:00:00. > :00:00.more than we can afford but it won't just affect people looking for a new
:00:00. > :00:00.mortgage, it may affect those on mortgages already. That's what we
:00:00. > :00:26.are looking at this week. This is your weekly guide to making
:00:27. > :00:29.the most of your cash. New curbs on mortgages, but people who have a
:00:30. > :00:33.mortgage already may be caught out. We will tell you who it affects.
:00:34. > :00:37.Getting back the money that the banks should never have taken in the
:00:38. > :00:44.first place, we will see how the financial ombudsman service is
:00:45. > :00:49.dealing with PPI claims. And the superb ISA, we will tell you how the
:00:50. > :00:53.new account will work and how we can make the most of it.
:00:54. > :00:58.up over 18% in London over the last year,
:00:59. > :01:01.That explains why the Bank of England has told
:01:02. > :01:03.the mortgage lenders to rein in their galloping horses.
:01:04. > :01:06.The Bank of England says it wants mortgage lenders to check
:01:07. > :01:12.that borrowers could afford to pay back their loans, even
:01:13. > :01:15.if interest rates rose by another 3%.
:01:16. > :01:17.And it wants to cap the proportion of risky mortgages that
:01:18. > :01:21.dwarf people's salary, the Bank says no more than 15%
:01:22. > :01:25.of all mortgages should be risky mortgages.
:01:26. > :01:27.That's mortgages where the loan is 4`and`a`half times bigger
:01:28. > :01:31.The lenders are way, way below that target across the UK,
:01:32. > :01:44.House prices may be up by more than 18% in London, but they
:01:45. > :01:48.rose by less than 1% last year in the north east of England.
:01:49. > :01:50.They fell by nearly 1% around Hull and the Humber.
:01:51. > :01:53.It shows what a challenge the Bank of England and the financial
:01:54. > :01:55.watchdog face, trying to control what's effectively a regional boom,
:01:56. > :01:59.with financial tools that apply to the nation as a whole.
:02:00. > :02:10.David Hollingsworth joins us from Bristol. Of course the mortgage
:02:11. > :02:13.lenders have already brought in new tougher checks on affordability.
:02:14. > :02:20.What impact has that had already? That's right, they are still bedding
:02:21. > :02:24.in, if you like. The affordability test is at the heart of the lending
:02:25. > :02:30.decision and it has got tougher, so lenders are looking at doing, and
:02:31. > :02:34.outgoings. It remains to be seen how bad will hold back the level of
:02:35. > :02:38.lending. So this measure doesn't really have an instant impact, it
:02:39. > :02:45.will be in the background to prevent any slide in the future. When you
:02:46. > :02:48.hear about curbs on lending, you think it is new loans, to new
:02:49. > :02:51.borrowers, but some of this may affect people who have a mortgage
:02:52. > :02:56.already but will need to renew the mortgage when their existing deal
:02:57. > :03:01.runs out. Year, when they come to look for a new deal, they will go to
:03:02. > :03:04.a new lender, they will have to go through the new rules that came into
:03:05. > :03:09.place because of the mortgage market review. That will be new lending,
:03:10. > :03:13.feeding into the figures that are going to be monitored by the bank to
:03:14. > :03:21.prevent a slide towards more borrowers ring higher multiples. It
:03:22. > :03:26.is mainly in London and the south`east that people are
:03:27. > :03:32.affected, that is where the house price increases are the highest of
:03:33. > :03:36.all. The bank really can't control what the house prices are, but it
:03:37. > :03:41.can look at trying to minimise a move towards higher and higher
:03:42. > :03:47.levels of debt. Those who are demanding bigger and bigger more ``
:03:48. > :03:51.mortgages are likely to pay more in the housing market and that is
:03:52. > :03:54.currently London and the south`east. A balancing act because in the
:03:55. > :04:00.regions we are not seeing anything like the kind of rises that London
:04:01. > :04:04.is. The head of mortgages at the building societies OCH and was on
:04:05. > :04:13.breakfast this week and he raised the concern that limiting mortgages
:04:14. > :04:17.to 15% of the total loan book could actually stop people who could
:04:18. > :04:21.easily afford to repay a big mortgage, could stop them getting
:04:22. > :04:24.the money in any case. At the moment the expectation is that there will
:04:25. > :04:30.be no immediate change because the banks are well within the 15%. More
:04:31. > :04:36.like 10% currently. Borrowers shouldn't expect a change next week
:04:37. > :04:41.from this. The risk is still with the lender, the decision remains
:04:42. > :04:47.with them and you can still borrow 4.5, or more. This puts a safety
:04:48. > :04:51.break in place, so if there is a move to a slacker lending policy and
:04:52. > :04:56.more always take higher multiples, this will kick in and prevent higher
:04:57. > :05:02.levels of indebtedness Thank you for joining us.
:05:03. > :05:04.The cost of taking the driving test is going
:05:05. > :05:07.to fall in October, says the Driver and Vehicle Standards Agency.
:05:08. > :05:11.The cost of car and motorcycle theory tests will
:05:12. > :05:13.fall by ?6 to ?25 with a further cut of ?2,
:05:14. > :05:24.The practical car test still costs ?62 on a weekday
:05:25. > :05:33.Selling us insurance to cover our loans and credit cards
:05:34. > :05:36.if we fell sick or lost our jobs, insurance that we didn't need or
:05:37. > :05:38.It's one of the biggest, and most expensive,
:05:39. > :05:44.If you want to claim the costs of that insurance back, the first
:05:45. > :05:47.place you ask is the bank that sold it to you in the first place.
:05:48. > :05:49.But not all those PPI claims go smoothly,
:05:50. > :05:53.and many end up in the hands of the Financial Ombudsman Service.
:05:54. > :05:55.Our reporter got an exclusive behind
:05:56. > :06:06.the scenes look at how the Ombudsman is dealing with those claims. Also
:06:07. > :06:12.tonight: Banks facing huge compensation pay`outs... We
:06:13. > :06:15.remembered the headlines, payment protection insurance, PPI, was
:06:16. > :06:22.mis`sold to hundreds of thousands of people. Since the start of 2011 a
:06:23. > :06:26.staggering ?14.7 billion has been claimed, but not all of the cases
:06:27. > :06:28.are straightforward. If you've made a compliment about payment
:06:29. > :06:32.protection insurance and didn't the result you are after, the
:06:33. > :06:33.chances are your next step would be to get in touch with
:06:34. > :06:43.ombudsman service. We have been given exclusive access to see how
:06:44. > :06:46.they deal with your complaint. Most people call into the financial Burns
:06:47. > :06:47.service to start the process. they deal with your complaint. Most
:06:48. > :06:52.people call into the Then you get they deal with your complaint. Most
:06:53. > :06:58.people call into the Then advice on filling out the complaint form. How
:06:59. > :07:02.can I help? You will be talking to an adjudicator. Most appeals are
:07:03. > :07:08.settled by the adjudicator. There are cases that are appealed again,
:07:09. > :07:13.or are more, gated. These are passed on to the ombudsman. Steve told me
:07:14. > :07:19.how he came to a decision on a case. The consumer was
:07:20. > :07:22.self`employed. The policy I have here has some clauses that make it
:07:23. > :07:27.really difficult for a self`employed person to claim. My conclusion at
:07:28. > :07:31.the end was that although yes, the business gave him a choice and they
:07:32. > :07:36.were right on that particular area, because of the terms within the
:07:37. > :07:39.policy, the detail I've gone into, I can actually say that the policy
:07:40. > :07:47.wasn't really suitable for that client. So I'm going to uphold the
:07:48. > :07:52.case and I will get compensation. So how busy is the financial ombudsman
:07:53. > :07:56.service? They've received over 1 million complaints, half in the last
:07:57. > :08:01.18 months. At its peak they were getting 12,000 calls a week. They
:08:02. > :08:08.are still getting 5000 a week. It isn't just mortgage PPI, and credit
:08:09. > :08:14.PPI. 5000`10,000 claims have been made against retailers who have sold
:08:15. > :08:17.the likes of cars and fridge freezers on credit. Many people use
:08:18. > :08:22.a claim management firm to get the money back but that isn't always
:08:23. > :08:25.necessary. It isn't difficult to make a claim directly. You don't
:08:26. > :08:32.need to use a claims management company who are usually the people
:08:33. > :08:36.sending texts. If people want to use them, great, but you don't have too.
:08:37. > :08:41.My advice would be to have a think about whether you may have a policy.
:08:42. > :08:45.Many people down there lies that they did. The volumes of claims that
:08:46. > :08:49.the ombudsman deals with are still very high and some have been
:08:50. > :08:55.critical of the speed so it has taken on more people. Due to the
:08:56. > :08:58.number of staff who deal solely with PPI claims, the organisation is now
:08:59. > :09:03.twice as big as it was before the beginning of the scandal.
:09:04. > :09:06.From next week, we'll pay less to make or receive
:09:07. > :09:09.calls on our mobiles when we're travelling in the European Union.
:09:10. > :09:14.The maximum charge will be around 15p a minute.
:09:15. > :09:28.Sending on will cost a maximum of around 5p.
:09:29. > :09:32.Browsing the web, getting and sending emails, that
:09:33. > :09:37.There is an overall spending cap on all these charges, it's
:09:38. > :09:41.If we go over this limit, our data roaming facility will be
:09:42. > :09:44.cut off, unless we tell your mobile company it's ok to spend more.
:09:45. > :09:47.But old friend of this programme, Sarah Pennells, Editor of the Savvy
:09:48. > :09:51.woman website, warns those text charges are just for text.
:09:52. > :09:53.Watch out if you're sending pictures, the
:09:54. > :09:56.From next week, we can keep more of our savings,
:09:57. > :10:03.The new, bigger, super ISA savings account is launched.
:10:04. > :10:06.We'll be able to put up to ?15,000 into one
:10:07. > :10:22.Fine if you've got that a year to spare .That's all from
:10:23. > :10:37.It is another roughly ?3000 per person, and don't forget that if you
:10:38. > :10:43.are in a couple, that is ?15,000 each, so actually you can save up to
:10:44. > :10:48.?30,000 and avoid tax on that. That is as a couple, as an individual,
:10:49. > :10:53.you are only allowed one of these a year, is that right? It is a bit
:10:54. > :10:59.more, located than that, I am afraid. You can have a cash Isa, and
:11:00. > :11:04.a stocks and shares Isa. I thought the point of the new rules was to
:11:05. > :11:15.get with that distinction? Yes, that this tension has gone, so you can
:11:16. > :11:22.have one ISA. The flexible to that will be attractive. `` the flexible
:11:23. > :11:25.at the foot of you used only be able to move from cash into stocks and
:11:26. > :11:29.shares, now you can go in both directions. When we talk about
:11:30. > :11:33.moving money between accounts, we don't mean going in and the cash,
:11:34. > :11:38.because there is a limit on how much you pay in... And if you take the
:11:39. > :11:45.money out, you lose the protection and you can only put as much in as
:11:46. > :11:52.is allowed by your allowance. So the magic word is transfer, rather than
:11:53. > :11:56.withdraw. Exactly right. The text year started in April, what happens
:11:57. > :12:00.if you opened an old ISA account after April but before these changes
:12:01. > :12:04.click in? What you can do between now and the end of the current tax
:12:05. > :12:11.year is to top it up to the limit. If you put in the full ?11,880, you
:12:12. > :12:15.can put in the extra to take up to ?15,000. You can keep it all in cash
:12:16. > :12:18.if you want to, if you don't want the risk of investing in the stock
:12:19. > :12:22.market, you can put some of the money into shares, depending what
:12:23. > :12:26.accounts are available, what about other investment types? The amount
:12:27. > :12:30.of investment types has expanded. You have mentioned cash, you have
:12:31. > :12:34.mentioned individual shares. Of course, you can put funds in there,
:12:35. > :12:38.but also there are more types of shares. For example, the smaller
:12:39. > :12:43.alternative investment market, you can put those in and I say now, and
:12:44. > :12:54.in fact there is a consultation `` in an ISA now. What about things
:12:55. > :13:06.like bombs or gilts. `` bonds. There was a limit on the type of bonds you
:13:07. > :13:12.could put in. You are betting on the 3.20 at Aintree, that still doesn't?
:13:13. > :13:16.Absolutely not, this is a long`term savings mechanism! If you have never
:13:17. > :13:22.done this before, where do you go, who do you talk to? It depends on
:13:23. > :13:28.what type of ISA. Banks and building societies will offer those, but if
:13:29. > :13:31.you are in shtick in moving between cash and stocks and shares, then a
:13:32. > :13:37.stockbroker or a fund provider will help you out there. I just wonder is
:13:38. > :13:41.it worth it? If you are keeping your money just in cash, looking at the
:13:42. > :13:48.interest paid on it, and it barely keeps up with rising prices, even
:13:49. > :13:51.with the tax break. ISAs, certainly for cash ones, have been a pretty
:13:52. > :13:57.poor investment in recent years. That is the point, keeping your
:13:58. > :14:02.money in cash in the medium to long term is not a good idea, because of
:14:03. > :14:05.the low rates, and it being eaten away by inflation. So this new
:14:06. > :14:14.flexibility of being able to move within cash and stocks and shares
:14:15. > :14:21.within one ISA is really helpful. That is it for this week's Your
:14:22. > :14:24.Money. You can follow us on social media. More again next week, thank
:14:25. > :14:36.you for watching today. European leaders offer
:14:37. > :14:41.an olive branch to David Cameron following his defeat in the vote
:14:42. > :14:47.on the new Commission President. The United States has started to fly
:14:48. > :14:48.armed, unmanned aircraft over Baghdad,
:14:49. > :14:52.saying it needs to protect American