Royal Bank of Scotland to close half of its insurance offices

Unclaimed Premium Bond prizes top £44m

National Savings and Investments (NS&I) officials have released details about nearly 900,000 unclaimed premium bond prizes, which amass to a total value of £44m. The 898,000 prizes stretch over more than five decades, with the earliest unclaimed prize from 1957. However, at an amount of just £25, the winner will feel the full effects of inflation, which will have severely reduced the value of the prize. The two top prizes are £100,000, a significant amount won by a female from London in 2007, and a female from Manchester in 2010. Other prizes of £50,000 and £25,000 have also been left unclaimed, while the average prize stands at around £50. There are a variety of possible..

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Average incomes to drop by more than a third on retirement

The average pensioner in the UK will see their income fall by over a third once they enter retirement and stop working. The UK average however will look appealing to those who live in London, who will on average lose 50pc of their regular income when they choose to retire. The data released from Parntership was researched by HM Revenue and Customs, and further highlights issues raised recently about workers in the UK retiring, only to be forced into a life in which their income leaves them below the poverty level. This will come as a nasty shock to many, and further highlights the need for today’s workforce to start saving for retirement as early as possible in order to save as much..

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80pc of students “don’t have enough money to live on”

A survey from Save the Student has found that as many as 8 out of 10 students don’t have enough money to live on. Out of the 2300 students who partook in the survey, one in five also admitted they have turned to gambling in order to try to get hold of extra cash, while one in four said they would consider selling their body for medical trials in return for money. Worryingly the same amount also admitted they would consider a role in the adult entertainment industry. There was also a smaller group, some 2pc, who said they would consider contacting a payday loan company as a viable option to get hold of extra cash in times of hardship. The rising costs of living are hitting..

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House prices rise again in May

The UK housing market gained further momentum in May as average prices rose again month-on-month, according to Nationwide building society, who reported a 0.4pc rise. This comes just ten days after Rightmove reported that the average price of a London property had surpassed the £500,000 mark. Although the average price across the whole of the UK is far lower at £167,912, this has been steadily increasing and is 1.1pc higher than prices 12 months ago. This is the highest year-on-year house price increase recorded since November 2011, while property sales were also said to be up around 5pc on a monthly basis compared to the same periods in 2012. According to Nationwide’s chief..

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Financial Ombudsman reports record number of complaints

Complaints to financial institutions rose to the highest recorded level over the course of the last year, after a 92pc rise on the previous year. The Financial Ombudsman Service (FOS) reported that claims for the mis-selling of payment protection insurance (PPI) accounted for the vast majority of the complaints, a total of 74pc. However there were rises in complaints in most areas, and more recently there have been question marks raised over the selling of some interest-only mortgages. The rise in complaints has been attributed to increased consumer awareness, particularly regarding PPI, which has been widely mis-sold with loans. However there are still many consumers using..

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Co-operative Bank launches talking ATMs

The Co-operative bank has followed in the footsteps of Barclays, by installing talking cash machines on the streets of the UK. The machines will be aimed at helping blind and partially sighted consumers operate the ATMs, by providing an automated service as well as clearer, high resolution screens. 400 of the units have initially been installed by The Co-operative, while a further 2000 are expected over the next 18-24 months. The service will not be limited to Co-op customers, and the speech option can be enabled by plugging a pair of headphones into the ATM. Comments made by head of payments at the Co-operative Bank, David Fawell, explain the move: “We are committed to implementing..

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1 in 7 retiring in 2013 will rely on State Pension

A study from Prudential has further highlighted the bleak outlook for pensioners looking to retire this year, as it was revealed one in seven will have to rely on the state pension for income. The state pension currently stands £110.15 per week, meaning those relying solely on this are going to face a very tough retirement. The study also revealed that one in five retirees is going to slip below the income poverty line, and nearly 25pc of women are going to enter retirement relying on just an income from the state pension. What this all means is that, if you put one hundred people due to retire this year in the same room, approximately fourteen of those people would be facing the..

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Another House Price rise takes London average past £500k

According to property website Rightmove, average house prices across the UK have risen for the fifth consecutive month, while average prices in the capital have surpassed half a million pounds. This year the property market has had its strongest start since 2004, and prices are now an average of 9.1pc higher than at the end of 2012. All regions across the UK also posted positive results, highlighting the gathering momentum the property market is gaining. Two separate records have been broken this month, with the average price of a house in the UK now just shy of £250,000, beating the previous record from June 2012, and the average price in London smashing through the £500,000..

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3.5m owed Tax Rebate, but 2m owe HMRC as much as £500

HM Revenue and Customs (HMRC) have reported that as many as 5.5m UK workers paid the wrong amount of tax in financial year 2012-2013. Of those 5.5m, a majority of 3.5m are owed a rebate, while 2m people will have to repay an average of between £400 and £500. The average refunds owed to those who have paid too much tax are in the same ballpark, with most set to receive between £350 and £500 from the taxman. Every year we are subject to and “end of year reconciliation process” whereby our records of tax and national insurance that we have paid are compared to records held by HMRC. HMRC has said that most people who remained in the same employment receiving the same benefits..

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Government consults on CTF to Junior ISA transfer

The Government has launched a consultation into planned changes which will allow parents to swap their Child Trust Funds (CTF) for Junior ISA’s. The consultation will be open until 6th August 2013, and a decision will be made after this time. The Government will consider responses from representative groups for children or savers, CTF holders, providers of CTF’s and Junior ISA’s, as well financial advisors. The CTF was introduced in 2004, and was issued to most children born in the UK between the dates of 1 September 2002 and 2 January 2011, as a means of encouraging parents to save for their children’s future. Within the scheme the Government committed vouchers to boost the..

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Housing demand and prices continue to rise

House prices have reached a three month high and demand from buyers is at the highest level since 2009, according to The Royal Institute of Chartered Surveyors (Rics). This highlights the growing momentum gathering within the housing market, which has seen increasing numbers of mortgage approvals and steady average property price increases so far in 2013. Government initiatives such as Funding for Lending and Help to Buy have been credited with assisting the growth of the housing market, making it easier for people to gain access to cheaper mortgages and encouraging buying. Rics have said that the demand from buyers is now at a level not witnessed since November 2009, and prices..

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Cold weather raises gas use by 18%

The cold weather in the first four months of 2013 has meant that gas use in the UK was 18pc higher than that of the same period in 2012, according to British Gas. Electricity use was also reported to be higher, with a rise of 3pc. According to the Met Office, the average temperature throughout the winter months was colder than that of 2012, while the month of March had the second coldest average temperature ever recorded. British Gas was one of the ‘big six’ gas and electricity providers to raise household energy prices towards the end of 2012, and this coupled with a cooler winter will see the company benefit hugely. However British Gas has explained that this could benefit the..

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Isa’s suffer first ever fall in Savings

For the first time in their 14 year history, Isa’s have experienced a fall in their savings value, as low interest rates, rising inflation, and a lack of trust deter savers. Cash Isa’s are tax-free savings accounts with an annual investment limit and since their introduction in 1999 have grown strongly in line with an expanding savings culture across the UK. However more recently a variety of factors have meant that savers are beginning to turn their backs on Isa’s. Figures from HMRC show that over the course of the last year the amount of new money being invested in Isa’s fell by £200m. The first reason why more people are choosing to ignore Isa’s is the low interest..

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Buy-to-let mortgage lending up in first Quarter

The amount of mortgages approved on a buy-to-let basis was up by 13.5pc in the first quarter of 2013, compared to the same period in 2012, according to the council of Mortgage Lenders (CML). Buy-to-let mortgages now account for 13.4pc of all outstanding mortgages, a rise of 0.5pc from the same period a year ago. Landlords and investors are prospering from cheap mortgage deals brought about by Government initiatives such as Funding for Lending, which makes mortgages more readily available at a lower cost. This coupled with a trend that is seeing the price of renting a property increasing, means that there is little standing in the way of those applying for buy-to-let mortgages...

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UK House prices rise in April

The average price of a house in the UK rose by 1.1pc in April, compared to March, but activity in the housing market remains low, according to Halifax. This means that house prices rose for the third consecutive month, and are now 2pc higher than at the start of the year. Despite these strengthening results, a fall in the amount of mortgage approvals in 2013 has meant that the activity around the housing market has remained low. Halifax, which is part of the Lloyds TSB banking group, has put the rising prices down to the fact that mortgage payments for first-time-buyers and home-movers have reduced by almost half as a proportion of disposable income since a peak of 48pc in 2007. The..

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FCA: No evidence interest-only mortgages were mis-sold

FCA raises fears over Interest-Only Mortgages

The Financial Conduct Authority (FCA) has spoken of its concern over the ability of more than a million people to pay off final charges on interest-only mortgages. There are currently 2.6 million people in the UK with this type of mortgage, and it is thought that over half would struggle to meet final payments when they are due. Due to this lenders have said they will contact customers to warn them about payments and prevent a payment shock, as the average shortfall is thought to be around £71,000. Interest-only mortgages are attractive as they are a cheaper alternative to repayment mortgages. Every month you pay off just the interest on the mortgage loan. However at the end of the..

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Thousands to experience rise in Mortgage Rates from BOI

Thousands of borrowers who took out tracker mortgages with the Bank of Ireland (BOI) will see their rates increase from Wednesday, leading to a barrage of official complaints. The change in rates will affect around 13,500 homeowners, most of which are landlords who bought on a buy-to-let basis. However any complaints are set to fall on deaf ears as BOI says that customers were warned that the fact that their rates were subject to change in the terms and conditions when they applied for the mortgage. Despite this, there have been calls from lawyers for those affected to make official complaints to both BOI and the Financial Ombudsman Service, in a move which could see those affected..

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Kodak Pension Plan Members to receive reduced Benefits

Members of the Kodak Pension Plan (KPP), of which there are thought to be 15,000, will receive reduced pension benefits after Kodak’s parent company, Eastman Kodak, was declared bankrupt. KPP was forced to pay £419m to buy the business and in doing so save the company from closure. KPP now owns the companies entire film business, which consists of hundreds of thousands of photo kiosks worldwide, as well as photographic paper and souvenir photos at venues such as amusement parks. Eastman Kodak filed for bankruptcy in January 2012, 120 years after it was founded in New York City. The deal from KPP is still to be examined in US court, but it is thought that the hearing scheduled..

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UK Economy avoids triple-dip Recession

The UK economy avoided what would have been devastating news today, as first quarter growth of 0.3pc was reported, and a triple-dip recession avoided. A recession is confirmed when the economy experiences two consecutive periods of decline, and after a final quarter of 2012 growth figure of -0.3pc, any further decline would have officially seen the economy back in recession. The growth figure is also better than expected. Many predictions from politicians and journalists yesterday didn’t rise over 0.1pc, while there were those who thought the economy would certainly enter into another period of recession. The UK is still to start a proper recovery from the drastic economic..

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