Category Archives: Checking & Savings

Checking & Savings

Checking & Savings, Financial, Financial Information, Financial Services, Investment, IRA, Money, Personal Finance, Retirement

Standard Life Reveals Commitment Peak Begins At 35 For Average Person In The UK

Standard Life has published ‘Your Commitments, Your Future’, a study developed with psychologist Professor Janet Reibstein into the nature of commitment. It reveals that financial and emotional commitments peak between 35-44 years of age when people spend on average £1,160 a month on financial commitments and think about them for 45 minutes every day.

The research reveals that during a lifetime, the average person spends £914 a month on financial commitments and 37 minutes thinking about them everyday. In contrast, they spend £87 a month on emotional commitments, thinking about them for 2 hours, 18 minutes every day.

According to the Standard Life study there are three core commitment life stages with transition phases in between:

– Commitment Sleepwalkers (18-24) who have a smaller amount of financial and personal relationship commitments. Their regular financial commitments amount to just £458 a month. They spend the least amount of time thinking about their finances so are at risk of overlooking the long term cumulative affects of these costs.

– The Fully Committed (35-44) who are at the peak of their regular financial commitments, spending an average of £1,160 each month and likely to be paying a mortgage, looking after a child and paying off any debt accrued in earlier life.

– Commitment Slowdowns (55+) who are starting to become less financially and emotionally committed. They are spending £818 on their commitments each month, almost £100 less that the average.

Commenting on the research findings, Professor Reibstein said: “‘Your Commitments, Your Future’ shows a discrepancy in how much attention we devote to our financial and emotional commitments. We spend over two hours a day thinking about emotional commitments, but just 37 minutes on our financial commitments.

“People consider financial commitments as something abstract, separate to their emotional life. But our finances underpin our most important relationships and often our ability to achieve our future goals. The Standard Life report makes it clear how vital it is for people to engage with their finances, their personal relationships and future aspirations as one single entity.”

Standard Life’s John Lawson added: “‘Your Commitments, Your Future’ breaks our commitments down into life stages, giving a clear picture of how our commitments change throughout our life. This understanding can help substantially with planning our personal finances so that we can feel confident about the future and achieve our goals. It’s clear that financial commitments can support our relationships – they underpin them. If people were to dedicate more time to their long term financial planning, they wouldn’t just be better off financially, they’re likely to be better off all round.”

The full ‘Your Commitments, Your Future’ report is available at knowyourcommitments.co.uk where people can also compare their financial and
emotional commitment profile by using an interactive tool and watch Professor Reibstein analysing commitment in more detail.

Via EPR Network
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Checking & Savings, Financial, Financial Information, Financial Services, Investment, IRA, Money, Personal Finance, Retirement

Prudential Reports Pensioner Inflation To Cut Spending Power 60 Per Cent Over A 20 Year Retirement

Prudential has revealed that pensioners retiring this year on a fixed income could lose 60 per cent of their spending power over the course of a 20 year retirement.

Analysis from Prudential shows that the average person retiring in 2011 expects an annual income of £16,600, but if that income remains fixed it will be worth a mere£6,700 in today’s money in 20 years’ time – effectively a £10,000 pay cut. In fact, assuming that inflation remains at its current level, pensioners will need their retirement income to more than double (to over £40,000), if they expect to maintain their standard of living for the next 20 years.

Pensioner inflation or ‘Silver RPI’ is higher because people of retirement age spend a greater proportion of their income on goods and services that are subject to the highest rates of inflation – such as food and fuel.

Vince Smith Hughes, Head of Business Development at Prudential, said: “Pensioners on a fixed income are particularly vulnerable when it comes to rising living costs and our figures demonstrate the true extent to which ‘Silver RPI’ impacts on the spending power of those in retirement.

“There are alternatives to a fixed income in retirement, for example choosing a flexible income plan that has the potential to grow could help many retirees to mitigate the effects of increasing living costs. We recommend that people approaching retirement seek professional financial advice to help them understand all the retirement income options open them.”

Research by Age UK recently found that ‘Silver RPI’ has averaged 4.6 per cent a year since January 2008 – nearly 50 per cent more than the 3.1 per cent average annual inflation recorded by the Retail Prices Index (RPI) over the same period.

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Northern Rock Introduces New Online Reward Instant Access Account For Savers

Northern Rock has launched a new competitive Online Reward account, adding further options to its flexible savings range.

For those who prefer the convenience of the internet with which to manage their savings, Online Reward, which is available to open with a minimum deposit of £5,000, pays a competitive interest rate of 3.11% gross* pa/AER** variable on balances over £5,000, which includes a bonus rate of 1.61% gross* for the first 12 months from account opening. (Balances falling below this rate will receive Northern Rock’s prevailing rate of interest which is 0.10% gross* pa/AER** variable).

Those who prefer a monthly interest option can choose to receive 3.07% gross* variable (3.11% AER**), and additional deposits can be made up to the maximum balance of £100,000. Only one account per customer per issue is allowed.

Interest can be paid annually on 11 March. Alternatively, interest can be paid monthly on the 10th day of the month (available next business day or three days following this if the funds are sent via BACS to an external account).

Withdrawals from Online Reward can be made via a nominated bank or building society account without notice or charge (there is a £35 fee if customers choose to transfer via CHAPS). The minimum withdrawal amount is £1.

To apply for Online Reward, interested parties can visit www.northernrock.co.uk, or for more information regarding Northern Rock’s other savings products, call 0845 631 5151 (calls are charged at the service provider’s prevailing rate and may be monitored and recorded).

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Northern Rock Partners with moneysupermarket.com to Offer Exclusive Online ISA

Northern Rock is offering a top-paying online cash ISA to complement its competitive portfolio of branch, postal and online savings accounts. This ISA is exclusively available through moneysupermarket.com and pays 3.05% tax-free* pa/AER** variable, with no bonus rate attached.

The exclusive Online ISA offers those who prefer to operate their accounts via the internet an instant access option for their tax-free* savings, and can be opened with no minimum initial deposit.

Kevin Mountford, head of banking at moneysupermarket.com, said: “If you’re a UK taxpayer then it is important to make full use of your annual tax free allowance so you can make the most of your money.

“Not only is it important to make sure you find the best deal for your current savings needs, but you should always remember existing savings invested in ISAs elsewhere, which could be languishing on a poor rate.

“Moving existing savings into an account, such as Northern Rock’s Online ISA which allows transfers of existing funds, can be beneficial but make sure you follow the proper ISA transfer procedures otherwise you will lose the tax free status on your savings.”

Interest, which can be added to the account or paid into another account, is paid annually on 11 March on minimum balances of £1 (balances which fall below this amount will earn Northern Rock’s prevailing rate of interest, 0.10% tax free* pa /AER**).

Strictly a limited issue, the variable rate Online ISA allows transfers in from other providers and additional deposits can be made to the cash ISA, within HM Revenue and Customs limits (£5,340 pa from 6 April 2011) up to 30 days after the product is withdrawn.

After this time, no further deposits will be accepted and this issue may be withdrawn without notice once fully subscribed.

Minimum withdrawals of £1 by BACS and £250 by CHAPS can be made from the account; however the customer will lose the tax free status on the amount withdrawn. There is a £35 fee for transfers out via CHAPS.

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Northern Rock Adopts QR Technology As It Adds Three New Accounts

Northern Rock has launched three new competitive instant access savings accounts, adding further options to its flexible savings range. To make it easier to navigate to the relevant product pages on its award-winning website, Quick Response (QR) codes have also been introduced on selected new product adverts.

For those who are looking for a straightforward, instant-access savings account which can be operated in branch, by post or by phone, Everyday Access offers the interest rate of 2.05% gross* pa/AER** variable on balances over £1, with no bonus rate attached. (Balances falling below this rate will receive Northern Rock’s prevailing rate of interest which is 0.10% gross* pa/AER** variable). Alternatively, customers may wish to opt for the monthly interest rate of 2.03% gross* variable (2.05% AER**).

The account can be opened and operated with a minimum balance of £1. Additional deposits can be made up to the maximum balance of £250,000. Only one account per customer per issue is allowed.

For those who prefer the convenience of the internet with which to manage their instant-access savings, Everyday Access Online, which is also available to open with a minimum deposit of £1 (or £250 by cheque) and pays a competitive interest rate of 2.75% gross* pa/AER** variable on balances over £1. (Balances falling below this rate will receive Northern Rock’s prevailing rate of interest which is 0.10% gross* pa/AER** variable).

Those who prefer a monthly interest option can choose to receive 2.72% gross* variable (2.75% AER**), and additional deposits can be made up to the maximum balance of £100,000. Only one account per customer per issue is allowed.

Finally, for those looking for an instant access account which they can manage by post from the comfort of their own home, Saver Reward offers a market-leading rate and can be opened with a minimum deposit of £1,000. The account can be opened by post or by telephone (a nil balance is permitted if opening by telephone prior to an electronic transfer) but once opened the account must be operated via the postal channel.

As part of the launch of Saver Reward, Northern Rock will also be introducing Quick Response (QR) codes to its advertising. These codes will allow consumers to navigate straight to the relevant product page of the Northern Rock website using their smartphone.

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Checking & Savings, Financial, Financial Information, Financial Services, Investment, IRA, Money, Personal Finance, Retirement

Standard Life Reports Spain Tops Overseas Retirement Hotspots

Standard Life has revealed the top retirement hotspots outside the UK with the Spain at the top of the list, followed by Australia, USA, France and Ireland.

John Lawson, Head of Pensions Policy, Standard Life commented: “Retiring abroad is a dream for many people, but does require careful planning and advice. Many people think living abroad is cheaper than living in the UK, but this isn’t always the case. Doing your homework in advance of moving, matching your retirement income and expenditure, and making the appropriate decisions around purchasing an annuity or using income drawdown are key considerations. Your retirement income could also be subject to exchange rates and currency fluctuations, as well as local tax laws.

“You also need to think about your state pension and what, if any, reciprocal agreement is in place. A reciprocal agreement entitles you to any increases in the UK state pension paid for by the country you retire to. However, if there isn’t a reciprocal agreement in place, then you need to be very careful your retirement income is sufficient to cover your living costs over a long period of time. Over a 20 year retirement, your basic state UK pension could halve in real terms if a reciprocal arrangement is not in place.”

If an individual moves abroad permanently, any increases in their UK state pension will only apply if they are living in an EU country (including Gibraltar and Switzerland), or a country with a reciprocal social security agreement with the UK. Where the individual is living outside these countries, the amount of UK state pension they will receive each year is frozen at the amount initially paid when first claimed (or if the pensioner emigrated more than one year after payment began, at the rate in force when emigrating). Popular retirement countries outside these reciprocal agreements include Australia, Canada, New Zealand and South Africa.

Those who are considering retiring abroad in the future, but are wondering if their retirement savings will be sufficient can go to www.yourfuturemoney.co.uk, where they can check if their retirement planning is on track.

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Standard Life Reveals University Debt Headache For Parents

Standard Life has revealed that more than half of parents potentially underestimate the maximum amount of debt their child could leave university with.

When asked to take into account the increase in tuition fees to a maximum of £9,000 per year from 2012, and any other debts accumulated from living expenses, student loans, bank loans etc. 58 per cent of parents think the maximum debt their children could leave with is £40,000 or under, including many who think this would be a lot less. This total is well under the maximum figure of £54,000 calculated by the long-term savings and investment company Standard Life.

Despite this, a fifth (21 per cent) of parents have started to make regular savings to help ease the costs of their children’s university education, and nearly a quarter (23 per cent) of parents are putting money aside on special occasions (e.g. birthdays or one-off windfalls).

Julie Hutchison, head of technical insight at Standard Life, said: “The findings of our research are positive as they show that parents have identified the need to save for their children’s time at university. Unfortunately their expectations of what that cost could be and therefore the target amount they want to save might actually be too low.”

Parents who have longer to save are taking full advantage, as more than half of parents (55 per cent) with children aged 0 to 9 are putting money aside for their child’s university costs. Conversely seven out of ten (70 per cent) parents with children aged 14 to 17 aren’t doing the same.

Julie continued: “Attending University is of course a worthwhile pursuit but can be expensive with the costs of tuition fees, living costs and course material all adding up over the years. Even though a student loan can be taken to cover all these outgoings, parents can also seriously help reduce these costs.”

More than half (53 per cent) of parents who save on a regular basis are saving less than £50 a month towards their child’s university costs, 27% are saving £50 – £100, 7 per cent are saving £101 – £200 and 4 per cent of parents are saving more than £200.

Out of the 56 per cent of parents who are not saving for their children’s university costs, almost two-thirds (63 per cent) say they can’t afford to at the moment, with one in ten (10 per cent) having just not considered it.

The research also looked at the saving attitudes of grandparents of children under 18, with one in ten (9 per cent) saving for their grandchildren’s university education on a regular basis, 16 per cent on occasions and 2 per cent as a one-off lump sum. Of those not saving, a quarter (24 per cent) have just not considered it, with 15 per cent thinking the child’s parents are saving up sufficient funds.

Regionally parents in the Midlands are saving the most with 52 per cent putting money aside for their children’s university costs. It’s followed by London (48 per cent), Scotland (44 per cent), Southern England and East of England (both 42 per cent) with the North of England saving the least (39 per cent).

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Prudential Reports Pensioners Set To Lose £2.9 Billion Of Spending Power Over Next 12 Months

Prudential has reported that pensioners in the UK with additional savings held in cash ISAs, savings accounts and current accounts could see their spending power fall by an average of £278 each in the next 12 months, according to new analysis. The calculations show that the combined effects of increased inflation and low interest rates will erode pensioner buying power by a total of £2.9 billion in the coming year.

Pensioners are seeing their cost of living rise 44 per cent faster than the current rate of inflation. This is because a greater proportion of their income is spent on goods and services with prices that are rising ahead of inflation, like fuel and food.

The average pensioner has £19,664 in additional savings, but is likely to see their purchasing power fall considerably as the gap between the interest rates paid on savings and the rate of Silver RPI eats into the value of cash nest eggs in real terms.

According to recent research by Age UK, the average annual inflation recorded by the Retail Prices Index (RPI) has been 3.1 per cent in the period since January 2008. Silver RPI over the same period has averaged 4.6 per cent – resulting in an annual rate of inflation for pensioners that is nearly 50 per cent higher.

Vince Smith Hughes, Head of Business Development at Prudential, said: “Low interest rates and rising Silver RPI mean that many pensioners are particularly feeling the squeeze, and for those who rely on interest paying savings accounts to top up their income the challenge is even greater.

“As most people in Britain feel the financial pressure of rising living costs, pensioners on fixed retirement incomes are facing even higher levels of inflation and are suffering disproportionately.

“We strongly encourage people to speak to a financial adviser to ensure they are making the best use of income-generating investments, bonds and pension funds where relevant, in order to ensure their income has the potential to rise and combat increasing inflation and living costs.”

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Northern Rock Reduces Mortgage Rates by Up to 0.90%

Northern Rock has reduced rates across its mortgage range by up to 0.90% and extended its £500 cash back incentive to include all Buy to Let (BTL) products with percentage fees.

Northern Rock’s 2-Year Everyday fixed rates with a £995 product fee now start from 2.67% for purchase and re-mortgage customers with a 30% deposit (70% LTV), a reduction of 0.32%. For those who wish to keep their costs as low as possible however, 2-year Everyday fixed rates with no product fees, start from 3.19% at 70% LTV.

Northern Rock remains committed to assisting those with smaller deposits, including First Time Buyers. It has therefore reduced selected mortgage rates across its products at 80% LTV (20% deposit required), 85% LTV (15% deposit required) and 90% LTV (10% deposit required). A 2-Year Everyday fixed rate mortgage at 90% LTV exclusively for purchase customers, is now available from just 5.25% with a £995 product fee. Customers will also qualify for £500 cash back. Or for those who choose our Fee Saver Option, the same term is available at just 5.45%.

Following demand from BTL customers who welcomed Northern Rock’s recent limited period offer of £750 cash back across the BTL range, the lender has also extended its £500 cash back incentive on selected residential products, to include all BTL products with a percentage fee.

Selected fixed rates in the Intermediary Exclusive range of mortgage products have also been reduced by up to 0.30%.

Everyday mortgages offer customers simple, straightforward mortgage deals with competitive rates and the ability to make overpayments of up to 10% each year, as well as the option to apply for payment holidays. Northern Rock continues to operate its mortgage product range within the constraints of the competitive measures agreed with the European Commission.

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Northern Rock launches new fixed rate e-ISAs

Northern Rock has launched three new online issues of its fixed rate cash e-ISA to complement its competitive portfolio of internet-based savings accounts.

e-ISA offers those who prefer to operate their accounts via the internet an online option for their tax-free* savings. e-ISA is a cash ISA set at a competitive fixed rate of interest over a choice of one, two or three years and can be opened with no minimum initial deposit.

Interest, which can be added to the account or paid into another account, is paid annually on the first business day following 5th August on minimum balances of £500 (balances which fall below this amount will earn Northern Rock’s prevailing rate of interest, 0.10% tax free* pa /AER**).

Strictly limited issues, the fixed rate cash e-ISAs (issues 19, 20 and 21) allow transfers in from other providers and additional deposits can be made to the cash ISAs, within HM Revenue and Customs limits (£5,340 per tax-year from 6 April 2011) up to 30 days after the product is withdrawn (excepting postal applications to transfer in from other banks and building society ISA accounts, which must be received while the product remains on sale).

To guarantee funds are accepted into a new account, Northern Rock advises all funds to be deposited within 30 days from the account opening date. Any deposits received after 30 days may be returned to customers. This includes any funds transferred in from an existing cash ISA, therefore customers should ensure that they initiate any Cash ISA transfers in as soon as they receive their new Cash ISA details. Subscriptions are not allowed to any other Cash ISAs in the same tax year(s) that customers subscribe to this Cash ISA, even if they have not used your full annual allowances(s).

30 days following the products withdrawal, no further deposits will be accepted and all three issues may be withdrawn without notice once fully subscribed.

Minimum withdrawals of £1 by BACS and £250 by CHAPS can be made from the account, subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn (Issue 19), 90 days’ loss of interest on the amount withdrawn (Issue 20), or 120 days’ loss of interest on the amount withdrawn (Issue 21). There is a £35 fee for transfers out via CHAPS.

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Experian Reports Rich Getting Poorer

Experian has reported a massive 100% increase in the level of borrowing amongst high income families in their 30s and 40s over the past three years, with many citing the rising cost of living as the main cause.

Over a third (33%) of high income families are now reliant on overdrafts of over£1,000 to keep the family finances ticking over between pay-days, compared to just 15% in 2008. This is according to the results of a three-year survey commissioned by Experian, the global information services company and the largest credit reference agency in the UK.

The report reveals a high proportion of these families (52%) are regularly borrowing money against their overdrafts resulting in expensive repayments because of the high rates of interest charged on overdrafts compared to other credit products.

47% of UK adults have applied for additional credit in the past two years, with some borrowing from sources which charge relatively high interest rates, potentially adding to their financial pressures and risking missed repayments and a chequered credit history.

Despite this, nearly two-thirds of high income families are actually optimistic about their financial future, with 61% believing their financial situation will improve in the next 12 months, despite dipping in to their savings and relying on their overdrafts to make ends meet.

When many are borrowing to make ends meet, Experian highlights that many people are missing out on the best rates because they’re unaware of the benefits of managing theircredit report with a service such as Credit Expert.

Brits are getting better at accessing and managing their personal information that lenders see which is inevitably resulting in them securing better borrowing rates.

Making the right decisions where borrowing is concerned is vital, and getting a goodcredit rating is one of the ways you can give yourself the best chance of finding the deals you want.

Peter Turner, Managing Director at Experian Interactive said: “UK families often rely on their overdraft to get by, but that is not always the best option. Many of us choose to borrow, but it’s where you borrow from that makes all the difference. The current financial climate is tougher than ever and seeing your credit report could help families manage their credit better, as well as helping them plan for their financial futures.”

Credit Expert from Experian shows customers what a lender sees in their name. Every time someone applies for credit or a loan, that request is recorded. Multiple requests on borrower’s credit history can look as if you are over-extending yourself or a fraud is being committed. For those looking for a good credit deal or mortgage, Credit Expert allows them to check their report instantly online to ensure that it accurately reflects their position, and then as often as they want after that. Credit Expert members can also match their credit report to credit offers they are more likely to be accepted for using Experian’s Lower My Bills service.

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Northern Rock Launches Second Annual Branch Contest For Kids

Northern Rock is helping to keep kids entertained this summer holidays by holding a nationwide competition.

The contest, which started on the first day of the school break, focuses on the theme of superheroes in an effort to spark kids’ imaginations, and all of Northern Rock’s 74 branches are taking part.

For a chance at winning £100 in High Street vouchers, children have the option to draw their own superhero, colour in a template design supplied by Northern Rock, or dress up as a superhero and send a photograph of themselves in costume to their local branch.

The competition is split into three age categories – up to four years, five to nine years and ten to 16 years of age. An independent representative at each branch will choose a winner from each age group, each of whom will win a High Street voucher worth £25. All branch winners will then progress to the national judging and their chance to win a High Street voucher worth £100.

To enter, interested parties can visit any of Northern Rock’s branches and pick up an entry form, which can either be completed in branch or taken away and returned no later than 3rd September 2011. All winners will be notified by 24 October 2011. Full terms and conditions are available in branches.

Launched in April last year, the Little Rock’s top-paying access account at 3.00% gross* pa/AER**, is available through Northern Rock’s branch network, and by post, to customers aged under 16. It must be opened with an appropriate adult named on the account as a trustee.

Little Rock can be opened by cash, cheque or by transfer from an existing Northern Rock account. There is a maximum balance limit of £10,000, and all trustees are required to sign for any withdrawals. All withdrawals are notice free.

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Standard Life Reveals Brits Tend To Miss Bargain Investments

Standard Life has found that the majority of UK consumers can spot a good deal when it comes to a holiday, but are likely to miss out on a good deal when it comes to their finances.

In a UK wide consumer poll and prize draw in which 8,500 people took part Standard Life found that almost seven out of ten (70%) people would choose a holiday of a lifetime worth £5,000 even if they had to wait five years, rather than settle on a luxury short break this year worth £640*. £5,000 is how much a pension could be worth if £640 was invested into a pension plan each year for the next five years**.

The poll and prize draw, run by long term savings and investment provider Standard Life, highlighted that the UK public know how to spot a good deal when offered one and are willing to wait five years to make their holiday dreams come true. But this savvy forward looking culture is yet to filter through into finances, with almost half (45%) of Brits planning just one to 12 months ahead and a further one in six (17%) failing to make any financial plans at all, according to Standard Life’s research***.

Standard Life’s John Lawson said: “Consumers are keen to spot a good deal which is why voucher codes and group buying websites have become so popular. But many only apply this bargain hunt culture when buying goods, not when it comes to their financial planning. Consumers who take a short term view to their personal finances are likely to miss out on long term tax efficient products that offer far greater benefits than your standard savings account. For example, if you’re a lower rate tax payer and pay into a pension, the government gives you 20% extra on top straight
away in tax relief. That means a pension contribution of £100 a month is instantly worth £125 a month. People’s great bargain hunting skills are being wasted if they are not picking out these great investment deals.”

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Northern Rock Launches New Cashback Incentives And Cuts Selected Rates

Northern Rock has launched a new range of mortgages which offer cashback on completion in order to help customers cover the costs associated with moving home or taking a new mortgage.

The range has been designed to appeal to a wide variety of customers and whether they are setting up home for the first time, moving up the property ladder or even becoming a landlord, a cash incentive is likely to be appreciated. With up to £750 Cashback on completion*, the new incentive is available on selected residential and Buy to Let mortgages.

Northern Rock is committed to helping people buy their first or next home. The Company understands that it is an expensive time and wants to help as much as possible. That is why it is offering £500 Cashback on selected residential Everyday fixed rates at 80% LTV, 85% LTV and 90% LTV. The lender has also reduced interest rates on some of these deals by up to 0.30%.

For a limited time only, £750 Cashback is available on all Northern Rock Buy to Let mortgages. The range includes two, three and five year products up to 70% LTV with flat fees, percentage fees and fee free options available.

Northern Rock has also made improvements to its mortgage porting policy following feedback from customers and intermediaries. All new customers completing a mortgage from 25th July 2011 will be able to port their existing mortgage balance or a reduced balance (subject to any applicable ERC if a customer chooses to reduce their balance), and if they need additional borrowing to purchase their next property they will be able to apply for a new product for the additional amount on the terms of the purchase product range available at that time.

Northern Rock has also reduced rates on its 2-Year Everyday Tracker with a £995 product fee, now available at 2.38% up to 70% LTV, or at 2.48% up to 75% LTV. Both of these deals are available to purchase and remortgage customers.

The recent changes are part of a raft of improvements Northern Rock has made to its mortgage proposition over the course of 2011 to simplify its processes and increase consumer choice.

Lloyd Cochrane, Northern Rock’s Head of Lending Products, said: “We are delighted to add our new cashback incentive to Northern Rock’s mortgage proposition, increasing choice and flexibility within the mortgage market, and providing a further helping hand to customers looking to buy their first or next home.

“We continue to listen to what our customers and our intermediary partners tell us. The addition of cashback products to our range and the changes we are making to our porting policy are more evidence of us delivering what our customers and partners want. You can expect to see further improvements from Northern Rock as we continue to build our business and respond to customers and brokers.”

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Prudential Reports Retirement Income Worries And Lump Sum Regrets For Pensioners

Prudential has conducted new research that shows more than two in five pensioners (43 per cent) say they are living a ‘cautious’ retirement as they worry about having sufficient long-term income to get by.

However, despite concerns about making their retirement pots last, the majority of pensioners still take a tax-free lump sum from their pensions when they retire. Nearly eight out of 10 (79 per cent) of those drawing a company or private pension in 2011 took a lump sum from their fund at retirement, compared with 76 per cent three years ago.

The research, exploring the retirement reality for pensioners in 2011, also found that one in 10 (10 per cent) of those who did take a tax-free lump sum either said they now regret the decision or that they had not fully understood the long-term impact it would have on their retirement income.

For many, the option to take a lump sum at the point of retirement is the most tax-efficient way to access some of their pension fund. However, the way in which pensioners use the money from their lump sum is often shaped by concerns around long-term pension income.

More than half (52 per cent) of those who had taken a lump sum put some of the money in a savings account and just over a quarter (26 per cent) invested in stocks, shares or investment trusts.

Vince Smith Hughes, Head of Business Development at Prudential, said: “Most people with a company or private pension fund choose to take a tax-free lump sum at retirement, and for many this proves to be the right thing to do. However, some pensioners are beginning to regret the way they used the tax-free cash. The days of buying a shiny new car or going on an once-in-a-lifetime holiday may be gone, to be replaced by making savings and investments with the lump sum to supplement retirement income.

“There is no one-size-fits-all answer to the financial choices that people need to make when they retire. For example, spending the money from a tax-free lump sum and taking a level annuity with the balance of your fund will effectively fix the level of your retirement income – and for some this may provide the stability they need. Others may wish to explore more flexible retirement products that take into account the effects of inflation.

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Northern Rock Cuts Mortgage Rates Across Its Range

Northern Rock has reduced mortgage rates both across its core residential and Buy To Let ranges, and its selection of Intermediary Exclusive products.

First time buyers will benefit from many of the changes as Northern Rock continues to offer support to those with smaller deposits. 2-year Everyday fixed rate mortgages at 85% LTV (15% deposit required) with no product fee are now available from just 4.38%.

The lender has also made a number of reductions to its ‘with fee’ products, for customers who choose to pay a product fee in order to access a lower interest rate. 2 Year Fixed rates with a £995 fee start from 2.99% up to 70% LTV (30% deposit).

For borrowers who are looking to fix their interest rate over a longer period Northern Rock also offers competitively priced 3-Year and 5-Year Fixed rates. 5 Year Fixed rates start at 3.99% with £995 fee up to 70% LTV (30% deposit).

Northern Rock also continues to offer Fee Saver Option (FSO) products for consumers who are looking to keep their fee costs as low as possible. The lender has simplified the pricing on its Fee Saver Options, with standardised premiums of 0.45% on 2-year products, 0.40% on 3-year products and 0.35% on 5-year products. Remortgage customers will also benefit from Northern Rock’s incentive of a free basic valuation and free standard legal costs.

Northern Rock has made several improvements to its BTL product range in recent weeks, and has now made rate reductions of up to 0.70% on its BTL Fixed rates and Trackers.

Buy to Let Fixed rates for customers choosing to pay a £1,995 product fee start from 3.89% at 60% LTV (40% deposit). Borrowers with a 30% deposit (70% LTV) can opt for a 2-Year Everyday Fixed rate mortgage with a £1,995 fee at 4.10%.

Alongside the changes to its core product range, the lender has also improved the Fee Saver Options within its range of mortgage products available exclusively through Northern Rock’s intermediary partners. A 2-year FSO exclusive to brokers at 70% LTV (requiring a 30% deposit) is now available from 3.25%, while the equivalent 3-year product is available at 3.64%.

Everyday mortgages offer customers simple, straightforward mortgage deals with competitive rates and the ability to make overpayments of up to 10% each year, as well as the option to apply for payment holidays. Northern Rock continues to operate its mortgage product range within the constraints of the competitive measures agreed with the European Commission.

Via EPR Network
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Banks, Bonds, Checking & Savings, Financial, Financial Services, ISAs, Mortgage, Personal Finance

Northern Rock Highly Commended For Responsible Business Practice

Northern Rock was given a prestigious national award from The Prince of Wales’ Business in the Community (BITC) charity, for its work to help tackle financial exclusion.

Last month, BITC awarded Northern Rock with a ‘Big Tick’ for its on-going project to help rebrand, relaunch and support Bridges Community Bank, formerly South Tyneside Credit Union. Judges were so impressed with the nomination that Northern Rock was also selected as one of only two North East organisations to be shortlisted for the coveted title of ‘Example of Excellence’ in their respective categories.

Last night, representatives from the bank including Executive Chairman Ron Sandler, were highly commended in BITC’s ‘Building Stronger Communities’ for 2011, at a gala event sponsored by Unilever at The Royal Albert Hall.

The national ‘Big Tick’ award is the first level of award available to entrants of the national BITC Awards for Excellence, which recognises inspirational programmes that have a positive impact on the community, the environment or wider society. Northern Rock was one of six companies to achieve it this year before being highly commended in the category of the UK’s Example of Excellence in Building Stronger Communities.

Northern Rock’s contribution involved a team of employee volunteers skilled in a number of disciplines helping Bridges Your Community Bank. It continues to support Bridges as part of its flagship community programme which focuses on assisting those in financial difficulty.

Mr Sandler said: “We are honoured to have received this additional commendation, and to have been shortlisted as Business in the Community’s Example of Excellence 2011, for our important work in the local community, in this instance for our work with Bridges Your Community Bank.

“Our Big Tick Award is proudly displayed in Northern Rock’s head office so that our colleagues and visitors alike can see what has been achieved due to the hard work and dedication of our employees. I look forward to adding this additional tribute and hope it acts as a source of real inspiration and pride for everyone connected with Northern Rock.”

Stephen Howard, Chief Executive of Business in the Community said: “I congratulate Northern Rock on achieving its Big Tick. It is a challenging time for business, but this is a sign that companies are not losing their focus and are transforming their businesses to make a positive impact on people and society; and are prepared to lead by example. That’s what Business in the Community’s Awards for Excellence is all about – celebrating responsible business, the leadership that makes it happen and the benefits to the business and society of doing so.

Via EPR Network
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Standard Life Charitable Trust and Shelter Partner To Help People In Need Of Financial Advice

The Standard Life Charitable Trust is providing funding to housing and homelessness charity Shelter for three telephone advisers at the charity’s housing advice lines in England and Scotland.

Shelter’s housing advice line provides support to those who are in debt and behind with rent and mortgage payments, as well as offering advice on a range of other issues including eviction and repossession. The helpline gave advice to almost 50,000 people across England in 2010 alone.

A recent survey by Shelter* showed that more than one in ten (11%) people face a constant struggle to pay their rent or mortgage. With unemployment high, the cost of living increasing and the possibility of a rise in interest rates ahead, more and more people are contacting the charity for help to manage their finances and stay afloat. In the first three months of this year Shelter saw a 30 per cent increase in calls to its helpline.

The Standard Life Charitable Trust is an independent charity established in 2009 by leading long term savings and investments company, Standard Life, and is focused on supporting people most in need of help managing their finances.

The Trust’s donation will fund three full-time telephone advisers at Shelter’s helplines until May 2012 allowing the charity to reach an additional 7,300 people with housing advice.

Shelter’s chief executive Campbell Robb said: “In these uncertain economic times many people are struggling to make ends meet and more and more are coming to Shelter for help.

“Thanks to this donation from the Standard Life Charitable Trust we will be able to reach even more people. Our advisers can stop things from spiralling out of control and help people get back on their feet.”

Baroness McDonagh, Chair of the Standard Life Charitable Trust said: “The Standard Life Charitable Trust is focused on supporting groups who could benefit most from help and advice to improve their financial capability. We are delighted our donation will fund additional Shelter advisers so they can help more people who are at risk of losing their home, many of whom are experiencing severe financial problems.”

Via EPR Network
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Banks, Bonds, Checking & Savings, Financial, Financial Services, ISAs, Mortgage, Personal Finance

Northern Rock Adds Helpful Savings Video Guide To Its Website

Northern Rock has added another helpful video guide to its interactive savings website to help consumers with their savings choices.

The video – Northern Rock’s Guide to Savings – is the third guide in the series recently introduced by the bank to add a further dimension to its award-winning website. Existing videos include Northern Rock’s Guide to ISAs and First Time Buyers Guide, which can be viewed on the Northern Rock website alongside the new addition.

The newest guide is designed to help customers make the most of their money in an accessible way, by highlighting the need to consider debt and budgeting as well as the benefits of the wide range of competitively priced savings products on offer at Northern Rock.

The colourful video guide, which is also available via the bank’s YouTube channel, covers key areas such as planning for emergencies and saving for a rainy day.

Northern Rock offers a range of variable and fixed rate savings products, including online savings accounts, instant-access products and tax-free savings options. Northern Rock also offers customers a free savings review.

Further detail about Northern Rock’s range of savings products is available on the website, which is populated with useful advice and information for different savings customer groups, financial planning information and at-a-glance guides to help people choose between different types of savings account.

The site also includes a range of interactive tools such as a jargon buster and budget planner to help take the complexity out of selecting the right savings product for a customer’s own individual circumstances, and a product calculator for each of Northern Rock’s products, such as a mortgage calculator and a calculator for its Cash ISA, to help work out the estimated return on investment.

Northern Rock customers also benefit from the bank’s unique savings promise. This is a commitment to its customers that it will provide a minimum of two months’ written notice of any reduction to the interest rate on their account. Where customers have a notice period for access to their funds of greater than two months, Northern Rock will give them that equivalent notice period of any reduction to their interest rate. Northern Rock will also write to all savings customers at least once a year with details of all its available variable rate savings accounts. And it will give savings customers a minimum of two months’ written notice of any changes to the terms and conditions of their account.

Via EPR Network
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