Money

What type of borrower are you?

Christina Hoghton — 2013-05-19T05:00:00+00:00

One of the questions people often ask about mortgages is 'which is the best deal?', and they often feel aggrieved when they don't get a straightforward answer.

But it is an impossible question to answer accurately because there simply isn't one best mortgage product out there. All borrowers have completely different needs and preferences.

It's different strokes for different folks.

How do you choose?
Every borrower is an individual and you will need to look closely at your finances, personal circumstances and attitude to risk to assess the sort of deal that is best for you. If you really aren't sure, then an independent mortgage adviser can work with you to find the right deal for your exact needs.

However, there are certain mortgages that can broadly suit some types of borrowers - and while these are by no means set in stone, working out what kind of borrower you are from the options below can offer a useful starting point when it comes to choosing a new homeloan.

Single buyer
Single buyers cover a very broad spectrum, from those stretching every last penny of their income to get on the first rung, to buyers who are comfortably able to afford the property they desire. Chances are you are somewhere in between.

However, all single buyers have one thing in common - total exposure to your monthly mortgage commitment. If your interest rate rises, you can't share that burden with somebody else - you need to cover it yourself, and that may be a reason to opt for a fixed rate mortgage to give you some security of payments.

You may also be interested in fee-free mortgage deals, since you will need to cover all of the upfront expenses of homebuying yourself. For example Virgin Money currently offers a two-year fixed rate mortgage at 2.74% with no arrangement fees.

In addition, single buyers should consider income protection insurance to cover their mortgage costs if they are unable to work because of accident, sickness or unemployment, as there is nobody else to make up your shortfall in income.

Double income no kids yet - DINKYs
Couples in full-time work with no children often have a decent disposable income, and minimal fixed outgoings. This gives them a lot of freedom when it comes to choosing a mortgage.

For example, if you have a bit of leeway in your budget because you are both working you have the flexibility to opt for either a fixed or a variable rate, and this opens up more potential deals.

There are currently some pretty low rate variable mortgages for those who are happy to gamble that interest rates will remain low for the long term - and can afford to get it wrong. For example you can take a two-year discount mortgage from HSBC for 1.75% if you have a large 40% deposit.

Of course, many DINKYs are also first-time buyers and, while some have plenty of disposable income, not all do. It's also the case that many have never had experience of running a household budget before. If you are not confident about managing your finances, it could be worth considering fixing your rate to help you get used to budgeting.

Young family
Young families often tend to be strapped for cash, particularly if one partner is temporarily not working to look after the children, or if they are forking out a lot of money on childcare.

When budgets are tight fixed rate mortgages come into their own as they offer you security of payments for a set period, which really helps families manage their money.

Whether you choose a short- or long-term fix is up to you, but consider that you commit to a fixed rate for the length of the deal (or face steep penalties to get out early), so if you think your family will need more space in a bigger home in the future, a short-term fix rate may be more sensible.

While in theory you can transfer a mortgage to a new property, in practice it isn't always plain sailing. Two-year fixed rates are available from as little as 1.74% from Chelsea Building Society.

Borrowing big
Just because you are taking out a large mortgage doesn't mean your budget is stretched, as you could be a high earner. However, if you take a variable rate and then interest rates rise, you will really feel the difference in monthly repayments if you have borrowed big. So it could be worth considering a fixed rate mortgage.

What is very important is that you focus on the interest rate, not the arrangement fee you will need to pay, because the interest rate becomes more important the larger the loan.

This means it can often be worth paying a large arrangement fee if it bags you a super low rate of interest. First Direct's five-year fixed rate at 2.64% for example is a stunning rate (available on loans up to £1m), but you will need to pay a steep fee of £1,399 to bag it.

Modest mortgage
Those needing a small mortgage don't necessarily live in a small home. If you are nearing the end of your mortgage term you could have a small sum remaining, and if you want to remortgage you may have your pick of deals, particularly if you have a lot of equity in your property.

One thing to be aware of with small mortgages is that a large arrangement fee can skew the overall cost, so it can be worth looking at mortgages that come with low fees, or even fee-free deals.

These mortgages may come with a slightly higher interest rate than the best buys, but could work out cheaper overall. The Post-Office's five-year fix at 3.35% isn't the cheapest rate on the market (though it's still very competitive), but it does come with the bonus of no arrangement fee whatsoever.

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One in three lack future financial plans

Chris Wheal — 2013-05-18T02:37:00+00:00

Filed under: Savings & ISAs

Nearly one in three of us have no idea know how we will finance our old age.

NS&I's latest Quarterly Savings Survey has revealed that just under a third of Britain's adults (31%) do not know how they will finance their needs in later life. This includes long-term illness, nursing home or care fees or looking after partners, parents and siblings.

Thinking about the future

The survey estimated that 26.7 million adults in Britain (54%) have started thinking about their financial needs and just over a quarter (27%) of these have actually started to put financial plans into practice.

The more than a quarter of Britons (27%) who have yet to consider financial planning in later life admit they do not want to think about such events. Some 23% say they simply have not had time to think about their later life financial needs, and just under a fifth (19%) prefer to take a short-term view of their finances and use the money they have for the present.

A further 12% don't consider that this situation will affect them in the near future and believe they will have plenty of time to consider such planning going forward, while 7% of Britons do not consider later life financial planning as important.

Some 43% of Britons who have yet to consider their financial planning in later life admit to having no idea how to finance such needs.

Planning is everything

John Prout, NS&I retail customer director, said: "Planning financial needs for later life requires careful consideration in plenty of time. Understandably many people don't like to think about growing older and the possibility of needing long-term care one day. It can be a distressing and emotive issue to talk about.

"But with people living well into their eighties, many more of us are likely to need care in the future, and are likely to need to care for others also. Getting the right information as early as possible is to vital to making sure you get the best possible care you can in later life."

Tish Hanifan, chairman of the Society of Later Life Advisers (SOLLA), said: "This research reflects the experience of many specialist later life advisers whose clients are primarily concerned with being able to both enjoy their retirement and continue to be able to make choices around their care needs.

"Undoubtedly the way to achieve this is to begin to factor the costs of having the kind of retirement you want into your financial planning as early as possible. An important starting point is for the consumer to have access to as much information as possible. Informed consumers are best able to make the right choices."

Why do you think it's important to consider financial needs in later life?

I want to be happy in my later life and not have decisions taken out of my hands 48%
I want to plan my financial matters in a calm manner so that rushed decisions aren't made at a stressful time 39%
I want to make my children aware of such matters 23%
I want to help my family's financial planning going forward 21%

Planning financial needs for later life requires detailed and careful consideration, allowing plenty of time, as the options available and the cost of care increases. The average age that Britons believe they should consider later life financial matters is 37.

Although just 27% Britons are preparing for later life needs, almost half (48%) believe that it is important to plan for such necessities so that their later life is enjoyable and they have control of important decisions.

A third (33%) of Britons endeavour to make plans early just in case things unexpectedly take a turn for the worse, (23%) want to make their children aware and educate them of planning such events, while just over a fifth (21%) want to help their family's financial planning going forward.

Caring for others

While planning for your own care is important, an increasing number of Britons are finding that it is not just themselves that they will have to look after in the long-term.

A fifth (20%) of British adults say they either already care for, or expect they will need to care for parents in the future, 12% care or expect to care for their child/children, and 11% say that in their retirement they will need care for another family member.

As many as 44% of Britons feel prepared for this added responsibility, and either are or will be able to finance this care alongside their own living costs, with men (47%) increasingly more confident than women (40%).

More than a third (35%) felt comfortable that they will budget accordingly, and 18% either are or will save on a monthly basis to provide for these needs.

How do you/will you finance the care you will provide alongside your living costs?

I budget/will budget accordingly 35%
I rely/will rely on the persons concerned pensions and benefits 25%
I have had/will have to make financial sacrifices of my own in order to fund care for others 23%
I put/will put aside a set amount each month in a savings account 18%
I rely/will rely on the persons concerned savings 18%
I rely/will rely on a carers allowance 18%

A quarter (25%) of Britons who care for or need to care for others will rely on the persons concerned pensions and benefits while (23%) said that they would need to make financial sacrifices of their own in order to fund care for others.

Financial planning

NS&I's research has also revealed that almost half of Britons (48%) have not or do not intend to seek advice regarding their later life financial planning.

Just over a fifth of Britons (21%) have approached or would approach a financial adviser in their method to planning their later life needs, while 13% would approach friends/relatives for advice. In addition 9% would consult their parents for advice and 9% would consult the Citizens Advice Service.

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Co-op AGM faces up to bank worries

Press Association — 2013-05-18T02:08:00+00:00

Filed under: Current Accounts

Concerns about the financial health of the Co-operative's banking arm are likely to loom large when the food-to-funerals group faces members at its AGM.

The meeting in Manchester will also see the departure of chief executive Peter Marks, who is retiring after more than 40 years in the co-operative movement. He has been at the helm during a period of rapid expansion for the group, including the acquisitions of Somerfield and Britannia Building Society.
He is being replaced by Euan Sutherland, former chief operating officer of B&Q owner Kingfisher, who has no formal experience in banking.

One of Mr Sutherland's first tasks will be to inject confidence into the banking arm after the collapse of a deal to buy more than 600 Lloyds banking branches and a recent downgrade to junk status by ratings agency Moody's.

The downgrade forced the Co-op to reassure customers on its finances, with the bank saying: "We haven't sought, nor do we need, Government support."

Mr Marks, who has run the member-owned group since 2007, drove its £1.6 billion takeover of supermarket chain Somerfield in 2008 and the 2009 rescue of Britannia, then Britain's second-biggest building society.

But the Britannia deal proved a step too far, with toxic commercial property and home loans it inherited dragging its banking arm to losses of £662 million in 2012.

That pushed the group to statutory losses of £599 million in 2012, from £373 million profits a year earlier.

Moody's said the Co-op under-estimated the risks of the Britannia acquisition, especially against the backdrop of weak economic conditions.

As a member-owned institution, the Co-op is hamstrung in its ability to raise fresh capital, unlike plc banks which can issue shares to boost funds.

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'Bedroom tax' prompts payment surge

Press Association — 2013-05-18T02:02:00+00:00

Filed under: News

The number of people claiming extra handouts from councils to meet housing costs has soared following the introduction of the so-called "bedroom tax", figures have revealed.

More than 25,000 people applied for discretionary housing payments (DHP) to help cover their rent in April, compared with 5,700 in the same month last year, according to an analysis of 51 councils by The Independent.
The Government has substantially increased the DHP funding pot for local authorities to help those most affected by the withdrawal of what ministers call the "spare room subsidy".

A Department of Work and Pensions (DWP) spokesman said officials are "monitoring" the situation to ensure those who need support receive it.

The new regulations, introduced on April 1, led to reductions in housing benefit payments to social tenants assessed to be under-occupying their accommodation. Under new ''size criteria'', tenants with one spare bedroom have had a payment reduction of 14% and those deemed to have two or more spare, a reduction of 25%.

The Independent reported that in some areas the influx of people seeking help had forced councils to hire extra staff to cope with applications and advise tenants.

Birmingham saw the number of DHP claimants rise from 496 in April last year to 2,601 last month, and the city council reported that many of those hit by the welfare reforms were turning to "last-resort services" such as food banks.

Councillor John Cotton, cabinet member for equalities, told the newspaper: "It's a situation like the 1930s here in Birmingham. We are a city that has a hill to climb in terms of deprivation. With the impact of changes like this, the hill just got even steeper. It's putting more and more pressure on vulnerable communities."

Glasgow saw the highest number of claimants of any council in the country, with 5,501 claims for help.

A DWP spokesman said: "We are giving councils £150 million this year so that they can help their vulnerable residents and we are monitoring this spending closely to ensure support goes to those who need it. The spare room subsidy changes will bring fairness back to the system - when in England alone there are nearly two million households on the social housing waiting list and over a quarter of a million tenants are living in overcrowded homes."

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Petrol and diesel prices down: AA

Press Association — 2013-05-18T02:00:00+00:00

Filed under: Motoring

Average petrol and diesel prices have fallen but the situation remains fragile, according to the AA.

The average price of petrol on UK forecourts has fallen from 136.89p a litre in mid April to 133.35p in mid May. It had hit a year high of just over 140p on March 4, having started the year at around 132p.
Diesel, on average, now costs 138.17p a litre, down from 141.76p a month ago. It also reached a year high on March 4 of almost 146.5p a litre, having started the year at around 140p.

But the AA said that this week's International Energy Agency (IEA) warning that traders and speculators were taking control of the European fuel market meant that more and ups and downs in prices could be expected.

The drop in pump prices in the last few weeks follows a series of supermarket price reductions, led by competitive independents and other non-supermarket retailers, which have now reduced the cost of petrol to as low as 128p/129p on the east side of London.

The AA said: "However, wholesale price movements indicate the fragility of the price falls as petrol costs have rebounded, fallen away again and then bounced back over the past three weeks."

Averaging 132.8p a litre, Yorkshire and Humberside has resumed its position as the cheapest region in the UK for petrol. Northern Ireland is the most expensive for petrol at 135.1p and also for diesel, at 139.3p a litre. This is 2p more than the cheapest diesel area - Yorkshire and Humberside at 137.3p

AA public affairs head Paul Watters said: "Three times in the past 12 months, drivers have been hammered by £4-£5 hikes in the cost of a tank of petrol. It is clear that, if petrol and diesel wholesale price movements were transparent, families and businesses would have 10 to 14 days' notice of the next price shock - and hopefully the reason for it."

He went on: "The IEA report suggests that fuel prices will be increasingly subjected to speculation on the part of those who look for inflated short-term profit rather than those players looking to strike a balance between fair profit and supply and demand - without destroying their consumer market, refining capacity and the UK economy.

"We have seen petrol consumption in the UK fall to record lows this year. As many as 69% of AA members are cutting back on car use, other spending or both, and 86% of US drivers are using their cars less. The warning signs couldn't be any clearer."

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Jockey Club bond hits £15m target

Press Association — 2013-05-18T01:55:00+00:00

Filed under: Investing

The Jockey Club's new retail bond romped to its £15 million target as savers flocked to invest in horse racing.

Some 1,500 applicants have invested in the new Racecourse Bond, which was launched three weeks ago to raise funds for a new £45 million grandstand development at the group's flagship Cheltenham Racecourse.
Designed for a "racing audience", the bond offers investments of between £2,000 up to £100,000 over a minimum five-year term for a fixed annual return of 4.75% gross cash interest.

The Jockey Club's launch into consumer finance comes at a time when savers are struggling to make any real returns on their money amid the low interest rate environment.

On top of the cash interest, savers receive a further 3% in ''rewards points'', which can be used to get money-off purchases such as tickets, annual memberships, hospitality packages and food and drink at any of the Jockey Club's 15 racecourses.

The Jockey Club, which said it is "delighted" with the interest the bond has generated, has extended the application window for the bond by 10 days, until May 28.

Savers have invested £11,000 on average so far - while more than 35 applications have been for the maximum £100,000.

Savings rates have plummeted following four years of record low interest rates. The situation has worsened in recent months as the Government's Funding for Lending scheme, which was designed to help borrowers by giving lenders access to cheap finance, has made lenders less reliant on attracting savers' cash.

However, those backing the new Jockey Club bond are not protected by the savings safety net, the Financial Services Compensation Scheme (FSCS), which covers sums of money held in UK-regulated banks and building societies if they go bust. Both the cash interest and the rewards points are taxable.

Charlotte Nelson, spokeswoman for financial information website Moneyfacts, said: "With standard savings accounts now offering smaller returns compared to a few years ago, savers are now looking elsewhere for alternatives to make their money work for them. The average five-year fixed rate bond today is 2.42% compared to 3.99% a year ago."

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Pru bosses avoid pay award revolt

Press Association — 2013-05-17T14:00:00+00:00

Filed under: News

Shareholders accused Prudential bosses of greed after their pay surged to £33 million, but the Asia-focused insurer dodged a major revolt on pay at its annual meeting.

Almost 12% of voting shareholders rejected the Pru's remuneration report after it hiked executive directors' pay by 12% last year despite being fined £30 million by regulators for failing to keep them informed over a major acquisition.
However, chief executive Tidjane Thiam earned the overwhelming backing of shareholders at the AGM in London, with only 2% voting against his re-election.

That was despite Mr Thiam being publicly censured by the Financial Services Authority over the aborted takeover and his total pay leaping 65% to £7.8 million in 2012.

The minor rebellion was down on the 30% "no" vote on pay last year and follows the insurer's 25% leap in annual earnings to £2.5 billion last year.

The Pru was also stung by a 13% vote against its plans for a new long-term shares bonus plan.

A handful of individual shareholders lined up to criticise the company's remuneration, with one investor calling the £33 million combined payout as "obscene".

He said: "This is an obscene record of remuneration and I hope it's not the beginning of other companies following you."

Another said directors' pay amounted to 4% of shareholders' rewards.

He said: "I've not doubt that that everybody works very hard but the word greedy is not remote from my mind".

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Lloyds shares pass break-even price

Press Association — 2013-05-17T12:03:00+00:00

Filed under: Investing

Lloyds Banking Group shares were trading above the Government's break-even price on Friday, fuelling speculation that taxpayers will soon start to recoup the more than £20 billion spent rescuing the lender.

Shares in the 39% state-owned bank rose above the 61.2p level at which the Government said it would break even on its 2008 bailout, and are now at their highest point for two years.
The Treasury is widely expected to begin selling its stakes in Lloyds and 81% nationalised Royal Bank of Scotland before the 2015 general election. Prime Minister David Cameron recently raised the prospect of selling RBS shares at a loss.

Shares in Lloyds have more than doubled over the past year, boosted by state stimulus for the banking sector, the recovering economy and housing market, and its improving balance sheet.
Lloyds chief executive Antonio Horta-Osorio on Thursday told shareholders at its annual meeting: "We expect us to return to profitability this year and to grow our core business, to realise our full potential to deliver strong, stable and sustainable returns for you, the shareholders, and to allow UK taxpayers' investment in the group to be repaid."

Mr Horta-Osorio's £1.5 million shares bonus for 2012 is tied to the 61p break-even level. It will vest after five years if the state has sold at least a third of its stake at prices above 61p, or if a share price of 73.6p has been reached.

However, the 61p price has been described as "contrived" by banking analyst Ian Gordon at Investec Securities, who argues it "conveniently ignores its average in-price of 73.6p".

The state ploughed more than £20 billion into Lloyds at the height of the credit crunch after the then Labour government brokered its rescue of Halifax Bank of Scotland.

Lloyds remained in the red in 2012 with pre-tax losses of £570 million after setting aside £3.6 billion to compensate customers who were mis-sold payment protection insurance (PPI). But its first quarter underlying profits surged to £1.5 billion, with bad debts plunging by 40%.

Lloyds chairman Sir Win Bischoff recently announced he is standing down and hailed ''significant progress'' in the bank's recovery. UK Financial Investments, which manages the state's bank holdings, declined to comment.

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Ofcom clampdown on nuisance calls

Press Association — 2013-05-17T11:10:00+00:00

Filed under: Your Rights

A fresh clampdown on claims management firms has been launched by Ofcom after it found evidence of people being plagued with "annoying" and "distressing" nuisance phone calls.

Research carried out by the regulator over a month found that four out of five consumers received nuisance calls, averaging two a week.
A quarter of people who took part reported receiving more than 10 nuisance calls over the period. Those who took part in the survey were designed to reflect the general UK population and they were asked to make a diary of the calls they received.

The bulk of nuisance calls related to payment protection insurance (PPI), which made up more than half (51%) of unwanted sales calls.

Ofcom said complaints figures have indicated that large numbers of nuisance calls are being generated by some claims management companies.

A spokeswoman for Ofcom said the regulator is gathering further evidence and if its suspicions are confirmed it will launch full-blown formal investigations against these firms.

Ofcom has also written to the Ministry of Justice (MoJ) to draw attention to the extent to which PPI claims appear to be driving nuisance calls.

Claudio Pollack, Ofcom's consumer group director, said: "Two nuisance calls a week is too many and this detailed research will help us understand the root cause of the problem. We will use the full range of our powers to tackle abandoned and silent calls, but this is a complex area that requires joint action from a number of different agencies and Government."

Calls about PPI were considered to be the most "annoying" by more than 850 people surveyed while calls from companies purporting to offer computer support or maintenance were seen as the most "worrying" and "distressing".

Energy, market research and insurance were also among the most commonly cited reasons for unwanted calls. Consumers were only able to identify the name of the company calling in one in five nuisance calls and the telephone number in one third of these calls.

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NatWest and RBS most expensive for foreign cash withdrawals

lovemoney.com — 2013-05-17T11:00:00+00:00

Filed under: Holidays

NatWest and Royal Bank of Scotland customers are charged the most for using their debit cards to withdraw money abroad.

Customers of the two banks pay both a card transaction charge of 2% of the amount withdrawn, from a minimum of £2 up to a maximum of £5 per withdrawal, and a cash conversion charge of 2.75%.

Country charges
Research from Norwich & Peterborough Building Society found that holidaymakers using fee-charging debit cards in the top 10 foreign holiday destinations pay an average charge of £5.99.

Here's that top 10 in full.

Country	Average amount withdrawn per ATM withdrawal	Maximum amount in fees and charges for average withdrawal
1. Spain	£143.37	£6.81
2. France	£126.99	£6.03
3. Australia	£106.96	£5.08
4. Thailand	£162.77	£7.73
5. United States	£122.13	£5.80
6. Portugal	£117.36	£5.57
7. New Zealand	£99.43	£4.72
8. Italy	£129.67	£6.16
9. Greece	£149.85	£7.12
10. Germany	£101.64	£4.83
Average	£126.02	£5.99

What the banks and building societies charge
Other banks' charges vary but some international ones, such as Santander, offer fee-free withdrawals from their cash machines in their home countries, in Santander's case Spain.

Are you wondering what your current debit card will charge you for cash withdrawals abroad? Here's a breakdown of what to expect from some of the big names.

Bank/Building Society	Cash Conversion Charge	Card Transaction Charge
Barclays Bank	2.99%	£1.50 (free if you're using an ATM that's part of the Global Alliance - see here for more on which banks are included)
Bank of Scotland	2.99%	1.5%: min £2, max £4.50
Lloyds TSB	2.99%	1.5%: min £2, max £4.50
NatWest	2.75%	2%: min £2, max £5
Royal Bank of Scotland	2.75%	2%: min £2, max £5
First Direct	2.75%	2%: min £1.75, max £5
Santander	2.75% (free if using a Santander ATM in Spain)	1.5%: min £1.99 (free if using a Santander ATM in Spain)
HSBC	2.75%	2%: min £1.75, max £5 (free for Premier and Advance account holders)
Halifax	2.75%	£1.50
Clydesdale Bank	3.75%: min £1.50	Nil
Ulster Bank	2.65%	2.25%: min £2, max £5
Nationwide BS	2.00%	£1
Metro Bank	Nil	Nil
Norwich & Peterborough BS (Gold Classic and Gold Light accounts only)	Nil	Nil

Free alternatives
Norwich & Peterborough offers a fee-free debit card with their Gold Classic and Gold Light current accounts. Metro Bank also charges no fees on the debit card included with its current account.

Norwich & Peterborough's Gold Classic current account requires you to pay in at least £500 each month or you have to pay a £5 'underfunding charge'. Alternatively, with the Gold Light account you have to have a balance of at least £5,000 or make five transactions in and out of your account each month. If you don't, you'll pay a 'low usage' fee of £5 a month.

If you don't want to use the account as your main one, you'll probably be better off with the Gold Classic - just make sure you transfer the £500 over a month by setting up a direct debit from your main account.

For an account with no strings, Metro Bank's current account is perfect. There's just one catch - you need to visit a branch (or store, as they prefer to call them) to open one. At the moment, all of its branches are in the south-east of England, with the majority in London. But if you're planning a trip to the capital anyway, you could spend half an hour opening an account and then manage it online.

Another charge to watch out for
When you're looking for somewhere to withdraw your cash, make sure you avoid ATMs charging a withdrawal fee.

When a debit card might not be enough
You should also bear in mind that there are certain circumstances when you will need a credit card.

For example, some hotels and car hire companies insist you pay by credit card. And using a credit card mean you'll have extra spending protection under Section 75 of the Consumer Credit Act.

Compare the top credit cards to use abroad

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What are the worst excuses for missing work?

Jess Bown — 2013-05-17T10:05:00+00:00

Filed under: Career

"I am hallucinating" and "I've got a sore finger" are among the worst excuses that employers have been given by their work-shy employees, according to a new study.

"My dog has had a fright and I don't want to leave him" and "I've injured myself during sex" also made the list of reasons given to researchers at mutual healthcare provider Benenden Health.

Its study of 1,000 workers and 1,000 bosses indicates that six out of ten bosses don't believe employees' excuses when they call in sick - particularly when they are as far-fetched as "I am stuck in my house because the door's broken".

Gill Landon, development director at Benenden Health, said: "In a tough economy, managing sickness absence becomes vital for businesses.

"But employers are clearly suspicious about days taken off for illness - perhaps not surprising given the varied excuses presented for absence.

"This is not helped by the fact that for more than a fifth of the sick days taken, workers admitted they could have actually made it into work."

In this age of internet living, the survey also reveals that one in three managers scour social media after receiving a sickie call-in to see whether the staff member is well enough to post updates - and whether those updates match the information they have been given.

"High levels of sickness absence can have a huge negative impact on businesses - both from a financial perspective and on the effect it has on staff who bear the extra workload.

"This is naturally causing employers to be more alert to spotting staff who are not genuinely ill, using methods such as checking their social media profiles to catch them out if they are lying or rigorously questioning the reasons they give for their absence," Landon added.

According to The Week magazine, meanwhile, even those hunting for a job often make excuses for being late for interviews. It therefore advises interviewees to leave extra time to avoid having to make excuses - and almost certainly missing out on the job.

25 of the best (worst) excuses

A can of baked beans landed on my big toe
I was swimming too fast and smacked my head on the poolside
I've been bitten by an insect
My car handbrake broke and it rolled down the hill into a lamppost
My dog has had a big fright and I don't want to leave him
My hamster has died
I've injured myself during sex
I slipped on a coin
I've had a sleepless night
My mum has died (this was the second time the person used this excuse)
I am hallucinating
I am stuck in my house because the door's broken
My new girlfriend bit me in a delicate place
I burned my hand on the toaster
The dog ate my shoes
My fish is sick
I swallowed white spirit
My toe is trapped in the bath tap
I'm in A&E as I got a clothes peg stuck on my tongue
I drank too much and fell asleep on someone's floor - I don't know where I am
My trousers split on the way to work
I'm using a new contact lens solution and my eyes are watering
I have a blocked nose
I've had a hair dye disaster
I've got a sore finger

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The best (and worst) shops on the high street

Sarah Coles — 2013-05-17T09:46:00+00:00

Filed under: Shopping & Deals

A new survey about the shops we love and those we loathe has revealed that our least favourite shop on the high street is WH Smith. Meanwhile, the top spot has been taken by the Apple Store.

So how did they earn their places, and who else made the lists?

Worst

The survey was the latest annual poll by Which? on the subject. It interviewed 11,000 people about 100 high street shops - and asked for their opinions on price, product, service, and after-sales care.

WH Smith took the lowest position, with a score of just 51%. Among the comments made about the store was that it was 'messy' and 'expensive'. It's far from the first time that WH Smith has appeared near the lower end of this list.

Part of this is clearly not the fault of the store. A general stationers is always going to look a bit messy, as there are so many different ranges. Plus it's difficult to make a newsagent look colour-co-ordinated and sparse when there are so many magazines and newspapers shouting for attention.

The store's results would tend to indicate another reason why we are losing faith. Sales are down by 5%, but profits rose 5%. It means we are visiting less, we are buying less, but it's all costing us more. Its the kind of experience that is unlikely to impress customers.

However, a spokesperson told the Telegraph that the survey was unrepresentative and based on a small number of shoppers. They told the Daily Mail that its own internal measures of customer satisfaction showed high levels of satisfaction. It highlighted that a number of new store openings indicated the success of the group.

Second from bottom was EE - formerly Orange and T-Mobile - with a rating of 55%. It shows the difficulty phone shops have in building a positive image when there is so much riding on salespeople's commission.

Third from bottom was TK Maxx, with a rating of 56%. Clearly it's sometimes hard to make a store look beautiful when the stock is all discounted.

The last two in the bottom were Millets and independent department stores, which each took 57%.

Best

The top of the list, meanwhile, is populated by things that look good, those that smell good, and those who are known for their service levels.

The Apple Store took the top spot with 85%. The clean lines, the innovative staffing approach, and the beauty of the products helped make shopping in the stores a pleasant experience. Survey respondents liked the 'unique look and feel' and 'great customer service'. They also praised the knowledge of staff.

Second place went to Lush, with 82% (down from first place last year). The store which even fragrances the pavement outside, and is populated by helpful sales people, has plenty of admirers.

Third place went to the Disney Store with 80%. A rigorous staff hiring and training regime - along with a policy of smiling helpfulness is clearly going down well.

Richer Sounds was joint third with 80%. This is clearly a triumph of prices, service and after-sales care, as some of the stores struggle to rival the beauty of Apple.

And fifth place went to Bon Marche with 79%. The fashion retailer is new to the upper echelons of the list.

Not safe

It's a reminder to those near the bottom of the list that our custom is not guaranteed. Although the survey found that 88% of people don't like to see high street stalwarts fail and 81% worrying abut the decline of the high street, it doesn't mean we're going to shop in stores that don't meet our standards.

Which? executive director, Richard Lloyd, said: "With many high street shops struggling to keep afloat during the recession, it's great to see so many people saying that they are still getting good service. Consumers want to support their local stores, but not at any price, so whether they are chains or independent we hope shops do the right thing to keep their customers and hold back the decline of the high street."

Top Five

1. Apple Store
2. Lush
3. Disney Store
4. Richer Sounds
5. Bon Marche

Bottom Five

1. WH Smith
2. EE
3. TK Maxx
4. Millets
5. Independent department stores

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New Cash ISA from Newcastle Building Society pays 3%

lovemoney.com — 2013-05-17T09:00:00+00:00

Filed under: Savings & ISAs

Save regularly to nab a leading easy access ISA rate from Newcastle Building Society and the chance to earn up to £1,000 cashback.

There aren't many Cash ISAs that can boast a tax-free return of 3% right now.

Rates have dropped off significantly since the start of the new tax year in April. In fact, one of the only deals left that offers this rate is a five-year fixed rate ISA from Virgin Money.

But that's no use if you don't have a lump sum to stash in it straight away.

One untapped resource is the ISA regular saver. And one new version will pay you a cracking rate of 3%.

3% Geordie gem
With the Newcastle Big Home Saver ISA you can deposit between £1 and £500 a month, up to the annual Cash ISA savings limit of £5,760.

The account pays 2% AER on savings and allows unlimited penalty-free withdrawals.

But each month you make an investment and don't make any withdrawals the building society will top-up the account with a 1% bonus.

The Big Home Saver ISA doesn't allow transfers of any previous year's ISAs, but it does offer a further cash incentive for those that want to use what they save to buy a home.

Cashback bonus
If you manage to save between £5,000 and £9,999 and use the pot to buy a home by taking out a mortgage with the Society you will get £500 cashback.

For those that save £10,000 or more the cashback reward rises to £1,000.

But you don't have to use your pot in this way.

If you don't get a Newcastle Building Society mortgage, you just don't get the cash reward, but you get to walk away with savings that have been earning the best rate around.

Getting the best deal
As the Newcastle Big Home Saver ISA is a regular savings account the interest you receive will be significantly less than that earned on a lump sum investment after one year.

If you save £480 a month into the Big Home Saver ISA, you will only earn 3% on the full cash ISA limit of £5,760 in the 12th month.

So you might think you would be better off with a normal easy access ISA that pays a bit less. But if you weren't able to invest a lump sum and were only able to use regular payments for the account that wouldn't be the case.

The top rate going on an easy access Cash ISA is 2.3% from Cheshire Building Society. If you were to regularly save £480 a month in this account you would earn £71.51 in interest.

But using the Newcastle Big Home Saver ISA you will get a beefier £93.18.

Of course if you have a lump sum investment, the Cheshire deal pays more - £132.48 after a year.

But you could also try a drip feed approach where the lump sum sits in another top savings account and is fed into a regular ISA saver - ensuring your money is earning the most interest at any one time.

You won't be able to do this with another Cash ISA but check out the latest instant access savings accounts to find one that can help.

Regular saver ISAs
Currently the Newcastle Big Home Saver beats normal easy access, notice and one- to four-year fixed rate Cash ISAs on interest rates.

But how does it match up with other regular saver ISAs?

According to Moneyfacts there are only six of these types of deals currently available. They are detailed in the table below.

Account	Term	Interest rate AER	Min/max regular deposit	Access	Need to know
Nottingham BS Starter ISA Issue 3	05.04.14	4%	£1/£480	Branch	No withdrawals permitted. Fixed rate.
Vernon BS Regular Saver ISA	Instant	3%	£25/£480	Branch, online	Two penalty-free withdrawals permitted. If more than two withdrawals or more than one missed monthly payment, rate slashed to 1.5%. Only available to customers within 25 mile radius of Stockport.
Newcastle BS Big Home Saver ISA	Instant	3%	£1/£500	Branch, online	Missed payment or withdrawal in any month means rate reduced by 1%.
Buckinghamshire BS Chiltern Gold Nuggets Issue 3	Instant	2.25%	£10/£480	Branch, post	Regular monthly payments of the same amount. One penalty-free withdrawal permitted. Missed payment or two or more withdrawals reverts rate to 0.10% for tax year. Initial deposit must be made by cheque.
Nationwide BS Save To Buy ISA Issue 2	3- year bond	2%	£50	Branch	No withdrawals permitted.
Hanley Economic BS Cash ISA Regular Saver	Instant	1.70%	£20/£480	Branch, post	Missed payment reverts the account to Instant Access ISA One penalty-free withdrawal allowed per tax year. Restricted by postcode.

Source: Moneyfacts

As you can see Nottingham Building Society is offering the best rate of 4% and unlike the others it is a fixed rather than a variable rate. But you will only be able to get an account if you live in the area and can access a branch.

The next best deal from Vernon Building Society is also restricted by postcode so savers living outside a 25-mile radius of Stockport won't be able to benefit.

Newcastle Building Society's Big Home Saver ISA is the best regular saver ISA that is available to all, as anyone can apply online.

Take a look at the latest ISA rates

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Burglar jailed after being caught by Jaffa Cakes

Sarah Coles — 2013-05-17T08:49:00+00:00

Filed under: News

Reece O'Callaghan, a 19 year old from West Heath in Birmingham, has been jailed for seven and a half years after being found guilty of burgling a local property and pleading guilty to two other charges.

In the end it was a packet of Jaffa Cakes that proved his undoing.

Jaffa Cakes

The Daily Mail reported that O'Callaghan, of Seven Acre Road, broke into a property belonging to an elderly couple in July last year. During the raid he got peckish and tucked into a pasta meal and a packet of Jaffa Cakes, before leaving with his haul.

The Birmingham Mail said he was spotted leaving, and was arrested nearby, but denied having done anything wrong. It was only after his middle fingerprint was found on the Jaffa Cake box that his story fell apart. Jason Pegg, prosecuting at the Crown Court said the evidence "literally pointed" at him.

Caught out

And he's not the only burglar to have been caught out by something surprising.

In January there was the Norfolk burglar who broke into a student's flat and stole a laptop. The job of tracking him down, and placing him at the scene of the crime was made much easier by the fact he was wearing an electronic anti-crime tag.

There was the 18 year old burglar in Stockport who was apprehended after writing his name on the wall of the property he had broken into.

Last year there was a 35-year-old who broke into a restaurant in Cambridge - stealing money and a mobile phone. While he was pocketing the cash he decided to swig from a bottle of Champagne - which gave police all the DNA they needed in order to catch him.

There are several tales from the US too, including the burglar in Washington who accidentally left his phone on charge in the house he raided.

Another US burglar with cause to reflect on some of his decisions was the man in Illinois who left a black glove at the homes he robbed as a 'calling card'. DNA on the gloves helped find the culprit - at which point they knew all the crimes he had committed.

Then there were the US criminals who covered their faces in black marker pen to disguise themselves when they tried to break into a property - they were caught with the permanent marker still on their faces.

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Why is Waitrose investing in 'welcome desks'?

Sarah Coles — 2013-05-17T08:00:00+00:00

Filed under: Shopping & Deals

Do you of the supermarket as a place to rush around with a trolley, a list, and a fast-dwindling supply of patience? Then you're stuck in the 20th Century. Now they're a 'hub' where you can collect the food you have already bought online: without the fuss of a shopping trip or the expense of delivery.

And Waitrose is so convinced that this is the future of shopping that it is changing its stores - and introducing hotel-style concierge desks.

'Hubs'

The chain is introducing the kinds of welcome desks you normally see in hotels. It will have them in 100 stores this year, and across the company next year.

People can collect their shopping there in relative calm. Alternatively they can place online orders on tablets kept at the desks (with or without help from staff), or have things like flowers and gifts wrapped by a helpful member of staff (flowers will be free and gifts will be charged for). Some will also offer a dry cleaning service if a trial proves popular.

It's a sign of just how significant online ordering is becoming for the business. As it announced the change, the store said that increasingly shops aren't just supermarkets but 'hubs for ordering and collection'.

Mark Price, Managing Director, Waitrose (pictured), said in a statement: "The new welcome desks will allow us to respond to changing shopping habits as our supermarkets are increasingly used as a destination to collect online orders. By offering these new branch hubs, we will enhance the customer experience even further by providing greater convenience and even more personalised services."

Click and collect

'Click and collect' has become big business for Waitrose, which has even introduced a drive-through collection point in five stores - where you can do the weekly shop without leaving the car. It is also planning to introduce temperature-controlled self-service lockers for online customers at the end of the year.

It's not just Waitrose which is expanding its 'click and collect' services, Sainsbury's and Tesco have also been heavily investing in it. At sister store, John Lewis, some 8% of all shopping is done through 'click and collect'. In the week before Christmas 5% of all Tesco shopping was bought through the service. In Sainsbury's more than half of all general merchandise it sells is bought online and picked up from the store.

It avoids the hassle of filling the trolley, and the inconvenience of waiting in for a driver and paying for delivery, and is proving a hit with consumers. It's no wondered that the brands are investing.

Ocado

Waitrose has an added incentive to be at the forefront of this development. It has had a delivery arrangement with Ocado since 2000, but now Ocado has signed a partnership deal with Wm Morrison, which Price was keen to examine.

Given that Waitrose has a break clause in its Ocado contract, which means it can end it in 2017, it could encourage Waitrose to consider running its own deliveries.

Building up a service to rival companies that have been doing it for decades is going to be a challenge. However, the innovation it has shown with collection services could be a good sign that it is taking advantage of being a late-starter.

But what do you think? Has the way we shopped really changed? Or do you find yourself racing round with a trolley every week regardless of modern technology? Let us know in the comments.

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Norway recruits polar bear spotter

Hannah Ricci — 2013-05-17T07:30:00+00:00

Filed under: Career

Happy to put yourself in sniffing distance of one of the world's most dangerous animals? Then Norway has the perfect job for you.

The arctic archipelago of Svalbard is advertising for a polar spotter: firearm skills and a loud voice are an advantage.
The Norwegian government is recruiting for the unique role on the remote Northern islands of Svalbard, whose 2,400 human residents are outnumbered by its 3,000 polar bears, according to the Associated Press. The job starts on July 8 and involves spotting polar bears to warn researchers doing work in the area.

To qualify, applicants must have previous experience outdoors, good bear-spotting skills and experience with firearms. But Helge Solli from the governor's office told the AP that the successful candidate likely won't have to use a gun "just as long as they have a loud voice" to scare off any polar bears.

The polar bear is the largest meat eater living on land. They are are extremely protective of their cubs and attack viciously when there is a perceived threat. A polar bear can reportedly cut a human head off with a swipe of its paw.

Odd jobs
The role is up their with some of the more unusual jobs advertised in recent years. Earlier this year we reported on the 'water slide tester' vacancy advertised by First Choice Holidays. The role involved riding and rating water slides, flumes and pools across 20 SplashWorld resorts in destinations including Majorca, Turkey and Egypt.

Advertised as "officially the best job in the world" in 2009, a new role of 'island caretaker' was advertised by the Queensland Tourism Board to help promote the Islands of the Great Barrier Reef to the world.

Brit Ben Southall won the job, earning £73,400 to live on an island in the Great Barrier Reef for six months, swimming, exploring and generally enjoying himself whilst filming and blogging about all the fun he was having.

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Five and a half million people paid wrong tax in 2012/13

lovemoney.com — 2013-05-17T07:00:00+00:00

Filed under: Tax

The taxman says three and a half million people are due a refund, but two million will have to fork out for underpaid tax.

HMRC has announced that more than five million people paid the wrong amount of tax in the 2012/13 financial year.

Three and a half million will enjoy a tax refund, but two million will have to pay an average of between £400 and £500 as they've underpaid.

The taxman says 85% of taxpayers paid the correct amount of tax via the Pay As You Earn (PAYE) system.

Letters will be sent out to affected taxpayers between now and October, with the first batch going out over the next few days.

What happens if you've underpaid
If you've underpaid by less than £3,000, the 'reconciliation' (as HMRC calls it) will be collected over the course of the 2014/15 tax year, which begins next April, via your pay.

If you've underpaid by more than £3,000, you can pay some or all of the bill now. If you pay a part payment to bring the amount you owe down to less than £3,000, it can then be collected via your pay in 2014/15.

If you can't afford to pay the sum you owe, you should contact HMRC and it can potentially allow you to spread the cost over a longer period.

What happens if you've overpaid
If you've overpaid, you'll be sent a cheque in the post. But you can make a claim now if you think you're owed money. Use HMRC's tax checker to find out what you might be owed.

Will tax errors soon be a thing of the past?
This latest string of incorrect tax bills will once again raise questions about the reliability of HMRC's systems.

It's launching a new PAYE system in October, which it claims will eliminate these errors in future years.

If you want to check you're on the right tax code, have a read of How to make sure you're on the right tax code.

And watch out for tax refund scams that will no doubt be doing the rounds off the back of this news.

Protect your money from tax with a tax-free ISA

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Bristol bus lane fine revoked

Jess Bown — 2013-05-17T06:45:00+00:00

Filed under: Motoring

A motorist has forced a Bristol City Council to apologise after he was fined for pulling into a bus lane to let two fire engines pass his car.

Ian Pemble, 67, has also been reimbursed the £30 penalty he paid after council officers sent him photos of his vehicle travelling in the bus lane.

However, he would not have got his money back had he not decided to fight the fine, which was issued despite video evidence showing that a fire engine raced past his car seconds after he moved into the outside lane.

Bristol City Council has since admitted that officers issued the penalty without fully considering the circumstances on the A4 in Bristol last month.

Council spokeswoman Kate Hartas told the Daily Mail: "The team have reviewed the footage, and it is clear that he had moved into the bus lane for a fire engine.

"Actions by motorists to allow access for emergency services occur regularly, and they are normally picked up when the footage is examined prior to a PCN being issued. However, it was missed in this instance in error. We will write to Mr Pemble to apologise."

Pemble, a music journalist from St Annes in Bristol, is just happy to find out that he was "squeaky clean" and get his money back.

"I knew I was in the area but I wasn't sure whether I had just nipped into the lane at the last moment," he said.

"I paid my fine. But I was so annoyed with them, I asked for more evidence. And it was lucky I did because when they sent through the video, it clearly shows me moving out of the way of two fire engines. I was absolutely delighted to find I was squeaky clean."

Bristol is not the only UK city where officers are busy handing out bus fines, though. According to the BBC, Reading motorists caught driving in bus lanes have paid out more than £2 million in fines in the last year.

Figures from the borough council in Reading reveal that a total of 72,178 penalty charge notices were handed out in the last financial year - that's an average of more than 197 a day.

Bogus parking fines are also a problem, with Royal Mail sealing up a post box in Plymouth recently after one of its post vans got a parking ticket while picking up the letters inside. You can read more about that story by clicking here.

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Is this the end of free bank accounts?

Jess Bown — 2013-05-17T06:00:00+00:00

Filed under: Current Accounts

EU proposals aimed at making it easier for consumers to compare bank account fees could backfire by prompting British banks to charge for services that are currently free, critics have warned.

Services that could be affected include cash machine withdrawals, which are generally free in this country - as long as you go to a bank or city centre machine.

Here, we take a closer look at the European Commission's plans and whether they really could sound the death knell for free banking in the UK.

What are the proposals?
Under the EU plans, all current account providers will have to provide customers with a "fee information document" listing the most common services and the fees charged for them.

In addition, the European Commission will tackle the issue of making switching bank account easier by moving to ensure that customers who request to switch banks are able to do so within 15 days (or 30 days for switches between banks in different European countries) and are protected against financial loss resulting from mistakes or delays.

Other proposals include allowing EU residents to open bank accounts in other EU countries, even if they do not live there, and increasing access to basic bank accounts to ensure that all consumers can have current accounts.

What's the problem?
According to consumer watchdog Which?, some analysts have raised concerns that doing this on a Europe-wide basis could lead to UK banks charging for services like cash machine withdrawals in order to avoid being undercut on others.

Which? said: "We broadly welcome measures to increase fee transparency. However, we believe this legislation should not be an excuse for banks to introduce fees for bank accounts, particularly for current account and basic bank account customers.

"Additionally, we want to see further action taken against complicated and excessive bank charges."

They could have a point, especially with The Telegraph reporting that the Post Office is planning to charge a £5 monthly fee for its new basic bank account aimed at people on low incomes. That is not the only criticism Which? has of the EU plans, though.

It also believes that the process of switching could be made even easier if bank account portability was introduced.

"We would like to see a recommendation of an independent feasibility study into portable account numbers, which looks at the potential costs of such a scheme with the potential benefits to consumers, business and governments," Which? added.

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Warning over Rita Ora booby trap

Sarah Coles — 2013-05-17T05:52:00+00:00

Filed under: Scams & Fraud

When Rita Ora suffered a wardrobe malfunction on stage in November last year, she didn't just accidentally reveal more than she had planned, she also inadvertently increased the risk of you becoming a victim of cyber criminals.

So how does Rita Ora put you at risk?

The scam

Ora is not connected in any way to this scam - other than being exploited by the criminals. The internet security experts at Norton have issued a warning about a phishing site that uses her as bait in order to lure victims into revealing their Facebook login details.

The page has an image of a fake YouTube video in the background, which claims to show the wardrobe malfunction. However, the site prompts you to enter your Facebook details, so you can see the video and 'personalise your experience'.

Once you have entered your details, you are redirected to a real site hosting the video - so you may not realise anything has gone awry. However, you will have given your details to criminals, so they have access to your Facebook account.

Emma Jeffs, Internet Security Expert at Norton, says, "Cybercriminals will often use celebrity scandal as bait in their phishing attacks. We've seen this type of tactic used before, yet thousands of curious internet users can still fall victim."

"This phishing attack prompts users to enter their social media login details. The pop-up window looks convincing and it's hard to distinguish from a genuine page. It goes to show cybercriminals are becoming more sophisticated and we should all continue to be vigilant when online"

Protect yourself

The experts have issued six tips for protecting yourself from the risks.

1. Do not click on suspicious links in email messages
2. Do not provide any personal information when answering an email
3. Do not enter personal information in a pop-up page or screen
4. Ensure the website is encrypted with an SSL certificate by looking for the padlock, "https", or the green address bar when entering personal or financial information
5. Use comprehensive security software, which protects you from phishing scams and social network scams
6.Exercise caution when clicking on enticing links sent through email or posted on social networks

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