Money

We've published the Findings Report of our three-month investigation into higher mortgage rates in Jersey. Jersey's mortgage rates have been consistently higher than those in the UK, sparking concern among consumers and prompting our investigation. At the time of launching our investigation in March 2024, a number of banks were offering local rates at more than 1% higher than the UK equivalent. The gap has closed at the time of writing this report, although can change with very little notice. That said, even the smallest increase in mortgage rates have a significant impact on the total amount repaid, due to the size of the loan and the length of time it takes to be paid off. Following correspondence from a number of Islanders, and a call for more transparency over mortgage rates from the property conveyancing sector, the Jersey Consumer Council sent an open letter on behalf of consumers in Jersey to the six main mortgage lenders in Jersey during March 2024. They were: Royal Bank of Scotland International Barclays Skipton Santander HSBC Lloyds We then conducted a broad investigation into the reasons behind mortgage rates in Jersey being higher than those offered by the same branded banks in the UK. We found this leads to confusion for consumers, who, along with already paying significantly higher prices for property compared to many parts of the UK, struggle to understand why they are being asked to pay up to £20,000 more per £100,000 of loan over the lifetime of a mortgage when borrowing over 25 years. The banks attribute this difference to their status as ring-fenced and separate entities from their UK counterparts. Despite this separation, many of these banks still align with their UK outfit in terms of branding, marketing material, contact details and, most significantly, the offer of Jersey-based mortgage products which track the Bank of England’s base rate, and rates generally which fluctuate with the Bank of England interest rates. The Consumer Council, however, has concluded that the elevated mortgage rates are further influenced by the higher savings rates offered in Jersey, which are designed to attract both local and inward investment. The Council's findings highlight the need for greater transparency from the banking industry to help consumers better understand the differences, and a reassessment by the Government of Jersey on the balance between attracting inward investment and ensuring affordable home ownership for Islanders. Click here to read our report.

Funeral costs are often the last thing we’d like to think about, but when the death of a loved one comes along having some idea about what’s on offer and the costs to be occurred makes it easier at such a sad time. According to SunLife's 2024 Cost of Dying report, seven in 10 people in the UK make provisions before they die, but only 54% have got the whole amount covered. SunLife say that on average a basic funeral in the UK cost around £4,141 in 2023 and £3,953 in 2022 (a 4.7% increase), but this can vary depending on where you live. So as much as this is not a conversation we want to have, it’s good to have these discussions with your loved ones. Here’s our breakdown of funeral costs in Jersey for 2024 compared with what they were in 2022. Service/Product De Gruchy’s                  (Co-op)2022 Maillards (Independent)2022 Pitcher & Le Quesne (Dignity)2022 Professional Fees £1,250 £1,335 £0 Funeral Director fee above professional fees £0 £0 £1,590 Care of deceased (bringing into care and treatment 24/7) £490 £380 £295 Provision of hearse, driver and bearers £750 £716 £600 Provision of one limousine £200 £194 £195 Attendance of Funeral Director at burial of ashes £75 £90 £0 Total cost of above £2,765 £2,715 £2,680 (£2,165 in 2017) (£2,256 in 2017) (£3,863 in 2017) Direct/’no frills’ cremation * £1,795.35 £2,040.35 £1,700 Embalming (if requested) £185 £200 £155 Coffin – cheapest wood effect £595 £650 £495 Coffin – cheapest eco-friendly coffin (rattan, sea-grass or wicker) £785 £750 £845 Ashes urn – cheapest hardwood £120 £120 £115   Service/Product De Gruchy’s                  (Co-op)2024 Maillards (Independent)2024 Pitcher & Le Quesne (Dignity)2024 Professional Fees £1,450 £1,565 £2,015 Funeral Director fee above professional fees £0 £0 £0 Care of deceased (bringing into care and treatment 24/7) £500 £380 £320 Provision of hearse, driver and bearers £790 £790 £650 Provision of one limousine £200 £194 £210 Attendance of Funeral Director at burial of ashes £95 £90 £135 Total cost of above £3,035 £3,019 £3,330 Direct/’no frills’ cremation * £2,750.52 £2,995.00 £1,875 Embalming (if requested) £210 £200 £175 Coffin – cheapest wood effect £675 £795 £495 Coffin – cheapest eco-friendly coffin (rattan, sea-grass or wicker) £810 £900 £1,005 Ashes urn – cheapest hardwood £120 £120 £120 Additional costs Minister /Priest/ Celebrant fee  £300 Minister/Priest/ Celebrant fee Attendance at burial of ashes   £75.00 Church verger   £65.00 Church fee (if not a parish church)   £220.00 Organist   £110.00 Soloist Varies - prices will vary Flowers - prices will vary Service sheets - prices will vary Paper notices - prices will vary Crematorium   £828.00 Cremation certificate (if required)  £10.51 Doctor's cremation forms   £200 Death certificate x 1   £32.31 Prices correct as at Apr/May 2024. Some prices may include different services and products To make the process easier for bereaved families, much of the organisation can be arranged and paid for by the Funeral Directors, who include them in the final invoice. The companies sometimes work with each other when the need arises, to ensure the experience is as painless as possible. They are willing to work with families to find the best option that will suit their needs and budget. They can advise on where you could cut costs and if requested will provide an estimate of costs before you agree to go ahead. Should you be eligible, they can advise on the Government’s Death Grant payment, which is currently £1,063.72.  Government can help those on low incomes with financial support to help with funeral costs. You can find out more about this on gov.je/ benefits/deathbereavement. 

It’s really important that we all know how to protect ourselves and those around us from financial scams. The States of Jersey Police (SoJP) and Jersey Financial Crime Unit (JFCU) have issued a public warning following a series of sophisticated scams, where imposters posing as bank representatives have defrauded dozens of victims in the island, resulting in losses exceeding £10s of thousands of pounds, since January this year. They’re urging us to be vigilant and to report any suspicious activity immediately by contacting the States of Jersey Police on 01534 612 612. Here are some tips on how to protect yourself and loved ones: Never Share Sensitive Information: Do not disclose online banking passwords, one-time security codes, PINs, or tokens to anyone over the phone.  Verify Independently: If you're uncertain about the legitimacy of a call regarding your bank account, end the call immediately. Then, contact your bank or financial institution directly using the official number from your banking app or the back of your bank card.  Stay Alert: Your bank will never request personal security details, such as passwords and codes. If you receive a suspicious call, hang up at once. Do not respond to, or click on, links in text messages purporting to be from your bank.  Community Vigilance: Check on friends and family, especially those who are more susceptible to such scams, to ensure they are aware of these fraudulent schemes and know how to protect themselves. The SoJP and the JFCU are committed to combating financial crime and protecting all islanders from these predatory tactics. For more information on how to prevent financial fraud or to report a scam. States of Jersey Police - How to Spot a Scam or visit www.fraudprevention.je Report a scam by telephoning the States of Jersey Police on 01534 612 612.    

There’s some good news for Islanders when it comes to Jersey forecourts. Fuel prices have consistently lowered during January overall.   In the image we see our cheapest five fuel stations compared to January 2023. Let’s hope it continues. We’re updating our Price Comparison site, so you won’t find up-to-date prices there at the moment. Look out for our new site coming soon…

Many consumers find themselves juggling numerous bills, each with different due dates and amounts, making it challenging to decide which one to pay first. Our friends at Community Savings, a Jersey charity dedicated to helping those experiencing financial difficulties, understand the importance of prioritising bills, and offer the following advice to Islanders on how to tackle this common financial challenge. START WITH HOUSING BILLS Your home is your sanctuary, and ensuring that you have a roof over your head should be your top priority. Begin by focusing on the following housing-related bills: • Rent or mortgage payments: Paying your rent or mortgage on time should be your absolute priority. Failure to do so could lead to eviction or foreclosure, which can have devastating consequences on your living situation. • Utility bills: Electricity, water and gas bills are essential for maintaining a safe and comfortable living environment. These should be paid promptly to avoid disconnection. CREATE A BUDGET To make the process of prioritising bills easier, create a monthly budget that outlines your income and expenses. Allocate funds for housing costs, utilities, groceries, transportation, and other necessities. Having a clear financial roadmap will help you stay on track. BUILD AN EMERGENCY FUND Building an emergency fund can be a lifesaver when unexpected expenses arise. Aim to save at least three to six months’ worth of living expenses. This fund can act as a safety net to cover bills in case of emergencies. NEGOTIATE PAYMENT PLANS If you’re struggling to meet all your financial obligations, don’t hesitate to reach out to your creditors or utility providers. Many are willing to work with you to create manageable payment plans, or offer assistance programs for those facing financial difficulties. SEEK PROFESSIONAL HELP If you find yourself overwhelmed by debt and struggling to make ends meet, don’t hesitate to seek professional financial advice. Organisations like Community Savings offer budgeting advice and financial mentoring to help you regain control of your finances. AUTOMATE BILL PAYMENTS Consider setting up automatic bill payments for your housing-related expenses. This ensures that these crucial bills are paid on time, reducing the stress of managing multiple due dates. CONTACT COMMUNITY SAVINGS Call on 737555 Email: office@communitysavings.org.je

Here are our top tips for consumers this Christmas: Plan early – organisation is key. Don’t forget your everyday bills – they still need to be paid. Shop around to get the cheapest prices. Be careful with your credit card – clear the balance straight away. Don’t reply on your overdraft – it always has to be paid back. Don’t borrow from unauthorised lenders. Always buy from a reputable company and do your research. Don’t be tempted to buy something just because it’s advertised with a big discount. You might find a better deal elsewhere. Check and track prices using sites such as camelcamelcamel.com who monitor Amazon prices throughout the year. Sign up to your favourite store newsletter or follow them on social media for the latest deals. Get a store loyalty card to receive loyalty points or special offers. Look out for two-for-one offers – get two presents for the price of one. Look out for scams - if it’s too good to be true it usually is.