The regulator looks to help customers save money with Home Insurance Changes.

Some customers are paying more for their home or motor insurance when they renew, compared to if they were a new customer.

The Financial Conduct Authority (FCA) has announced a proposal to make it fairer for loyal customers. The consultation, which has been launched this week, marks a significant intervention by the regulator to make Home insurance changes. 

The proposal suggests that if a customer bought the policy by telephone several years ago, they would pay the same premium as a customer purchasing the same product by phone today. 

Insurers have been known to use complex and opaque pricing practices that allow them to raise prices for policyholders who renew with them year on year. While some people shop around for a deal, many are being penalised for being loyal.

The FCA has found that up to 6 million policyholders could be disadvantaged by the current situation and identified £1.2 billion of savings if they were to switch. 

The proposal also considers other measures to boost competition further and deliver fair value to all insurance customers, including:

• Product governance rules requiring firms to consider how they offer fair value to all insurance customers over the longer term.
• Requirements on firms to report certain data sets to the FCA so that it can check the rules are being followed.
• Making it simpler to stop automatic renewal across all general insurance products.

The consultation should be concluded by 25 January 2021, which will then be followed by a policy statement and new rules next year. 

There are plenty of solutions to help customers understand what cover they have in place, and its price, irrespective of how long they have held the policy.

Should you need to check that a home insurance premium is competitively priced for the type and of course contents of your home, you can always talk to us.

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Gazumping. What does it really mean and how can you avoid it?

After months of property searching and finding the perfect home, getting an offer accepted can be just the start.

While the excitement of having your offer accepted may get you carried away with interior design ideas, decorating plans and preparation for the big move, unless you’ve got the keys in your hand there is something to bear in mind.

Gazumping

What is Gazumping?

This is when another seller comes along and places a higher offer than yours, even when yours has been accepted. Unfortunately, in England and Wales, there’s no law against a seller accepting an offer from someone else even after they’ve accepted yours.

Whether it’s on the day you’ve had the offer accepted or later on in the buying process, gazumping can happen at any point until contracts have been exchanged.

How do you minimise the risk of being gazumped?

Being gazumped isn’t fun for anyone but to help avoid another seller topping your offer, here are a few things you can do.

Make your offer conditional on the property being taken off the market. This will minimise the danger of being gazumped and while the request may not be accepted, it will demonstrate how serious you are and also give you a warning that the sellers may continue to hold out for a higher price giving you time to withdraw and look elsewhere.

Finalise Fast – Sellers will want the property sale to go through quickly. The sooner your mortgage approval is complete and the surveys are done etc, the sooner the contracts will be exchanged.

Be Prepared – It’s ideal to have your ‘Mortgage in Principle’ ready and conveyancers arranged before putting in your offer. If you have a current property to sell, make sure it’s on the market and preferably only make an offer once you’ve accepted an offer on your current property. 

Show Enthusiasm – If the seller knows how keen you are to get the sale pushed through; it might sway them away from other offers. They will want the process to be completed soon. The estate agent is usually the one representing the seller, but once an offer has been accepted, make sure the sellers know that you’re excited about buying their home and that you mean business.

Already Been Gazumped?

Of course, you will be very frustrated but now is the time to try new tactics.

First things first, don’t get carried away. It’s important to know where you stand financially, otherwise this could affect you later down the line. Work out the maximum price that you can afford and stick to it. Remember, if you come up with a higher counteroffer, there’s still a chance that you could be outbid again. You’ll need to draw a line somewhere.

Highlight the advantages of dealing with you. Are you a first time buyer? No chain? This will mean that the purchase could go through faster and also make your offer more attractive to the sellers. You might also be flexible with dates and able to accommodate a schedule that works better for the seller.

If you or someone you know is looking for advice on their first/next mortgage – get in touch, we’d love to hear from you! https://thefinancehouse.co.uk/mortgages-independent-free-mortgage-broker/

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