Tidy up more than just the house this spring
With the hours of daylight getting longer and the mornings brighter, many householders may be steeling themselves to tackle their annual big ‘spring' clean and tidy up. But while consumers don the marigolds, moneysupermarket.com is reminding people to tidy up their finances as well as their homes and reveals there are £3,469 in savings to be made over the next 12 months simply by switching to the best deals on their financial products, which could pay for the annual summer holiday.
Clare Francis, site editor at Britain's number one comparison site moneysupermarket.com, said: "After months in the cold and dark, spring is just round the corner and what better time to take charge of the family's finances by checking to see that you're making the most of your financial products. There are some really easy savings to be made, just by spending half an hour reviewing where you're at financially. It's easy to be complacent but some rates on products change quite regularly so literally, it really does pay to be vigilant."
Mortgages
Mortgages account for the biggest single financial commitment you are ever likely to make so it is vital homeowners stay on top of the game and ensure they really are getting the best deal possible. This is even more crucial in an environment where rates are constantly on the move.
Over the last month or so we've seen many standard variable rates (SVR) increase; rates for new borrowers falling and an increase in the availability of mortgages even at higher loan to value (LTVs). With Base Rate at an all time low, and only likely to increase, now may be the time to consider a longer term fixed rate mortgage.
For those with high level of savings it may also be a good time to consider an offset mortgage to make best use of all your capital.
Whatever your circumstances shopping around for the best mortgage and keeping a close eye on mortgage rates throughout the year is advisable to ensure you get the best deal.
Someone with a £150,000, two year mortgage from Yorkshire Building Society fixed at 3.09 per cent, could save themselves £1634.76 a year against the average SVR rate of 4.69 per cent.
Credit cards
Recent research from moneysupermarket.com found that one in five of us carry more than three credit cards and that 17 per cent of credit card holders use their card at least once a day, with a further 28 per cent using their card at least once a week.
The data also showed that some consumers are savvy when it comes to making their plastic work hard for them - 25 per cent use their card specifically for the reward points, and 11 per cent use their card for cashback and zero per cent purchases; so there are still many consumers who are yet to take full advantage of the benefits of their plastic.
If you have a good credit history there are some great offers to be had. If a £2,000 debt on a card at the average rate of 18.52 per cent APR is switched to a credit card offering zero per cent interest on balance transfers for the introductory period, such as the Virgin Credit Card, there would be no interest payments in the first year. This amounts to an annual saving of £264.11.
Personal loans
Loan rates are at an all time high, but we have started to see rates on the leading deals drop in the last few months.
If a £7,000 five year loan at an average rate of 12.33 per cent APR is swapped to an Alliance and Leicester loan at 8.9 per cent APR, an annual saving of £156.77 could be made.
Car and home insurance
While insurance is essential for financial security and peace of mind, it is important people only opt for the best value cover relevant to their needs. Many people make the mistake of over-estimating the level of cover needed on their home and car insurance for example, and following a few simple tips can help you save money. Paying annually for cover instead of monthly can cut the cost of a premium. For car insurance adding a partner or, if you are a younger driver, adding an older driver to your policy can also help cut the cost.
There are some great savings to be made if people ensure their insurance is the most competitive available. On average, consumers who use moneysupermarket.com to switch their providers can save £196 on motor insurance and £134 on home insurance.
Utilities
For those looking to save money on their energy bills shopping around to ensure you are on the correct tariff for your usage and region is crucial - especially after paying the price of a cold winter in the cost of winter bills. Moving online to a ‘dual fuel' direct debit deal is the easiest way to make savings; by switching to the best online tariff as opposed to the average standard QCC tariff, customers could save on average £325 over 12 months.
TV, phone and internet
Bundling your TV, landline and broadband can result in big savings. A recent study by moneysupermarket.com revealed over two-thirds (69 per cent) of adults have failed to ensure they are on the best deal by reviewing their subscriptions over the past year, and could be missing out on saving almost £170 a year by taking out standalone products.