The Week Unzipped: Scots homeowners face steepest hikes in insurance premiums

HOMEOWNERS in Glasgow and Edinburgh have seen the steepest increases in the cost of home insurance, according to moneysupermarket.com.

Over the past 14 months insurance premiums have shot up in the centre of Edinburgh and Milngavie, Glasgow, by 45 per cent and 40 per cent respectively. This is dramatically higher than the average 6 per cent increase across the UK as a whole.

Moneysupermarket.com said the research shows how postcodes can have a big impact on the amount people pay for their home insurance premium. Insurers will up premiums for properties in affluent neighbourhoods or in areas classified as being at a "high risk" for crime, flooding or fraudulent claims.

Homeowners in these postcode hot spots should install a good home security system and security lighting to minimise their premiums.

Rich pickings

Sales of million-pound property increased in 2010 at the fastest rate for four years, according to Lloyds TSB.

Data reveals that 7,185 properties worth at least 1 million were sold in the UK last year, a 54 per cent increase on 2009.

The increase in high-end property sales is significantly higher than overall housing transactions, which edged up 6 per cent on 2009. There was a 1 per cent fall in sales of property worth less than 250,000. Despite the increase, million-pound property sales remain 13 per cent below pre-recession levels.

Every little doesn't help

Tesco has cut back its "double the difference" refund offer, blaming "savvy" shoppers using the promotion to cash in. The supermarket had previously introduced a 20 cap on the PriceCheck scheme, which reimburses shoppers who find the same products on sale more cheaply at rival store Asda.

The supermarket will now only refund the difference in price rather than double the difference. Tesco complained that shoppers were identifying products on promotion at Asda, then buying the same products at Tesco and claiming their double-the-difference coupons.

New Coventry deals

Coventry Building Society added new fixed, capped tracker and Flexx for-term deals to its residential mortgage range. The new products include a two-year fix at 4.35 per cent with a 20 per cent deposit and 199 fee; a Flexx for-term product at 2.99 per cent, plus a 1 per cent discount for the first two years, with an arrangement fee of 1.99 per cent of the advance; and a tracker deal charging 1.99 per cent above base rate, currently 2.49 per cent, capped at 4.39 per cent for two years with a 999 fee. The Flexx and tracker deals are both available with a 40 per cent deposit.

Advance warning

Energy providers must inform consumers of price rises or contract changes 30 days in advance, in accordance with new rules made by regulator Ofgem.

Under the old guidelines, suppliers had 65 working days after a price rise to inform customers of the changes. Customers then had 20 days to switch supplier to avoid paying the increased price. With the new system, customers can do this before the rise comes into effect.

Mortgage fees halved

Clydesdale and Yorkshire banks are halving arrangement fees for anyone buying a new mortgage or switching to a deal with the provider before 2 July.

The half-price offer, which reduces fees from 999 to 499, applies to a range of two- and five-year fixed products as well as the banks' two-year discounted standard variable rate offset mortgages.

Loan size increased

Santander launched two 90 per cent loan-to-value mortgages starting at 5.55 per cent fixed for two years with a 499 fee. The bank also introduced a two-year fix at 2.99 per cent with a 40 per cent deposit and 1,250 fee. The mortgages are available to first-time buyers, movers and remortgagers.

In addition, Santander increased the maximum loan size on its two-year 75 per cent loan-to-value mortgages from 550,000 to 1 million.