High street lenders have been increasing the number of loans and deals available to first time home buyers, but this could still fail to stimulate the market, amid fears that credit scores will need to be near perfect.

According to This Is Money, 332 deals are currently available to buyers with a 10% deposit, whereas two years ago the figure was 114, and last year it was still only 199. The average two-year fixed-rate is lower, at 5.51%, when it was 6.10% last year and 6.48% two years ago.

These figures, according to Moneyfacts, represent a saving of £89 per month on a £150,000 loan, when compared with the same borrowed amount two years ago.

HSBC has said it will lend a massive £3 billion in order to find 27,000 first-time buyers, whilst Halifax and Nationwide are also offering deals intended to spark and stimulate interest through appealing investment opportunities.

However, these deals are entirely dependent on the credit checking process, and many buyers find themselves falling at this hurdle. It can stem from simply avoiding the electoral roll, or never managing a credit card, and whilst many will feel this shouldn’t work against them as a potential buyer, they are stumbling blocks for gaining credit.

Having a proven financial history will help a lender to recognise you as a responsible borrower, capable of managing finances and paying back the owed instalments and interest payments on time and in full.

As a first time buyer you may also want to check home insurance deals, as comprehensive buildings and contents cover is popular among home owners.

A recent survey has revealed that UK motorists are struggling to such an extent that many drivers are choosing to dodge maintenance on their vehicles in order to keep costs manageable.

The findings, produced by Carrentals.co.uk, indicated that nearly a third of motorists plan to push back repairs and non-essential maintenance purely to save money. Having breakdown cover in place is a wise fail-safe, but call-outs can affect the following year’s premium in some cases.

The survey also found that 60% of drivers don’t find the time to regularly check their tyres, whilst 80% don’t check the brakes.

Following some basic car maintenance tips will help to keep your car in check without spending too much money. There are also some good winter driving tips to follow as we approach the cold season.

Gareth Robinson, managing director at Carrentals.co.uk, said: “While for many having a car is vital for their daily life, they are increasingly looking for ways to cut back the costs associated with driving, be that safe changes such as buying a more economical vehicle, or the more dangerous cuts in maintenance.”

“Safety has to be paramount, so we would ask anyone needing to save money to think carefully about where and how they cut their expenses.”

Banking group Barclays has extended deals with Aviva and Legal & General in order to provide its customers with more comprehensive options for general and life insurance products.

The current general insurance from Aviva, offered through Barclays, will be accompanied by new life assurance and personal accident products, available on a non-advised basis. Products can be added online, over the phone or in the branch.

Legal & General will expand upon its current mortgage protection distribution deal with Barclays by adding family and mortgage life assurance and critical illness cover, available on an advised basis.

Paul McNamara, Barclays’ managing director of insurance and investments, said: “We look forward to building on our already successful relationships with Aviva and Legal & General to provide our customers with a comprehensive range of competitive and easily accessible insurance, which they can tailor to their needs.”

“This agreement brings market leading capabilities to support Barclays aim (sic) of better meeting our customers’ needs across our channels, whether online, over the phone or through our extensive branch network.”

The Financial Services Authority is planning to make changes to the rules regarding packaged current accounts, amid growing concerns that banking representatives are not highlighting benefit eligibility criteria to customers.

According to the Guardian, the proposed changes would see compulsory eligibility checks carried out by banks and building societies.

Packaged savings accounts are designed to offer a multitude of benefits, all paid for with one monthly charge to the bank. Inclusive services are usually mobile phone insurance, ID theft protection, travel insurance and breakdown cover, although this varies depending on the type of packaged account, as some are more comprehensive than others and the differing charges for each account reflects this. Monthly fees are usually between £8 and £25.

As people in the UK look to find ways to save money, more and more are choosing these multi-benefit accounts as they are cheaper than requesting each benefit individually from relevant providers.

Many people are paying for these accounts and then finding problems when it comes to making use of the benefits; for example, someone over 70 might find out that their inclusive travel insurance was invalid from the start due to their age. A banking representative can plead ignorance, and whether there was malicious intent or not would not matter, as the customer has already willingly agreed to the account.

Sheila Nicoll, FSA director of policy, said: “For some people packaged accounts represent good value and convenience. But in other cases customers may find that the insurance cover they have paid for is useless.”

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New research has shown that the North of England is seeing the worst of rising car insurance costs, although the increases appear to be slowing down.

The information, provided by the Confused.com/Towers Watson Car Insurance Price Index, showed that from June to September 2011, Oldham was found to have an average premium of £1,437, representing a rise of 27.9% from last year.

Bradford was found to experience similar figures, with an increase 27.5%, whilst Liverpool saw premiums go up by just under 27%.

The North is not alone, however, as motorists all around the UK continue to struggle with rising costs for vehicle cover. Scotland saw the lowest rises, but no single area in the UK benefited from a recorded decrease.

A key issue regarding the current car insurance costs is the marked difference from the rate of inflation; the UK as a whole has seen an average rise of car insurance premiums of 12.3%, whilst the Consumer Price Index is sitting at 4.5%, and this means that the rise in premiums is almost three times as high as UK inflation.

Motorists can at least take a positive from the research, as it showed a quarterly decrease of 1.6% between June and September. This represents the first quarterly decrease for over three years.

You can save money on your car insurance premium by shopping around online and comparing car insurance quotes.

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After seemingly endless rises in car insurance premiums, it has been reported that things are looking up for younger drivers.

Website Tiger.co.uk has announced findings from research based on thousands of car insurance quotes in the UK, noting a 5.5% drop for both male and female young drivers between July and September.

The month of September alone has, according to the research, seen around a 4% drop for young men, and a 1% drop for young women. However, it is worth remembering that the premiums rocketed in 2010, and the cost of car insurance is still sky-high, despite the welcome drop.

Drivers are encouraged to shop around and compare car insurance in order to find the best deal, and to look out for policy details and benefits, instead of simply seeking out the cheapest offer.

Image: L&LAutomotive

In a move designed to curb the UK’s current compensation culture, the government is planning to ban injury claim referral fees paid by lawyers to insurance companies.

Lawyers pay a fee to insurance companies for customer details relating to accidents and injuries, and then pursue the individuals involved in an attempt to coerce them into making a claim. These are often advertised as ‘no win, no fee’ claims; this encourages people to move forward with their own potential claim as they have nothing to lose and money to gain.

According to The Independent, insurers partly blame their own soaring premiums on the rising number of personal injury claims, although, conversely, insurers receive payments for passing on the details that are integral to the whole process.

Justice Minister Jonathan Djangoly, quoted by the BBC, agrees that premium hikes can, in part, be attributed to the vast quantity of loose claims, saying: “Many of the claims are spurious and only happen because the current system allows too many people to profit from minor accidents and incidents.”

However, insurance companies can receive as much as £1,000 as a single referral fee, and the BBC report highlights the fact that around 6% of car insurance profits come from these fees paid to lawyers for personal details.

If the fees were to be banned, the insurance companies may actually look to counter the drop in profits by further increasing premiums. The ban could actually push policy prices up.

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Next week will see car repair specialist Kwik-fit offering extra online discounts for car insurance policies.

Those looking for an improved car insurance quote may want to look at Kwik-fit, which has a strong focus on online discounting, and on Tuesday 30th August extra discounts will be added for one day only.

Kwik-fit car insurance is particularly popular for its competitive pricing, which includes a 20% discount when booked online, and other types of insurance are also available in conjunction with further deals and offers.

In order to get a quote you can visit the Kwik-fit insurance website, and fill in the details. Kwik-fit searches a range of insurers to find you a suitable deal, and different levels of policy are available.

The Kwik-fit website has also been kitted out with tools, information and an online magazine Extra Mile providing regular updates on subjects such as motoring safety and fuel cost cutting.

UK residents travelling abroad face eye-watering hospital treatment costs in the case of an accident of unexpected illness, according to the latest reports.

The Daily Mail has highlighted some surprising statistics from Sainsbury’s Travel Insurance, as it emerges that the average cost of treatment for UK travellers abroad is £1,333. Figures for those treated in the United States are even more alarming, with the average for each medical bill reportedly standing at a massive £4,726.

It was not all doom and gloom, as those without travel insurance to cover medical bills would be looking at something far lower in Greece, where the average is £422. The research, based on claims from last year, also showed that Spain was the country in which most British holidaymakers needed medical assistance. The types of treatment varied dramatically, from an ear infection costing £320 for treatment, to heart problems prompting average medical bills of £8,148.

Scott Gorman, Sainsbury’s Travel Insurance manager, said: “It has been widely reported that healthcare costs are rising far faster than the rate of inflation, not just in the UK but in other countries as well, so ensuring you have adequate cover and peace of mind while you travel abroad is more important than ever.”

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Experts have warned UK borrowers that only those with ultra-clean credit histories will be able to take advantage of some of the latest attractive offers from credit card companies.

Barclaycard now offers its Platinum Card with an interest-free balance transfer that lasts for an unprecedented two years. The fee for the transfer is 2.8%, and there’s a discount of £20 for a transfer of at least £3,000. Virgin Money is also in on the act, with an interest-free balance transfer lasting 19 months, and MBNA offers the same.

Whilst these deals will appeal to many looking for a good deal on borrowing during tighter financial times, many will struggle to get the offer they want, and may be forced to look at alternative lending at a much higher rate of interest.

Anyone who has made a late credit card payment, or reneged on an agreement with a bill company, will find that their credit history has taken a hit as a result. Your credit history is used by lenders to assess your ability to make payments and your reliability as a borrower. Should you have any question marks hanging over you, then the best credit card deals are likely to elude you.

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