Personal Finance Blog

Spring clean your finances

As many householders gear up for their annual spring clean, moneysupermarket.com is reminding people to ‘tidy up their finances as well as their homes’.  It would seem that by switching to the best deals on financial products, a saving of £3,469 could be made over the course of the next 12 months.

Site editor at moneysupermarket.com, Clare Francis, commented: “After months in the cold and dark, spring is just round the corner and what better time to take charge of the family’s finances by checking to see that you’re making the most of your financial products.  There are some really easy savings to be made, just by spending half an hour reviewing where you’re at financially.  It’s easy to be complacent but some rates on products change quite regularly so literally, it really does pay to be vigilant.”

When it comes to mortgages, the comparison site has identified that many standard variable rates have increased whilst rates for new borrowers have fallen.  Furthermore, mortgage availability and loan to value ratios have reportedly risen.  With the Base Rate currently at its lowest level, it has been suggested that longer term fixed rate mortgages could be considered.  Additionally, homeowners with a significant level of savings could also consider an offset mortgage as a means of maximising capital according to moneysupermarket.com.

With regard to credit cards, it was recently found that one in five people carry over three credit cards, with 17 percent of credit card holders making at least one daily purchase on plastic.  The research also uncovered that some ‘savvy’ consumers aim to get the most from their credit cards.  For example, 25 percent reportedly utilise their credit card to gain reward points whilst 11 percent do so for cashback and zero percent purchases.  However, moneysupermarket.com has pointed out that many consumers are yet to take complete advantage of credit card benefits.

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Homeowners who would like to spring clean their finances could consider taking out a secured loan to tie up any existing debts, such as credit cards.  One of many finance options available, a secured loan for consolidation could allow borrowers to eliminate multiple monthly debt repayments – replacing them all with just one.  This single, manageable monthly repayment could even be lower than the sum of current outgoings.   However, if opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.

CBI wants the ‘green’ light for energy-efficient driving tests

According to a new CBI report, containing ‘recommendations to pave the way for the development of low-carbon cars and homes’, transport emissions could be reduced and motorists could save money by making energy-efficient driving a compulsory part of the driving test.In fact, it has been revealed that fuel savings of 5 to 10 percent would be possible, which reportedly equates to an annual sum between £200 and £250.

CBI Director of Business Environment, Dr Neil Bentley, commented: “More than a quarter of the UK’s greenhouse gases come from personal transport, half of which are from cars.  Making small changes to the way we all drive will reduce carbon emissions and could save motorists up to £250 a year.

“Simply changing gears more smoothly to avoid sharp breaking and acceleration can reduce fuel consumption by a third.  Learner drivers already have to demonstrate they can drive in a fuel-efficient way during the course of their driving test, but this is not a pass or fail element.

“Making energy-efficient driving techniques a mandatory part of the test will make a significant contribution to changing the next generation of motorists’ behavior, and to cutting transport emissions.”

“The Government needs to take action now to incentivise consumers to make energy efficient choices and ensure it provides the right framework to spur on businesses to develop exciting new products and services.”

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Homeowners who would like to enhance the energy-efficiency of their property could consider taking out a secured loan for home improvements.  One of many finance options available, a secured loan for this purpose could fund thorough insulation for example.  Furthermore, borrowers may wish to utilise the funds to replace any draughty doors and windows, or even an ineffective boiler.  Solar panels could also be invested in to make the most of the sun’s natural resources.  Measures such as these could potentially leave homeowners with lower long-term energy bills.

Average property price in England and Wales stands at £165,088

According to the Land Registry’s House Price Index, the January data shows a 5.2 percent change in property prices on an annual basis.  This reportedly marks the second consecutive month of positive figures, and has taken the average house price in England and Wales to £165,088.  A rise of 2.1 percent was recorded between December and January.

Findings have shown that average property prices in seven regions of England and Wales have increased during the last 12 months, with London experiencing the greatest rise at 10.5 percent.  In contrast, the most significant annual price decrease was found in the North East at minus 3.4 percent.

In monthly terms, it was revealed that the greatest house price rise was in London at 3.9 percent, whereas the North East experienced the greatest price fall at minus 1.3 percent. 

With regard to completed house sales in England and Wales, findings show a 54 percent rise in November 2009, which took the number from 36,091 in November 2008 to 55,715.

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Homeowners who have recently moved into a new property, but do not have the funds required to put their personal stamp on it, could consider taking out a secured loan to fund any desired projects.  One of many finance options available, a secured loan for home improvements could allow borrowers to completely re-decorate and re-furbish their new home to suit their personal tastes and lifestyles.  Furthermore, borrowers who enjoy spending time outdoors could even consider having their new garden landscaped if necessary, in preparation for the forthcoming summer months.

No stroke of luck for many sick or injured pets

According to new research from Sainsbury’s Finance, 56 percent of vets have revealed that they have had to put down cats and / or dogs in the past five years because their owners could not afford the required treatment.  In addition, it was found the 88 percent of vets have encountered situations where owners have ‘rejected a recommended course of treatment or operation’ due to an inability to pay for it.

Sainsbury’s Pet Insurance Manager, Joanne Mallon, commented: “It should be an essential item on a prospective owner’s list when weighing up whether to purchase an animal or not.  Doing without insurance is simply false economy and worse still could result in some heart breaking family decisions being made later down the line.

“Advances in veterinary science mean that our pets can get the best treatment possible these days, but these improvements including everything from more sophisticated scans to cancer treatments come at higher costs and the financial burden is being felt by pet owners.  Despite this, the vast majority of our pets are not insured so their owners have no protection against large veterinary bills.

“Vet fees are increasing by around 12% a year, and as a result of this we may see more animals needlessly being put down because their owners cannot afford it.”

The research uncovered that 63 percent of vets are of the belief that there has been an increase in the cost of treating a skin tumour on a cat or dog during the past 12 months.  Furthermore, it was found that 53 percent of vets reported a rise in the cost of treatment for dental trauma.  Additional reports of cost increases included the treatment of gastroenteritis at 65 percent, lameness at 61% and diabetes at 57%.

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Homeowners who are juggling ad hoc bills and regular commitments could consider taking out a secured loan to tie up any existing credit into one manageable monthly repayment.  One of many finance options available, a secured loan for consolidation could leave borrowers with lower monthly outgoings.  This extra money could potentially be set aside in a savings account for future use.  However, if opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.