Q: After coming to the end of a two-year fixed-rate mortgage with Nationwide building society, we spent eight months on its standard variable rate [SVR] while seeking a new deal. Instead, the housing market has remained fairly robust and buyers have shown renewed interest.”Pensions protestsTony Blair hinted at an overhaul of the basic state pension during last week’s Labour Party conference in Brighton.But the Prime Minister’s promise of a “proper”, reformed state pension and a “simple, easy way to save” was overshadowed by rows over the Government’s pensions “lifeboat” and protests about a lack of protection for pensioners in failed retirement schemes.The Pension Protection Fund (PPF) is a new safety net, funded by companies, that aims to pay pensions to workers whose employers’ final salary schemes have been wound up. Five million users of pay-as-you-go internet dial-up services rely on 0845 for access to the web, said the regulator.The numbers also proved good value for low-income users with a landline package such as BT’s Light User scheme: calls to 0845 were cheaper than those on normal national rates.Property dentedHouse prices fell by 0.2 per cent for the second month in a row in September, according to figures from Nationwide building society.The average price now is £156,517, it said, leaving annual house inflation at just 1.8 per cent – its lowest rate since 1996.”Since the end of 2004, the data has been mixed, with several months of small falls and rises,” said Fionnuala Earley, group economist at Nationwide.However, the long-term trend showed that growth had “stalled” and that historically high prices suggested a housing market “bubble”, she added.”But experience so far shows no evidence of an imminent crash. “We are working with businesses to drive up compliance, and will take enforcement action where necessary.”The OFT’s punishments can range from fines to a prison sentence.Their number’s upExpensive phone calls to 0870 and 0871 numbers could soon be cut off after telecoms regulator Ofcom proposed sweeping reforms to protect consumers.Widespread use of these numbers – usually call centre helplines for banks and government bodies – has led to concern about a lack of clarity in their pricing and marketing.Calls to 0870 numbers can cost as much as 8p a minute, and the charges can mount when customers are kept holding for an operator to become free.In a consultation paper, Ofcom has called for an end to what it describes as “revenue sharing” with 0870 numbers, where businesses and the phone companies divvy up the call cost between them.Instead, to cut prices, the OFT says all 0870 calls should be switched to the normal financial model for the industry, where the cost of a call is based on geographical location.With 0871 numbers, the watchdog has suggested they be reclassified as premium rate and regulated by Icstis, the regulator for premium-rate services.Ofcom is also reviewing other widely used numbers, although it will protect the pricing of 0845 numbers for at least two years. But the OFT reported instances where this either wasn’t displayed; was swamped by the other, more attractive rates on show; wasn’t prominent enough; or wasn’t displayed next to payments and charges.”For consumers, who must have clear information on the costs of loans, this is very unsatisfactory,” said Sir John Vickers, chairman of the OFT.

Credit lenders have been caught breaking new advertising rules in magazines and regional papers. A nationwide review of 2,700 adverts – mainly for personal loans, car finance and in-store credit – by the Office of Fair Trading (OFT) found that regulations had been breached in 68 per cent of specialist car magazines and more than 60 per cent of regional newspapers.
Last October, the Consumer Credit (Advertisements) Regulations came into force to ensure that credit ads were fair, transparent and not misleading.In many cases, however, the OFT found a problem involving the annual percentage rate.Under the new rules, the only APR that can be used as a headline figure in ads is the rate for which at least two-thirds of a lender’s customers are eligible. This offers 0 per cent interest on both for 12 months, albeit with a 2 per cent balance transfer fee.Alternatively, Mr Mason picks out the Capital One card, which has a low, flat rate of 6.9 per cent, plus a 0 per cent balance transfer offer until January 2007.Finally, Samantha Owens from financial analyst Moneyfacts points out that Moneyback Bank currently has a loan with interest set at 5.5 per cent.. Even so, Mr White points out that better deals do exist in both the credit-card and loan markets – including loan rates below 6 per cent – and that many other cards offer 0 per cent introductory rates for longer.

“You might be better off keeping your debts separate,” he says.For those simply seeking a card for a balance transfer or for purchases, he recommends the Halifax One Visa. “Consumers need to define their needs before taking out a combined product,” he says. “The rates on the card – albeit competitive – are certainly not ‘best-buy’ quality.”The new Post Office card has a six-month, 0 per cent introductory deal on both purchases and balance transfers. But simply shifting a debt from one part of the same product to another at a lower rate could lead spenders into a “false comfort zone”, warns Nick White of the price comparison service Uswitch .This is because, having made their debt cheaper at the drop of a hat, people may feel less inclined to pay it off quickly.Richard Mason from Moneysupermarket , another price comparison service, is not enamoured with the new card. Could we be in for a new credit-card craze: the “combi”?

The Post Office launched a combination credit card last week that, twice a year, lets users shunt big-ticket purchases off their card balance and into a cheaper “bolt-on” loan facility.
It means you can shift any purchase costing between £500 and £2,000 away from the card’s typical annual percentage rate (APR) – currently 14.9 – to its lower rate of 6.8. However, you must pay this cheaper debt back within 12 months.The Post Office’s hybrid card has stolen a march on Barclaycard which, earlier this year, revealed that it was trying a very similar, and slightly cheaper, combi card. It has yet to bring it to the general market.Hybrid cards could help their providers gain a distinctive advantage in the ferociously competitive UK credit-card market.