Confused.com News

Common sense at last - Confused.com comments on the new rights for credit card customers, announced today.

Mon, 15 Mar 2010 16:51:29 GMT

Joanne Garcia, Head of Credit Cards at Confused.com says "It's great to see credit card providers agreeing to treat their customers more fairly and encourage them to be more in control of their finances.� However, customers may end up paying in the long run as the cost of these changes are likely to see another nail in the 0% balance transfer card coffin.

"Consumers need to be more responsible as well" Garcia adds.�� "No one should borrow money on a credit card if they know they can't afford to pay it off.� If they can't repay the whole amount each month, they should try to pay off at least a small amount more than the minimum payment in order to help clear their balance as soon as possible.�

"Paying back an extra �10 per month could help pay off a debt of �1,000 on a 14% APR credit card in just over five years, rather than 19 years if simply the minimum 2% is paid off - and this could save over �750 in interest.¹"

¹ figures from www.whatsthecost.com

� Confused.com 2010 - News Letters

73% 'Would Report Elderly Drivers'

Tue, 16 Mar 2010 09:15:50 GMT

Nearly three-quarters (73%) of people would inform the authorities if they were concerned about driving standards of elderly friends or relatives they know, according to a latest survey.

The Institute of Advanced Motorists' (IAM) survey also revealed that almost seven in 10 back the idea of re-testing motorists older than 70.

However, the survey of 1,628 people, including some IAM members, showed that 77% believed young motorists posed more risk to road safety than older drivers.

Neil Greig, IAM director of policy and research, said: "It is good news that most drivers are aware that young drivers are the demographic most in need of help, but worrying that the mandatory retest has a fairly high level of support."

He further said: "The IAM believes we need to reassure the public that older drivers do not represent a disproportionate risk.

"A total of 8% of drivers are over 70 and they are involved in around 4% of injury crashes. But, 15% of drivers are in their teens and 20s and they are involved in 34% of injury crashes."

"Mr Greig said that asking motorists above 70 to take driving test again "would be a mammoth administrative task with little road safety benefit".

� Confused.com 2010 - Car Insurance

Smart Meters May Save �100 On Bills

Tue, 16 Mar 2010 09:22:57 GMT

Household bills can be reduced by just over �100 a year if people install "smart meters", the results of a pilot study have suggested.

A total of 454 homes were fitted with the dual-fuel meters, which give information about energy use in real time, in a trial by Kettering Borough Council and energy supplier E.ON. Monitors were also fitted to give householders data on how much energy they were using, the amount of carbon being emitted and the cost of the gas and electricity.

Those participating in the pilot said they cut the amount of energy consumed by an average of 9%, the equivalent of �109-worth of electricity or gas every year. The council took up to �100 off each participant's council tax as an incentive for them to take part.

Out of all the households, the yearly energy bill of 365 homes were reduced. One family had also installed cavity-wall insulation and double glazing, and their energy use was cut by 22% over a year, saving them �242.

Michael George, whose family began the pilot in November 2008, said: "I think the smart meter has helped us realise just how wasteful we were being with our energy. We still do all the things we did before but we just make a conscious effort to turn things off when we've finished with them."

The government has claimed it will ensure all homes will have smart meters by 2020.

� Confused.com 2010 - Energy

Average House Price Rises By 0.1%

Mon, 15 Mar 2010 13:53:17 GMT

As large numbers of sellers returned to the property market, the average house price rose by just �216 in March.

The 0.1% monthly increase was the lowest ever recorded for the month, according to housing website Rightmove, and compared with an average jump of 1.3% for the period during the previous eight years.

The number of properties on the market stood at its highest level for a year and a half, and rose by 17.5% compared with the previous month. This was a 34% rise compared with the same period of 2009.

Rightmove said the steep increase in competition among sellers had given people less opportunity to increase their asking prices.

The rise in sellers, which is in line with figures recently reported by the Royal Institution of Chartered Surveyors, is likely to reduce the current upward pressure on house prices.

The mismatch between supply and demand has been a key factor in supporting the house price recovery, but many economists expect prices to resume their downward trend as more homes are put up for sale.

However, Rightmove pointed out that the virtual standstill in asking prices during the four weeks to March 6 followed a steep rise of 3.2% during the previous month.

� Confused.com 2010 - Mortgages

Savers 'Confused Over ISA Rules'

Mon, 15 Mar 2010 09:53:51 GMT

The majority of savers are confused about the rules surrounding tax-free ISA accounts, a survey has revealed.

Lloyds TSB found only one in 10 know what the current ISA allowance is, while even less (9%) were aware of what it would increase to at the beginning of the new tax year.

Most people (86%) knew that an ISA was a savings account, but only half realised the abbreviation stood for Individual Savings Account, while just over a fifth thought it meant Instant Savings Account.

With tax not being deducted from earned interest, two thirds of the 1,006 people questioned agreed ISAs were a good way to put money aside.

However, 7% did not know there was a yearly cap on the amount that can be saved in an ISA and four out of 10 did not realise any unused annual allowance cannot be carried over after April 6.

People can currently save up to �7,200 each year into an ISA, up to �3,600 of which can be paid into a cash ISA.

This limit was raised to �10,200 a year, of which �5,100 can be held in cash, for the over 50s in October. The higher limit will apply to every saver from April.

� Confused.com 2010 - Savings Accounts

Insurers Issue BA Strikes Guidance

Mon, 15 Mar 2010 09:49:59 GMT

In light of the seven days of strikes announced by BA workers - three days beginning on 20 March and four on 27 March - the Association of British Insurers (ABI) has published guidance for the airline's customers whose plans are likely to be disrupted.

The airline is responsible for flight arrangements, so customers should be contacting BA to find out their options. Travel insurance policies explain what is covered and what is not, but customers have been urged to consult the insurance company to clarify any points if necessary.

Some people may find they are already covered if their flights are delayed, and if policies were taken out before the strikes were announced. If plans need to be cancelled because of delays, then some insurers may pay out, but only a fixed amount.

Any policies agreed after the day the strikes were announced will not cover customers against any delays or subsequent abandonment because the strikes were known about when the policy was taken out.

Cover varies for flight cancellations. Some insure against particular things, such as illness or redundancy, but not necessarily against industrial action, although some companies may allow customers to insure against strikes.

Nick Starling, ABI director, said: "Customers should check their travel insurance policy and speak to their travel insurer if they need to clarify the extent of any cover."

� Confused.com 2010 - Travel Insurance

Drivers 'Do Not Know Age Of Cars'

Mon, 15 Mar 2010 09:56:55 GMT

More than a quarter of drivers in the UK do not know how old their vehicle is, according to a new survey.

The poll carried out by Auto Trader showed that 26% were unable to identify the month or year in which their car was registered.

The research also showed that one in 10 drivers admitted to not being able to tell how old their vehicle is by its number plate.

The cost of used cars depreciates with every month and year off the forecourt, and the company warned drivers may be paying over the odds because they can not tell the age of the car they are buying.

Around one in 10 drivers (12%) believe new cars are released in January, rather than March and September.

Matt Thompson, marketing director at Auto Trader, said the results of the survey showed that British drivers "don't understand the numberplate system".

He said: "Our advice is always to check out our expert guide on our website and do your research before buying a new vehicle, so that you know exactly what you are buying."

� Confused.com 2010 - Car Insurance

Car owners consider late scrappage drive

Mon, 15 Mar 2010 13:33:32 GMT

By Lauren Dinally

One in five owners of a car over ten years old has said they are thinking about scrapping their ageing motor and buying a new one through the government's scrappage scheme.

That's according to research from AA Financial Services. However, if motorists are planning to take advantage of the scheme, their time is running out - it is due to end on 31 March, and there are now fewer than 24,000 scrappage registrations remaining.

A survey from the group found that, while only 4 per cent of respondents said they were taking advantage of the scheme, over a fifth (22%) said that they were thinking about using it.

Mark Huggins, director of AA Financial Services, said: "Although there's not much time left, now is a perfect time to trade in your old car.

"Under the 'bangers for cash' scheme it's worth �2,000 - but when the scheme ends, which could be before the end of the month, its value will simply be what you can barter on the forecourt and the chances are it could up at the breaker's yard in exchange for just a few pounds."

� Confused.com 2010 - Car Insurance

Are estate agents piling on the pressure?

Mon, 15 Mar 2010 10:44:09 GMT

By Sharon Flaherty, Confused.com editor

It's been an interesting two weeks to say the least and if you read my last blog you'll know I recently made an offer on a house. When it came to arranging the mortgage though, I came up against a few hurdles.

I was already using my own independent financial adviser mortgage advice and obviously the estate agent has its own mortgage adviser in-house and wanted me to use its service. Just for a comparison, I met with their in-house bloke, but I did feel slightly pressured to use the estate agent's adviser instead of my own.

Why? Well basically, I was told that if I arrange the mortgage through the estate agent's mortgage adviser, the property would then be taken of the market straight away and there was a higher chance of the sale going through because they are handing the whole transaction and therefore can make sure it all goes smoothly.

Obviously I, like any other buyer, want the sale to go through so I felt my emotions were being played with a bit and throwing this suggestion out there simply isn't fair.

To read the rest of the property jungle blog click here and tell us about your experiences.

� Confused.com 2010 - Mortgages

More Residents Move Over Neighbours

Mon, 15 Mar 2010 13:48:18 GMT

Nightmare neighbours forced more than 360,000 people to relocate last year, according to a new study.

The survey of 2,000 adults by Halifax Home Insurance found the number of homeowners who put up the 'for sale' sign as a result of irritating neighbours has jumped by a third since 2008.

Aggressive behaviour, loud noise, messy gardens and houses and even stealing were among the most common complaints.

Martyn Foulds, senior claims manager at Halifax Home Insurance, said: "Having a good neighbour is one of the most rewarding things a homeowner can experience - not only will they keep an eye on your property when you're away, but they may also become a close friend."

� Confused.com 2010 - Mortgages

Stamp Duty End Hits Lending Rate

Fri, 12 Mar 2010 14:08:29 GMT

Mortgage lending dived by 49% following the end of the Government's stamp duty holiday, figures have revealed.

The Council of Mortgage Lenders said just 32,000 loans worth a total of �4.7 billion had been approved during January - a figure down significantly on December's figure and one that "emphatically demonstrated" the impact of the holiday's end.

There was worse news for first-time buyers, for whom the lending rate dropped by 54% to just 11,300 approvals.

The CML said the steep drop reflected the fact that a high proportion of first-time buyers bought properties priced between �125,000 and �175,000, and had rushed through purchases in December before the stamp duty threshold fell back to �125,000.

The group had reported a 63% jump in the number of first-time buyers purchasing homes in this range in December, but transactions in this band dived by 80% in January.

� Confused.com 2010 - Mortgages

Your Top ISA questions answered

Fri, 12 Mar 2010 12:31:42 GMT

We recently ran an ISA surgery inviting you, our readers, to send us your ISA questions and confusions. Confused.com got together with Fair Investment, the Tax Incentivised Savings Association (TISA) and the Buildings Societies Association to help clear up some of your most common queries and misunderstandings. So without any further ado, here they are...

1: What is an ISA?

An ISA (otherwise known as an Individual Savings Account) is different from a normal savings account because it allows you to save up to a specific amount each year tax free.

2: How much can I save into an ISA?

The ISA savings limit is currently �7,200 for the under-50s and �10,200 for the over-50s for the 2009-10 tax year. After 6 April 2010, the ISA investment allowance is increasing for everyone to �10,200.

For the over-50s, up to �5,100 of their �10,200 can be held in a Cash ISA, with the other half permitted to be invested in stocks and shares.

From April, these limits will be matched for the under-50s. Until then, half of the �7,200 limit can be saved in a Cash ISA with one provider. The other �3,600 can be invested in stocks and shares with either the same or another provider.

3: Where can I get an ISA?

You can get an ISA by going to an ISA Manager. ISA Managers can include anyone from banks, building societies, National Savings and Investments, insurance companies, unit and investment trust companies, financial advisers, fund supermarkets, stockbrokers and even some retail stores and supermarkets.

4: Providing I do not exceed the permitted maximum amount, can I open or invest in more than one ISA per year?

There are limits on the number of ISA accounts you can subscribe to each tax year. You are allowed to hold both one Cash ISA and one Stocks and Shares ISA, but cannot subscribe to more than one of the same type during any one tax year.

5: Can I dip into my Cash ISA when I need to access money?

This depends. Some accounts will impose a penalty for doing so, and even if they don't, you will lose the tax-free benefit from any Cash ISA if you withdraw money from it during the tax year. In short, withdrawing money from your ISA should really be a last resort.

6: What is a Stocks and Shares ISA?

A Stocks and Shares ISA enables you to invest in qualifying investments such as the stock market.

If you wish to hold shares through an ISA you need to find an ISA Manager who offers a Stocks and Shares ISA and allows directly held investments. Stockbrokers offer this type of ISA, as do the stockbroking arms of the high-street banks and many other providers.

It is important, however, to assess your attitude to risk before investing in stocks and shares, because the returns are not guaranteed.

7: What are the benefits of Stocks and Shares ISAs vs Cash ISAs?

Stocks & Shares ISAs hold stock market investments, which should provide a better return over the long term (at least 5 years).� However, this comes at the price of exposing your savings to a level of risk - this could be anything from slightly higher than that associated with deposit accounts (such as Cash ISAs), to a very much higher level of risk.

It all depends on the risk profile of the chosen investments, and you should be clear what your attitude to risk is before committing to an investment.

8: If I take out a Cash ISA and a Stocks and Shares ISA, do I have to hold both with the same provider?

If you decide to subscribe to both a Cash ISA and a Stocks and Shares ISA in the same year, it is entirely your decision whether you hold both with the same ISA Manager or with different ones.� If you choose to use different managers, remember to limit your Stocks and Shares ISA subscriptions so that between the two ISAs you do not exceed the overall limit.

9: What are the risks with Stocks and Shares ISAs?

The risk of investing directly in shares is that your investments can go down as well as up. Indeed, in a worst case scenario, if the company goes bust you lose your money. Whether you hold the shares inside or outside an ISA wrapper makes absolutely no difference to the risk.

However, equities also have the potential to earn more than Cash ISAs, and you can spread the investments in your Stocks and Shares ISA among a variety of different funds or companies to spread your risk if you want to.

It's worth thinking about the level of risk (if any) you want to take, and also the length of time you're willing to lock money away. Many experts advise that you should be prepared to maintain your investment for at least five years if you are to get a good return on a stocks and shares ISA.

10: If I move my ISA savings to another provider and it takes 30 days to complete the transfer, does that mean I have lost 30 days interest?

HM Revenue & Customs rules allow the existing ISA Manager a maximum of 30 days to respond to the new ISA Manager's request and complete the transfer but it can be done in a shorter time.

Interest should not be lost for the entire transfer period it may be that, in some cases, a day or more interest may be lost depending on the provider.

11: Is it possible to transfer a Cash ISA to another provider part way through a tax year and is a partial balance transfer possible?

The ISA Regulations require all ISA Managers to allow you to transfer your ISA to another ISA Manager at any time, although the terms and conditions of some ISA products (e.g. term deposit accounts) may incur a penalty if the transfer request is made before the term has expired.

If subscriptions have been made to the ISA during the current tax year, the investor can make further subscriptions to the new ISA Manager after the transfer (subject to the relevant ISA subscription limits for that tax year).

Although the Regulations allow Managers to make partial transfers, they are not obliged to offer this facility (check with your ISA Manager).Where a partial transfer is made, the current year cannot be split - it must either remain entirely with the existing Manager or be transferred entirely to the new manager. Previous years can be split in any way agreeable to investor and ISA Manager.

12: Is it possible to transfer money from an existing ISA to another ISA (without making any further contributions into it) and in the same tax year opening a new Isa with a different provider?

You cannot transfer money from one ISA to another ISA.However, you can transfer the ISA to another ISA Manager or provider. If you have not subscribed during 2009/10 to your current Cash ISA, there is nothing to stop you opening a new Cash ISA with any ISA Manager, irrespective of whether your current ISA is transferred or left where it is.

13: How do I instruct an ISA transfer?

If you wish to transfer your existing ISA from Manager A to Manager B, you should approach B and request that he arranges for your existing ISA with A to be transferred. You will need to complete an instruction giving B various information. This will include:

Your personal details, address, date of birth, National Insurance Number
Name of existing ISA Manager and contact address (see your statement or other documentation)
Whether you want the whole account transferred (i.e. whether this is to be a full or partial transfer) [if necessary, check whether Manager A offers a partial transfer facility - they are not obliged to.]
Whether you have made any subscriptions during the current tax year to the ISA being transferred
If the terms and conditions of the ISA being transferred include penalties (e.g. for early withdrawal), whether you want to give due notice so that the transfer does not take place until after the necessary notice period.

14: Can I put shares I already own into an ISA? Do I have to sell and then rebuy them to do this? And is there a Capital Gains Tax (CGT) liability attached?

If you bought shares in XYZ plc some years ago for, say, �1,000 and would prefer now to hold them in your ISA, you can ask an ISA Manager to sell them on your behalf and then immediately buy them back for your ISA. If the manager sells them for, say, �2,500, then you have made a capital gain of �1,500 in the current tax year and the subscription to your ISA is �2,500 which has been used to buy shares in XYZ plc.

Any future capital gain on these shares, which are now inside the ISA, will be free from CGT liability. The process described above is sometimes known as a "Share Exchange" or a "Bed & ISA".

If you are entitled to shares from a Savings-Related Share Option Scheme or a Share Incentive Plan then you are entitled to have the shares transferred into your ISA within 90 days of them emerging from the scheme.� This is the only exception to the rule that you cannot put shares you already own into an ISA.

15: With regard to Equity ISAs, what is the advantage of holding these - apart from the possible avoidance of Capital Gains Tax (CGT)?

A Stocks and Shares ISA may hold shares (equities), gilts, bonds, etc directly, but not all ISA Managers offer this facility - some will offer only collective funds within their Stocks & Shares ISA. Whether an investor chooses direct investments or collective investments within his ISA is a matter of choice depending on his attitude to risk.

Holding investments within a Stocks and Shares ISA means that any interest received from corporate bonds, gilts or corporate bond funds is not subject to income tax deduction and any capital gain is not subject to CGT.

Bearing in mind that this type of investment should always be regarded as long term (5 years or more), and that an ISA investor who has subscribed since ISAs launched could have put in over �80,000, it is perfectly possible that at some point he could be looking at a capital gain in excess of the current limit (�10,100).

16: What types of investments can be made within an ISA?

Within a Stocks and Shares ISA there are a wide variety of types of investment that can be held provided they meet certain criteria laid down in the ISA Regulations.

Where an ISA Manager offers a particular fund or investment within an ISA wrapper, the investor can assume that the investment is ISA qualifying. It is the ISA Manager's responsibility to ensure that all investments held within ISAs that he manages meet the requirements of the ISA Regulations.

To read our blog which answers more specific ISA questions. See here.

!!-- Confused Replacement Quote Me Savings --!! � Confused.com 2010 - Savings Accounts

Injured Pet Dog Gets His Wag Back

Fri, 12 Mar 2010 14:13:41 GMT

A dog which "miraculously" survived after being struck by a train travelling at 80mph has begun wagging his tail again.

Tyler, a five-year-old Gordon Setter, suffered multiple injuries including a smashed pelvis and broken back leg after the incident at Cheshunt, Hertfordshire, almost three years ago.

Following three operations, Tyler was almost back to full health - apart from not being able to move his tail, owner Leanne Hill said.

Mrs Hill, 41, of Waltham Abbey, Essex, said her pet began wagging his tail again after she found a new nutritional supplement to help with mobility in dogs.

"His tail just hung down to the left. It seemed dead," she said. "The vets were saying 'Do you want to get that tail removed?'

"But I didn't want to do that because we'd been through so much with him since the accident.

"Then, in about November, I noticed this new supplement, Yumove, which they said helped mobility in dogs.

"We started treating him and within a few weeks he was wagging his tail again."

She added: "It really was a miracle that he survived. You wouldn't think it possible. A railway worker told us that we'd probably never even find him."

� Confused.com 2010 - Home Insurance

Espresso Machine Covers 210 Miles

Fri, 12 Mar 2010 14:05:26 GMT

An espresso-powered car has been cheered through Manchester's streets at the end of an eventful 250-mile journey, which saw it overheat several times, although it did not actually break down.

The "car-puccino", powered by used ground coffee, had consumed around 11,000 espressos by the time it reached the city after leaving London 17 hours earlier. The car took a shot of coffee every 60 miles.

Adapted from a 1988 Volkswagen Scirocco bought for �400 on eBay, the car-puccino was designed by Jem Stansfield, who presents BBC1 show Bang Goes The Theory. Its insurance policy would no doubt be unique.

The car roasted the waste coffee using a furnace in its boot that produced flammable vapours to run the engine.

Bang Goes The Theory editor Dermot Caulfield said heavy tailbacks caused delays but that the experiment was successful.

He said: "We just picked a day when the British motorways decided to clog up. Sitting in traffic for hour after hour given the delicacy of the engine wasn't the greatest thing in the world but we just kept meeting people who were able to help us. It didn't necessarily break down, we just had to make sure it wasn't overheating and cool it down."

� Confused.com 2010 - Car Insurance

11 Held in 'Crash For Cash' Inquiry

Fri, 12 Mar 2010 09:30:48 GMT

Police are questioning 11 people following an investigation into an alleged "crash for cash" insurance scam.

The 10 men and one woman were arrested in Lancashire and Greater Manchester on suspicion of fraud.

Blackburn Police said homes in Blackburn, Accrington, Bolton and Manchester have been searched.

Temporary Chief Inspector Kevin Evans said: "As a result of this investigation a number of addresses have been searched in both Lancashire and Greater Manchester resulting in a number of arrests for fraud related offences."

Police have estimated that fraud of this kind across the country adds up to �45 a year for every genuine insurance premium customer.

He added: "Lancashire Constabulary is committed to reducing crime to make our communities safer and reduce the cost of crime to everyone."

� Confused.com 2010 - Car Insurance

ISAs Unwrapped

Fri, 12 Mar 2010 17:57:06 GMT

We at Confused.com recently ran an ISA surgery and invited our readers to send us their ISA questions. We were inundated with responses and, sadly, couldn't answer them all, but we did do our best to address as many as we could and cover the common themes that cropped up.

With the help of Fair Investment, the Tax Incentivised Savings Association (TISA) and the Buildings Societies Association we've put together a selection of the questions and answers. We also put together an ISA guide dealing with more of the basics, so take a look for more help there, too.

Finally, a big thank you to everyone who sent in their questions. We hope the answers go some way to clearing up any confusion you may have when it comes to ISAs.

To read our ISA blog click here

� Confused.com 2010 - Savings Accounts

Insurance Claims Soar After Winter

Fri, 12 Mar 2010 09:40:39 GMT

The coldest winter for 30 years has witnessed insurers pay out more than �650 million in weather-related claims, a trade body has revealed.

The Association of British Insurers said 335,000 claims had been made between December 18 and January 13 when the country was hit by heavy snow and freezing temperatures. Of these, the biggest area was car insurance, where firms paid out �395 million on 268,400 cases.

Homeowners and businesses submitted 66,000 claims during the same period, with insurers paying out �255 million - twice the normal number for winter damage to properties.

ABI director of general insurance Nick Starling said: "Insurers will always respond quickly to the large number of claims that often result from bad weather.

"Insurers have paid out nearly �1 billion to customers following bad weather this winter, as the heavy snow came weeks after the flooding in Cumbria, which led to insurers paying out �200 million in flood claims."

The group said it was too early to say whether the claims would lead to a hike in insurance premiums.

� Confused.com 2010 - Car Insurance

Uncertain property market: Is now the time to fix?

Fri, 12 Mar 2010 11:14:58 GMT

By Simon Read

House prices climbed 4.5 per cent over the last year, leaving the average property in the UK worth �166,587. That's according to the March Halifax House Price Index, which also reported that prices actually fell in February by 1.5 per cent. But does a monthly fall mean further declines are likely?

'No', says David Newnes of Your Move Estate Agents. "We always knew the recovery in the housing market would have bumps along the way, but don't assume this heralds the start of a new downturn. The arctic weather conditions and the hangover from ending the stamp-duty holiday have taken a temporary toll on prices," he said. And that's likely to be the story of the year.

Election hampers housing market

Property expert, Nigel Lewis of FindaProperty.com says: "With an election coming up and buyers waiting to see who will be in charge, it's bound to be a stop-start year for lending."

"This means we'll see monthly rises and falls in house prices as demand and supply fight for supremacy - but we're likely to end the year in the same position we started."

So anyone thinking of buying or selling their home this spring is going to have great difficulty getting the timing right. The ideal situation, of course, is to sell on a wave and buy on a trough, but trying to play that game and guess the right conditions is a gamble which is easy to lose.

In fact, the rise in property prices since last year has led to an increase in the number of people remortgaging, says Ray Boulger of John Charcol, the mortgage advisory firm.

"The bounce in property prices since the low nadir early last year has increased some borrowers' equity sufficiently to make remortgaging worthwhile," he says. "On top of that, more competition and a modest reduction in some funding costs for lenders has resulted in lower rates for both new fixed and tracker mortgages."

Remortgage or wait for better deals?

The question, then, for many borrowers is whether to remortgage now or wait for potentially better deals, but that may depend on what happens to base rates. They have remained at 0.5 per cent for a year but a May general election could be the catalyst for interest rates rising. The next monthly rates decision is due on 8 April, but most experts agree that the Bank of England will make no changes at that time. In fact, a poll of economists in February predicted that a rise in the base rate to 0.75 per cent won't happen until the fourth quarter, so around October to December 2010.

The uncertainty surrounding interest rates could be an argument for fixing your mortgage now, says Martijn van der Heijden, head of mortgages at HSBC. "The next few years are going to be difficult to predict in terms of mortgage rates and some volatility for borrowers may well be unavoidable," he says. "The message for borrowers is that if you couldn't afford an increase of up to three per cent on your mortgage, you should seriously look to fix your payments."

People opting to fix

Mortgage broker Countrywide says it has noticed an increase in the number of people opting for fixed rate loans

"As speculation mounts over house prices and inflation we've seen a marginal uplift in the volume of fixed mortgage applications," says Grenville Turner, Countrywide's chief executive. "The forthcoming election could unsettle the market and impact any economic recovery and customers are increasingly looking for the certainty of a fixed rate mortgage."

Although fixing your mortgage can add certainty to your monthly outgoings, you should still look carefully at the costs and penalties attached. Application fees on the best deals are high, and many lenders look to tie you in with high penalties if you decide to switch before the fixed rate period has ended. It means it's essential to do your sums before signing up for a new deal.

To find out more about what the election could mean for you and your mortgage and to share your views on the subject, take a look at our latest blog

!!-- Confused Replacement Quote Me Mortgages --!! � Confused.com 2010 - Mortgages

Demand For Used Cars On The Rise

Thu, 11 Mar 2010 12:43:59 GMT

More and more drivers will opt for used cars again as the government's "cash for bangers" scheme ends, it is claimed.

Carsite.co.uk found the value of good quality used cars rose as the ending of VAT reduction and the scrappage scheme pushed the price of new vehicles back up to former levels.

Trade values for used cars worth around �4,000-�6,000 rose by �200 on some models between February and March.

Discount schemes encouraged many car buyers to opt for new instead of used vehicles during 2009, but with the major schemes coming to an end the used car market now offers improved value for money compared to new.

With the recession still biting, figures suggest people are investigating as many ways as possible ways to save cash, including extensive comparison of car insurance deals.

"The scrappage scheme may be in the final stages but its effects will be long lasting," said Alistair Jeff, sales director at Carsite.co.uk.

"The market is still healthy with buyers but many are working with restricted finances. Cost-conscious consumers looking to invest in a quality vehicle within budget will find buying used a more accessible route. Demand for these value vehicles will increase but supply is still restricted and so prices in the sector will rise. We're looking at a new era for the second-hand market."

� Confused.com 2010 - Car Insurance

Poll Shows Rise In People Saving

Thu, 11 Mar 2010 12:41:23 GMT

New research suggests people are beginning to save again, either occasionally or regularly.

Nationwide found 80% of people surveyed last month considered themselves savers, the highest percentage since May 2008.

It hints at rising consumer confidence as well as reflecting the rush to use up tax-free savings allowances ahead of the new tax year, according to the group.

One in five people said they thought it was currently a good time to save, 3% more than during the previous month, while only 6% of people said they thought it was not important for them personally to save.

But nearly half of those questioned said they still thought it was a bad time to save due to the current economic situation.

Andy Hutchinson, Nationwide's head of savings, said: "As the end of the tax year gets ever closer, we expect to see more and more people open or top up their ISAs before they lose this year's annual ISA allowance forever.

"So although we cannot say for sure, the rise in the total number of regular and occasional savers could be something to do with the fact that this time of year often sees a rise in the number of savers taking out ISAs."

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