Loyalty does not pay when it comes to buying home insurance, as new figures reveal that those who renew their cover with the same company may be overcharged by a total of more than £500m a year.

According to the Telegraph, homeowners who renew their cover rather than shop around for better deals could potentially waste up to £180 a year. Many policyholders mistakenly believe that they will receive lower premiums by staying with the same company. However, the paper found evidence of widespread price hikes that could easily be avoided by looking at a range of providers for a better quote.

The research found that a quarter of policyholders could save money by switching home insurance providers rather than renewing their current cover. But according to market research firm Mintel, 70% of household insurance customers - or around 11.7 million people - receive only one quote before signing up to a policy.

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Two of the UK’s biggest housebuilders have warned that lack of available mortgages is undermining signs of recovery in the housing market.

Both Barratt Developments and Redrow said that the market had remained “relatively stable” over the last six months, but added that potential buyers were still struggling to get the necessary finance. The two firms also noted a sharp drop in selling prices in the year to 30th June.

Barratt reported an 11.9% increase in the number of visitors to new home developments in the six months to 30th June compared with the previous six months, whilst Redrow saw sales of private homes go up by 22% over the last six months.

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The Nationwide building society is offering 125% loan-to-value mortgages to existing customers in negative equity who need to move house.

Mortgage experts say that other high street lenders are considering offering similar deals.

The controversial 125% mortgages are designed to help out lenders who would otherwise be unable to move house because their home loan is worth more than the value of their property.

Since the onset of the credit crunch lenders have dramatically cut the amount they are willing to lend. Nationwide’s 125% mortgages will be available to existing customers only. The maximum home loan available to new customers will be 85% of the value of their property, while the best rates are available to customers who sign up to just 60% loan-to-value deals.

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Homeowners paid off a record amount of their mortgage in the first quarter of this year, figures show.

According to statistics from the Bank of England, and estimate £8.1 billion was repaid, bringing the total to £23bn for the year to the end of March.

Since the beginning of 2008, falling house prices and strict mortgage rationing have prevented homeowners from borrowing extra on their mortgages. During the previous housing boom, borrowers had taken out more than £300bn extra against the rising value of their homes since 2000.

“This is not a surprise given the fall in house prices over the period, and will have contributed in no small way to the weakness in High Street spending,” said Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (Rics).

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The high street bank HSBC has announced it is cutting the cheque guarantee limit on debit cards for some of its customers.

Currently around 300,000 HSBC customers have a cheque guarantee limit of £250. This will now be reduced to the standard £100 cheque guarantee available to the majority of the bank’s customers. However, debit card payments up to £250 will still be guaranteed.

HSBC said that it was cutting the higher cheque guarantee limit in an attempt to minimise losses from cheque fraud and to discourage people from spending money they did not have.

The banking industry as a whole is planning on phasing out cheque guarantee cards by 2011. Many retailers no longer accept cheques, and only 7% of cheques written are backed up by a cheque guarantee card.

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Buy one meal at Caffe Uno and get another absolutely free throughout July, with the Italian restaurant chain’s 2 for 1 summer offer.

Dine with a friend at any Caffe Uno restaurant this July and get two meals for the price of one. The offer is applicable between Sundays and Thursdays throughout the month, and includes sumptuous main courses such as Penne Arrabbiata, Giganti con Ricotta e Asparagi and Pizza Bufala.

Click here to view the full menu, and here to download a 2 for 1 voucher. Print off the voucher and present it to the waiter or waitress to get a second main course free when you visit your nearest Caffe Uno with a friend.

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The government’s scrappage scheme has created a vital boost in demand for vehicles, as new car sales fell at their slowest rate for almost a year.

New car registrations fell by 15.7% in June compared with the same month last year. In May, output fell by 43%, with a 55% annual drop in output in April.

According to figures released by the Society of Motor Manufacturers and Traders (SMMT), 176,264 units were sold during the month, the smallest decline in sales since July 2008. In April the SMMT forecast that registrations would fall to just 153,000 units, adding that there would be a time lag before the full positive impact of the scrappage scheme would be felt.

“We are now beginning to see the positive impact of the scrappage scheme translate into new vehicle registrations,” a spokesperson for the organisation said.

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The number of people defaulting on loans is continuing to rise, a Bank of England report has revealed.

In the survey, UK banks and building societies reported an increase in the number of people who were unable to repay mortgages and other debts. They cited the state of the economy, including rising unemployment, as one of the main contributing factors behind the rising figures.

The poll also found that lending to businesses had not risen by as much as expected in the second quarter of this year. However, financial institutions predicted an increase in the availability of credit during the next three months.

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Following the pound’s recent comeback against the euro, British holidaymakers travelling to Europe this summer are in for more good news, as fuel prices have plummeted across the continent by up to 12% for unleaded petrol and as much as 31% for diesel, according to a recent Post Office survey.

Switzerland was cheapest for unleaded petrol at just 91p a litre. However, driving in Austria and Spain can work out even cheaper if you opt for a diesel-powered hire car. The cost of diesel is just 83p a litre in Austria and 87p a litre in Spain. Unleaded petrol in all three countries now costs around 34% less than in the Netherlands, the most expensive of 12 destinations surveyed by the Post Office.

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The Co-operative Bank has been named the UK’s best financial services provider at the 2009 Which? awards.

The ethical high street bank was praised for its range of financial services and high standards of customer service.

At the awards, held earlier this month, the bank was said to have successfully weathered the storm of the current financial crisis, and to have won the trust of its customers through high standards of service. It was also praised for its comprehensive range of current accounts, mortgages and savings products, which offered “value for money”.

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