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Michael Challiner Profile and Articles
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1). Car Insurance. Premiums Driven Down By The Internet.
After so many experts have warned us that the cost of car insurance is on the rise, what's happened? It's fallen! It's mostly down to the growing impact of shopping online.
In the second half of 2005 the average car insurance premium fell from £470.17 to £462.15. But it's the silver surfers who've benefited most. During the last six months of last year, drivers over the age of 65 have seen their average premium fall by 4.
2). Unconventional Job? You Need An Unconventional Loan!
Many people have dreamed of starting their own business, and it can certainly be satisfying. But what happens when you need a loan? If you’re self-employed, even if you have an excellent credit history, you may find it hard. Even though the banks are more flexible these days, and loaned out £41.2 billion to those working for themselves or with less than perfect credit scores, an amazing nine million people were turned down for a loan last year.
3). Contents Insurance – Check Your Cover
You've probably got contents insurance for your belongings but are you aware just how easy it is to fall behind in calculating the value of them?
What do you imagine the average contents of a family home are worth - £25,000 or £30,000? In fact this figure, for a typical home, is estimated to be over £45,000. Apart from your “moveable items” of carpets, furniture, curtains, it's probable that electrical goods purchased over the last few years explain the sudden rise.
4). Car Insurance. Optional Legal Expense Cover Is Well Worth The Extra.
Peter, our freelance journalists doesn't take kindly to people driving into his beloved car. No, he doesn't use his fourteen stone of gym-honed muscle to exact retribution nor is he into road rage. Of course he's got his car comprehensively insured but he's also covered another way. He's got legal insurance. He included in his car insurance as an optional extra.
5). Insurance. Duplicated Insurance Wastes Money.
Have you ever worked out how much you spend on insurance? Try totting up your premiums – we suspect you'll be surprised! You'll be even more surprised to discover that there's a probability that you've also duplicated some of the cover you're paying for. Cut the duplication out and you're certain to save money.
Lots of people have insurance cover for legal expenses, loss of income, theft, even death, without even realising it.
6). Mortgaging For Funds
Almost one pensioner in four does not have enough money to fund their retirement, research from Prudential reveals, and one property-owning pensioner in five thinks they will have to downsize to make up the difference.
Along with those forced to sell their homes, one pensioner in six would consider taking in a lodger.
But now, pensioners can obtain cash advances secured against the value of their houses through equity release or home reversion plans.
7). Mortgages. Turn Your Pennies Into Pounds
“House prices continue to rise. “First time buyers continue to struggle to get a hold on the property market.” The headlines in the newspapers must make depressing reading for would-be first time house purchasers.
Ten years ago around £4,000 would have been considered a reasonable deposit on a house. This figure has reportedly risen to around £12,000.
8). Getting Travel Insurance when you’ve had cancer.
If you have been a person who has previously had cancer and wants to go on an overseas holiday, you may find that you have your work cut out for you when it comes to finding an affordable travel insurance policy.
In fact, there are some insurance firms which will not offer any insurance at all to those who have had or do have cancer. Of the companies that do offer insurance, they sometimes charge you more than the cost of your flights.
9). Life and Critical Illness Insurance - Good health?
In common with the rest of Europe, life expectancy in Britain is increasing. A man can now expect to live to 76.2 years and a woman to 80.7 years. This is wonderful news, but unfortunately we also learn that Britain is not keeping pace with most of Europe in another health aspect.
Healthy life years, as well as life expectancy have been the subject of a recent EU study and the results were based on questionnaires which were completed by some 60,000 householders.
10). Buy to let – dream or nightmare?
Are you thinking of investing in a buy-to-let property? A great number of people have done so already and according to the Council of Mortgage Lenders, individuals taking out buy to let mortgages rose by 483 per cent in the five years to 2005.
The vast majority of these landlords probably have no trouble at all with their tenants, either by luck or careful vetting, but you may need strong nerves to watch a new television series entitled “Tenants From Hell”, featuring real-life horror stories regarding the misfortunes of some landlords.
11). Car Insurance - Freedom, independence & higher premiums
They’re in their early 20’s, freshly out in the world and earning good money, driving flashy cars that are absolutely dripping with expensive extras. Who are they?
They’re the latest “in crowd” women. They are demonstrating their freedom, independence and individuality and are apparently earning the money to fund their ladette lifestyle. Their souped-up cars with their throaty sounding wide exhausts, fancy spoilers and alloy wheels can be heard approaching from a distance by the drumming of the full-on car stereo.
12). Sub-prime mortgages – think twice
The fastest growing sector of home loans market is what we class as specialist mortgages. Specialist mortgages have developed to serve the mortgage needs of people who don’t fit into the more conventional model buyer.
In the case of self-employed buyers, the introduction of self-certification mortgages has made things much simpler. A statement of earnings is normally all that is needed, provided the business has been up and running for couple of years.
13). Life insurance and alcohol are not a good mix
Alcohol is regarded as an antiseptic or a preservative in some cases, but its effect on life insurance costs can be anything but benign. You will almost certainly be asked for information about your alcohol consumption when you apply for life insurance, and it is likely that NHS guidelines will be consulted to determine whether you within the safe level.
14). Loans. Take control over your money – start your own credit union
When you are on a low income, it is very difficult to get credit. And yet, most of us could not manage certain purchases outright, even if we get a decent wage. This is where the Credit Union offers a real alternative.
Run by a volunteer board of directors which are elected by its members, a Credit Union is basically a financial cooperative, owned and controlled by its members.
15). Loans - Why more of us are turning to credit unions
These days items of not just want, but need, tend to be becoming more and more expensive and with interest rates constantly rising at the banks, credit unions are becoming the more financially attractive alternative.
Credit unions are financial co-operatives owned and controlled by their members who combine savings to offer low-cost and flexible financial products to their members.
16). Life Insurance - Outweighing The Benefits?
Have you filled in a life assurance application recently? There’s a little box that strikes fear into the heart of the “slightly overweight”. It simply asks you to state your weight. Do you go straight to the scales, undress to the state of nudity and jiggle about on the said scales, trying to pinpoint the lowest mark on the gauge? No, I thought not, you probably take a vague and over optimistic guess, write it in and swiftly move on to the next question.
17). Critical Illness Insurance. Concerns For Cautious Customers
The Financial Services Authority has recently carried out a review of the way in which information and advice is given to retail customers purchasing financial products. One of the products which they considered was the sale of Critical Illness Cover.
Critical Illness Cover is often taken out by people taking out a mortgage, usually as part of a term assurance policy.
18). Mortgages. An interest only mortgage: it could cost you more
Over 200,000 homebuyers in London during 2005 took out an interest-only loan according to the Council of Mortgage Lenders (CML). None of whom had a repayment vehicle in place and of these, 60,900 were first-time buyers.
There are no figures available for the total number of homebuyers with interest-only loans. However, figures for new interest-only house purchase loans have been running at between 10 and 20 per cent for all new first-time buyers over the past 10 years, and roughly the same for other homebuyers.
19). Student loans and the price of an education
The average student entering higher education will now leave university with debts of around £10,000. This is made up from a combination of student loans, credit cards and overdrafts. This figure however is set to sky rocket as Barclays predicts students graduating in 2010 will be facing £30,000 of debt.
Although some figures show that graduates can expect higher than average earnings, students may not actually be in well-paid jobs for a number of years after graduating leaving.
20). Loans and Credit cards. Bankruptcy on the up
New figures have been released showing that in 2005, 67,800 people were declared bankrupt. In the second quarter of 2006 alone, around 26,000 people became insolvent in England and Wales, a rise of 66% on last year. The way it’s going, it looks like the number of personal insolvencies in 2006 will top the 100,000 mark.
So why has bankruptcy become such big business? The main reason is because so many people live beyond their means.
21). Mortgage – changes ahead?
Borrowers should be aware of some of the changes taking place in the mortgage industry after two building societies recently implemented rises in their SVR (standard variable rate). As the last Bank of England interest rate has remained steady for over 11 months, and especially as the last move was downwards, this has angered and surprised their customers.
22). Critical illness cover – a wider scope
Critical illness insurance offers cover for certain specified conditions such as cancer, heart problems, kidney failure, loss of limbs, etc., The cover is quite simple and straightforward, in that if you are diagnosed with one of the severe illnesses listed in your policy a payment is made. On average 35 conditions would be considered as falling into this category with most companies.
23). Re-mortgaging – the way to go?
Banks, building societies and mortgage brokers are always on the look-out for opportunities for more business, so what is the consumer to expect in the way of mortgage types and offers?
Re-mortgaging seems to be the buzz-word and this seems to be a sector of the mortgage market that’s attracting lots of interest. The Council of Mortgage Lenders report that re-mortgage applications rose from 83,000 to 93,000 in just one month, accounting for over a third of the total mortgage market.
24). Life Insurance - A Weighty Issue
As a nation, we are getting bigger. By 2025, according to the latest government statistics, around 33% of girls and 25% of boys will be classifiable as clinically obese. ‘Obese’ is defined as overweight to the probable detriment of a person’s health. In fact the rate at which UK children are getting fatter is set to increase, becoming the worst in the world even above the USA.
25). Critical Illness Insurance. How critical can you get?
There’s a new critical illness policy on the market which attempts to go some way with regard to sorting out the perplexity regarding exactly what is, and is not, covered when it comes to claiming on the policy.
Traditional critical illness policies tend to cover up to 35 listed medical conditions. Policyholders could become seriously ill with a condition.
26). Mortgages. The Pitfall Of Interest Only Mortgages.
In the first three months of 2002, just 9% of all new mortgages were taken as interest only - but by the last quarter of 2005, the figure had risen to 23%. And amongst first time buyers, the figures rose from 6% to 15%. (Source: Council of Mortgage Lenders.)
The reason is obvious. It's down to family economics. With an interest only mortgage, the monthly repayments only repay the ongoing interest so your monthly repayment is low.
27). Life Insurance. Fat Customers Tell Porkies.
According to a recent survey almost a quarter of UK citizens are over weight but, says Cancer research UK, 25% of these are simply not interested in losing weight. We are in fact the second most obese nation in Europe, second only to Greece.
This not only concerns the UK Government, who have just announced a concerted campaign to tackle the problem via GP's, but also the life insurance industry.
28). Pet Insurance. Warning: A Visit To Your Vet Can Severely Damage Your Wealth.
The Chinese year of the dog started last January. And according to Chinese tradition, anyone born in the following year, will be honest and loyal. They also aren't much concerned about wealth. This could help to explain why there are 5.2 million homes owning dogs without pet insurance cover. As many will have discovered to their cost, they're leaving themselves exposed to enormous veterinary bills.
29). Critical Illness Insurance. Are Your Children Insured?
Cover for your children is the most undervalued aspect of critical illness insurance. But as most policies automatically provide the cover as a free extra, we suspect that some policyholders don't even know they've got it!
Most policies automatically insure your children albeit at a lower level of benefits than the main policyholders cover. But this cover is invaluable, especially if your child becomes critically ill and you need to take time off work to provide care.
30). House Price Rises – A Cautionary Tale
In general, property prices appear to be rising. Between January and May 2006, the uplift in house prices across the United Kingdom averaged 4.4%. In the event that this trend continues, then the yearly rise will be 13%. This will put the average house price at almost £195,000.
The Council of Mortgage Lenders confidently expects 1.2m property sales to be completed this year.
31). Store Cards – Are You Storing Up Problems?
The number of people with one or more credit cards has grown at an unbelievable rate in recent years. Like the mobile phone, the credit card has become a way of life for many people, something they’d be lost without.
The offer of a store card for your favourite store can be tempting and may offer opening discounts, invitations to special events (encouraging you to spend money in the store, of course) and the familiar “If you take out the card today, you’ll get 10% off your purchases.
32). Mortgages: the age problem.
Pensioners should be sitting pretty regarding mortgages shouldn’t they? After all, they should by now have completed their payments and be the sole owners of their homes. Sadly, for some 600,000 pensioners this is not true – they are still paying off their mortgages, and not just for a couple of years after retirement. For example, over 20,000 who still have to reach the final payment are in their 80’s.
33). Car Insurance - Safety first child restraints
September 2006 will see the introduction of new laws regarding child restraints in cars.
Current laws state: -
· Children aged three to 11 (inclusive) and less than 150cm tall are permitted to travel in an adult seat belt if no child restraint is fitted.
New legislation says: -
· Children aged three to 11 and under 135cm have to be seated in child seat or booster (designed to be used with an adult belt), suitable for their age and weight.
34). Car Insurance: mini bike shocks ahead
Car insurance takes a significant portion out of a lot of people’s incomes, but for younger drivers it can be beyond reach on a low income. Under normal circumstances a new driving licence is a clean one, with penalty points for motoring offences not making an appearance until after at least a little time on the road. These two facts make motorcycle ownership a much more attractive proposition for impecunious young people.
35). Better Medical Reports For Life Insurance
In about every four in ten cases when someone applies for Life Insurance, the insurer has to obtain a medical report from a General Practitioner.
They need the reports when someone has declared that they have a medical condition on their life insurance application form. The applicant then has to give consent that the insurance company can gain a medical report from their GP.
36). Mortgages. The Costs Of Moving House
Based on an average priced property, it now costs an incredible £5,551 to move house in the UK and with mortgage lending hitting record highs it is now more important than ever that anyone moving or buying their first home is aware of any hidden costs.
Buyers tend to get caught up in the excitement of choosing a new home and run the risk of paying the price financially by not ensuring they get the best value from their mortgage.
37). Permanent Health Insurance. No payout for ME sufferer.
ME, also known as chronic fatigue syndrome, is a recognised illness. However, some of the big health insurers see it quite differently, as the case of Miss A demonstrates.
Miss A has been living with ME for eight years, an aggressive form which has kept her wracked with pain and completely unable to work and support herself. Living on benefits totalling £180 a week, she depends on her boyfriend and family to look after her.
38). Private education – finding the money
The decision to send your child to a private school is a very personal one. There are parents who make this commitment soon after, or even before, their child arrives in the world. The child’s name may be put down for the parent’s choice of independent school. Quite often the school may be the one which a parent attended or one chosen because they wish the child to be educated according to a particular religious belief.
39). Mortgages - Fair Shares
There’s a lot of interest being shown in a totally new shared-equity mortgage, which will hopefully help a wide range of first time buyers to get into the property market.
Shared equity is not new and schemes have been around for some years which mainly involve housing associations but these were designed for the needs of low income tenants and council tenants.
40). Critical Illness Insurance - of critical importance
Twenty per cent of critical illness claims are turned down. That means for every five people making this important claim, one will have it rejected at this crucially important time.
The whole reason behind taking out critical illness cover is that, in the event of you becoming critically ill (that is being diagnosed with one of the listed illnesses described in your policy documents) a payment will be made.
41). Who needs loan protection?
If you’re taking out a loan, beware of being misled into taking out payment protection insurance. From a recent questionnaire, it appears that around 25% of consumers were under the impression that by taking out this expensive and often totally unnecessary insurance, they were actually improving their chances of getting their loan.
This is simply not true.
42). Mortgages. Big Changes In The Buying And Selling Of Houses.
On June 1 st 2007, the law concerning the buying and selling of houses changes. From that date onwards everyone who wants to sell a house has firstly to prepare a Home Information Pack (HIP).
And if you don't? You're in the frame for a £200 fine! It's also probable that estate agents will also insist on you having the Pack ready by the time they put your home on the market.
43). Giving Up Smoking Will Increase Your Wealth
Figures released recently by the Health Development Agency confirm that smoking is killing around 83,200 people a year in England. It is the largest cause of illness and significantly decreases smokers expected life-span.
Speak to any reformed smoker and they will tell you just how difficult it was to overcome the habit, although invariably they enthuse about their improved health and the saving in money.
44). Critical Illness Insurance. Critically Important – Time To Take Cover
Back in 1999, the Imperial Cancer Research Fund stated that one in every three people in Britain will be diagnosed with cancer at some point in their life. With rapid medical advances the chances of survival from a major illness are improving but the consequences of suffering such an illness continue to be substantial and life-changing.
Critical illness insurance policies are designed to help you cope with the changes which will be necessary should you be diagnosed with a “qualifying medical condition”.
45). Mortgages. The Return Of The Mega-Mortgage.
With the housing market is now showing marked signs of recovery, especially in the South and London, the number of homeowners mortgaging for more than £500,00 is increasing. (Also see Latest Market Facts at the end of this article.)
Previously, prospective borrowers for these mega mortgages have experienced a mixed reception from the lenders – sometimes the lenders would provide the facility but viewed them as higher risk.
46). Do You Have Pest Protection?
It might be amusing to watch the squirrels scurrying round the park, they seem so tame they’ll almost take food out of your hand, but these cute little bushy tailed creatures are actually one of five of the most common pests and can cause thousands of pounds worth of damage if they get into your house. They will chew furniture and break your precious ornaments.
47). New Rules For Buy To Let Landlords
A tightening of regulations regarding the letting of larger properties containing three or more storeys, converted into smaller self contained residential units, came into force at the beginning of April 2006. Further information on the Licence for Multiple Occupation is available on www.propertylicensing.gov.uk, but here are the basic facts:
The licences will be issued by the Local Authority after an inspection regarding room arrangements and sizes, facilities included and fire and safety regulations.
48). Mortgages. Short Term Advice
There are some new types of home loans coming onto the market which are being advertised at present. Several of the mortgage companies are offering variation of them and they are being marketed as “lifetime” loans. So might this be the end of the short-term mortgage? Not necessarily so, it appears that there are still bargains out there for those prepared to shop around.
49). Highway Robbery
Beware; we have modern-day “Dick Turpins’” at work on our roads. Not quite “Stand and deliver” at gun point, but there’s a striking similarity.
Innocent drivers are being targeted in this frightening new crime which appears to spreading across the country. Effectively, we have an ambush situation.
This is what can happen:
· You may be following a vehicle, generally an ageing car or van, onto a roundabout or slip road.
50). Is Your Loan Company Ripping You Off?
The companies that loan people money then add on sky high interest rates might claim to be doing people a favour by offering them the chance to have instant cash.
Instead, they are crippling the poor with debt. So says the Competition Commission which will quickly and clearly point out that what these outfits are doing is plain wrong.
What these companies have become, the commission is likely to tell you, is sharks - predators which prey on the most vulnerable in society because they earn the least and have no other way of gaining credit.
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