Checking & Savings, Financial, Financial Information, Financial Services, Investment, Money

NS&I Issues New Inflation-Beating Savings From National Savings and Investments

NS&I has announced the release of two new issues of Inflation-Beating Savings, also known as Index-linked Savings Certificates. These give savers the chance to invest up to £15,000 tax-free* per issue. The Certificates are the only form of savings available in the retail market that offer a 100% safe, tax-free* home, with a guaranteed inflation-beating return.

The value of the Index-linked Savings Certificates moves in line with inflation as measured by the Retail Prices Index (RPI), and interest is added on each anniversary. The Certificates are designed to be held for the whole investment term to receive the full guaranteed compound interest, as the guaranteed rates of extra interest increase each year during the term. This means the returns outstrip any rise in RPI inflation and, as nothing is taken away in tax, the spending power of the investment is increased by the end of the term.

This is the first time that a continuous period of deflation has been experienced since NS&I’s Index-linked Savings Certificates were launched in 1975. Interest and any positive index-linking are applied annually on each anniversary date. However, if index-linking is negative from one anniversary to the next, it is ignored and the extra interest is still added.

With the introduction of these new issues, the previous issues – which were available from June 2008 – have been removed from sale. People who already have an investment in a former issue of Inflation-Beating Savings are also eligible to invest in the new issues.

NS&I Inflation-Beating Savings key features:

– Savings grow ahead of inflation, as measured by the RPI
– Minimum investment of £100, maximum investment £15,000 per issue
– All returns are tax-free*
– Interest and any index-linking added at the end of each year
– Designed to be held for 3 or 5 year terms, no interest or index-linking paid if cashed in during the first year
– Capital invested is 100% secure

*Tax-free means that interest and index-linking are exempt from UK Income Tax and Capital Gains Tax.

About NS&I
National Savings and Investments is one of the largest savings organisations in the UK, offering a range of savings and investments to almost 27 million customers. NS&I is best known for Premium Bonds, but also offers a range of savings accounts including easy access savings accounts, savings bonds, investment savings accounts, and children’s bonus bonds. All products offer 100% capital security, because NS&I is backed by HM Treasury. Further information and digital images are available from the NS&I media team. An ISDN line is available for interviews.

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

Debt Advisers Direct Have Underlined The Importance Of Seeking Debt Advice Before Financial Problems Reach The Stage Where They’re Insurmountable

“In the midst of a recession, professional debt advice has an even greater role to play than usual,” said Melanie Taylor, Head of Corporate Relations for Debt Advisers Direct. “With repossession and unemployment figures rising and many households living with the threat – or the actuality – of reduced income, people across the country are realising that once-manageable debts are suddenly taking up much more of their monthly budget. In many cases, the strain is simply too much.”

debtadvisersdirect.co.uk

The insolvency trade body R3 recently expressed its concern ‘that those with financial problems do not think they ‘need’ debt advice‘. Quoting from YouGov’s quarterly ‘DebtTracker’ of February 2009, R3 pointed out that only 37% those who had fallen behind with many bills or credit commitments had actually taken action and sought debt advice in the previous six months.

Of those who acknowledged that they were struggling with bills and commitments, a full 65% were of the opinion that they simply did not need advice about their financial problems.

“It’s alarming to see so many people in trouble and not looking for help,” Mrs Taylor continued. “Financial problems rarely resolve themselves unless the individual takes positive action. Clearly, many people are able to do so on their own, but while it’s good for people to have confidence in their skills, even the most financially capable people may find they benefit from the insights which someone who specialises in debt could supply.

“Particularly worrying is the thought of people who desperately need to look for debt advice but have yet to do so – either because they’ve not realised the severity of their financial problems or because they’re nervous about asking for help.

“Regarding the first of these two groups, we would like to stress the need for everyone to keep a close eye on their income and expenditure at all times – and this is especially important during challenging economic times when incomes are more likely to fluctuate and access to debt solutions such as debt consolidation or remortgagingmay be relatively restricted. One call to a debt adviser should help them gain some clarity on their situation, helping them understand exactly where they stand and what their options may be.

“Regarding the second group (those who acknowledge their financial problems but may be embarrassed about seeking help), we would like to make three specific points. First, that there are plenty of people in their situation; second, that debt advisers are there to help, not to judge; and third, that the solution to their debt problems could well be much simpler than they expect.

“Many people don’t want to face up to their debt problems because they dread hearing that bankruptcy, repossession, or some other ‘extreme’ scenario is the only way forward. In the vast majority of cases, however, these fears are unfounded. It’s true that there were 10,400 repossessions in the final three months of 2008, yet this only represents 1 in 1,100 mortgages – just as the 19,000 bankruptcies in that period represent an extremely small percentage of the people facing debt problems.

“Once they take the step and talk to a debt adviser, borrowers may be surprised to realise their lenders are willing to consider ways of repaying their debts in a way that’s actually quite manageable.

“Nonetheless, the earlier they seek debt advice, the more options they’ll probably have open to them. By taking action sooner rather than later, they’re likely to save themselves a great deal of time and worry, as well as money (in the form of fees, legal costs and interest charges).”

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

Saving Is Important, But Debt Should Be Priority

Debt management company Gregory Pennington (www.gregorypennington.com) has welcomed news that more consumers are concentrating on putting money towards their debts rather than making savings, saying that this may make the best financial sense in the current economic conditions.

Gregory Pennington

However, the company added that consumers should be careful about where to draw the line, as savings can be a particularly important and useful aspect of people’s finances.

In Nationwide’s latest Savings Index, its senior economist Martin Gahbauer said that households were looking to increase the amount of money put towards their debt repayments “in response to the uncertain economic environment”.

He added that the negative level of housing equity withdrawal reported by the Bank of England earlier this month reflected this trend, and showed that households were using their available cash to reduce their mortgage balances more quickly, rather than spending it on non-essentials or putting it into a savings account.

Indeed, the Bank of England’s figures showed that in the final quarter of 2008, homeowners put a collective £8bn more towards their mortgage debt than they took out in equity withdrawals. It was the third consecutive quarter in which homeowners repaid more than they withdrew, although 2008 was the first year in a decade in which this had occurred.

A spokesperson for Gregory Pennington said that given the current state of the economy, repaying debt should be a priority for anyone who feels that their debt could become a burden.

“Debt repayments can be a burden on anyone’s finances, and that can become even more the case in times of financial hardship. In a time when many essential costs are rising, and when the risk of unemployment is higher than usual, reducing debt is particularly important.

“Even if a person’s debts seem relatively manageable now, a few unexpected events could change that. It’s essential that anyone who borrows money considers their long-term ability to repay the debt. Equally, anyone who finds themselves struggling should contact an expert debt adviser as soon as possible.”

However, the spokesperson added that savings are still very important, and people should look to save money whenever it is sensible to do so.

“Technically, it makes more sense to repay debt than save, even if that means using up those savings,” she said. “That’s because interest on debt nearly always grows faster than on savings, meaning that the person will spend less in the long run by tackling their debts first.

“However, being in debt doesn’t always mean people should avoid saving. If the borrower’s debts are entirely manageable – especially if their terms and conditions do not allow them to make overpayments – then there is no real reason why they should not put money into savings at the same time.

“Savings can offer a great deal of protection against debt, as well as long-term security. For example, a person who puts money aside every month is much better placed to manage any unexpected costs that may arise, or to get by in a period of unemployment.

“It can be difficult to decide whether it’s worth saving money or putting it towards debt repayments. We advise anyone who is unsure what to do with their money to seek free, impartial advice from a professional financial adviser.”

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

Lloyds Banking Group Has Announced Its Participation In The New Electronic ISA Transfer Process Which Is Being Introduced

The Group has been working with the British Bankers’ Association (BBA) and other savings providers to adopt the process ahead of the new tax year.

cash isa

Lloyds TSB, Halifax and C&G will now be able to send and receive cash ISA transfers electronically via the Bankers’ Automated Clearing Services (BACS). These changes will speed up the transfer process by reducing the delays caused by sending cheques in the post.

Colin Walsh, managing director of savings and investment with Lloyds Banking Group said: “The industry wide delays experienced by customers last year were largely due to the outdated cheque and postal system on which the ISA transfer market was dependent. The move to electronic transfers is an important step forward but it is essential we continue to work together as an industry to improve the process.”

Ahead of the new tax year, Lloyds Banking Group has conducted a thorough review of its own internal procedures to ensure the transfer process is as efficient as possible. As a result, the bank has invested in its tracking systems to provide customers with up to date information on the progress of their funds.

The BBA estimates that during the peak ISA season, up to 1000 transfers a day could move more efficiently thanks to electronic transfers.

Colin Walsh continued: “Given today’s unprecedented low rate environment maximising your full tax free allowance has never been more important. As the UK’s largest provider, with a market share of 24 per cent, Lloyds Banking Group is fully committed to participating in the ISA transfer market, both through the use of electronic transfers and by allowing customers to transfer in historic ISA funds.

“However, we have always said this needs to be an industry wide initiative and, as and when other providers introduce the electronic transfer process, more customers will be able to reap the benefits. I believe there will be significant improvements this year, but there is still work to be done.”

About Lloyds TSB:
Lloyds TSB offers customers a wide range of current accounts, savings accounts, insurance, personal loans and credit cards, investment and cash ISA accounts 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.

The following savings providers are participating in electronic transfers:
* Lloyds Banking Group: Lloyds TSB, Halifax, Bank of Scotland and Cheltenham & Gloucester
* Full participation from Birmingham Midshires, IF and Scottish Widows is currently being rolled out 
* RBS Group: RBS, NatWest, Coutts
* Santander: Abbey

 

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Business, Financial, Financial Information, Financial Services, Insurance, Insurance Services, Money

Here Are Some Of The Best Ways To Save Money On Your Health Insurance

No-one likes to spend money when they don’t really need to. If we have to, we look for the best deal to make sure we’re not paying over the odds and the same is true of your health insurance. Here are some of the best ways to save money on your health insurance:

Have you throught about whether you actually need health insurance? In the UK, our taxes pay for the provision of a free health service – the NHS. So private health insurance is sometimes seen as a luxury. Indeed, private healthcare doesn’t normally cover GP check-ups or accident and emergency treatment. It can also exclude the treatment of long term illnesses which you may have had before you bought the policy e.g. cancer, diabetes or cosmetic surgery.

Essentially, if you’re looking for a vastly improved service and you don’t fall into one of categories above, health insurance could be a vital purcase for you. If not, you could be wasting your money.

Another option is to simply pay for treatment as and when you need it. This is great if you’re cash rich or manage to put away a small amount each month into a savings account. The main benefit being if you don’t end up needing any private treatment, you’ve still got the money you’ve put aside. However this method requires a lot of discipline and generally isn’t a recommended form of protection.

You may be covered by your employer, as many now include some level of private health insurance as part of their renumeration packages. It’s worth checking this out before you buy health insurance to ensure you’re not paying for cover you already have. It’s always worth checking the details however, as it may be that you need cover beyond the level offered and you could top-up that policy with your own funds.

Buying health insurance is the same as any purchase – you won’t know whether you’re getting the best deal unless you’ve got a price from everyone. You could go to the big names (AXA PPP, BUPA, Standard Life, etc) but it’s much easier to do your health insurance comparison online where you’ll be comparing all of the big names in one place, as well as the specialist providers. The service offered by Insurancewide not only finds the best health insurance or broker, it allows you to talk to a representative to discuss your options in more detail – there’s nothing quite like the human touch.

As you near the conclusion of your health insurance purchase, you should try to get the best deal possible out of the premium you’re about to agree to. Firstly, haggle as much as you like – the health insurance brokers all work to various levels of commission so they may have some room to manoeuvre. Secondly, you can go through the various treatments you’re covered for and remove those which you don’t believe are likely to apply to you.

Another option is to ask the health insurers about budget policies which will pay for your treatment only if you need to wait for more than six weeks (or another defined period) on the NHS. This can cut premiums by anything up to a third.

Also don’t forget that your circumstances and the health insurance premiums will change over time. So each year, make sure your carry out a health insurance comparison to make sure you’re getting the best deal.

About Insurancewide
Insurancewide, also known as Insurancewide.com Services Limited, is an online insurance comparison website offering insurance comparison tools that allow users to search the market and procure the best insurance policies and quotes.

Insurancewide was launched in August 1999 as the first insurance comparison website on the internet. The site also powered tools used on popular website Confused.com.

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

Debt Advice Important For Struggling Borrowers

Responding to news that total personal debt levels in the UK have risen over the past year, Debt Advisers Direct have warned of the dangers of getting into debt in this difficult time for the economy, and advised anyone who finds themselves struggling to repay debt to seek expert debt advice.

Debt Advisers Direct

New lending figures released by the Bank of England this week revealed that total personal debt in the UK stood at £1.458 trillion at the end of February – a rise of £34 billion compared with the previous year.

That means that despite increased caution amongst financial institutions with regard to lending, the average UK adult has taken on approximately £680 in additional credit over the past year.

However, Bank of England statistics also show that the rate at which personal debt is growing has slowed compared with February 2008, when the total increased by £111 billion compared with the previous year.

A spokesperson for Debt Advisers Direct commented: “A £34 billion increase in total personal debt may surprise some people, given the relatively cautious nature of the lending industry over the past 18 months, even though it is only around a third of the levels seen in the previous year.

“On the one hand, it may suggest that the market for loans and mortgages is not as difficult as many people believed. Lenders have still issued a relatively large amount of money in the past year.

“On the other hand, it could also indicate that people are making more use of the credit they already had. For example, whereas people may have used their credit cards and overdrafts sparingly in the past, many people who have been put under pressure by the economic downturn may have found it necessary to spend more on credit.

This is fine in the short term, so long as those debts are repaid, but if the borrower can not afford to repay those debts in full, then the situation can become more serious.”

The spokesperson added that consumers could benefit from avoiding getting into debt wherever possible, and ensuring that they promptly pay back any credit they do use.

“With more people currently at increased risk of redundancy or a reduction in income, it makes sense for people to ensure that their finances are well prepared for the future. For most people, that should involve reducing debts wherever possible.

“Of course, that is difficult for people whose finances are already stretched to their limits. We have seen massive rises in many essential costs of living over the last 18 months, which have led to many people falling behind on their commitments.

“That’s where a professional debt adviser can help. There are a number of debt solutions that can help people in difficult financial situations to reduce their debts and make their monthly outgoings a lot more manageable. It’s important that anyone who finds themselves struggling to repay their debts seeks debt advice as early as possible to prevent the problem from becoming any worse.”

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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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Assets, Financial, Financial Information, Financial Management, Financial Services, Financial Solutions, Home Equity, Insurance, Money, Mortgage, Retirement

£611 Billion Equity In Homes Owned By Over 65s

Prudential has revealed findings from its latest Equity Release Index* which show that despite falling house prices and the current economic climate, homeowners aged 65 and over have £611.5 of equity in their property.

These significant amounts of property equity contrast with the current squeeze on retirement income being seen in today’s volatile market and economic conditions where rates on annuity and income drawdown products are falling.

Individuals buying guaranteed annuities, for example, have seen rates fall by up to 10 per cent since the middle of last year and Prudential believes this fall emphasises the need for pensioners to look at all potential sources of investments and retirement income.

Property equity can deliver a valuable income, especially against the current backdrop of low interest rates and equity price falls of around 30 per cent over the past two years which have hit many pensioners’ non-pension savings.

Prudential’s Index, which tracks the amount of home equity owned by people aged 65 and over in England and Wales, found that 42.5 per cent of this equity belongs to those living in London and the South East.

The Index also reveals that the value of property equity belonging to homeowners aged 65 and over fell by £80.6 billion between October 2008 and January 2009, with the average homeowner over 65 seeing the value of equity they have in their home fall by £21,377.

London homeowners aged 65 and over saw the highest decline for any region in England and Wales with equity in their homes falling by £38,057 while those in Yorkshire and Humberside experienced a decrease in value of £13,028.

Keith Haggart, Director of Lifetime Mortgages at Prudential, said: “Every homeowner is being affected by falling property prices, but it’s important to remember that many people, especially retired homeowners, bought their homes years ago and have benefited from past growth in the housing market. Even in this depressed market, the vast majority of retired homeowners still have considerable wealth tied up in their properties.”

He continued, “Equity release has an important role to play in providing retirement income particularly when other sources are under pressure.

“Annual figures from SHIP (Safe Home Income Plans) show that equity release sales in 2008 were almost £1.1 billion and were just nine per cent lower than 2007, despite the collapse in the wider mortgage market.”

Equity release schemes can be an excellent way to help retirees to secure an income, and any provider who is SHIP registered provides a no-negative equity guarantee as well as guaranteeing that the mortgage interest rate is fixed for the term of the loan.

 

* Prudential’s Equity Release index tracks the amount of equity held in property by people over 65 years old in England and Wales. Figures are based on Prudential’s analysis of data from the ONS Family Spending Report (2006), the Land Registry House Price Index (August 2008) and GfK NOP (2007). Specifically, weighted number of households data is taken from the ONS Family Spending Report 2006. Home ownership data is taken from the NOP data. Average house price per region is taken from the Land Registry Index.

About Prudential:
“Prudential” is a trading name of The Prudential Assurance Company Limited, registered in England and Wales. This name is also used by other companies within the Prudential Group. Registered Office at Laurence Pountney Hill, London EC4R 0HH. Registered number 15454. Authorised and regulated by the Financial Services Authority.

Find out more on Prudential’s product range including endowments and equity release schemes, including equity release mortgages on the Prudential website, www.pru.co.uk.

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Changes To UK Gas Safety Commercial Insurance is Vital

From April the Corgi Gas Register was replaced by the Gas Safe Register. The Health and Safety Executive hold the brand “Gas Safe Register TM” in trust to ensure that it remains the official mark for the gas safety register.

A spokesman for Staveley Head, one of the county’s leading commercial insurance brokers, said:

“The Corgi Gas Register in Great Britain ended on 31st March 2009. There has been an extensive publicity campaign to make those people working in the trade aware of the change and to encourage them to re-register with the Gas Safe Register in order for them to comply with the Gas Safety (Installation and Use) Regulations 1998 and be able to carry on work.”

The Health and Safety Executive has delegated to the Gas Safe Register the sole responsibility for collating and recording the registration details of all certified contractors who are registered to undertake gas work in Great Britain and the Isle of Man.

The Staveley Head spokesman went on to say “The majority of people working in the gas trade and holding commercial insurance policies will find that their commercial insurance companies will amend the policy wording in their documentation to accommodate this change either mid-term or at the latest when their renewal falls due. The policyholders do not need to do anything, other than advise their business insurance brokers if they have not yet registered for the Gas Safe Register.”

Staveley Head is one of the leading commercial business insurance brokers in the UK and will be pleased to give you all the advice and assistance you need regarding this matter, including a very competitive liability insurance quote.

For more information on any aspect of commercial property insurance or commercial building insurance contact Staveley Head on 0845 017 9991 or email quotes@staveleyhead.co.uk.

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College Finance, Financial, Financial Services, Loans, Money

If You’re Looking For A Good Deal On A Payday Loans, Quick Cash Advance And Personal Loan Then You Are In The Right Place!

Indiana Campaign Finance (ICF), expert providers of payday loan solutions, recently announced an expansion of their current offerings to include the Go Faxless Payday Loans service. Available online, the no fax payday loan option creates a seamless way for individuals to achieve their short term loan goals.

“The Go Faxless payday loan service is just one more way we help our clients reach their goals. Most applicants receive their cash within 24 hours of submitting the easy to use payday loan form”, ICF, CEO of Indiana Campaign Finance stated. See also Home Loans Online

The requirements for ICF’s Go Faxless Now are simple. Applicants are required to maintain a job or provide proof of stable income such as payments received through employment, social security, retirement, or state support. See Student Loans Now Applicants must also be 18 years of age or more and have an active savings or checking account. The checking and savings account information is used exclusively for the payday loan deposit. The ICF website gathers the required information through a secured online form which is then sent for review. Fast Personal Loans see also.

With the Go Faxless option, ICF lenders deposit the money approved applicants request directly into their checking accounts within hours of application submission. In return, the loan amount and any associated fees are repaid by ICF lenders through funds withdrawn from the same savings or checking account of the applicant. The loan repayment typically occurs 2 weeks after the applicant has received their funds, although loan repayment extensions and other loan terms may also be available. Mortgage Loan and Bad Credit Loan is ok!

The faxless payday loan service is available to consumers nationwide 24 hours a day, 7 days a week via the ICF website. For more information or to submit a faxless loan application visit ICF online at our site.

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Unfair Blacklisting Due To Id Fraud Is Set To Boom Warns LV=

A new report* released by LV= shows that the number of Brits whose credit rating has been badly damaged by identity theft is likely to almost double within the next five years, with up to 240 people a day being affected.

The new research by home insurer LV= shows that nearly half of all Brits (46%), have experienced some sort of credit problem**, with 27% blaming mistaken identity, and 29% said they had no idea why they had encountered a problem.

LV= is warning people that if they believe they have been refused credit unreasonably, they should investigate it further. It could be a sign that they have become a victim of identity theft.

To help assist the growing number of people affected by this problem, LV= home insurance now offers customers free access to an Identity Fraud Helpline. The helpline is staffed by specially trained expert advisers who will explain what people can do if they think they have been a victim of identity fraud.

The LV= research, undertaken by the Centre for Economics and Business Research (CEBR), includes views from over 6,000 adults who were questioned about their experiences in applying for credit cards and other services. The research shows that as many as half a million adults* have been ‘blacklisted’ as a result of being hit by identity fraudsters, with the figure predicted to rise by a further 440,000 over the next five years.

In the past decade identity fraud cases have rocketed, rising on average by 33% annually for the past eight years***. The research also reveals that victims of identity fraud face costs of over £2,100 to clear their name.

John O’Roarke, managing director of LV= home insurance, said: “In the last ten years we’ve seen a massive increase in the number of people targeted by fraudsters, illustrating the importance of vigilance in protecting personal information and monitoring for any problems that might prove to be a ‘symptom’ of identity theft.

“Our research shows that an unfair credit rating is a common problem for many and more worryingly, identity fraud is likely to rise sharply in the coming years. That’s why we’ve set up the LV= identity fraud helpline, free to all our home insurance customers, so that anyone who thinks they might have become a victim of identity theft has somewhere to go for help and support.”

* Opinium research indicates 2% of people have been a victim of identity fraud. UK adult population is 47.9 million (derived from the Labour Force Survey); CEBR predicts cases will rise by 440,000 cases in the next five years.
** Credit problems are defined to include being denied a loan (including mortgage), credit card, utility or service contract, being investigated by bailiffs, incorrectly receiving a court summons or unpaid bills.
*** CEBR analysis based on CIFAS data: in 1999 there were 9,000 reported cases of identity fraud, rising to 77,500 in 2007.

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.

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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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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Banks, Debts, Financial, Financial Services, Foreclosure, Home Equity, Loans, Mortgage

Stop Foreclosure On Your Home, Work With A Loan Modification Specialist

The HRP Office, www.hrpoffice.com, is open in Surfside Beach, South Carolina and ready to assist clients with their mortgage needs. The owner, Dr. Michael W. Cantrell, Sr. and his staff are experienced loan modification specialists. Their long time strong relationship with most major banking institutions enable them to work faster, smarter and less expensively than other loan modification companies. Clients of HRP, LLC quickly come to recognize them as the experts in helping them get their loans successfully modified.

What kinds of situations can the HRP Office, www.hrpoffice.com, help their clients with?

Homeowners who are behind on their mortgage payments
Homes currently in foreclosure 
Homeowners have an ARM that has adjusted higher or will adjust higher in another month or two
Homeowners who have a legitimate hardship
Reduced income, reduced hours, pay cut, loss of job, relocation, demotion
Homeowners who went on Disability or Workers Compensation
Divorce/Separation
Excessive medical bills
Back taxes that are currently being paid back 
Death of household provider
Failed business

The staff at HRP, www.hrpoffice.com, guarantees their services 100%; they are an industry leader in loan modifications. With a staff of licensed attorneys as well as experienced processors and negotiators, they work together to handle each and every case with the utmost care and concern. Lenders have very specific guidelines that must be met before they will agree to modify a loan. HRP knows what those guidelines are and how to get their clients the very best possible option available. They work for the homeowner, not the lender, so your best interests are their main concern.

What can the HRP Office, www.hrpoffice.com, do for their clients?

Pre Qualify a case at no cost to the homeowner
Provide the homeowner with access to their account online 24/7
Prepare a comprehensive modification package to best position each case for success
Engage in hard line negotiations with lenders to ensure the best possible outcome for their clients
Stop collection calls on overdue mortgage payments
Postpone imminent sale dates so the homeowner can breathe easier

Custom Analysis for Each Client
The staff of the HRP Office, www.hrpoffice.com, understands that everyone’s financial situation is unique, which is why they offer comprehensive, personalized, and proven modification programs that get results. The legal experts at HRP understand the importance of providing individual services that are tailor made to effectively meet the personal financial needs of their clients.

100% Guarantee
Dr. Michael Cantrell and his staff take pride in their level of service and client support and are committed to providing the most rewarding experience possible. HRP’s, www.hrpoffice.com, web-based software allows their clients to have access to their account 24 hours a day 7 days a week. People can check the status of their loan modification case at any time. Clients can also contact their HRP team members via email, fax or phone at any time. Dr. Cantrell had this to say about HRP “Our specialized attorneys, paralegals, negotiators, processors and customer service professionals are unmatched. We provide customized, personal attention to your individual situation and we emphasize customer support and long term solutions for you. Simply put, we strive to provide the best customer service in the industry, and our results-oriented negotiators take pride in consistently meeting and exceeding our client’s expectations. Ultimately, we provide clients with renewed financial optimism and a valuable savings of time and money. In addition, our company has the resources, banking relationships, ethical standards and legal expertise that other companies cannot offer which can translate into significant benefits for our clients.”

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Checking & Savings, Debts, Financial, Financial Information, Financial Management, Financial Services, Financial Solutions, Loans, Money, Mortgage, Personal Finance

The Importance of Keeping on Top of Mortgage Payments

Responding to the news that the number of homeowners falling behind on their mortgage payments has risen by almost a third (31%) in the past year, debt consolidation company DebtAdvisersDirect.co.uk has emphasised the importance of keeping on top of mortgage payments, adding that a mortgage should be the top priority for any homeowner.

The company added that borrowers who are having difficulty with their mortgage payments should seek expert debt help as soon as the problem emerges.

The latest figures from the FSA (Financial Services Authority) showed that there were 377,000 borrowers in arrears on their mortgages at the end of 2008 – up 10% in the final quarter alone, and 31% higher than the same period in 2007.

The figures refer to mortgage accounts in arrears by 1.5% or more of the borrowed balance, roughly equivalent to arrears of at least three months.

The figures mean that 3.4% of all mortgages were in arrears at the end of 2008, compared with 2.3% at the end of 2007. Meanwhile, new repossessions increased by 60% compared with the same time period in 2007.

A spokesperson for Debt Advisers Direct said: “We would expect an increase in the number of homeowners falling behind on their mortgage debt in recent months, but these statistics show just how quickly it is occurring.

“Considering the economy is potentially about to enter a more severe stage of the recession, it’s very important that homeowners are careful with their finances and avoid falling behind on their debt repayments.

“In particular, a mortgage should be the number one priority for any homeowner. It is important that all debts are repaid on time, but a mortgage pays for the borrower’s home – and as such, failing to keep up on payments could eventually result in the home being repossessed.”

The spokesperson also said that if other debts are making it difficult to pay the mortgage, a professional debt adviser may be able to recommend a suitable debt solution that could make the borrower’s unsecured debts more manageable.

“There are few debt solutions that deal directly with mortgage repayments, although in some cases a debt adviser may be able to negotiate with mortgage lenders for a reduction in payments. However, a debt solution that deals with the borrower’s unsecured debts could reduce the homeowners monthly outgoings, and therefore make it easier for them to meet their mortgage payments.”

The Debt Advisers Direct spokesperson added that if the situation becomes more serious and the homeowner cannot see a way of repaying their debts in full, an IVA (Individual Voluntary Arrangement) could help them avoid bankruptcy by paying off an agreed percentage of their debts, and therefore help them avoid losing their home.

“If the homeowner can agree a repayment plan for their mortgage arrears, then an IVA can be arranged around that, meaning both the homeowner’s mortgage and their unsecured debts are taken care of.”

However, the spokesperson was keen to emphasise the importance of speaking to a professional debt adviser before deciding on any debt solution.

“Different debt solutions are more appropriate for people in different situations, and equally they all have their drawbacks. An expert debt adviser can help to explain the pros and cons of each debt solution, to help the borrower in establishing which debt solution is best suited to their individual needs.”

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Bonds, Checking & Savings, Financial, Financial Information, Financial Services, Investment, Money

NS&I has announced the launch of a new issue of its Guaranteed Equity Bond

The new Guaranteed Equity Bond will offer a gross return that matches any growth in the FTSE 100 index over a 5-year term, up to a maximum of 35%, without any risk to investors’ capital. All NS&I GEBs are sold in limited issues, so investors are advised to move quickly if they want to secure a guaranteed investment return through these bonds.

While the returns paid on NS&I Guaranteed Equity Bonds are linked to the FTSE, NS&I does not invest the money in equities, so investments in the Guaranteed Equity Bond will not be eligible for dividends. Therefore investors may not get as high a return as they might through investing directly in the stock market. However, unlike investments in the stock market, any money invested is guaranteed 100% secure, backed by HM Treasury. NS&I are committed to banking and offer a great range of equity bondsincluding NS&I Guaranteed Growth Bonds.

The launch of the 17th Issue coincides with the maturity of Issue 7 of NS&I’s 5-year Guaranteed Equity Bond on 19 May 2009. Issue 7 went on sale in April 2004, offering a potential return of 110% of any FTSE growth over five years and a FTSE start level of 4435.80. NS&I has written to investors this month to inform them that their Bond is about to mature. As a consequence of market conditions and the falls in the FTSE 100, savers will receive their initial investment in Issue 7 of the Guaranteed Equity Bond back in full – in line with NS&I’s commitment to a 100% guarantee on the capital originally invested. They will also receive interest earned during the offer period – but with no further return. 

NS&I Guaranteed Equity Bond offer period
Issue 17 of the Guaranteed Equity Bond goes on sale for a limited period from 21 April to 1 June 2009. It may close earlier if fully subscribed so investors are encouraged to invest early. Investments will earn interest at 0.50% pa gross until the Bond’s investment term starts on 16 June 2009. This interest will be paid when the Bond matures. The minimum investment level for this Guaranteed Equity Bond remains at £1,000 and the maximum investment is £1 million per person or £2 million for a joint investment. 

1. Inflation may reduce the true value of the original capital over time.
2. NS&I has 27 million customers and over £94 billion invested. It is best known for Premium Bonds, but also offers Inflation-Beating Savings, Guaranteed Equity Bonds and Children’s Bonus Bonds in its range. All products offer 100% security, because NS&I is backed by HM Treasury.
3. Further information and digital images are available from the NS&I Media Team.

About NS&I
NS&I is one of the UK’s largest financial providers with 27 million customers and over £94 billion invested. It is best known for Premium Bonds, but also offers inflation-beating savings account guaranteed equity bonds, savings bonds easy access accounts and children’s bonus bonds in its range. All products offer 100% security, because NS&I is backed by HM Treasury.

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Career, Financial, Financial Information, Financial Services, Financial Solutions, Insurance, Insurance Services, Personal Finance, Retirement

One major cause of pensions gender gap is that many women take a career break to have children

According to new figures from the Prudential Class of 2009 retirement survey, UK women who plan to retire in 2009 can each expect to receive £6,642 a year less in their annual pensions than men, equivalent to a total income shortfall of more than £42 billion.

The 2.76 million women planning to retire in 2009 can expect to receive an average annual pension of just £13,671, while the 3.95 million men who plan to retire in 2009 will get £6,642 more, expecting an average pension of £20,313.

“It’s still a shock to see so many women retiring at such a disadvantage to their male colleagues, despite all we know about the causes of pension discrepancies between men and women,” said Karin Brown, Annuities Business Director at Prudential.

“The gender gap has become so firmly established because women have historically earned less than men, and still earn around 17% less. When women have children, their pension contributions reduce significantly or stop altogether, and their state pensions often take a hit as well.

“The underlying problem that many people have insufficient pensions is never going to go away unless men and women start their pension plan much earlier in life, ideally in their twenties or thirties,” Karin added. “Starting a pension at an early age will lessen the impact in later life of many women’s decision to take a career break to have children. It will also mean people can feel confident that they are going to have enough money to live off when they do come to retire, and this is vitally important for women who expect to receive smaller pensions than men.”

One major cause of pensions gender gap is that many women take a career break to have children, but it is possible to protect future pensions and maintain a pension during this time. Women could also consider trying to keep up any company pensions or private pension contributions even if they are on maternity leave or an extended career.

Other causes include:
Neglecting pension savings
– As many as 61% of retiring people doubt their pension and other savings will provide a sufficient income to enable them to enjoy a comfortable life in retirement.

Not saving enough
– A rule of thumb is for people to try and save half of their age as a percentage of their salary into a pension scheme, for example 12.5% at age 25 and so on.

Not taking advantage of company schemes
– Many employers offer pension schemes and agree to match any contributions made by employees. People should enquire about the pensions scheme offered by their employers.

Not shopping around
– People in retirement have a wide choice of annuities available to them and it is recommended that they shop around for the product which is most suitable for their needs.

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 online by Research Plus among 1,000 UK adults aged 45+ between 10-18 November 2008. Figures based on Office of National Statistics 2007 which show 24,990,500 adults aged 45+ in the UK. For further information please contact the Prudential media department.

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

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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