Category: News

The cost-of-living crisis means that Christmas may have to look a little different for many people this year, but the good news is that a budget Christmas can still be a special one. We’ve put together five top tips for how you can cut the cost of Christmas, all it takes is a little creativity and imagination!

Create a secret stash

The Christmas break can be a great time to enjoy some indulgent food and drink, however it needn’t cost a fortune if you plan ahead and buy the right items, at the right price. Know the value of what you’re looking to buy, and keep an eye out for special deals available in the run up to Christmas, stashing away non-perishable treats and gifts when you find them at the right price.

Many supermarkets run promotions on party foods and posh nibbles – 3 for 2 offers and so forth, so stock up when you can, but make sure that you’ve got sufficient space in the freezer beforehand!

It also pays to check the ‘Use by’ dates too – not all Mince Pies will last until Christmas Day!

The value of loyalty points

Whether it’s a supermarket loyalty card, credit card reward points or online credit built up from shopping or delivery services apps, most of us are likely to have been earning loyalty points throughout the year, so take a look at your balances and see where you can cash in those points and get Christmas for less.

Take Stock

Before getting stuck in with the Christmas shopping, it’s worth taking stock at home to see what you’ve already got from last year, and can therefore skip buying this time around – from all sorts such as unused cards, wrapping paper, sticky tape for example. Consider making homemade decorations or cards, you’ll find plenty of beginner craft projects on Pinterest and Instagram.

Have a go at Homemade

Costing a fraction of shop-bought equivalents, homemade gifts are always appreciated. Have a go at making jam or chutney, for example – step-by-step guides and recipes to a wide variety of suitable gifts can be found online, and you can make gorgeous gifts on their own, or as part of a bespoke DIY food hamper that will delight your loved ones!

Save steadily throughout the year

Christmas 2023 may seem like a long time away – but why not get yourself in the best possible position and start saving just a little each month towards it now – soon enough that will build up into a tidy sum to go towards buy some of life’s little luxuries for you and your family.

All the information in this article is correct as of the publish date 24^th November 2022. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Most of us have one or more credit cards, and if used properly, can be a very helpful tool. Making payments on time every month can boost your credit score and some cards may offer rewards and potentially even 0% interest for balance transfers from other cards for a limited period.

However, if spending on credit cards gets out of control, making monthly payments becomes harder, particularly as the interest element grows.

Currently, we are living in particularly difficult times with cost of living increases cutting into family budgets. The increasing need to make use of every way to make our money go further means that it may be tempting to favour putting purchases on a credit card.

However, falling behind on your payments could lead to potential issues with your credit in future.                                                           

We’ve put together some helpful tips that could help you when considering to use a credit card.

1. Pay off your balance every month.

You could avoid paying interest on your credit card purchases by paying the full balance every month.Resist the temptation to spend more than you can pay for any given month, and you could enjoy the benefits of using a credit card without interest charges.

2. Use the card for needs, not wants.

A credit card should be used carefully but if used as a substitute for the family budget, it can very quickly lead to problems with debt. Credit cards can be used in emergency situations, such as a mobile phone bill that’s due before your next payday. It could be an option to use a credit card in this situation, and then pay back the amount as soon as you can to decrease or help to avoid interest charges altogether.

3. Never skip a payment.

Keep up with your payments every month, and aim to repay as much as you can. Missing a payment could result to extra fees, penalty interest rates and/or potentially damage your credit rating, which may make it difficult to get credit in the future.¹

4. Use the credit card as a budgeting tool.

Having said all that, if you are careful with how you use your credit card, you could use it responsibly by paying the balance every month. By making purchases with your credit card, you can see exactly how much you’ve spent at the end of the month. Of course, you should only do this if you know you can pay off the balance each month, and it would be worth noting that you should not charge more to your card than you have in your bank account. It can be difficult to manage your monthly payments, so if you find that you are struggling to pay your credit card, there are free online resources available to help, for example Citizens Advice, Step Change, and Money Helper to name a few.

5. Use a rewards card.

If you’re using a credit card for most or all of your purchases, it could help to use a card that offers cashback. According to Money Helper, “Cashback credit cards offer you the chance to earn cash from the money you spend, by paying you back a percentage of what you spend or giving you reward points. They only make sense if you pay off the balance in full each month and never go over your limit. Otherwise, the interest you pay will outweigh the rewards. ”²

It could be a good way to use a credit card, but there are factors that need to be taken into consideration before you decide to proceed. Researching your options first and using government sites such as Money Helper, could help you when making your decision.

Sources

1. Moneyhelper (2022) Paying off your Credit Card. Available at: https://www.moneyhelper.org.uk/en/everyday-money/types-of-credit/paying-off-your-credit-card (Accessed 21 Nov 2022)
2. Moneyhelper (2022) Cashback credit cards. Available at: https://www.moneyhelper.org.uk/en/everyday-money/types-of-credit/cashback-credit-cards (Accessed 21 Nov 2022)

All the information in this article is correct as of the publish date 24^th November 2022. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Wholesale gas prices have fallen but it might not to be reflected in your household bills just yet.

When gas prices rose earlier this year, we were all faced with huge increases in what we paid for domestic and business supply. The government stepped in to limit bills to the cap of £2,500 per year. According to Ofgem, “The £2,500 figure is based on a household with typical consumption on a dual electricity and gas bill paying by direct debit,”¹ so this amount could potentially be higher.  

Even with the conflict in Ukraine and current uncertainty in the financial markets, it was not expected that wholesale prices for gas would fall. In August the price for international wholesale gas peaked at 550p per therm. According to the BBC, that price had fallen at some point to 38p².

Logically, one could assume that the drop in prices would immediately feed through to us as consumers. Though the good news is that the cost of the government’s subsidy will not have to be so large, the general consensus for consumers is that prices may still remain high.²

As there is no single price for gas, suppliers who buy gas for delivery immediately, can help to pass on those savings to consumers immediately. However, according to the BBC article, suppliers who may have bought in advance to guarantee availability, are unable to pass those prices on.²  

However, gas being sold for delivery in the middle of winter will reflect the state of current supply and demand, so it is likely that wholesale prices will increase again. In the BBC article, Leon Izbicki, a senior associate for natural gas at consultancy explains that “While Europe as a whole looks set to weather the storm this winter, it’s becoming more and more an issue for the winter of 2023.”²

We can all hope that this changes in future, but at the moment, the general consensus is that prices for consumers may not reflect the decreases to wholesale prices.

Sources

1. Ofgem (2022) Energy Price Cap Explained. Available at: https://www.ofgem.gov.uk/information-consumers/energy-advice-households/check-if-energy-price-cap-affects-you (Accessed 21 Nov 2022)

• BBC News (2022) Will falling gas prices mean lower bills?. Available at: https://www.bbc.co.uk/news/business-63512583 (Accessed 21 Nov 2022)

All the information in this article is correct as of the publish date 24^th November 2022. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

We have talked in the past about the importance of keeping you and your loved ones safe from fraud and other financial scams.

Recently, UK Finance, a trade association for the UK banking and financial services sector, launched an initiative to raise awareness. Take Five is a national campaign that offers straight forward, impartial advice to help everyone protect themselves from preventable financial fraud. This includes email deception and phone-based scams as well as online fraud, particularly where criminals impersonate trusted organisations.¹

Many people may already know the dos and don’ts of financial fraud and scams – that no one should ever contact them out of the blue to ask for their full PIN or full password, or ever make them feel pressured into moving money to another account. The trouble is, in the heat of the moment, it’s easy to forget this.

Take Five highlight the main areas where fraud can take place:

Identity Theft

“Identity theft is when your personal information is stolen and used to open bank accounts apply for plastic cards and loans or government benefits and documents such as passports and driving licences in your name”.²

Payment in Advance Fraud

“Also known as an advance fee scam, this is when you’re convinced to pay an upfront fee in order to receive a prize/service, high value goods or loans which never materialise”.³

Ticket Fraud

“Criminals either set up fake websites or social media profiles to sell tickets for major events (such as sports, music or theatre) that are either fraudulent or don’t exist”.⁴

The trade association also advise on how to spot ticket fraud by the following quoted from the website:-

1. “You see an offer for a ticket online, in an email or a message/DM.
2. You’re offered tickets for a high demand or sold out event at a ‘too good to be true’ price.
3. You’re asked to pay by bank transfer only and not via the secure payment methods recommended by reputable online retailers.
4. You see a website that looks similar to that of a genuine organisation but there are subtle changes to the URL.
5. You’re told that a customer representative will be arranged to meet outside the venue”.⁴

Impersonation scam

An impersonation scam is where a criminal contacts you pretending to be a person or organisation you trust. These scams can be very sophisticated and often start with attempts to get you to disclose personal and financial information. They then use this information to impersonate someone you trust, making it seem more believable, but their ultimate aim is to try to steal your money.

“71 per cent of 18 to 34-year-olds surveyed said they had been contacted by an impersonation scammer, with 73 per cent of those targeted saying they had subsequently been persuaded to either send money or share personal information”.⁵

A word of advice from UK Finance –

“If you believe you’ve fallen for a scam, contact your bank immediately on a number you know to be correct, such as the one listed on your statement, their website or on the back of your debit or credit card.

Report it to Action Fraud on 0300 123 2040 or via actionfraud.police.uk. If you are in Scotland, please report to Police Scotland directly by calling 101 or Advice Direct Scotland on 0808 164 6000.”²

Sources

1. Take Five (2022) What is Take Five?. Available at: https://www.takefive-stopfraud.org.uk/ (Accessed 21 Nov 2022)
2. Take Five (2022) Identity Theft. Available at: https://www.takefive-stopfraud.org.uk/advice/general-advice/identity-theft/ (Accessed 21 Nov 2022)
3. Take Five (2022) Payment in Advance Fraud. Available at: https://www.takefive-stopfraud.org.uk/advice/general-advice/payment-in-advance-fraud/ (Accessed 21 Nov 2022)
4. Take Five (2022) Ticket Fraud. Available at: https://www.takefive-stopfraud.org.uk/ticket-fraud/ (Accessed 21 Nov 2022)
5. Take Five (2022) People Under 35 Are More At Risk From Impersonation Scams. Available at: https://www.takefive-stopfraud.org.uk/news/people-under-35-are-more-at-risk-from-impersonation-scams/ (Accessed 21 Nov 2022)

All the information in this article is correct as of the publish date 24^th November 2022. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

To add to the challenges we all face due to the rise in the cost of living, the Financial Ombudsman Service (FOS) is warning people not to be tempted to invest in schemes that promise large returns but turn out to be fake¹.

We are all looking at ways to increase our ability to cope and it is no surprise that we will look at any way we can to make our savings stretch further. The sad fact is that if an investment looks too good to be true, it probably is. FOS says that many of the investment scam complaints they investigate involve cryptocurrency¹.

The way these scams often work is when people are persuaded to buy cryptocurrency and send money to what they believe is a genuine investment platform that is in fact operated by fraudsters. According to FOS, there are examples of consumers being defrauded out of sums up to hundreds of thousands of pounds¹.

The report from FOS concentrates on money being invested in the belief that it is going into cryptocurrency but is just diverted into the pockets of the fraudsters.

Crucially, fraudsters have always relied on the promise of great returns and large profits. It is hardly surprising that many of us, keen to extract the maximum return from the money we have saved, are likely to be tempted by offers like this. The key is to make sure that, no matter how plausible the proposition looks, it is checked thoroughly before any money is transferred.

Nausicaa Delfas, interim chief executive and chief ombudsman at the FOS said, “We are concerned that, in current economic circumstances, people could be tempted to invest in fake investments.

Our advice to consumers is to be wary, conduct their own research, check the FCA register (of authorised intermediaries) and contact the firm directly on the number listed.”

She added, “If people feel they have been treated unfairly by their bank, they should contact the Financial Ombudsman Service, and we will see whether we can help.”¹

Sources

1. Financial Ombudsmen Service (2022) Consumers warned about rise in investment scams. Available at: https://www.financial-ombudsman.org.uk/news-events/consumers-warned-about-rise-in-investment-scams (Accessed 21 October 2022)

All the information in this article is correct as of the publish date 27 October 2022. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

In the current economic conditions, it makes sense to look at the actions we can take to improve our homes’ heatproofing. With the nights drawing in and temperatures beginning to drop, the reality of expensive fuel bills is already becoming an unwelcome reality. Although the government has sought to mitigate the impact via the energy price guarantee to cap the cost of how much we can be charged per unit of energy (kWh)¹, if we want to keep those costs down, apart from cutting our use of power, we can be proactive by making our houses as energy efficient as possible.

There are a number of ways we can help ourselves in keeping our energy expenditure down by making our homes heatproof, some of which don’t have to cost large sums.

Check for draughts

It’s worth checking your property for draughts, just to identify any areas where heat may be leaving the building and plug these where possible, such as with a draught excluder for any external doors, which can be bought for between £5-£20 at a DIY outlet. For internal doors, you can make your own temporary solution with rolled up towels or clothes in a laundry bag or equivalent. Also, don’t forget your letterbox!

Window improvement

Of course, double glazing is an option, but not everyone can afford it and those inrented accommodation are unlikely to persuade their landlords to take immediate action. Simple, cheap fixes can include fixing clingfilm to the inside of windows or fitting glass or clear plastic in the window frame as DIY secondary double glazing.

How about the loft?

According to the Energy Saving Trust (EST), a properly insulated attic can save between £355 – £590 per annum depending on the house being semi-detached or detached². Although it can cost around £630 to insulate the loft of a detached house, the cost can be kept down by buying the rolls of mineral wool and fitting it yourself. Also, your energy supplier might be offering free insulation and fitting under the energy company obligation (ECO)³ – worth checking out.

We’ll try and bring you more simple hacks that could help you reduce your energy costs.

Sources

1. BBC (2022) What is the energy price cap and what will happen to bills? Available at: https://www.bbc.co.uk/news/business-58090533 (Accessed 21 October 2022)
2. Energy Saving Trust (2022) Roof and loft insulation. Available at: https://energysavingtrust.org.uk/advice/roof-and-loft-insulation/ (Accessed 21 October 2022)
3. OFGEM (2022) Energy Company Obligation (ECO). Available at: https://www.ofgem.gov.uk/environmental-and-social-schemes/energy-company-obligation-eco (Accessed 21 October 2022)

All the information in this article is correct as of the publish date 28 October 2022. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

We are all having to cope with rising costs and at a time when every penny seems to be accounted for to pay for food, fuel and other living costs, it would seem that building an emergency fund would be a little down the list of priorities.

Yet, there has never been a more vital time to build up an emergency pot to cope with the more irregular costs that come up, such as car breakdowns, boiler servicing and Christmas presents.

According to the Building Societies Association (BSA), more than a third (36%)¹ of savers say they are relying on their savings to get them through the cost-of-living crisis. Given the concerns that incomes are not keeping up with rising costs, 13% of people who responded said they have no savings at all, while 33% said that if they lost their jobs and the income that provided, their savings would not cover their living costs for a month¹.

Before looking at whether the family budget can sustain the burden of diverting money specifically to savings, it is important to look at how economies can be made, especially in reviewing current borrowing – not just mortgages, but also outstanding loans and credit/ store cards too.

However, it makes sense, not only to look at reviewing any existing borrowing, but also to build up a fund to help with unexpected bills, and something as simple as setting up a direct debit from your main bank current account to a secondary ‘piggy bank’ account can help, saving little and often every month to build up emergency savings that are there for when you need them.

Sources

1. Building Societies Association (2022) With a third of people relying on their savings to get by, UK Savings Week aims to help those who can get into a better savings habit. Available at: https://www.bsa.org.uk/media-centre/press-releases/with-a-third-of-people-relying-on-their-savings-to (Accessed 21 October 2022)

All the information in this article is correct as of the publish date 28 October 2022. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

The news about increasing energy costs is understandably dominating the personal finance pages and has its roots in the conflict in Ukraine which has seen the Russian government reduce the amount of gas it exports to Europe in retaliation for the sanctions imposed on Russia for invading Ukraine¹. The result is that, as we approach autumn and winter, demand for power is outstripping supply. Wholesale costs therefore rise and these increases are passed on to consumers.

According to the Office of Gas and Electricity Markets (OFGEM), the government regulator for the electricity and downstream natural gas markets in Great Britain, the price cap for energy (as of the 1st of October 2022) is now called the Energy Price Guarantee. It is described by OFGEM on their website as follows:-

“To help protect consumers, the Government has announced the Energy Price Guarantee which comes into effect on 1 October 2022.

This new scheme will reduce the unit cost of electricity and gas so that a household with typical energy use in Great Britain pays, on average, around £2,500 a year on their energy bill.”² 

On average usage, a household will save £1,000 a year (based on current prices from October). Energy suppliers will be fully compensated by the government for the savings delivered to households. 

For an individual customer, the amount paid under the Energy Price Guarantee will vary depending on how much energy they use, where they live, how they pay for their energy and their metering arrangement. The £2,500 figure is based on a household with typical consumption on a dual electricity and gas bill paying by direct debit.’

There is, however, a common misunderstanding about the Energy Price Guarantee. The £2,500 figure is an average maximum of what households could be paying but not a maximum cap on costs, and is based on a typical consumption of a household on a dual electricity and gas bill paying by direct debit.

According to OFGEM’s website, from the 1st October, the costs are:-

Electricity	£0.34 per/kWh  Daily standing charge: £0. 46
Gas	£0.10 per kWh  Daily standing charge: £0. 28

This means that while your supplier cannot charge anymore per unit, you are still responsible for how many units you use. So, without changing how you manage power in your house, you bills could very well exceed the £2500 average annual maximum cost that the government is predicting the average householder will have to pay. 

Sources

1. BBC (2022) What is the energy price cap and what will happen to bills? Available at: https://www.bbc.co.uk/news/business-58090533 (Accessed 28 October 2022).
2. OFGEM (2022) Energy Price Cap Explained. Available at: https://www.ofgem.gov.uk/information-consumers/energy-advice-households/check-if-energy-price-cap-affects-you (Accessed 28 October 2022)

All the information in this article is correct as of the publish date 28 October 2022. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Although the media has been reporting some negative changes in the mortgage market, there are plenty of products available, and options out there to suit your circumstances.

The mortgage market is currently experiencing some strange and unusual conditions. This is due to several factors, such as increasing Bank of England interest rates, which have led to an unprecedented surge in demand for mortgages as homebuyers seek to secure a deal should rates change again further.

Some mortgage lenders are repricing their products to manage demand, whilst a few lenders have pulled products altogether to allow them to catch up on existing applications and give time to reassess the situation before relaunching again, potentially with a revised rate structure¹.

This may only be affecting a small number of products, however if you are thinking about applying for a mortgage, it’s a good idea to act quickly as the process may take longer and there could be further pricing changes in the near future.

As your mortgage adviser, we are always here to support you and provide quality mortgage advice and work together to find the most suitable solution for your individual circumstances.

Source

Wood, Z. (2022) UK mortgage market turmoil: what does it mean for your deal?. Available at: https://www.theguardian.com/money/2022/sep/27/uk-mortgage-deal-banks-building-societies-interest-rate-rises (Accessed 28/09/22)

All the information in this article is correct as of the publish date 30 September 2022. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

One of the key questions that is frequently asked by many, is why are UK house prices reaching such high levels, with soaring increases seen each year? There are many common theories given to a question such as this, whether it’s ‘greedy’ second homeowners out-pricing locals, ‘selfish’ older homeowners not downsizing to allow a new generation to aspire to larger properties, or landlords buying up property, putting it out of reach for ‘ordinary’ buyers and first-time buyers.

All of the above reasons may well be valid, but it’s easy to get overly emotive on the topic, and to miss the overall picture, which is ultimately based on supply and demand. Looking through a purely economic lens, for the housing market in the UK, the shortage of supply means that for as long as people have the means and desire to buy, the prices of available property will continue to increase.  

Not enough houses are being built to meet demand and as with all other commodities where demand outstrips supply, the importance of that commodity is expressed in terms of its value put upon it by potential buyers.

As we enter the final quarter of the year with a new King and a new Prime Minister, it is good to see that housebuilding statistics have turned positive. The National House-Building Council (NHBC) reported that 40,289 new homes were completed by the end of the second quarter of 2022. This represents a 16% rise compared to the same period last year¹, which is great news for potential homebuyers, as it helps to try and tame the otherwise skyrocketing property prices in the UK.

Furthermore, figures for the number of new homes that are registered – but not yet built – total 66,855, which represents a 45% increase on 2021. The largest increase in new home completions can be found in North East and the East Midlands, compared to the NHBC’s data from last year¹.

Whilst the UK property has continued to see strong growth this year, with demand 20% higher than during the pandemic², it is hoped that the growth in homebuilding does start to provide some opportunity for both existing homebuyers and first-time-buyers to get onto the property ladder.

If you’re interested in finding out more about moving, whether you’re seeking a new build home or an existing property, please don’t hesitate to get in touch for an appointment to review your current circumstances and answer any questions you may have.

Sources

1 – NHBC (2022) New home completions return to pre-pandemic levels in Q2. Available at: https://www.nhbc.co.uk/media-centre/statistics/2022/08/11/new-home-completions-return-to-pre-pandemic-levels-in-q2 (Accessed 26/09/22)

2 – Landberg, R. (2022) UK House Asking Prices Rebound With Strongest Growth Since May. Available at: https://www.bloomberg.com/news/articles/2022-09-25/uk-house-asking-prices-rebound-with-strongest-growth-since-may (Accessed 26/09/22)

All the information in this article is correct as of the publish date 30 September 2022. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.