Browse content similar to 10/05/2014. Check below for episodes and series from the same categories and more!
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Hello and welcome to Your Money, your weekly guide to making the most | :00:15. | :00:19. | |
of your cash. Here every weekend on BBC News television and available | :00:20. | :00:22. | |
all week on the BBC iPlayer. Getting more from our savings. Banks | :00:23. | :00:28. | |
are told to make it easier to switch to a better account. We will find | :00:29. | :00:32. | |
out how we do it ` and if it is worth the effort. | :00:33. | :00:35. | |
A new car for the price of a second`hand one. We will show you | :00:36. | :00:37. | |
how it is done. And the long harm of the law. More | :00:38. | :00:41. | |
complaints about solicitors and the mistakes they make when we are | :00:42. | :00:44. | |
buying a home. We will find out how to avoid the worst blunders. | :00:45. | :00:47. | |
?4.3 billion ` that is how much extra the consumer group Which? | :00:48. | :00:53. | |
Thinks we could earn every year if our savings were released from bad | :00:54. | :00:57. | |
bank accounts. We have talked a lot in the past about switching our | :00:58. | :01:03. | |
current accounts. Which wants the banks to make it easier to switch | :01:04. | :01:07. | |
our savings accounts, too. Just 16% of those asked said they | :01:08. | :01:10. | |
had switched their main savings account in the last 12 months. | :01:11. | :01:15. | |
Why not more? Here is one possible reason. Just over 35% of those asked | :01:16. | :01:19. | |
said they had not switched to a better account because they thought | :01:20. | :01:22. | |
they were all as bad as each other. A whopping 75% said they did not | :01:23. | :01:25. | |
think banks do enough to help savers get a good deal. | :01:26. | :01:32. | |
James Daley is from the campaigning group Fairer Finance and David | :01:33. | :01:34. | |
Braithwaite is a financial adviser, from Citrus Financial Management. | :01:35. | :01:46. | |
What could the banks do? I think they could make the whole system | :01:47. | :01:53. | |
simpler is a good starting point. At the moment, you open an account, | :01:54. | :01:58. | |
it's got a great game and then 12 months later, even though it was | :01:59. | :02:03. | |
called an instant Saver, they have offered a similar account with a | :02:04. | :02:10. | |
different name, which is offering better interest. In many cases, the | :02:11. | :02:18. | |
big banks simply do not tell you what the rates of interest are for | :02:19. | :02:28. | |
all the accounts. How could it make us more aware of that? Should they | :02:29. | :02:32. | |
be writing to their customers every year, for example? They could do, in | :02:33. | :02:40. | |
these days, a lot of people do not open mail, why not text people? | :02:41. | :02:48. | |
Banks simply have not moved into the 21st century, with relation to | :02:49. | :02:55. | |
communication. Many people put the money the and forget about it. Could | :02:56. | :03:03. | |
we have a system where the bank were transferred automatically another | :03:04. | :03:07. | |
account? It sends a much simpler way of doing it. At least people would | :03:08. | :03:12. | |
know, this is exactly where your money will be in 12 months' time. If | :03:13. | :03:19. | |
they get in touch with you until you this, then you do nothing, the | :03:20. | :03:33. | |
responsibility would lie with you. You tend to do a lot of shopping | :03:34. | :03:38. | |
around and homework. It is very real that people will think, it is a year | :03:39. | :03:42. | |
that has passed and then having a look at it, marking it on a calendar | :03:43. | :03:52. | |
as you would a birthday. It does not highlight how to use the interest | :03:53. | :03:59. | |
rates actually are. People could be making better use of their money, | :04:00. | :04:05. | |
but the problem is, they are left to do it, when the banks should be | :04:06. | :04:13. | |
doing more. People are so used to not taking money out of for example | :04:14. | :04:26. | |
ISAs. People need to be aware that you can do that. Yes, part of the | :04:27. | :04:33. | |
problem is also that the transfer takes so long. The banking system | :04:34. | :04:37. | |
needs to move to a system where this can be transferred overnight. It all | :04:38. | :04:43. | |
sounds like a pipe dream. In terms of moving to a different ISA, how | :04:44. | :04:52. | |
would you best do that? You have to do your research. You need to simply | :04:53. | :04:59. | |
get in touch and see I have this with this bank, ISA the, can you | :05:00. | :05:06. | |
transferred it to this bank account? Unfortunately, it does take a few | :05:07. | :05:12. | |
weeks to go through. It could be simpler. Everything is simpler, we | :05:13. | :05:17. | |
all do Internet banking, like on the banks not deliver that speed to the | :05:18. | :05:23. | |
consumer. Now, regarding interest rates, who actually are the best, in | :05:24. | :05:29. | |
terms of offering best interest rates? The more you are prepared to | :05:30. | :05:38. | |
do, such as running it yourself on the Internet, the interest rates can | :05:39. | :05:41. | |
claim. You can get a three`year fixed rate of 2.7%. You can get a | :05:42. | :05:49. | |
better rate if you are doing it yourself, you just need to make the | :05:50. | :05:58. | |
effort. What about alternative to put your money, such as the | :05:59. | :06:04. | |
accounts? Yes, some of their rates and these are 5`6%, but a lot of | :06:05. | :06:11. | |
people are looking in the longer term to retain both the savings | :06:12. | :06:16. | |
account and the current account. Thank you very much. David, you stay | :06:17. | :06:21. | |
with us, because we will be talking to you slightly later on. , how | :06:22. | :06:34. | |
could you lose track of that money? But thousands do, The government's | :06:35. | :06:36. | |
got a Pension Tracing Service, to help people track down lost pensions | :06:37. | :06:39. | |
and 145,000 have used it. Anyway, pensions expert Tom McPhail at | :06:40. | :06:42. | |
Hargreaves Lansdown has come up with some tips to stop you losing track | :06:43. | :06:46. | |
of your pension in the first place. If you change jobs, see if it is | :06:47. | :06:49. | |
worth bringing your old and new pensions together in one pot. That | :06:50. | :06:52. | |
is called consolidation. You might lose out, so do the maths first. | :06:53. | :06:55. | |
If you move home, make sure you write to all your pension, savings | :06:56. | :06:58. | |
and investment companies to give them your new address. Do not forget | :06:59. | :07:01. | |
to tell your boss, as well. Keep the majority of your pensions | :07:02. | :07:04. | |
and investments on one platform, this will cut down on paperwork and | :07:05. | :07:08. | |
reduce the risk of money being lost. Make sure your husband, wife, | :07:09. | :07:10. | |
partner, children, local cats home ` whoever is going to get your money ` | :07:11. | :07:14. | |
make sure they know where to find the relevant information. You can | :07:15. | :07:18. | |
write down a list of assets, and have it stored with your will. | :07:19. | :07:24. | |
Buying a car. To make the most of your money, is it is it better to | :07:25. | :07:29. | |
buy new or nearly new? Theo Leggett goes all Clarkson on us. Car sales | :07:30. | :07:38. | |
in Great Britain are booming. Sales increased by 8% in April and May | :07:39. | :07:42. | |
have been increasing for the past two years. Researchers showed new | :07:43. | :07:48. | |
one quarter of drivers want to get a new car with in the next five years. | :07:49. | :07:53. | |
The car is the biggest purchase people will make after buying the | :07:54. | :08:01. | |
house. A lot of the options are therefore important. As the car | :08:02. | :08:04. | |
going to be great for you, going to do the job for you, how much is | :08:05. | :08:09. | |
going to cost and to insure? You have to also budget as to how you | :08:10. | :08:13. | |
will pay for it and long you are going to keep the car, essentially. | :08:14. | :08:20. | |
Buying a car can be a very stressful process. You then need to go for the | :08:21. | :08:24. | |
make and model and then, do you go for a used car or a brand`new one? | :08:25. | :08:32. | |
Most of us would like a new canopy could get one. It is lovely and keep | :08:33. | :08:38. | |
clean and has that lovely new smell about it. But the moment we drive a | :08:39. | :08:44. | |
new car of the forecourt it loses an awful lot of its value. For the cost | :08:45. | :08:48. | |
conscious motorists, that is a big problem. Newcastle lose up to 40% in | :08:49. | :08:58. | |
value on the first year. According to research, it could work out | :08:59. | :09:02. | |
cheaper to buy a new one than a used car. You know about these things, is | :09:03. | :09:12. | |
it possible to get a new car for the same place or cheaper than a | :09:13. | :09:19. | |
second`hand car. It is possible if you know that a dealership. You can | :09:20. | :09:25. | |
also change the payment system. What if I do not want to pay in cash. Our | :09:26. | :09:35. | |
best customers are those who buy second or nearly new vehicles. This | :09:36. | :09:41. | |
has only six males on the clock is only two months old and has a saving | :09:42. | :09:49. | |
of nearly ?9,000. It is a new car, as long as you do not mean being the | :09:50. | :09:54. | |
second owner of the vehicle. There is a catch. And nearly new car will | :09:55. | :10:02. | |
have a second name on the document, which could mean it would depreciate | :10:03. | :10:07. | |
when you want to sell it on. But if you are looking at good value and | :10:08. | :10:11. | |
not too fussed about the number of previous owners, you can get some | :10:12. | :10:16. | |
fantastic deals. The most important thing is to do your research. If you | :10:17. | :10:21. | |
want to buy something brand`new or second`hand, you may find yourself | :10:22. | :10:24. | |
driving away with an absolute bargain. | :10:25. | :10:33. | |
His other car is a Morris Marina. When you bought your house or flat, | :10:34. | :10:40. | |
by the end of the process, were you still on speaking terms with your | :10:41. | :10:44. | |
solicitor? Still good mates? Mmm? The Legal Ombudsman ` unlike other | :10:45. | :10:47. | |
watchdogs, this one is not called Off`something. How delightful it | :10:48. | :10:50. | |
would be if it was called Off`brief or Off`Lightly, but it is not. The | :10:51. | :10:53. | |
legal ombudsman says the most complained about area of law is | :10:54. | :10:56. | |
residential conveyancing ` the law about buying and selling a property. | :10:57. | :11:00. | |
Tracy Kellet, aproperty expert at BDI homefinders is here, as is David | :11:01. | :11:06. | |
again. How do you pick the right legal | :11:07. | :11:10. | |
brain to take the pressure off you recommendation is first port of call | :11:11. | :11:11. | |
` communication is everything DAVID: the first thing you should not do is | :11:12. | :11:26. | |
skimp on your solicitor. You need to get yourself a good proper | :11:27. | :11:31. | |
solicitor. The first thing you need to do is get a recommendation from | :11:32. | :11:37. | |
somebody, somebody who knows about the subject, who has just bought or | :11:38. | :11:43. | |
sold a house. Taught talk to them about the individual be used. Pick | :11:44. | :11:49. | |
up the phone. Can you actually talk to them? The very important aspect | :11:50. | :11:56. | |
of this is communication and the solicitor you cannot talk to is a | :11:57. | :12:01. | |
hopeless situation. That is a very important point. It is about the | :12:02. | :12:06. | |
Pearson, not about the solicitor 's office itself. David, looking at the | :12:07. | :12:20. | |
figures, complaints of 215,000 last year. Is this telling is that | :12:21. | :12:26. | |
solicitors are lazy or under more pressure? I think there are maybe | :12:27. | :12:30. | |
more under pressure because house`buying has come up a lot. We | :12:31. | :12:37. | |
have property lawyers who will speed things through at a discount price, | :12:38. | :12:40. | |
but it does mean that some things get missed. But you are talking a | :12:41. | :12:46. | |
lot of money when you're buying a house, so if you are saving a couple | :12:47. | :12:56. | |
of hundred pounds, is it really worth it when you resell your house | :12:57. | :13:02. | |
and the person who is buying it has a solicitor who is going to have a | :13:03. | :13:09. | |
proper look at it? So, getting the discount is something of a false | :13:10. | :13:15. | |
economy? Absolutely. The requirements that the mortgage | :13:16. | :13:20. | |
companies need, legally wise, is much more strict and the require | :13:21. | :13:26. | |
much more paper than needed years ago. You often come up against this | :13:27. | :13:33. | |
wall of what you can do. You need this piece of paper which does not | :13:34. | :13:39. | |
exist from 25 years ago and that is where you need a good problem | :13:40. | :13:44. | |
solving solicitor. It is all about them being imaginative and | :13:45. | :13:49. | |
innovative in the approach, rather than simply ticking off a check | :13:50. | :13:56. | |
list? Yes, you need someone who will find ways around the inevitable | :13:57. | :14:00. | |
problems which will end up in your way and that will relieve you of an | :14:01. | :14:03. | |
enormous amount of stress and also protect you. You do need somebody | :14:04. | :14:13. | |
who does not miss any of the important little details. | :14:14. | :14:18. | |
Absolutely, and I bought a flat once and my lawyer found there was a | :14:19. | :14:24. | |
square metre of driveway that was not owned by anybody. What if I was | :14:25. | :14:29. | |
buying that flat and then somebody picks it up afterwards? It is all | :14:30. | :14:32. | |
very well know in a buoyant market. What you need to think about is, in | :14:33. | :14:38. | |
a slack market, you need to make sure what you have is as easily | :14:39. | :14:42. | |
sellable as you wanted to be when you need to get rid of that asset | :14:43. | :14:47. | |
and move on to a new home. There is a particular issue that the | :14:48. | :14:53. | |
ombudsman picks up on, it is people who think they have bought the house | :14:54. | :14:56. | |
or flat, they've got the keys, moved in, then it turns out they don't | :14:57. | :15:06. | |
actually own it, because the solicitor has not handed over the | :15:07. | :15:09. | |
stamp duty. There is a lot of this in the press, it is terribly scary. | :15:10. | :15:15. | |
It is an obvious failing, and it is actually fraud. It is not as | :15:16. | :15:21. | |
widespread as people believe, most of the things we're hearing are | :15:22. | :15:26. | |
about incompetence. Is there any way of checking the stamp duty has been | :15:27. | :15:32. | |
paid? What you need to look carefully at is the completion | :15:33. | :15:34. | |
certificate you get, which is a statement of accounts. Can you do it | :15:35. | :15:46. | |
without a solicitor? You can, it is not something I would recommend. We | :15:47. | :15:49. | |
had a client do that once and it caused no end of pain. If you buy a | :15:50. | :15:55. | |
property, and using a property lawyer, you're paying for somebody | :15:56. | :15:59. | |
qualified to do that job. You would not do your own brain surgery, so | :16:00. | :16:04. | |
why would you skimp on that? It is nice to have somebody to blame. If | :16:05. | :16:09. | |
you are employing somebody for that, you have redress, you can talk to | :16:10. | :16:13. | |
them about the solutions. I would never do something like that on my | :16:14. | :16:21. | |
own. How do you protect yourself? You told us how to find the right | :16:22. | :16:28. | |
solicitor, but mistakes are made. You have the legal ombudsman. They | :16:29. | :16:33. | |
seem to be pretty busy. They seem to have your back as well. Get a good | :16:34. | :16:36. | |
solicitor and you should not have any problems. Thank you, that is all | :16:37. | :16:43. | |
from us this week. You can keep up`to`date all week long with what | :16:44. | :16:48. | |
ever is making the news about money, pensions, savings, that takes your | :16:49. | :16:49. | |
fancy. The address... You can get updates by following our | :16:50. | :17:01. | |
feed on social media. Thanks for watching this week. I hope you will | :17:02. | :17:04. | |
join us next week. | :17:05. | :17:07. |