Tag Archives: Personal Finance

Personal Finance

Debts, Financial, Financial Management, Financial Services, Money, Personal Finance

Workers Must Ensure They Are Prepared For Pay Cuts Says Gregory Pennington

In response to a new report claiming that 70% of UK companies may be planning to freeze or cut wages this year in an attempt to get through the recession, debt management company Gregory Pennington has advised workers to take what steps they can to prepare for any potential reduction in income.

The company added that anyone with debts to their name could be at a disadvantage if their income is reduced, and as such they should look to address their debts as a matter of priority.

The latest monthly business survey by the British Chambers of Commerce (BCC) claimed that of 400 companies questioned, around 70% planned to freeze or cut wages later this year.

58% of companies said they planned to freeze wages this year, while 12% planned to actively reduce wages.

Most of the rest of the companies, however, planned wage increases of between 1% and
3%, with almost one in ten companies saying they would raise wages by more than 3% –
suggesting some areas of business are not struggling, despite the recession.

Even so, half of the companies were considering making staff redundant in the next six months in an attempt to survive the economic downturn, according to the survey.

A spokesperson for Gregory Pennington said that despite some surprising optimism amongst the 9% of companies which would be raising salaries, most people would be best advised to ensure that their finances are as healthy as possible in preparation for the next few months.

“We are in a difficult situation, in which many costs of living are rising rapidly while the equity in our homes is falling. Along with the prospect of high levels of unemployment, it’s unclear whether the situation will get better or worse in the coming months.

“In any situation involving that kind of uncertainty, it’s especially important that people are quick to ensure that their finances are in the best possible shape for getting through potentially difficult times.

“Perhaps the most important factor is savings. People with savings have a ‘safety net’ they can fall back on if they find their finances are hit particularly hard, and this could help families and individuals alike to compensate for any reduction in income.

“However, getting on top of any debts is also very important – and if the borrower has savings they can fall back on, it’s often most important that those savings are used to repay their debts. The logic behind this is simple – the interest on debt usually grows more quickly than the interest on savings, so the borrower will spend less overall by paying off their debts as quickly as possible.

“However, workers need to consider this carefully. If they are facing potential redundancy, they may wish to hold on to their savings so that they can continue to repay their priority debts, such as their mortgage.”

The Gregory Pennington spokesperson added that there are many people who may be experiencing problems with debt who do not have any savings to fall back on – and those people should seek debt advice as soon as possible.

“A lot of people may be facing a reduced income or even redundancy with little or no savings. If those people also have debts to repay, the situation can be quite worrying.

“However, a professional debt adviser can help people to find the best way of tackling their debts – which can offer a lot of relief in difficult times.”

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Banks, Credit Cards, Financial, Financial Services, Loans, Money, Personal Finance

Barclaycard Has Revealed That Spending On Mother’s Day Gifts Was Down In 2009 When Compared To The Year Previous

The data from Barclaycard Payment Acceptance, which enables retailers to accept payments from both debit and credit card, confirms that families across Britain are opting for less expensive gifts for Mother’s Day in the current economic climate.

Spend on flowers was down 15 per cent in the two weeks leading up to Mother’s Day this year compared to the same period last year while spending on chocolates was up 23 per cent compared to last year, suggesting that people are managing the expense of special occasions by purchasing more economic gifts rather than expensive floral presents.

Restaurants and jewellery shops were the least affected with spending almost identical to last year. Treating mum to lunch remains a popular gift, with spending in restaurants up slightly (0.3 per cent) compared to last year. Jewellers saw a very small increase in spending in the two weeks leading up to Mother’s Day, with sales up 0.1 per cent compared to the same period in 2008.

Commenting on the data, Stewart Roberts, Business Development Director at Barclaycard said: “People don’t want to let special occasions pass them by without buying a present of some sort but what we are seeing is that children are opting for a less expensive gift rather than the more extravagant floral arrangements in these tough times.”

These figures are taken from Barclaycard Payment Acceptance data from March 2008 and March 2009. The figures relate to spending on certain products and services usually associated with Mother’s Day: The year-on-year comparison figures relate to spending in the two weeks prior to Mother’s Day 2009 and the corresponding period in 2008. The restaurant comparison covers Mother’s Day 2009 spending compared with 2008.

About Barclaycard:
Barclaycard, part of Barclays Global and Retail Commercial Banking division, is a leading global payment business which helps consumers, retailers and businesses to make and accept payments flexibly, and to access short-term credit when needed.

The company is one of the pioneers of new forms of payments and is at the forefront of developing viable contactless and mobile payment schemes for today and cutting edge forms of payment for the future. It also issues credit cards and charge cards to business banking customers and the UK Government. Barclaycard partners with a wide range of organisations across the globe to offer their customers or members payment options and credit. In addition to the UK, Barclaycard operates in the United States, Europe, Africa and the Middle and Far East.

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Banks, Financial, Financial Services, Home Equity, Loans, Money, Mortgage, Personal Finance

It May Still Be Some Time Before The Bank Of England See The Need To Raise Interest Rates, But With The Cost Of Funding Fixed Rates Pre-Empting Any Change In Bank Rate, There Are Already Signs That Fixed Rates Could Cost More

The cost to lenders to fund some fixed rates isnow higher than earlier this month despite the introduction of quantitative easing measures, which it was hoped would help reduce borrowing costs, and this has already had some knock on effects. Less than two weeks ago, the cheapest 5 year fixed rate was a fantastic 3.95%, one of the lowest 5 year fixed rate mortgages seen in the UK. However, today, the best you can achieve is 4.24%, still attractive but an increase that will cost a borrower with a £200,000 interest only mortgage an extra £2,900 over 5 yrs.

These headline grabbing rates are also usually reserved for borrowers who have at least 25%, and often 40% equity in their homes, and as house prices continue to fall, fewer homeowners will qualify.

Those borrowers that don’t qualify for the lowest rates face a very difficult decision. Do they take what is historically still a competitive fixed rate, or do they save money now and stay on their lenders standard variable rate (svr). If they opt for the svr they are likely to see their equity eroded further, and run the risk that fixed rates in the future could be considerably higher.

Many lenders will not lend to borrowers with less than a 15% stake in their home, so fixed rates are harder to find. Richard Morea from London & country Mortgages advises, ‘Whilst it’s unlikely that rates will climb steeply in the near future, a combination of any rise, and the continued erosion of equity mean that whichever rate you qualify for, now is the time to consider a fixed deal, and take action to secure it!’

For more information and no-fee advice, borrowers should call free on 0800 373300.

London & Country (L&C) is the UK’s leading no-fee mortgage broker. Based in Bath, it provides whole of market advice via telephone and post to clients nationwide. As well as residential mortgages, it also specialises in the Buy-to-Let and adverse-credit sectors.

L&C is a Climate Neutral company and for the last seven years has invested in climate friendly projects and tree-planting to help offset its emissions and those of its customers. For more information, go to www.lcplc.co.uk/green

L&C has won numerous awards including:

Best Mortgage IFA/Adviser of the Year – Money Marketing, 2004, 2005, 2006 and 2008
Best Technology Adviser – Money Marketing 2007
Best Mortgage Broker outside London – Mortgage Strategy, 2004 and 2005
Best National Broker – Mortgage Introducer 2005, 2006 and 2007
Best Overall Broker – Mortgage Introducer 2005
Overall broker of the year – Pink Home Loans, 2006 and 2007
Top 100 company in the Sunday Times Fast Track 100 for 2004 and 2005
Business of the Year – The Bath Business Awards 2005
Growth Strategy of the Year – National Business Awards (Wales and West) 2008
Business Leader (Broker) – British Mortgage Awards – 2008
Online Mortgage IFA of the Year – Financial Adviser – 2008

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Debts, Financial, Financial Management, Financial Services, Home Equity, Loans, Money, Mortgage, Personal Finance

Mortgage Debt: Comment On Housing Equity Injection

Responding to news that homeowners had injected a record £8 billion into housing equity in the final quarter of 2008, debt management company Gregory Pennington stressed that this reversal of a long-term trend was due to a combination of factors, rather than any single event.

“Prior to Q2 2008,” said Melanie Taylor, Head of Corporate Relations for Gregory Pennington, “the last time we saw homeowners injecting money into housing equity was in Q2 1998, when they injected £279 million – a mere 3.5% of the amount injected in the final quarter of 2008.”

In the decade following 1998, of course, the average house price virtually tripled, which obviously enabled millions of homeowners to turn many billions of housing equity into cash. The highpoint of this occurred in Q4 of 2003, when £17 billion of equity was withdrawn – a full 8.5% of post-tax income.

A full decade of rapid price rises meant that homeowners were both willing and able to keep on withdrawing equity for some time after the house price boom came to an end in 2007: it wasn’t until the second quarter of 2008 that equity injections began to outweigh withdrawals.

“Standing at £1.8 billion in Q2, quarterly equity injection rapidly soared to the record level of £8 billion by Q4 – thanks to a falling base rate and a faltering housing market, as well as worries about the recession in general.

“Plummeting from 5% to 2% in Q4 alone, the falling base rate had two crucial effects on the way homeowners treated their mortgage debt. First of all, it helped people find new deals with lower monthly payments, and enabled people with existing tracker and SVR mortgages to overpay their mortgages without spending more than they were used to. Second, it led the banks and building societies to drop the rates they were paying on savers’ accounts. Many people looking for the best return on their ‘spare’ money realised that overpaying their mortgage would be much more valuable in the long run than putting their money in a savings account.

“Looking beyond interest rates and house prices, the recession itself has prompted a more conservative attitude, particularly among people who’ve experienced recessions in the past. The news has been full of repossessions, redundancies, ‘awful’ economic conditions – and a succession of dire predictions from a wide range of respected bodies, making it clear that things were expected to get a lot worse before they got better.”

Whatever the reasons, overpaying the mortgage can deliver various benefits: “Aside from reducing the amount of interest they’ll pay over the lifetime of the mortgage, overpayments can also shorten the actual term of the mortgage, meaning the homeowner will own the property outright sooner than initially expected. There’s also the question of reducing their mortgage debt and increasing the equity in the home, which can give homeowners access to mortgage deals with much lower interest rates – something which many will be keen to do as soon as possible, before the base rate has a chance to start rising again.”

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The Importance Of Getting Debt Help At The First Sign Of Financial Difficulties

Debt management company Gregory Pennington has emphasised the importance of getting debt help at the first sign of financial difficulties, following research showing that the average UK worker spent the first 83 days of 2009 earning just enough to cover the interest on their debts.

Unbiased.co.uk have said that March 25th was this year’s ‘Debt Freedom Day’ – a theoretical date on which the average UK worker’s earnings have covered the amount they will pay in interest on their debts (not including mortgages) over the course of the year.

The date came more than two weeks later than last year’s Debt Freedom Day, which fell on Ma rch 2nd 2008. This means that debt levels amongst people in the UK have risen, despite increased caution amongst lenders.

Unbiased.co.uk’s figures showed that personal loans borrowed in 2008 amounted to £11.6bn in 2008 – up by more than £1.6bn on the previous year. Meanwhile, mortgage debt from equity release loans increased by £6.5 billion. Debt on credit cards, however, fell by £4.9bn.

A spokesperson for Gregory Pennington commented: “We can look at lending figures from recent years and see how much personal debt has risen, but the amount of time it can take to repay the interest on those debts may surprise some borrowers.

“It’s also worth remembering that this is before the borrower has started repaying the actual debt, which suggests that a lot of people may be spending a considerable proportion of their annual income repaying debts.”

Debt Freedom Day works on a similar basis to ‘Tax Freedom Day’, recorded by the Adam Smith Institute, an economic think tank. Last year’s Tax Freedom Day fell on June 2nd – meaning that if these figures are combined, the average UK worker spends almost three quarters of their annual income on tax and debt interest.

The Gregory Pennington spokesperson said that the figures not only show how much the average UK worker spends on debt interest each year – they also show how much better off they could be once those debts have been taken care of.

“Especially in difficult times for the economy, reducing debt can ensure that people are well-prepared for what the future may hold. If costs begin to rise sharply, or any other unexpected financial events occur, people who are in debt are more likely to struggle. If that results in the borrower missing debt repayments, the situation can become quite serious.

“The fact that interest rates have fallen sharply in recent months will help some people – particularly those who have experience a fall in their mortgage costs – but for situations that have become more serious, finding the right type of debt management could make a big difference.

“We advise anyone who is struggling to repay their debts to seek professional debt help at the first sign of difficulty. A debt adviser can discuss the borrower’s situation in confidence and, if necessary, recommend a suitable debt solution for their personal circumstances.”

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Banks, Checking & Savings, Financial Services, ISAs, Money, Personal Finance

The New M&S Advantage Cash ISA Option Is Attracting Record Numbers Of Savers, With Over Twice As Many Accounts Opened Since Its Launch In January Compared With During The Whole Of 2008

Customer feedback indicates that many are basing their choice to save with M&S Money not only on the rate itself, but also on brand trust and security. Recent research reveals that for a third of people (34%) the most important factor when choosing a home for their money is a savings provider they can trust*.

As well as seeking a trustworthy provider, customers are looking for value in terms of pricing, quality and service**. M&S Advantage Cash ISA is currently one of the most competitive in the market. Fixed rate options are also available, and customers can split their annual Cash ISA allowance between variable and fixed rates, using one simple application form.

Colin Kersley, M&S Money Chief Executive, commented; “Financial stability is a priority for savers in these uncertain times, with trust and value becoming key factors for customers when choosing a savings provider. Record numbers of savers are applying for new Cash ISAs with M&S Money or transferring from other providers, and they tell us it’s because they have trust in the brand.”

All cash savings with M&S Money are protected under the UK Financial Services Compensation Scheme, so the first £50,000 per customer of any cash savings are 100% guaranteed. M&S Money is part of HSBC, one of the world’s largest banking and financial services organisations.

Advantage Cash ISA option
Minimum deposit £100 lump sum, or £25 by monthly direct debit, up to Cash ISA allowance of £3,600 per tax year, transfers from other ISA providers allowed. The Advantage Cash ISA interest rate of 3.10% includes a 1% bonus until 21st April 2010, after which the rate will revert to 2.10% AER/tax-free variable.

Fixed Rate Savings
Within an ISA – minimum deposit £500 up to Cash ISA allowance of £3,600 per tax year, transfers from other ISA providers allowed. Outside an ISA – minimum deposit £500, maximum £1 million.

This is a strictly limited offer and is available both inside and outside an ISA. Early withdrawals are permitted during the term but will be charged at a fixed flat withdrawal charge (£50 for 1 year term, £75 for 2 year term, £100 for 3 year term). The charge may mean a customer gets back less than they originally deposited if they withdraw their savings before the term end date. Partial withdrawals are not permitted.

* Research carried out on behalf of M&S Money by YouGov 9th – 11th January 2009, among 2,120 people aged 18 and over.
** YouGov and the Credit Crunch, 21st November 2008 – key factors in consumer choice (savings), c.35% safety/security/confidence/reputation, c.25% price-related factors (interest rate).

About M&S Money
M&S Money (the trading name of Marks & Spencer Financial Services) was founded in 1985 as the financial services division of Marks and Spencer Group plc. The company is now a top ten credit card provider and the secondlargest travel money retailer in the UK. M&S Money also offers a range of insurance cover, including home insurance, wedding insurance and pet insurance, as well as loans, savings and investment products.

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M&S Money Survey Finds Two-Thirds Of Householders Have Failed To Check If Their Plants, Bushes, Trees And Shrubs Are Covered By Insurance, Despite The Fact That The Average Garden Contains £721 Worth Of Greenery

As householders head into the garden this spring, the survey from home insurance provider M&S Money reveals that many people have been targeted by green-fingered criminals.

The M&S Home Insurance survey found that 17% of people with a garden know someone who has had plants, bushes, trees or shrubs stolen from their garden. The problem is particularly serious in northern England, where almost a quarter (24%) of adults with a garden knows someone who has had greenery stolen.

Plants are also a favourite target of vandals – 10% of people have had plants, bushes, trees or shrubs in their garden maliciously damaged. Gardens in Wales are most likely to be targeted by vandals, with 17% of Welsh respondents reporting they have had plants damaged.

Despite the apparent extent of the problem, 67% of people have not checked whether their plants are covered by home insurance.

Judith Roberts, M&S Insurance Manager, said: “Householders often spend thousands of pounds securing their home to protect their family and property. However, despite the huge amount of time and money invested in many gardens, security levels are often very poor, making them an attractive target for thieves and vandals.

“Householders can take simple steps to reduce the risk of becoming a garden crime victim. It is also wise to check whether your home insurance policy provides cover for property in the garden.”

The M&S home insurance policy covers for loss or damage to plants, bushes, shrubs and trees in the garden.

All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1971 adults. Fieldwork was undertaken between 18th – 20th March 2009. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).

About M&S Money
M&S Money (the trading name of Marks & Spencer Financial Services) was founded in 1985 as the financial services division of Marks and Spencer Group plc. The company is now a top ten credit card provider and the second largest travel money retailer in the UK. M&S Money also offers a range of insurance cover, including wedding insurance, home insurance, pet insurance and car insurance, as well as loans, savings and investment products.

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M&S Money, Pet Insurance Provider, Warns Pet Owners Who Cut Back On Regular Treatments For Their Animals Will Increase The Risk Of Expensive Vet Bills In The Long-Term

As Spring arrives, M&S Money is highlighting that animal lovers can reduce the risk of their pets suffering from common conditions, such as dental disease and worms, by investing in regular, affordable treatments. For example, a single treatment to reduce the risk of fleas in household pets costs around £4. A vet bill to treat fleas can reach as much as £2,000 in severe cases.

Judith Roberts, M&S Insurance Manager, said: “Responsible pet owners know that regular treatments can help to reduce the likelihood of their pets suffering from common conditions. However, purchasing all the recommended medication can be expensive, particularly at this time. M&S Pet Insurance customers are turning to Bestpet to reduce the cost of these treatments and ensure their pets remain happy and healthy.”

M&S Pet Insurance has joined with the online pharmacy, Bestpet.co.uk, which already sells pet medication costing up to 50% less than buying at the vets, to help reduce the costs for pet-owners, with a further 5% discount on prescription and non-prescription drugs as well as pet foods.

Pet owners are also reminded that most insurance policies will not cover the cost of treating any illness that their pet should have been vaccinated against.

John Darlington of Bestpet Pharmacy said: “Even if a pet is insured they need to be treated regularly to prevent suffering and avoid potential claims as well as possible premium increases. Simple worming and flea treatment regimes can protect the pet from infestation. We are now approaching the high season for these ailments.”

 

M&S Money (the trading name of Marks & Spencer Financial Services) was founded in 1985 as the financial services division of Marks and Spencer Group plc. The company is now a top ten credit card provider and the second largest travel money retailer in the UK. M&S Money also offers a range of insurance cover, including home insurance and wedding insurance, as well as loans, savings and investment products.

With a market capitalisation of US$190 billion (as at 7 October 2008), the HSBC Group is one of the world’s largest financial services organisations. Over 100 million customers worldwide entrust HSBC with US$1.2 trillion in deposits. With a tier one capital ratio of 8.8% and a loan to deposit ratio of 90% as at 30 June 2008, the Group remains one of the most strongly capitalised and liquid banks in the world.

M&S Money has an executive committee comprising an equal number of representatives from HSBC and Marks & Spencer.

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The Latest LV= Home Insurance Survey Reveals Addresses In Britain Are Being Devalued By A Total Of £71 Billion* As A Result Of Eyesores In The Local Neighbourhood

Of those questioned, 44% Brits live close to a dilapidated home which experts say typically knocks up to 10%** (£15,675) off the average house value of neighbouring properties.

Common ‘neighbouring problems’ which can affect a property’s value include overgrown or unkempt front gardens (22%), peeling paintwork (19%) and dumped furniture or mattresses left outside the property (10%). Persistent noise pollution such as invasive music from a house next door (11%) can also reduce the value of a typical property by an average of £18,000.

Analysis commissioned by LV= home insurance, reveals that would-be homebuyers assume that these problems indicate a ‘neighbour from hell’ which reduces the price they are prepared to pay and in many cases completely deters buyers from making offers.

Currently 11% of UK adults live next to a rundown property and generally the closer the proximity of a neglected or noisy home, the greater the effect on a property’s value, according to chartered surveyors Zennor Consultants.

In the present market downturn, valuation surveyors are also more likely to down-value a property where they can see that the tone of the area is negatively affected by evidence of anti-social behaviour, or by a significant lack of maintenance on adjoining properties. Conversely, when property prices are booming, they are often more willing to overlook even significant defects.

Poor maintenance of the house next door can also have other serious consequences. 33% of Brits have had their homes damaged by an adjacent property. Frequent problems include flooding or damp (11%), pest infestations (11%) and adjoining fence damage (9%), which overall costs the average homeowner £1,600 to repair. Just 19% of the next door properties’ owners covered such costs – either from their own pocket or by claiming on insurance.

John O’Roarke, managing director of LV= home insurance, said: “This research shows that the financial price of living near to an untidy neighbour could have dire consequences, not only on your lifestyle but also on a home’s value and maintenance costs.

“People living near these properties need to ensure they have suitable home insurance in place so that if the worst does happen they can claim for any damage to their home. Our research also found that unkempt properties have caused seven per cent of homeowners to fall out with their neighbours, so ensuring a good relation is always sensible – that way unpleasant situations can often be prevented.”

 

Research carried out on behalf of LV= by Opinium Research and Zennor Consultants.

* According to DCLG there are 25,754,000 UK households. 44% adults live near untidy property. Average UK house price £156,756 (Land Registry March 2009). Average reduction in value for an untidy street property = 4%. £6,270 x 0.44 x 25,754,000 = £71,050,135,200
** According to Zennor Consultants in March 2009.

About LV= 
LV= is a registered trade mark of Liverpool Victoria Friendly Society Limited (LVFS) and a trading style of the Liverpool Victoria group of companies. The new LV= brand identity was launched in March 2007.

LV= insurance offers pet, home, travel and car insurance direct to consumers by telephone from its UK call centres in Bournemouth and Croydon and online from its website. LV= has been awarded the Defaqto five star rating for home insurance and car insurance. LV= insures over 1.6 million cars and 480,000 households in the UK.

LVFS is authorised and regulated by the Financial Services Authority register number 110035. LVFS is a member of the ABI, AMI, AFS and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.

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LV= Has Announced That Its Level And Decreasing Term Assurance Products, As Well As Optional Critical Illness Cover, Are Now Available On The Moneysupermarket.Com Price Comparison Website

This is the first time LV= has launched its protection products online through an aggregator website. Customers can now compare the LV= life insurance and Critical Illness Cover products against the others which are available in the market, as well as any additional benefits that may be offered, with the ‘more than a cheque’ benefits from LV= which include ‘Healthy Steps’, an online health assessment and advice service, as well as free terminal illness cover.

Robin Willison, LV= Financial Advice Director commented: “It’s great that potential customers will now be able to compare the value and features of our life insurance against a number of other providers in the market. We are conscious of the financial pressures that many people are facing at the moment, and this move will demonstrate how competitive we are, and allow consumers to get the best value cover at a price that is right for them.”

Emma Walker, Head of Protection at moneysupermarket.com said: “We have been working with LV= through our off line advice team for five years and are now delighted to welcome LV= to the moneysupermarket.com consumer facing website, as we constantly strive to provide customers with the widest choice across the market. In the current climate it is more important than ever for customers to be able to compare prices and investigate levels of cover available. This is a great move for a protection specialist like LV= as they really are helping people to look after what they love in life by joining our platform.”

* Terminal Illness cover is included free and applies if the customer has less than 12 months to live, allowing customers to claim on their policy.

About LV= 
LV= and LV= Liverpool Victoria are trademarks of Liverpool Victoria Friendly Society Limited and LV= and LV= Liverpool Victoria are trading styles of the Liverpool Victoria group of companies. The new LV= brand identity was launched in March 2007.

LV= employs more than 3,800 people, serves around 3.2 million customers and members, and manages around £7bn on their behalf. We are also the UK’s largest friendly society (Association of Friendly Societies Yearbook 2006/2007, total net assets) and a leading mutual financial services provider.

LVFS is authorised and regulated by the Financial Services Authority and entered on the Financial Services Authority Register No. 110035. LVFS is a member of the ABI, AMI, AFS and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.

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LV= Research Reveals Importance Of A Good Claims Service

LV= research has revealed that 83% of people interviewed who had made a claim on their car insurance said they would pay more for their insurance cover if they had the assurance of a good claims service. However with many people buying insurance just based on the very cheapest price, LV= is warning consumers not to forgo quality just to save a few pounds.

Peter Horton, operations director for the LV= general insurance business said: “Many people are understandably looking to make savings and cutbacks on their insurance at the moment, so they might be tempted to buy a policy from the insurer offering absolutely the cheapest quote. However the danger is that they may save themselves a few pounds in the short term but end up seriously out of pocket if that insurer offers a substandard claims service.”

LV= operates an award winning claims service and so far this year has received two more accolades for its service, including a Consumer Intelligence Gold rating.

The latest Gold Award is based on Consumer Intelligence research among over 2,000 people who made a claim on their motor insurance in 2008.

People were asked to rate their overall satisfaction with the service they received from their provider and give their views on specific elements of the claims service, including courtesy cars, repair quality and levels of communication.

The award comes hot on the heels of a Which? Magazine’s People’s Choice award received by LV= last month.

The People’s Choice accolade is awarded to the best financial service providers across a number of categories as voted for by 15,000 Which? members. Members of the Which? online panel that had experienced a claim within the last 12 months were polled to find the top provider and LV=’s claims service provided under the Frizzell brand was voted as the best.

Peter Horton concluded: “The whole point of insurance is to ensure that if your car is involved in an accident or stolen your claim will be dealt with quickly and efficiently and you won’t end up out of pocket. It’s a false economy to go with a bargain basement price only to end up paying for premium rate telephone lines every time you need to speak to the insurance company, or being stuck without a vehicle for weeks on end. People shouldn’t just consider the price but also check the insurer has a good claims service.“

Peter concluded, “LV= is a mutual insurer, meaning we aren’t liable to stock market fluctuation or shareholder pressures in the same way as many other insurers, so we are able to put service at the forefront of what we do whilst still offering a competitive price. As these award wins show, our claims service is one of the best in the market – as voted for by people who have experienced a claim, and who better to ask than them?”

 

About LV= 
LV= offers car, home, travel and pet insurance cover direct to consumers by telephone from its UK call centres in Bournemouth and Croydon and online from its website. LV= is a registered trade mark of Liverpool Victoria Friendly Society Limited (LVFS) and a trading style of the Liverpool Victoria group of companies. LV= employs over 3,800 people, serves around 3.2 million customers and members, and manages around £7 billion on their behalf. We are also the UK’s largest friendly society (Association of Friendly Societies Key Statistics 2008, total net assets) and a leading mutual financial services provider.

LVFS is authorised and regulated by the Financial Services Authority register number 110035. LVFS is a member of the ABI, AMI, AFS and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.

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Lloyds TSB Announces That It Will Be Increasing Rates On Its Fixed Rate Cash ISA By Up To 1 Per Cent

Available from 24th March 2009, the rate on the Lloyds TSB Fixed Rate Cash ISA is guaranteed for 12 months from the date of account opening. Accounts can be opened with a minimum deposit of £3000 and will accept transfers from previous tax years.

Colin Walsh, managing director savings and investment at Lloyds TSB said: “This latest rate increase is just one example of how we are working to help savers make the most of their money in today’s difficult economic climate. Given the current low rate environment, it is more important than ever to make use of your tax free allowance and we would encourage savers to take action before the tax year end on April 5th.”

Existing customers who already hold a balance within the improved tiers will also see their rate increase from the 24th March. This means customers who have a balance of £9000 or more will earn a guaranteed rate of 3 per cent for 12 months.

Research from the bank shows that almost half of savers would prefer a fixed rate, in today’s uncertain economic climate.

Colin Walsh continued: “The ISA market has been active for ten years now and many savers have built up a substantial tax free nest egg. Unlike a number of the headline ISAs on the market, our product allows customers to transfer in their previous ISA savings, so they can earn a competitive rate on the maximum balance.”

More information on the Lloyds TSB Fixed Rate ISA is available through branches of Lloyds TSB or online.

Rate increase applies to 2009 Fixed Rate Cash ISA launched on 16th
February 2009. Rates on 2008 Fixed Rate ISA remain unchanged.

About Lloyds TSB: 
Lloyds TSB offers customers a wide range of current accounts, savings accounts, insurance, personal loans and credit cards, designed to meet different customers’ needs. Lloyds TSB Bank plc and Lloyds TSB Scotland plc are authorised and regulated by the Financial Services Authority and signatories to the Banking Codes. Lloyds TSB Bank plc Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065. 

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Financial, Financial Services, Home Equity, Loans, Money, Mortgage, Personal Finance

Fixed rate mortgages are low, particularly for those with at least 25% equity, but will they/can they get any cheaper?

Tracker mortgage rates mirror any change in bank rate, but with mortgage lenders increasing tracking margins, and with bank rate at 0.5%, have you missed the boat?

Unusually, standard variable rates may also look attractive, but are lenders passing on any change in interest rates, as they struggle to retain savers?

If you are unsure what to choose, here are some L&C tips on how you could hedge your bets.

A mix and match mortgage is where you take part on a variable rate and part on a fixed rate. This gives you some security but will also mean you don’t completely miss out if rates fall again. The downside is that you’re likely to pay an arrangement fee for both schemes.

Drop lock mortgages, offered by lenders such as Halifax, Nationwide and C&G, allow you to take a tracker deal, but switch to a fixed rate in the future without penalty.

This might seem the perfect solution but timing your switch will be tricky, and is likely to involve your home being revalued. With house prices continuing to fall, a revaluation could see you move into a higher loan to value band with higher rates, so even if fixed rates generally fall, you could end up paying more. Any switch is also likely to mean a new arrangement fee.

You could also consider a capped tracker mortgage. The tracker means you don’t miss out on interest rate cuts, and adding a cap means there is a maximum rate you can pay, so if rates rise above the cap, you don’t need to worry.

The Coventry and Yorkshire Building Societies and Woolwich have all recently launched capped trackers.

To find out more visit the best buy mortgages section of the L&C website.

Whatever you do, L&C’s advice is don’t delay. With lenders reserving their best deals for those with up to 40% equity, and falling house prices eroding your equity, any delay could cost you dear.

For more information and no-fee advice, borrowers should call free on 0800 373300.

 

London & Country (L&C) is the UK’s leading no-fee mortgage broker. Based in Bath, it provides whole of market advice via telephone and post to clients nationwide. As well as residential mortgages, it also specialises in the Buy-to-Let and adverse-credit sectors.

L&C is a Climate Neutral company and for the last seven years has invested in climate friendly projects and tree-planting to help offset its emissions and those of its customers. For more information, go to www.lcplc.co.uk/green

L&C has won numerous awards including:

Best Mortgage IFA/Adviser of the Year – Money Marketing, 2004, 2005, 2006 and 2008
Best Technology Adviser – Money Marketing 2007
Best Mortgage Broker outside London – Mortgage Strategy, 2004 and 2005
Best National Broker – Mortgage Introducer 2005, 2006 and 2007
Best Overall Broker – Mortgage Introducer 2005
Overall broker of the year – Pink Home Loans, 2006 and 2007
Top 100 company in the Sunday Times Fast Track 100 for 2004 and 2005
Business of the Year – The Bath Business Awards 2005
Growth Strategy of the Year – National Business Awards (Wales and West) 2008
Business Leader (Broker) – British Mortgage Awards – 2008
Online Mortgage IFA of the Year – Financial Adviser – 2008

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Credit Cards, Financial, Financial Services, Loans, Money, Personal Finance

Woolworth’s Release Everyday Money Credit Card

If you are a Woolworth’s customer or thinking of becoming one then the new “Woolworth’s Everyday Money Credit Card” offer is for you. The advantage of the new Woolworths credit card is that it rewards you for being a loyal shopper. You receive bonus points f r o m Shopping at Woolworths and partner stores around Australia. Rewards For Shopping at Woolworth’s Supermarket. 

Earn 3 points for every dollar spent on select products at Woolworth’s supermarkets. If you spend $200 on food shopping per week then this would equate to 600 bonus points added to your Everyday Money bonus points account. Earn 2 points for every other product you buy at Woolworths, Safeway, Big W, CALTEX WOOLWORTHS/SAFEWAY co-branded fuel outlets, epump, Woolworth’s/Safeway Liquor, Dick Smith PowerHouse and participating Dick Smith Electronics and Tandy stores. The Everyday Money deal also gives you 1 point for any other purchases made on your credit card. This product gives you the opportunity to earn reward points for your everyday shopping in Australia.

Redeeming your Points
Every 4 months depending on how many points you have earned in this period Woolworth’s customers will earn a Shopping Card that can be used at Woolworth’s stores and participating partner networks. The shopping card can be used for anything f r o m food shopping to the petrol pump.

Credit Card Features
The Everyday Money Card is issued on behalf of the HSBC Bank and is subject to their lending requirements. The low purchase interest rate as of March 24 2009 is 17.99 percent. For a limited time only the Everyday Money Mastercard comes with a $50 bonus shopping card upon the first card usage, and zero dollar annual fee for the first year, after which the annual fee is $49 per year. If the balance transfer is not paid off within this period then the standard purchase rate applies.

Conclusion
If you are a Woolworths customer and a responsible credit card user then the rewards program offered by the Everyday Money Mastercard will provide you with advantageous benefits. Woolworths is one of Australia’s most reputable organisations and the partnership with HSBC Bank gives the Australian consumers a deal that will save.

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Financial, Financial Information, Financial Services, Home Equity, IRA, Money, Personal Finance, Retirement

Recession Woes Grow For Pensioners

New Prudential Class of 2009 retirement survey reveals the UK’s deepening economic crisis will mean the 3.25 million UK adults who plan to retire in 2009 can expect to receive £2.87 billion* less in their pensions than those who planned to retire in 2008.

The survey found UK workers planning to draw their pension in 2009 expect to get an average income of£17,779 a year, £884 less than those retiring in 2008 who anticipated an average annual income of £18,663. Retirement will mean taking a £7,129 cut in income compared with the national average salary of £24,908** but some believe they will be considerably worse off.

The Prudential survey showed that 11% of people retiring in 2009 expect to receive an income of less than £10,000 a year from their pensions and investments, with 12% of women expecting to manage on this level of income compared to 9% of men.

While 39% said their pension and savings would give them a decent retirement income, 61% were doubtful that they would have enough money to enjoy a comfortable life in retirement. When asked if they thought they were financially well prepared for retirement, only 47% responded positively.

Keith Haggart, Director of Lifetime Mortgages at Prudential said: “The global economic recession is relentless and indiscriminate in its impact and it was only a matter of time before we began to see British pensioners bear the brunt.”

He continued, “Although the results of our survey make unsettling reading, there are ways for pensioners to maximise their incomes during these difficult times. Drawing on some or all of the assets saved throughout their working lives, including releasing value from property through equity release schemes, can boost annual incomes without having a detrimental impact on quality of life or forcing pensioners to downsize or embark on a fire sale of their possessions and assets.”

Keith urged anyone approaching retirement or who has recently retired to talk to a financial adviser to help them review all their assets and savings to see how they could be used to maximise income.

Prudential’s retirement planning website helps consumers and employers tackle retirement issues. The website features a Retirement Planner which has been designed to help determine how much income a customer’s current arrangements might give them in retirement, factoring in current pensions, property, savings and investments. The Planner also shows customers how they might be able to boost retirement income, if there is a gap between what their current arrangements will provide at the point of retirement and what they anticipate they may need.

* Office of National Statistics 2007 show 24,990,500 adults aged 45+ in the UK. Prudential research shows that 13% of UK adults aged 45+ (youngest age stated by individuals planning to retire in 2009) said they planned to retire in 2009 = 3,251,854 people. Multiplied by £884 individual shortfall = £2.87 billion.

** 2008 ASHE survey results show median weekly pay for full-time employees in UK grew by 4.6% in the year to April 2008 to reach £479 (multiplied by 52 weeks =£24,908).

Survey conducted online by Research Plus among 1,000 UK adults aged 45+, during 10–18 November 2008.

About Prudential
“Prudential” is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. This name is also used by other companies within the Prudential Group, which between them provide a range of financial products including life assurance, pensions, savings and investment products. Registered Office at Laurence Pountney Hill, London EC4R 0HH. Registered number 15454. Authorised and regulated by the Financial Services Authority.

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UK Adults Delaying Retirement Due To Economy Reveals Prudential

According to the new Prudential ‘Class of 2009’ retirement survey, around 2.2 million* UK adults aged 45 and above** are delaying their retirement in 2009 due to the state of the economy and the falling value of their investments.

The Prudential survey also highlights that their concerns are so severe that those delaying retirement do not expect to be able to get their plans back on track for years to come.

Only one in four (25 per cent) of those delaying drawing their pension in 2009 expect they will be able to retire before 2012, with an even higher number – two in five (42 per cent) – expecting it will be 2012 or beyond before they can retire and one in four (23 per cent) believing they won’t ever be able to afford to retire.

But, despite many adults delaying retirement, nearly one in three (30 per cent) of those actually able to retire in 2009 are public sector workers, even though they make up just one in five people in the UK workforce***.

The remaining 2009 retirees will be split 35 per cent from private sector jobs and 15 per cent from self employed roles, with the remainder coming from those who are unemployed or in other sectors.

“It is a reflection of the difficult economic situation that so many workers, and particularly those in private sector roles who do not benefit from public sector final salary pension schemes, are trying to delay retirement but there are other options available,” said Martyn Bogira, Director of DC Solutions at Prudential.

Martyn pointed out that even with the economy in its current depressed state, many annuity rates have performed better than many feared and there are a number of other pension income options available, like income drawdown, which can let workers delay buying an annuity until such time as the economy has started to recover.

Martyn continued, “Now more than ever it pays to seek early retirement advice from an independent financial adviser and we would suggest that people start planning for their retirement early, ideally at least 15 years from retirement. It is vital that those saving for retirement continually monitor their investment mix to ensure they have the right risk profile to help minimise the impact of economic fluctuations and falling stock markets.”

The information contained in Prudential UK’s press releases is intended solely for journalists and should not be used by consumers to make financial decisions. Full consumer product information can be found at www.pru.co.uk.

Survey conducted by Research Plus among 1,000 UK adults aged 45+ between 10 – 18 November 2008 using an online methodology

* Office of National Statistics 2007 population estimates, 2.2 million adults aged 45 and above.
** Of the survey group, the youngest age given for individuals planning to retire in 2009 was 45
*** ONS Labour Market Study, public sector staff account for 20.4 per cent of employed population in June 2005

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CDs, Checking & Savings, Financial, Financial Information, Financial Services, Insurance, Investment, Money, Personal Finance, Taxes

Javelin Marketing Provides Resources for Financial Advisors to Combat Recession

It’s no secret that financial advisors, financial planners, stockbrokers, life insurance agents and other financial services professionals are having a hard time retaining clients. Many clients have fled the financial markets for the safety of bank accounts and treasury bills.

There are approaches that advisors can use for client retention in this market and these are discussed at Javelin Marketing’s main blog. Additionally, Javelin Marketing provides free financial services marketing tools to download at their special download blog. New tools are added each month. Current tools and downloads available to financial advisors:

• Four ways to eliminate capital gains taxes—a great piece to share with clients right in the middle of tax season
• The benefit of offering FDIC insured CDs to retain clients now
• How to get more involved with individual fixed income securities to serve and attract an aging clientele
• A special social security tax reduction calculator that shows annuity sellers how in most cases, an annuity will save the retired owners taxes on social security income
• Ebook on Marketing to Seniors

If you register at the blog, you will be notified as tools are added. Soon to be added is “How to Find and Hire the Best Assistant.”

http://www.javelin-marketing-downloads.com

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401K, Financial, Financial Services, Investment, IRA, Money, Personal Finance, Retirement

Nabers Group to Give Away Self-Directed Solo 401k

Nabers Group, the world’s first and only full-service self-directed plan provider, has launched a contest to give away (i.e., set up) a Self-Directed Solo 401k plan at no cost to the person who offers the best insight(s) into what he or she thinks are the most powerful business or investment opportunities given today’s recessionary economic environment.

The Self-Directed Solo 401k is a qualified retirement plan that helps business owners grow and preserve their retirement wealth by enabling them to legally invest their retirement savings in alternative investments such as real estate, mortgage notes, private businesses, precious metals, and other qualified assets. The Solo 401k has already helped thousands of serious investors diversify their retirement portfolios beyond stocks, bonds and mutual funds while still enabling them to receive the much desired tax advantages the traditional IRA and 401k offers.

Eligibility: To be eligible to enter to win a free Solo 401k account, the entrant must be self- employed or have self-employment activity (such as Schedule C income on entrant’s 1040 or own a business). The entrant cannot have any employees at any businesses in which the entrant or the entrant’s spouse has significant ownership.

How to Enter: To participate, entrants must do two things:

1) Add Jeff Nabers, the founder of the Nabers Group, as a “Friend” on Facebook. This will enable entrants to stay apprised of events, news and u p d a t e s f r o m Nabers Group. The winner will be posted on Facebook and at JeffNabers.com.

2) Write a brief explanation of what they think are the most powerful business or investment opportunities today given that the country is in a recession. Entrants should submit their comments on the (www.Solo401k.com) blog or post to the “Wall” at the bottom of the Facebook Solo 401k Contest page.

Selection: Each entry will be reviewed by officials at Nabers Group. The person deemed to have the best idea(s) will get a Solo 401k set-up for them at no cost by Nabers Group.

Prize Value: Valued at $210,585, a Solo 401k f r o m Nabers Group can be the investment vehicle to lead to your financial freedom. See the math at FreeSolo401k.com.

Deadline: Entrants must submit on or before March 15, 2009.

 

About Nabers Group
Founded in 2005, Nabers Group is the world’s first and only full-service self-directed plan provider that helps investors and self-employed business owners establish and set up Self-Directed IRA LLC accounts and Solo 401k plans. Nabers Group was the first company to offer the Self-Directed Solo 401k and regularly educates the public about unrestricted investment options that would enable use of retirement dollars to invest in alternative investments including real estate, mortgage notes, private stock, debt instruments, foreign assets, margin brokerage accounts, precious metals, among other assets. For more information on self-directed investing or the Solo 401k, please visit Nabers Group at Nabers.com.

Official Free Solo 401k Facebook contest page:
http://www.facebook.com/event.php?eid=21272779981

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