as they get paid an introduction fee by the lender, but it is fairly common so make sure you ask them for full fee details before proceeding with the mortgage.

Valuation fees

A full property valuation is usually required by a mortgage lender before they will approve your application. This enables them to confirm the property's worth, something that is particularly important in the current financial climate when millions of consumers have seen the value of their property fall. Lenders sometimes foot the bill for the valuation themselves, although the cost usually falls on the consumer, and you should expect to pay between £100-200 for this service. An extra point to check with your broker or lender is whether the valuation fee is refundable in the event that your mortgage application is refused.

Surveying fees

It is important to have the property surveyed before you go ahead with the purchase, to protect yourself from making an unwise investment. There are two types of survey, the homebuyer's report and a full structural survey.   The homebuyer's report is a more basic survey, costing about £300 and often included for free in the lender's service. This includes a check of the superficial condition of the house, making sure that there are no obvious faults.

Should you find evidence of structural damage, it would be wise to have the full structural survey (which would set you back about £800), because if you later find that you need to carry out serious repairs on the property as a result of any damage, the costs could be far greater.   Any damage uncovered by this survey would enable you to push for a discount on the price, that would take any future repairs into consideration. Alternatively, evidence of significant damage or subsidence in the property would warn you against making an unwise purchase.

Stamp Duty

Stamp Duty is a purchase tax charged by the Government when you buy a property. The threshold for stamp duty recently increased from £125,000 to £175,000, as a way of encouraging first-time house buyers, so if your new house costs £175,000 or less you will not have to pay this tax. However, if the value of your house is above this, you will be expected to pay 1-4% of the property value in addition to buying the property.

Conveyancing fees

Conveyancing is the legal process by which ownership of a property is transferred from one person to another. This is carried out either by a solicitor or by a licensed conveyancer, and both buyer and seller need to have their own conveyancing representation to ensure that there is no conflict of interest.

The conveyancer's role is to ensure that the terms and conditions of the contract are fair, and that all the financial information required for the sale is correct. The functions carried out by the conveyancer include updating the details about the property for Land Registry and local authority searches, and if it is a leasehold property, examining the lease carefully for any conditions that could affect the sale.

The conveyancing process can take several months to complete and the costs will vary depending on the company that carries out the work. When the Land Registry costs and other fees for searches are taken into consideration, the full cost of conveyancing can stretch to £600 or more. Due to the complicated nature of the work this process should only be carried out by an expert, so this would not be a good place to cut corners on your purchase costs.

Building Insurance

Lenders almost always require you to have home buildings insurance before they will approve your mortgage application. Buildings insurance protects you (and the lender's investment) should your house be damaged by fire, subsidence or extreme weather conditions such as floods, and would cover the costs of repairing or even rebuilding the property. Depending on the policy, some insurers will also pay the costs of temporary accommodation for you and your family while repairs are being carried out.

Although this insurance is compulsory, there is nothing to say that you have to buy it from your lender. Many insurers offer very competitive rates for buildings insurance (often with a reduced premium for home contents insurance if both are taken out together), so you can often get a much better deal by shopping around. The cost of buildings insurance will depend on many factors, including the size, age and condition of the property and whether you live in an area prone to flooding or subsidence.

Study Shows Increased Interest in Fixed Rate Mortgages

2007-12-01T00:00:00Z

Recently, Abbey conducted a study to discover homeowners' feelings on fixed rate mortgages, and their findings are rather surprising. Despite rumors that the Bank of England will be reducing interest rates in the coming months, approximately one third of the respondents said that they will look for a fixed rate mortgage when they are ready to buy a new home or to remortgage.

Nici Audhlam-Gardiner, head of Abbey mortgages, says that, "For most of us, our mortgage is the biggest financial commitment we make, so it's understandable that we want to know just how much we're going to have to fork out each month." It seems that for that very reason, many borrowers and potential borrowers are planning on choosing the security of a fixed rate mortgage over the other options available.

According to the study, 14 per cent of those who would choose a fixed rate mortgage said that they would opt for a 5 year fixed rate, 6 per cent said they'd go for a 10 year fixed rate, and another 9 per cent said that they'd want to find a 15 year fixed rate mortgage.

It's rare in a study to find that the desire for a longer term fixed rate loan is greater than for a shorter term loan. Audhlam-Gardiner justifies this finding by saying that, "You never know what's going to happen in the future, but at least if you've committed to a long term fixed deal, you know where you are going to stand with your repayments."

Of those who responded to the study, 65 per cent said that regardless of the Bank of England's base rate, they'd prefer to know what their payments are with a fixed rate loan instead of having that uncertainty looming as they would with a variable or tracker mortgage. Aside from the payment uncertainty, other reasons for borrowers' desire for fixed rate loans include predictions of interest rate increases in the future, as well as general confusion about how tracker mortgages work and how a tracker mortgage could benefit them.

Finding the Best Current Account

2007-08-16T23:00:00Z

To go about comparing current accounts, you need to keep in mind certain basic criteria that will help you find the best current account for you:

Determine the interest rate ? The balance of the credit available in your current account will fluctuate based on how much interest you will earn from maintaining that current account. Compute for the average balance you generally maintain from month to month. The majority of UK banks will permit you to transfer funds from your current account to a high-yielding savings account, if you prefer that. Online current accounts allow this to be done quite easily. Other UK lenders even have a stipulation that a certain amount from your current account will be deposited into the higher-yielding account at a certain time.
Be aware of charges for overdrafts ? Overdrafts mean you have withdrawn more money than is actually available in your current account. When you do this, you might incur charges from your bank. Unauthorised overdrafts are particularly expensive to absorb. Some lenders permit you to increase the limits of the amount by which you can be overdrawn though.
Find out if online banking services for current accounts are available 24/7 ? There are certain banks who turn off their online banking services at graveyard hours (like, from midnight to 6 or 7 am) so that they can have maintenance work done on their online banking system. Night owls who prefer to bank online at night may find this inconvenient for them, so be sure to ask about this before you agree to house your funds at a given bank.
Ask about online statements - Ask if the bank will provide bank statements online on a continuous basis. Some lenders do supply online bank statements but only for a certain period. Other banks only post online bank statements for the current month. Be sure which applies to you.
Find out about online bill payment - Ask if the bank allows online bill payments using funds from your current account. Most banks even provide an automatic bill payment option to take the burden of having to remember to pay your bills each month off of you.
Look for a bank that permits you to manage standing orders via the online banking system. If you opt for a direct debit arrangement, do not forget to finalize the direct debit arrangement with the company you will be paying.
Is the bank service oriented? When you ask many questions about their banking services (including those to help in finding the right current account for you), are the staff polite and knowledgeable, or do they act like they prefer that you leave them alone? Little things like this are warning signs that maybe you should try finding the right current account for you elsewhere.
Does the bank operate wrap or aggregate accounts? This service allows the bank to post all your online accounts (including current accounts) on the same webpage of their online banking service. This makes online banking quite convenient because you only need to remember one username and one password to access all your accounts. However, if someone with malicious intent manages to get that username and password set, they will have unlimited access to all your online accounts. So if you request for the wrap or aggregate accounts service, be prepared for this risk.
If you are a student, it may be advantageous for you to get a current account which is called a student account. You should be concerned primarily about interest rates and borrowing limits offered in the student account.

Other Aspects of Finding the Right Current Account for You

Overdraft charges ? Usually, charges are deducted from current accounts when you are overdrawn. In that case, your lender may charge you either a penalty fee, more interest based on the amount of your overdraft, and/or another fee for cheques, direct debits, or standing orders that are sent back.
Access charges ? If you use your current account via the international banking system, your lender might issue a charge for this as well. This may apply if you a) rely on a debit card to get cash from ATMs overseas, b) use travelers cheques to buy items, c) exchange British pounds from your current account into foreign currency, or vice versa, or d) cash a cheque from foreign banks.

Finding the right current account for you takes knowledge, patience, and sometimes a bit of luck as well. Take your time when deciding which account to go with, so that you know you'll be getting the best deal available.

Finding the Best Internet Account

2007-08-15T23:00:00Z

The internet has opened new doors as far as banking goes. From convenient paperless transactions to instant fund transfers, online banking offers it all. There is a wide number of banks that offer their services online. However as a customer who is looking out for the best deal, there are some guidelines to help you pick the best internet account.

Hunting for the Best Internet Account Deal

When it comes to online banking, almost every bank will offer a set of basic features. These features are a given, and their availability shouldn't fluctuate much between different banks. However, in today?s age of fierce competition, banks are going the extra mile to cater to unique requirements, sometimes even offering an extra perk here and there. While searching for the best internet account, be sure to find out all there is to know before deciding on any particular bank. Here we provide some tips to help you get started:

Basic Features

Most banks offer certain essentials in terms of online banking services. Some basic services that any online bank will offer include checking balances, reviewing transactions, transferring funds and editing your contact information in the bank's database.

Additional Features

To stand apart from the crowd and to provide the best internet account available, many banks today have started offering new and diverse features as far as their online banking services go. Here are some of the facilities these banks offer:

Monthly income online savings accounts: These may be either notice or no notice accounts. Interest can be accrued on a monthly basis instead of opting for the annual mode or on the maturity of your account. This is very useful if you wish to consider receiving a regular source of income via interest earned.
No notice online savings accounts: These accounts do not require a notice or permission from you to withdraw funds. Even if you do decide to withdraw funds, you will not incur any penalty like a loss of the interest earned.
Notice online savings accounts: In these types of accounts, one needs to provide a notice to the bank before withdrawing any money from the account. If no notice is provided, it can result in a penalty like a loss in interest earned. The amount of notice to be given will depend on the type of account chosen by you. This is an important factor to consider while looking for the best internet account.
Cash card: Many of the online savings accounts offer the facility of a cash card. A cash card allows a person to withdraw money from an ATM. However there is usually a daily limit placed on the amount that can be withdrawn. This is regardless of the amount of funds present in your account.

Things to be Cautious Of

There are several things to be cautious about while hunting for the best internet account. In the excitement of getting access to an online savings account, many people tend to overlook these factors. Here, we outline some things you need to be careful about:

Restrictions on account opening: Some banks have a rule that an online savings account can only be opened by customers of that bank or only by local residents.
Minimum deposit: Some banks require you to open a savings account with a certain minimum deposit.
Number of withdrawals: Some banks place a cap or a maximum limit on the number of withdrawals that can be made. If you happen to exceed this number, you may even lose out on the interest earned.
Bonus interest rates: As a promotional offer, some banks offer a bonus interest rate for a specific duration. This can serve to bring in significant profit and savings. However while shopping for the best internet account you need to find out what the rate is after the promotional period. Often times, the interest rate will take a significant fall, so beware of this.

Finding the Best Personal Account

2007-08-15T23:00:00Z

Once you have a good idea as to the specific type of personal account you wish to go for, it is time to shop around for the best personal account available in the market. Since every bank is different, you need to make a comparative analysis before deciding on an account.

Factors to Consider

With a vast plethora of banks just waiting to get your business, how should you choose which is the best one for you? More importantly, on which criteria do you judge these financial institutions? Here are some pointers to help you out on your quest to find the best personal account:

Interest rates: This is one of the most important factors you?ll need to consider. The rate of interest being offered will determine the amount of savings you will make.
Proximity: Even though this may sound unimportant, it is surprising how this factor can play such a crucial role. Check to see if the bank has branches that are close to your home, office or shopping area. You?ll be amazed at how important this will be once you start using the account.
Facilities offered: There are certain banks that will offer you free access to the cash machines that belong to other banks. This can be a great advantage, especially if you find yourself in an emergency when you might need cash on short notice. Some banks may also offer the facility to use post offices to pay your bills or withdraw cash. These can be important considerations in determining the best personal account of choice. Another important facility most banks provide these days is telephone banking. That is, using the phone to check on your current balance or for paying bills, etc.
Special needs: For physically handicapped people or for those with disabilities, many banks provide special facilities such as statements written in Braille and services to collect bill payments at your doorstep. If these types of services are important to you, be sure to check if your bank provides these services.

Documents You'll Need to Open an Account

Once you have made your choice about which personal account is the best for you, you will need to complete certain formalities required by the bank. For starters, you will need to submit proof of identity, as well as proof of address. The same document cannot be used to verify both these details. Some of the commonly accepted documents include electric, phone or water bills, a copy of your current passport, driving licence, your employee ID card, a medical card, any insurance certificate, etc.

Is There a Chance of Rejection?

There may be a chance that your application for opening a personal account is refused. There is no obligation on the part of the bank to open an account for you. There may be several reasons why your application could be rejected. For example, having a poor credit score or a bad credit history could mean a rejection to open a personal account. Even the bank with the best personal account facilities may refuse to open an account for you. They are also not obligated to inform you what the credit agency has informed them about you. However, as an account opener you do have the right to ask the bank for a copy of the information they have on you. This will be provided for a small fee. Just in case you find any discrepancies in the information they have, you can ask for a correction and reapply with the bank.

Some Dos and Don'ts

After you have opened a personal account, it is crucial that you do everything you can to maintain the account. Overdrafts can cause serious problems when you're trying to apply for loans, etc. because your credit report will be affected negatively. Here are some tips to keep your account on the up and up:

Always keep a sufficient balance in your account. This will prevent any occurrences of bounced cheques and overdrafts.
Ask your bank about overdraft protection. This is useful in case you accidentally overdraw your account.
Be sure to scrutinise your bank statements carefully. This will ensure prevention of any errors.
Always keep your cheque card in a safe place, and keep you PIN number confidential.
If you find any suspicious transactions on your account, report it to the bank immediately. This helps minimise fraud.

The Basics of Personal Accounts

2007-08-15T23:00:00Z

Most people today have at least one personal account. However, if you are new to the world of finance or if you've just finished your studies, this could be the right time to open an account of your own. Why? There are several benefits provided by having your own personal account. However, before you start leveraging any of these advantages, it is essential to understand the basics of personal accounts.

What are the different types of accounts?When it comes to personal accounts, there are three primary varieties to choose from. These include:

Basic account: A basic account is best if you’re a first time account user. It allows you to deposit money, withdraw cash via an ATM and even pay off all your bills. However, it does not allow any sort of overdraft, which makes it even better for first time users who might be tempted to withdraw more than they should.
Current account: A current account provides all the features of a basic account. However, in addition it also provides you with a cheque book and a cheque guarantee card. It also provides you with a debit card, through which you can make purchases in hundreds of stores and withdraw money from thousands of ATMs. Best of all, you can also ask for an overdraft facility via this account. However, it is to be noted that if you do overdraft without the bank’s permission, you might be refused cheques as well as direct debit facilities.
Savings account: A savings account is a type of personal account that provides a higher rate of interest, and therefore, this type of account helps you save more money. You do not receive a cheque book or a debit card, which means you cannot shop in stores with this account type. Some accounts require you to seek permission before making any withdrawals. Your bank may also place a maximum limit on the number of withdrawals you can make.

Internet Banking with a Personal Account

The internet has indeed made the world a smaller and more convenient place to live in. Today’s is a world of paperless transactions and instant transfers of money. It’s all been made possible because of the internet. With the advent of complex e-commerce solutions and sophisticated backend systems, online or internet banking has caught the world by storm. No matter where you are located, you can see funds getting transferred to any other part of the globe! Such is the power of internet banking. Once you have selected the type of personal account you wish to go for, you can opt for a suitable internet banking service to accompany it.

How to Choose the Best Internet Banking Service There are certain guidelines to keep in mind before you opt for internet banking. The rising amount of online fraudulent transactions can take a toll on your finances. That is why it is important to choose a bank that is legitimate. Here are some tips to help you choose a genuine bank:

Do Research: First of all, you need to ensure that the bank or financial institution is legitimate, even if it has no physical branches located in your city. To do this, one of the things you could do is to visit the ‘About Us’ section of the bank’s website. This section will serve to describe detailed information about the bank, such as when it was established, who its key shareholders are, the future growth prospects, etc. It will also mention the address of its official headquarters, as well as the extent of insurance coverage it has.
Beware of Fraudulent Sites: There are websites that try to imitate the name of another well known financial institution. These are fake sites, so be careful not to confuse an impostor bank with the real bank it's trying to mimic. Be sure to check the spelling of the bank name you have typed in before conducting any sort of financial transaction online through your personal account.
Different Names: Most banks will use different names for its online and traditional transactions. This does not mean that you are dealing with different personal accounts – it’s just that the same bank is offering its services in different modes.

If you don't have time to sift through hundreds of personal accounts from all kinds of different banks, let SimplyFinance do it for you. Take a minute to fill out this short form, and one of our representatives will contact you shorty to assist you in finding the best personal account for you and your particular financial goals and needs.

CLICK HERE TO OPEN A PERSONAL ACCOUNT TODAY!

Finding Debt Help

2007-08-15T23:00:00Z

Finding debt help in Britain today is not as tricky as it once was. As little as 20 years ago a consumer would have to look long and hard to find an agency or a service that would offer them debt help. This is not so today. There are hundreds of charities and agencies just a phone call away that provide debt advice on how to stay out of debt, or if you are already in it, the best way to clear what you owe. It is also easier than ever before to get credit in this country. There are hundreds of credit cards on offer and they are handed out to consumers far more easily than before.

British consumers owe more than £1,004,290,000,000 on credit cards, mortgages and loans, which is over £17,000 of debt for every man, woman and child in the UK. It is not surprising, then, that more and more people are overspending and finding themselves struggling to keep up with repayments. Thankfully, there is plenty of debt help available.

A Google search or a leaf through the yellow pages will reveal a huge choice of debt counseling agencies. Many of these are non-profit agencies that provide a quality service and are the first port of call for many people seeking debt help. There are also many private agencies that will charge a fee for their debt help services, but they may be able to devote more time to your needs than a non-profit agency would be able to. Or alternatively, you could go it alone. There are countless books, magazines and websites that give advice on tips and tricks to get out of debt.

Whatever method you choose, you will be faced with the same choices and, in the end, the money must be repaid somehow. But there are a number of debt help options available:

Debt Consolidation

One debt help option is debt consolidation. Basically this means adding up the total of your debts and taking out a loan to pay them all off in one go. You will, of course, still have to pay the loan but the repayments are likely to be significantly cheaper than if you were paying all of the debt payments separately each month. Interest on a credit card debt is about 20 percent, while a consolidation loan would cost closer to 6 percent, which is a significant difference. Interest rates on hire purchase, store cards and other common debts also tend to be high so there is a lot of money to be saved from debt consolidation.

The main problem with debt consolidation is that lenders will be reluctant to give you such a loan if you are already in financial trouble. Unfortunately, you will probably be required to provide something of significant value as collateral. People often refinance their homes or get second mortgages, or use the equity on their home as collateral.

Debt consolidation loans tend to be paid back over a long period of time. You should try to repay the debt as quickly as possible because the longer the term of the loan, the more it will cost you.

Debt Management Plans

As mentioned above, debt counseling provides the most common option for people looking for debt help. These services will help you make a total of your incomings and your outgoings, calculate your disposable income and come up with a realistic monthly plan for you to pay off your debts.

They will also help you make a budget and keep to it. All of this usually comes in the form of a debt management plan (DMP). DMPs are recognised by many financial institutions and can be very helpful when entering into negotiations with banks.

Debt counseling agencies are also skilled in negotiating with banks. They will usually be able to negotiate a reduced rate of interest from creditors. However, it is vitally important to keep up repayments once an agreement has been reached, or it could make a very serious negative impact on your credit rating. But if you do keep to it, this debt help option can be a quick and effective method of getting out of debt.

Debt Settlement

A much less commonly-used approach to debt help option is debt settlement. You must consult with a debt settlement company to come up with a monthly payment schedule that is within your budget, and it will plan a timeline of when you can pay off your debt.

Most companies estimate the full repayment as a 50 per cent settlement plus fees. It is possible to become debt free in this manner usually within 24 to 36 months. However, it can negatively impact your credit rating.

Finding debt help is not really a problem in Britain these days as there is no shortage of debt help options. The trick to getting out of debt fast lies in examining the debt help options available to you and making the best choices relating to your situation.

Personal Ways to Get Out of Debt

2007-08-15T23:00:00Z

There are many agencies and services out there that will help you deal with your debt problems. Some of these are charities while others will expect a fee. However, many people prefer to deal with their debt personally and in private. Here, we give you advice on the steps to take to deal with your own debt problems.

The secret to getting out of debt, or avoiding it in the first place, lies in good money management. In an age when credit is easily available to all, it takes a certain amount of willpower to spend within your means and avoid splashing out with your credit card. If you find yourself struggling with debt, the best way to deal with it is to come up with a realistic budget and stick to it.

The first thing to do is make a list of all your incomings. This should include your weekly or monthly wage and any other sources of income you have. Then make a list of your outgoings: rent/mortgage repayments, food, utilities, entertainment, etc. Examine these outgoings carefully and see where you can save a few pennies. Try some of the following tips for saving money.

Money Saving Tips

Join the loyalty card scheme at your local supermarket. Stores offer you points on your loyalty card every time you shop there which can save you money in the long run.
Sell your old stuff. Do a clear out of your belongings, and try to sell what you don?t want or need on eBay.
Examine your bills closely. See how you can cut down on costs. Try buying energy saving light bulbs or see what cheap/free telephony services are available on the internet. Basically, cut corners wherever you can.
Shop around for cheaper insurance, and see if you can negotiate lower mortgage repayments. Many mortgage providers offer mortgage holidays that might help you get back on track.
Do your shopping at the supermarket rather than the local grocery store, as they are significantly cheaper.
Try to limit your social life to one night out per week and/or look for cheaper alternatives.

Hopefully, some or all of these tips will make your financial picture look a little less daunting.

The next step is to subtract your outgoings from your incomings and figure out exactly how much you can spend on repaying your debts. It is also wise to put a little money aside for unexpected costs, such as emergencies, etc.

With a bit of luck, your new budget will leave you with enough left over to start paying off your arrears and to allow you to keep up with repayments. If not, you will have to come up with another solution.

Making Repayments

One option is to consolidate your debts. To do this you should first make a tally of how much needs to be repaid on all your debts, excluding your mortgage, if you have one.To consolidate your loans you will need to borrow this amount, clear your debts and then begin repaying the loan with one easy repayment each month. However, because you are already struggling financially, banks will be reluctant to give you a loan.

You will have to offer up some kind of security against the loan, such as equity on your home, if you already have a mortgage. If you cannot, or do not wish to, consolidate your debts in this manner you will need to contact your creditors and negotiate a realistic repayment plan which you can afford and which they will accept. It is best to contact them in writing explaining why you need to reduce payments, detailing how much you can pay. With some negotiation you should be able to work out an arrangement that suits all parties.Once this is done, all you have to do is keep to your budget and keep up with repayments. Here are some tips for achieving this:

Set up separate bank accounts for living costs, debt repayments and savings. Allocate the appropriate amount to these accounts as soon as you get paid.
Choose an easy payment method. Maybe you can pay over the internet or at your local post office. The more convenient the better.
Shop around for the cheapest bill payment method; some charge a fee.
If you do miss a payment, contact the creditor immediately, explain the reason for missing the payment and come to an arrangement to make up the missed payment in the future.

It may take a little more will power and self-motivation, but there is no reason why you can not overcome your debt problems. However, there is plenty of help and guidance available which you shouldn?t be afraid to make use of if you run into trouble.

Finding the Best Savings Account

2007-08-13T23:00:00Z

What does a savings account entail?

A savings account is possibly the simplest financial plan that you can get for yourself. Think of it as an insurance or a fall back in case of any financial emergency. If there are no urgent bills that needs to be paid or any major purchases that you need to make, then a savings account is an ideal way of securing and storing your hard-earned money. As an added bonus, the longer that you keep your money in a savings account, the higher the interest it will earn. So, you are not just keeping your money secure but you are also earning interest on top of your savings.

How do I go about finding the best savings account?

Research is the key if you would like to know how to find the best savings account for you. First, determine where your deposit money will be coming from. Are there a lot of times in a month where you are earning extra money? Will this go towards your savings account or to other expenses? Or, do you plan to save a particular amount that you are keeping with you without having an idea of when the next time is that you can add on to your savings account? By knowing exactly what your savings plan will look like, then you can decide which type of savings account will best suit your needs and lifestyle. Here are some tips on how you can find the best savings account:

Check out the different interest rates offered by banks or financial establishments.

If you are planning to keep your money for a long period of time without seeing a need to delve into your savings account, then you may want to take a look at a 'notice' savings account. With a notice account, you will earn a higher interest with the condition that will not be withdrawing money from your account for a certain period of time. You can compare this scheme with a time deposit, the only difference is that it is short-term. If you will withdraw money within the specified period, the bank will charge you with a penalty. This is the reason why you need to determine if there are any major expenses that you need to make in the immediate future, to decide whether this type of savings account is right for you.

Meanwhile, a regular savings account will earn you a particular percentage of interest for the simple act of keeping your savings in the bank or financial institution of your choice. If you would not like to get in the middle of lock-in periods, or any other complicated types of savings account, then a basic or regular savings account is just right for you.

Aside from the previous two, there are other types of savings account that you can open such as a tax-free savings account, an easy access savings account, as well as a term savings account. Talk it over with the financial establishment to learn about the difference between all of these savings accounts to help you decide which one will work best to your advantage.

Have a feel of how the bank's customer service works.

Just like with any other company, a bank or a financial establishment offers customer service along with the financial products that they offer. Make sure that the customer service department of the bank where you plan to maintain a savings account knows their business and that they will take good care of customers such as yourself. After all, the general charge that you are paying for to maintain your savings account at the bank entitles you to a good customer service experience.

The Process and Fees for Getting a Homeowner Loan

2007-08-12T23:00:00Z

Embarking on getting a loan for a new home (a mortgage) or for your existing home, referred to as a homeowner loan, can be a daunting task. We?re here to help you take the guess work out of the process and the fees so you?ll be better prepared to undertake this challenge.

The process for getting a mortgage involves several steps, some of which happen simultaneously. First you?ll need to determine how much you per month you can pay. Be sure to factor in insurance payments, lender's fees, interest, etc. into your monthly budget when you calculate this amount. Then you?ll need to work out the repayment terms; generally there are two types of mortgage loans, interest only and repayment loans. For each repayment type, there are several ways you can repay the interest of the loan: fixed rate, variable rate, capped rate or discount rate. We cover the pros and cons of each loan type on our website if you need more information on this. Next, you will make an offer on the home, ?subject to contract?. Once this has been accepted, you will work with your solicitor to create a contract. Then the property will be inspected by a surveyor to determine the value. Many times adjustments to your offer will be made after the surveyors report is complete.

At this point you apply for the mortgage loan with your preferred lender. Frequently lenders will work with you prior to choosing a house so you know how much they will lend you, called a Decision in Principle (DIP). In either case, the lender will request the following information from you, sometimes more depending on the lender: income, identity, address, employment status, the kind of property, reference checks, as well as a credit check. You will also fill out the lender's application. They will usually have a valuation performed on the property to make sure the home is worth the amount of the loan. Once you?ve been approved, a formal offer will be made through your solicitor and they will draw up contracts. Contracts will be exchanged with the seller of the home, and many times you will pay the deposit. Once signatures have been made on the contracts, the sellers are paid with the mortgage.

There are many fees associated with a mortgage which you will need to consider while you are shopping around for the best rate, loan and lender. Mortgage application fees can run upwards of several hundred pounds. Many times a lender will charge a mortgage indemnity fee premium if you only pay a small deposit, usually less than 25 per cent. It?s not a mandatory fee, so if you?re planning on paying a small down payment, check around with many lenders to see if they charge this premium. You may also be require to purchase Mortgage Payment Protection Insurance, so this is another expense you should be ready to cover. Exit and redemption fees are penalties charged should you decide to refinance your loan or if you decide to pay the balance off prematurely. As with any loan, read the fine print to see what a lender will charge you if you decide to pay the loan off early or refinance if you find a better rate a few years later.

Getting a homeowner loan, a secured loan against the equity of your home, can be a great way to finance home improvements, pay for college, consolidate debt or pay for other major expenses. Luckily, the process for this loan is usually not as laborious as the mortgage application process. Since your house is your collateral against the loan, lenders usually offer better rates and loan terms. The lender will have an application for you to complete, and they will work with you on how much you can borrow against your home, sometimes as much as 125 per cent of its value.

You can expect fees associated with a homeowner loan, including but not limited to the following. An arrangement fee, which can cost several hundred pounds, is sometimes non refundable. If you decide to pay off your loan early you will often be charged an early repayment fee. Once again, the amount varies between lenders so make sure you check this before signing the loan documents. Finally, check with your lender on how they calculate interest. Annual interest will cost you more than if they calculate it based on a daily rate.

Getting a Secured Loan: Process and Fees

2007-08-12T23:00:00Z

If you?re thinking about a way to consolidate debt, fund your child?s education or pay for home improvements, a secured loan might be a good option. We?ve compiled some tips on the process and fees associated with applying for a secured loan.

A secured loan is a loan that is guaranteed by some collateral, usually a house. Therefore, making the decision to get a loan that is secured by your home takes some thought and careful planning, as you could lose your home if you?re not able to meet the repayment terms.

First you will need to create a realistic budget of what you can afford every month. Lenders will be evaluating your application based on several factors. One is your debt-to-income ratio. By knowing upfront what you can pay, you?ll save yourself the headache of applying for too much loan that you won?t qualify for. Many online lenders and advice sites (such as this one) offer loan calculators which can help you determine what you can afford.

You?ll also need to check your current credit report. By making sure your credit report is accurate, you?ll be able to negotiate for the best rates. If you do have inaccuracies, get them corrected before you apply for loans. For those that have poor credit, you can still qualify for a secured loan. Secured loans are one of the easiest types of loans to get because the lender has your home as collateral.

Comparison shopping for lenders will save you money. Be sure to check out your existing bank or credit union, as well as online lenders to find who has the best rates and loan terms for your situation. Shop around by comparing the loan terms, types of loans, APR, monthly payments, and fees. It is recommended to not apply for too many loans, as this can affect your credit. Your credit will be lessened each time a lender does a credit check. Before you submit applications to every lender that is offering a low rate, make sure you do your homework on the lender.

The fees associated with a secured loan can include administrative fees, transaction fees, broker fees, third party fees, and exit fees. Many lenders will negotiate the fees with you, or they may not charge certain fees. They are not mandatory fees. Make sure they provide the information on their fees upfront so you?re not unwittingly paying more for your loan that you had anticipated.

Once you?ve found a lender, they will have you complete their application. They will check the value of your home with a surveyor. After the survey report has confirmed your home?s value, your lender will inform you if you?ve been approved for the loan. While it does take time to process applications for secured loans, generally they are easier and more quickly approved than for a new mortgage or an unsecured loan.

Shopping for a Right to Buy Mortgage

2007-08-09T23:00:00Z

The Right to Buy Act has helped millions of council tenants with poor credit history to purchase a home of their own. However, with the rising number of mortgage lenders that promise hefty discounts, how does one differentiate between the fake offers and the genuine offers?

Shopping for a right to buy mortgage doesn't need to be a harrowing experience. There are ways and means to identify if a company is out to swindle you out of your money or if they are genuinely providing helpful services.

8 Essentials You Need to Know

While shopping for a right to buy mortgage, it is imperative to get a few basics right. These can save you plenty of hassle down the years as well as save on your money.

Start early: One of the very first mistakes people make is to start the hunt for a right to buy mortgage very late. Usually the processing will take quite a bit of time, sometimes even up to three months. Shopping for a right to buy mortgage needs to start as soon as you get the offer in hand. If you don't start right away, you may risk losing out on the offer altogether.

Survey the property: It is essential that you take stock of the property you wish to buy. You may not have noticed the slight damages here and there while you lived in the house as a tenant. When you are a prospective buyer, you tend to see things in a different light. Even before shopping for a right to buy mortgage, be sure to check for any structural damages. This is important to do because eventually you will be responsible for any renovation needed. That implies that you will need to bear the brunt of all associated costs. Conducting a structural survey is imperative not just for personal satisfaction, but it is also a formality of the mortgage lending process. This is essential to gauge the level of financial security the property offers to the lender. It?s best to get a professional survey done through a qualified structural engineer, a surveyor or even an architect. Many homes have been demarcated as being defective as per the Housing Act. It may be very difficult to resell such houses. Therefore, although it may cost a couple of hundred pounds to get a structural survey done, it is well worth the effort. It is at times best to combine the structural report with the mortgage report. However, it is a good investment especially when compared to the cost of the property

- High rise blocks: If you happen to rent a council flat that is located in a high rise block, chances are you will not be eligible for mortgage finance. The primary reason for this is that such buyers have found it very difficult to resell their flat.

- Seek professional help: If you are a first time home buyer, shopping for a right to buy mortgage may seem a daunting task. Therefore, it is essential that you seek the help and advice of an independent financial advisor. These advisors offer invaluable insight and tips on how to go about the process.

- Life assurance: You may find that most mortgage lenders will need you to take out a life assurance policy (also known as mortgage protection insurance) with the same value as that of the property. Therefore, in case of unforeseen circumstances (such as your death) the loan gets discharged. Be sure to shop around for the best cover possible.

- Ask for a quote: During the process of shopping for a right to buy mortgage, you as a buyer are entitled to ask for a no obligation quote from mortgage lenders. Through the process of elimination you can select the lender of your choice, depending on the rate offered, the coverage, etc..

- Seek a lawyer: Often the buying process will involve a lot of legal aspects. Whether it is for the purpose of negotiating the contract terms or any other such legal matter, be sure to get professional help from a qualified lawyer.

- Check before you sign: Many companies offer money upfront to entice the buyer to enter into a deal. Be cautious with these types of offers. Be sure to read the fine print of any such offer to be sure there are no hidden catches in the contract.

If you are interested in finding out more about right to buy mortgages, fill out a short questionnaire, and we will put you in touch with a professional mortgage adviser from the SimplyFinance network. This broker will answer any questions you may have before they search the market to find the best right to buy mortgage for you.

Tips and Advice for Getting Out of Debt

2007-08-08T23:00:00Z

Debt is a part of life in modern society, and almost every adult in Britain has some form of debt to repay. However, for some consumers it becomes a serious problem when mounting debts begin to exceed income and they struggle or fail to keep up with repayments. Here are some tips and advice on how to get out of debt.

Getting out of debt is not easy and it takes positive action and good planning to do it effectively. There are a number of steps that need to be taken:

- Identify and prioritise and your debt

- Prepare a budget and stick to it

- Keep up with repayments

Identify and prioritise your debts

You may have been putting it off for a long time, but the first step is to list all of your debts and make a note of details. How much do you owe? Who do you owe? When is payment due? The next step is to prioritise these debts. Identify the debts that need immediate attention and the ones that you simply have to pay (e.g. mortgage, utilities, debts where legal action has taken place or is pending).

If you are in arrears and/or struggling to keep up payments on any of these debts you should contact the lender immediately, by letter is best. This may be daunting, but any lender will be happy to receive communication and some may be surprisingly helpful by offering reduced repayments over a longer term or some other solution.

Dealing with these priority debts should take a lot of the pressure off. So then turn your attention to secondary debts ? money that has been loaned to you without providing any security. These include bank overdraft, credit card debt and debts to family and friends.

Now that you have listed and prioritised your debts, you will need to move onto the second step ? preparing a budget.

Prepare a budget

Put simply, a budget is a list of money you receive and how you intend to spend it. A good personal budget is essential for financial wellbeing and is a key tool in the prevention and cure of personal debt problems.Begin by calculating your weekly or monthly income, then work out your spending and finally calculate how much you can afford to spend on repaying your debts. The best way to do this is to draw up a budget sheet where all incomings and details are set down in detail.

There are countless websites and debt counseling agencies that provide free budget sheets. From this you should get a good idea on how much money you can spend on servicing your debts. Also, explore ways on how you can reduce your outgoings by, perhaps, reducing mortgage payments, cutting down on luxury items, or shopping at the supermarket instead of the local grocery store.

Keeping up repayments

If you can keep up with your repayments, you are well on your way towards getting out of debt. The top priority from here on in is keeping up repayments. Try to set up a special account where you can deposit money needed to pay off debts, and find a quick and convenient payment method, like the internet or a local post office, if you can.

Getting out of debt can be a daunting task, but it is far from impossible. Whether you decide to enlist the help of a debt counseling service or opt to go it alone, we hope the tips and advice above will help you to achieve your goal.

Shopping for Flexible Rate Mortgages

2007-08-07T23:00:00Z

A lot of people say that a flexible rate mortgage is one of the riskiest options that a borrower can choose. With a flexible rate mortgage, you have the ability to make an overpayment, an underpayment or even take short payment holidays from monthly repayment fees. A lot of websites and mortgage lenders recommend a flexible rate mortgage that you can use to pay off your loan earlier than the allotted time by making monthly overpayments. You just need to know which option will best suit you, and you need to be aware of the consequences of each financial decision that you will make. Below are some tips on how you can make a flexible rate mortgage work to your advantage:

Firstly, be aware of the Bank of England base rate. If the base rate is trending upward, then you should consider a fixed rate mortgage instead so that the fees will not skyrocket. If you are already tied into a flexible rate mortgage, wait until the end of your initial tie-in period (the period within which you would be charged a fee for switching) and start looking at fixed rate options after that if the base rate is still on the rise. Secondly, you should always read the small print before getting into an agreement. Just like with any contract, you need to always be aware of the terms and conditions in the small print in case there are restrictions that may cost you more money. This is one mistake that a lot of people make, so be sure that you understand everything, especially the fees and charges applicable throughout your mortgage term.

Pros and Cons of Flexible Rate Mortgages

2007-08-07T23:00:00Z

Fixed rate mortgage versus variable rate mortgage?

As the name suggests, a fixed rate mortgage is a type of mortgage where you agree to pay a fixed interest rate each month over a specified period. This is one of the most popular types of home loan payment options since you can feel secure in the fact that your monthly interest rate will not change through the course of the loan term. However, aside from a fixed rate mortgage, there is also the flexible rate mortgage where the borrower is given more leeway when it comes to the amount of payment to be made for the monthly premiums. With this mortgage option, you can pay more or less than the agreed monthly premium, and the amount of flexibility you have in either direction will depend on your current financial status. With a flexible rate mortgage, a loan can be paid off in advance by making 'overpayments', thereby saving the borrower a significant amount of money in interest rates. When considering fixed vs. variable rate mortgages, the deciding factor should be your financial priorities; does financial stability matter more to you than the possibility of saving money each month when the base rate falls?

What are the advantages of flexible rate mortgages? Overpayment: With a flexible rate mortgage, a borrower can pay more than the required monthly premium without paying a penalty or an additional charge. This is especially helpful for those who are working on commission or those who do not have a fixed monthly income. If you have the extra cash, you can make an overpayment which will be credited against your loan amount. This way, if you make a lot of overpayments, you will eventually save a significant amount on interest costs and the total amount of debt will be easily reduced.

Payment reduction or underpayment: Borrowers who are not earning a fixed amount every month or those who are temporarily out of work can benefit from a payment reduction or underpayment for flexible rate mortgages. With a flexible rate mortgage, you will be allowed to pay only a minimum amount against the monthly premium. The obvious downside of this is that it will take you longer to clear your mortgage balance, however the benefit of flexibility during temporay financial difficulty will outweigh this.

Payment holiday: If you have accrued several overpayments over a continuous period and you suddenly experience cash shortage, you can use these overpayments to cover a month or two of payment holiday, where you do not need to make any payments at all. The good thing about flexible rate mortgages is that you are not required to pay any penalties in the case of making an underpayment.

Borrowing of funds against the amount of the mortgage loan that you have repaid or against any overpayments.

What are the disadvantages of flexible rate mortgages? If there are several months where you are only paying the minimum amount, your loan period may be extended. This can also lead to your interest rates increasing to potentially unmanageable levels so you need to be careful when making payments for the minimum amount only. You should only make underpayments or skip payments for your mortgage in case of financial emergencies. Or, you can build up on the months where you are earning extra cash and make as much of an overpayment as you can so that this will be your antidote for the financially unstable months.

If you decide that a flexible rate mortgage is the best mortgage option for you, take a moment to fill out our short flexible rate mortgage form. Once you've done so, we will introduce you to a flexible rate mortgage broker. This broker will answer any questions you have about flexible rate mortgages, and they will search the market to find the best flexible rate mortgage for you and your particular financial circumstances.

Making a Motorbike Insurance Claim

2007-08-06T23:00:00Z

The first step in making a motorbike insurance claim is to call the insurance company to notify them of the accident. Most insurance providers have emergency claim hotlines, accessible 24 hours a day, where the policyholder can discuss their claim with a representative right away in order to report all the proper information. Usually they will give advice about how to proceed to ensure the process goes quickly.

When making the claim, you will typically need your policy number as well as any information about payment history. As long as the policy is paid in full, there should be no problem proceeding with the claim. What amount the insurance company will cover does depend on what kind of cover the policyholder had in relation to the claim. If the policyholder held third-party only insurance, the insurance company will not cover any damage to their vehicle.

Another major portion of completing the claim is interviewing the policyholder on the details of the accident, including any third-party members who were involved. It is important to know the date and location, as well as time of the accident when completing an insurance claim. Any witnesses to the accident along with their contact information are important assets to the policyholder?s insurance claim as well. If the motorbike was damaged to the extent that it is unable to be driven home, contact the insurance company right away to make arrangements for relocation.

Usually insurance companies have approved garages for proceeding with claims. These garages work in conjunction with the insurance companies to ensure a speedy estimate and repair of the bike. The policyholder will have to pay the excess amount, determined by their policy, and the insurer will compensate the garage for the remainder when repairs have been completed. In some cases, depending on cover, the policyholder will be granted a hire bike. In most cases, however, the policyholder will opt to use public transit for the duration of the repairs.

Due to certain legal requirements, making the claim right away is integral to ensuring coverage for all matters relating to the accident. Certain delays, especially those regarding physical injuries, can result in higher costs for treatment. This, in the event of an extreme delay, can cause insurance companies to deny coverage for injuries incurred in the accident.

Even if there is no bodily injury, it is important to report the claim right away as to assure an accurate portrayal of events surrounding the accident. Being forthcoming with the insurance companies is in the best interest of the policyholder. It will result in the efficient progress of your claim and proper payment where due.

It is important when researching insurance companies, to look into how the claims process is completed. Looking at the process requirements will tell the potential policyholder a lot about how well the insurance company will care for them during the event of an accident.

It is important to shop around when looking for an insurance policy, but shopping around can be time consuming and tedious. Fill out our short form, and SimplyFinance will put you in touch with an insurance adviser who will answer any questions you may have about finding UK motorbike insurance. Once your questions are answered, the agent will search through loads of quotes from a number of insurance companies to find the best motorbike insurance quote for you.

Making an Motor Insurance Claim

2007-08-06T23:00:00Z

Thousands of people each year are involved in motor accidents and are entitled to compensation. Many people lose out on car insurance payouts because they are not aware of how to make a claim, or because they did not apply in the correct way.

If you should be involved in an accident, it is important to get the details of the other person or people involved. Take the other driver?s number and email address, and also the details of their insurer. When you are still at the scene of the accident, make a note of the other car?s licence number and write down any other details that may be useful. For this reason, it is always advisable to keep a notebook and pen in the glove compartment of your car, as well as a disposable camera to photograph any damage to the vehicles for insurance purposes. If there were any eye-witnesses, ask them for a statement and take their contact details, as this will help your claim.

You should inform your insurer immediately after the accident has happened. Leaving it too long may result in your insurance claim being invalid. Many insurers have 24-hour helplines, so get in touch at your earliest opportunity. However, do take a moment to go over the incident in your head, as you will need to be very clear on the phone about what happened. Your statement will be noted down, and it will help your claim if you can be calm and consistent when relating the incident.The insurance representative that you speak to will want as much information as possible, including the date, time and location of the accident, as well as details of the injuries and vehicle damage sustained.

If any criminal damage has occurred, they will need to take the incident reference number you have received from reporting the incident to the police. The insurer will then be able to confirm whether you are covered under the terms of your car insurance policy and give you advice about how to claim for repairs. The level of coverage you have will determine whether your insurer will cover all repairs. If you only have third party insurance, for example, damage to your vehicle would not be covered. Make a record of the call, taking the name of the person you spoke to and the time of the call. If you are given a reference number, it?s also important to make a note of this as you will need it when you submit your claim.

Before you go ahead with repairs, check whether you are required under the terms of your motor insurance policy to go to a repair garage that is approved by the insurer. Also, make sure that you have clear (written, if possible) confirmation from the insurer that they will cover the costs of repairs to your vehicle before proceeding, otherwise there is a risk that they will refuse to pay and you will be left with the costs. Depending on the level of cover that you have, the insurance company may pay for your car to be towed, if it cannot be driven, and most policies will pay for a replacement car while you are waiting for repairs to be carried out. When repairs are completed on the vehicle, the insurance company will usually compensate the garage. If you have agreed to pay an excess on your motor insurance policy, you will have to make this payment before the insurer will pay out. After this, the claim is completed and the insured receives the vehicle back. Should the insurer require you to make the payment yourself initially, it is very important to keep all receipts and other relevant paperwork to ensure you are fully compensated by the insurer. Before you send these to the insurer, take a copy to keep for your records.

If you are comprehensively insured and your vehicle is written off in the accident, or the cost of repairs outweighs the cost of replacing the vehicle, the insurer will provide you with a sum of money with which you can buy a replacement. The sum you are given will reflect the current market value of the vehicle, the condition it was in before the accident took place, the mileage and specification of the vehicle.

Having your vehicle repaired after an accident can be a huge expense, and so it is really important to be comprehensively covered, even if it does cost you a little bit more on your premium. Click here to receive a competitive car insurance quote from one of the market leaders.

Types of Business Funding

2007-08-05T23:00:00Z

Starting your own business is exciting and challenging. Unless you have a large personal savings, or are independently wealthy, chances are you will need to secure funding for your business. There are several options for you ranging from business loans, venture capital, government grants, tax credits, to personal credit cards. We?ll look at each of these in greater detail to assist you in determining the best source of funding for your business.

Depending on the nature of your business you might consider a grant. A grant is usually partial funding for a business that you will only need to pay a portion or none back to the lender. Grants are provided to individuals and businesses by the government, regional development agencies, the European Union, business link, chambers of commerce, universities and even charities. Certain industries or locations that are in need of revitalisation, businesses that focus on research and development, inventors, farming, and others are all eligible for grants. Typically there are terms to the grant that you must adhere to in order to keep the funding and/or not repay the money.

Venture capital is another common form of business funding. This type of funding is done by companies, trusts, or individuals, also called ?Angel Investors?, that provide money, start up capital, or loans to businesses as investments. Often its is given to existing companies that are doing well that seek to expand and have a clear business plan with a long term growth potential for both the business and the investor. Often times the venture capital trust or firm will buy out 25-55 per cent of the business. ?Seed money? is also provided by venture capitalists, usually with the investor accepting a higher risk with a potential for higher yield.

Another form of business funding is tax credits granted by the government that act as an incentive to companies to stimulate economic growth in various industries. These include businesses that focus on energy efficiency, research and development, and agriculture.

If used wisely, personal credit cards can be used to fund your business. The drawback to using this type of funding is if you are not able to manage your debt it will affect your credit rating. Should you decide to use your credit card, it is recommended they are used for non-essential business items, not for operating expenses or major purchases like a car or equipment and they are paid off each month.

Business loans are one the most common forms of funding for start up capital, to help expand your existing business, or perhaps to refinance debt. The type of business loan to apply for depends on what your needs are. Small businesses can seek funding with a small business loan and many are available for specific industries. Although not all small businesses will be turned away by banks, most banks favour larger or well-established businesses. If you are a small business or a start up, you will need to have excellent documentation, a business plan, and perhaps collateral (such as home equity) to secure a loan from a bank. Business loans are also available for small amounts, called ?micro? loans for economic development for a certain geographic areas and for specific industries.

When you make the decision to get started with a business loan, fill out our short form, and a representative from SimplyFinance will put you in touch with a business loan lender that will work with you to answer all your business loan questions, and they'll search the market to find the best business loan deal for you.

The Basics of Mortgage Protection Insurance

2007-08-05T23:00:00Z

There are two main types of mortgage protection insurance. The first is a plan that will finish paying your mortgage upon your death. The second kind is coverage for if you become unemployed for certain reasons. This insurance will then cover your mortgage until you are able to go back to work or find other employment.

One mortgage protection plan will provide an amount of cash to pay the remainder of your mortgage, if interest rates are kept below certain limits, in the event that the insured should die before the mortgage is paid off. This means that your family would be able to keep your home, instead of losing it to the bank or having to sell. This insurance is only payable upon the mortgage protection insurance owner?s death, and there is no surrender value. This means that if you pay off your mortgage before you die, you receive no money.

Average mortgages in the UK are over £100,000, being paid back over a large amount of time, usually around 25 years. If you take out mortgage protection insurance for the value of your house, note that your premiums will decrease over time due to the house becoming more paid off. For example, if you take out a mortgage for £200,000, by the end of the year, you may only have ₤195,000 left to pay. Which means that your premiums would go down because the amount of insurance needed has decreased. For this reason, this type of insurance is also sometimes known as decreasing term insurance.

Another type of mortgage protection insurance is coverage for if you cannot work due to illness or the involuntary loss of your job. Many times, this kind of mortgage insurance can cover payments for up to 12 months if you cannot work due to an illness, injury, or involuntary unemployment. Often, this mortgage insurance is more financially viable for a younger person, because his or her chance of falling ill is less and his or her likelihood of finding another job is higher. In short, then, the main factors in the price of this insurance are the cost of the home and the age of the insured.

To begin the search for the right mortgage insurance for you, fill out our short mortgage protection form below and we will put you in touch with a qualified adviser from the SimplyFinance network who will contact you to discuss the plan that best fits your needs.

The Basics of Bonds

2007-08-05T23:00:00Z

The simplest way to think of a bond is a loan. When you invest in a bond you are making a loan to (typically) the government, a local authority or a company. Then, whoever you loaned the money to (the bond) will pay you the interest on the loan. Usually bonds have a term life of less than 10 years (meaning the bond will be repaid to you within 10 years). The amount of money that will be returned to you is referred to as the "nominal value."

Bonds may be referred to as loan stock, fixed interest, gilts (when a loan is made to the government), corporate bonds (loans made to companies) and debt securities. Most people invest in bonds to receive relatively stable and conservative regular income. However, bonds are not best for people that are seeking more aggressive capital growth.

Bonds are traded on the bond market and their prices may vary. For example, say you purchase a fixed interest rate bond for £100 and the interest rate is at 8.5%. If the market interest rates fall below 8.5% this will become a very strong investment and therefore the bond may be valued at £120 or £125. Or if interest rates rise above 8.5% than the value of the bond could decrease. If you invest in a corporate bond and the credit rating of the company you invested in falls or rises (meaning the risk associated with that bond or "loan" rises or decreases) then you could expect the market price of the bond to follow along with this change in risk.

If you want to buy bonds directly, you can do this through a stockbroking firm; you will pay charges for this similar to buying shares. Alternatively you can buy bonds through a pooled investment.

The Pros and Cons of Bonds

2007-08-05T23:00:00Z

There are several advantages to bonds. They are typically less risky than investing in stocks or equity. They can also provide a good, stable income through the interest payments. Many experts suggest investing in bonds if you are looking for steady interest income but have less tolerance for risk than typically associated with investments made in the stock market.

Examples of scenarios where investors may choose to invest in bonds:

A young investor that is aggressive in their investments may have the large majority of their investment funds in the stock market (equity investments) because they have a long investment time line, and they can bear the risks associated with these types of investments (and the likely rewards due to average returns being around 10%). However, this type of investor may want to put a small amount of their investment into bonds (say 10%) to diversify their portfolio and mitigate risks.
As investors get older and are more dependent on their savings accounts for their future wellbeing, they may put a larger amount of their investment portfolio into bonds (perhaps 50% or higher).
An investor that has a large sum of money that they want to live off of and who does not expect to make significant additional income from other sources may invest in stable bonds to provide a steady income through the bond interest.

However, there are still risks associated with bonds. These risks mainly arise from the fact that the entity that issued the bond (whom you make the loan to) may not be able to pay the interest rates due to you or may not be able to pay back the nominal value. This is typically referred to as the bond "going bust." This risk varies depending on the type of bond you invest in. Government bonds, or gilts, tend to be the most stable and many are virtually guaranteed.

Corporate bond risk is associated with the stability of the company. If you believe the company is a strong, stable company with very little risk of incurring financial ruin, then the risk associated with the bond is typically less. If the corporate bond is with a less stable or less proven company, then the risk is typically higher. Interest rates tend to follow the credit rating of the companies that issue the bonds. In general, with higher risk comes higher interest rates. Ultimately, you want to find a good stable bond with as high an interest rate as possible.

There are also bond funds that invest in multiple bonds. The benefit of these is that they spread the risk over several bonds and therefore diversify your investment and mitigate risk.

Guide to Secured Loans

2007-07-26T23:00:00Z

You may want to improve your home, go on a long holiday, or maybe you want to consolidate your existing high interest debts. Whatever your reason, a personal secured loan can help you get the money you need. Personal secured loans are available in terms from five to thirty years. With a personal secured loan, you have the option of spreading payments out over a long period of time. This allows you to have small, manageable monthly payments.

Once you?ve completed the application documents, you can opt for an express service option on your personal secured loan. This allows the amount of the loan to be credited to your bank account on the very same day the loan is approved. While applying, be sure to take out payment protection insurance because the collateral on a personal secured loan is your home. You want to be sure your home is protected in case of any unforeseen financial difficulties.

A personal secured loan calculator can help you find out the exact amount you can borrow, and it can help you decide on manageable monthly payments. The interest on your personal secured loan will be calculated on the same basis that your home mortgage is calculated. If you have chosen a flexible mortgage payment plan, your personal secured loan payments will also be flexible. You can overpay, underpay, or choose to make deferred payments for short periods of time depending on your financial situation.

When you take out a secured loan, you are providing your lender with your property as collateral, whether is it mortgaged or owned outright. If you own your property, the security of your property is called a first charge. If your property is mortgaged, it is called a second charge.If you want to compare personal secured loans from a number of different lenders, the best way to do this is to compare the different lenders APRs, or annual percentage rates. The APR is the amount of interest the lender charges on the money you borrow.

Getting a personal secured loan is often easier than getting different kinds of loans because the lender has the benefit of having security in the case of nonpayment. In addition to being fairly easy to get, personal secured loans also allow longer repayment schedules, and they are available for larger amounts than many other kinds of loans. You can apply for a secured personal loan through any branch of a lending institution.

How Do I Apply?

Lending institutions offer you the option of taking a secured loan via their branch network, over the telephone, via a written application, or online through their website. Initial assessment of your application can be made quickly, however loans under £25,000 are regulated, and a 7 day consideration period will be given to allow time for you to assess the implications of the credit agreement, and to ensure that you are fully aware of all the terms and conditions. When assessing your application the lender will consider your income and financial commitments to determine whether you can afford to take on and repay additional finance. They will look at your past credit history and take into consideration any adverse credit such as mortgage arrears, defaults or county court judgments. All lenders insist that when an applicant is married, both parties should be named on the application form.

Lenders frequently use credit scoring facilities and credit reference agencies to assess a borrower?s suitability. Credit scoring assesses your personal circumstances and statistics to determine which broad category of borrower you fit in to. Credit reference agencies provide a detailed analysis of your financial position as they hold information relating to your credit history, any adverse credit, and any existing commitments. They also provide your address and electoral roll information. If you are refused a loan or if you wish to make enquiries concerning your own credit file, you can apply to the credit reference agencies for a copy of your credit file. This service is subject to a small fee.

If you'd like help finding the best secured loan deal, take a minute to fill out our short and simple form. Once you've done so, a SimplyFinance representative will contact you to introduce you to a secured loan lender that will search to find the best secured loan deal for you.

CLICK HERE TO APPLY TO FOR A SECURED LOAN TODAY!

The Remortgage Process

2007-07-26T23:00:00Z

The remortgage process does not involve getting a second mortgage or moving to a different home. In essence, a remortgage is when you replace your original mortgage with another from a different lender in order to get low remortgage rate. Remortgaging is fairly simple, and it should not be any more complicated than it was to obtain your original mortgage, as long as your credit report is still good and you have a deposit totalling at least 25 per cent of the value of the property. The lender you choose will offer you remortgage advice, they'll go over your application, and they will ask you for necessary paperwork. The paperwork required usually includes proof of income, expenditures, and debts.

When you are looking to remortgage, often a home valuation needs to be done in order to determine if the value of your property has increased or decreased since you applied for your original mortgage. Your home?s value may have increased due to changing property markets, home improvements, or home additions. In most cases, the valuation for remortgage is less intensive than for an original mortgage. The surveyor will look at the outside of the house, and they will ask a few important questions. In some other cases, a full inspection will need to be made. Your lender may charge you a valuation fee to cover this expense. In addition, you may be charged legal fees and loan processing fees during the course of remortgaging.

Generally speaking, the remortgage process should take anywhere from four to six weeks to complete. Depending on the lender and the circumstances surrounding your specific loan and property, this time frame could be longer or shorter.

Once your paperwork has been reviewed and a credit check has been done, your remortgage broker will search the available remortgage packages to find the best remortgage rate for you. The remortgage rate you'll be given will be based on the amount of money you are asking for, the value of your home, and your credit score (which will depend on the lender you have applied to). Depending on the remortgage lender, there may be more factors taken into consideration, but generally speaking, these are the things that influence the remortgage rate you're offered.

If you'd like help finding the best remortgage rate and remortgage plan for you, take a minute to fill out out short questionnaire, and we will put you in touch with a broker from the SimplyFinance network who will help you to find the best deal for you,

Guide to Unsecured Loans

2007-07-24T23:00:00Z

If you want a personal loan, but you don't want to put down any security, then an unsecured personal loan may be a good option for you. An unsecured personal loan is defined simply as a loan for which you as a borrower are not required to give any form of security, like a house or a car, as is required for other types of loans. Your personal credit history is analysed through a credit check and then a decision is made as to whether or not you should be offered an unsecured personal loan.

With an unsecured personal loan you are allowed to choose a term from one to ten years. In order to figure what your monthly payment amount would be, try using a loan calculator tool that is available from most lenders. Knowing how much you can pay each month will help you determine what the term of your loan should be.

Once you have completed the application documents, you can opt for express service. By doing this, you can expedite the process, and the money will be credited to your bank account on the same day that you?re approved. Usually, unsecured loans are paid out in one lump sum if you agree to repay the amount with interest in regular intervals through automatic payment from your bank account. Generally, the payment schedule remains the same during the term of an unsecured private loan, but like flexible loans, payments can occasionally be more or less than the agreed upon amount.

To get a good deal on an unsecured loan, you need to sift through a lot of different offers from lenders. Unsecured loan lending is a competitive market, so many lenders will offer you bonuses and benefits to attract you to their product.

The application process for an unsecured private loan is often very quick. Because you are not offering anything as security, you lender will not need to perform a home valuation. This saves you both time and money as there is usually a valuation fee associated with having a surveyor come out to take a look at your property.

The disadvantage of taking out an unsecured personal loan is that they are fairly difficult to get approved for. Lenders need to be certain that their borrowers are credit worthy since they have no security if the loan payments are not made. If you default on your unsecured loan payments, your lender will take legal action against you to reclaim the money they are owed.

If you'd like to speak with someone about finding the best unsecured loan deal for you, take a moment to fill out a short unsecured loan form, and we will connect you with an adviser from the SimplyFinance network. This adviser will be able to help you find the best unsecured loan deal available for you and your circumstances.

Buying a Car with a Personal Loan

2007-07-24T23:00:00Z

Do you dream of owning a new car? Rather than having to come up with all the money at once, you can take out a personal loan to pay for the car, thereby allowing yourself the opportunity to pay the amount in manageable payments instead of in one lump sum. Most frequently, an unsecured loan is the type you will take out to purchase a car, but a secured personal loan may also be an option, depending on the amount that you need to borrow.

Along with your loan, you lender can provide you with a number of add-ons to help make your car buying experience easier. They can offer you the option of picking your monthly payment date, payment protection insurance, and payment holidays. All of these options give you the opportunity to tailor your loan to meet your specific needs.

Many different lenders offer secured personal loans for the purpose of buying a car. Banks, building societies, and specialised lending companies are some of the sources you can go to for this type of loan. If you want to do some research before deciding on a personal secured loan, the internet is a great tool. There are some websites that are equipped with online secured loan quotation systems. Some sites even allow you to compare several quotes side by side so that you can see your options and to choose the loan that is right for you.

As stated above, a secured loan is a loan that requires you to provide something as collateral to your lender. You could use your house, other real estate, or a savings account as collateral. Any of these things will work as long as its value is 25 per cent (or more) greater than the value of the car you are purchasing. When taking out a secured loan to purchase a car, your APR will be relatively low because your lender has your property as security. The approval process may take a while because with a secured loan there is the extra step of the lender having to determine the value of the property you put up as collateral.

Taking out a secured personal loan for the purpose of buying a car may be a better deal for you than using dealer financing to purchase your car. If you take a loan out through a bank or lending firm, you will not be tied to one dealership for the term of the loan. Also, if you have the loan finalised before you go to the dealership you will be less inclined to spend more money that you should. Dealers may try to talk you up to a better model or try to talk you into some extras, but if you only have the loan money, you won?t be able to succumb to sales pressure. Also, having the money before you go will put you in a much stronger bargaining position.

If you'd like help finding a personal loan for the purpose of buying a car, take a minute to fill out our short personal loan form, and a SimplyFinance representative will contact you shortly to introduce you to a personal loan lender who will search to find the best personal loan deal to help you get the car you want.