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Resolve to gain pounds in 2015

16th December 2014 Print

Britain’s hard pressed households could give themselves a New Year financial boost in 2015 by resolving to gain pounds. By taking a short amount of time to review finances and switching to more competitive deals, analysis from MoneySuperMarket has shown UK households could save thousands of pounds.

Dan Plant, consumer expert at MoneySuperMarket said: "No matter what your main financial concern is, it is vital you put your outgoings in order so you are on the right track for the New Year. There are still savings to be made for the average household, as many Brits are languishing on products which provide a low return or cost far more than they need to.

“Apathy is rarely rewarded, so making the most of some spare time over the Christmas period and taking time to compare the deals you are currently on and switching to a better one could be the best resolution you make in 2015. With wage increases still rare, and the cost of running a household still high, it could be the best time invested in order to give yourself a pay rise.”

Mortgages – Save £2,168

Mortgages often return the biggest savings and homeowners should ensure they are getting the best deal possible – even a small difference in rate can greatly affect the overall monthly mortgage payment. Switching a £150,000 mortgage from the average standard variable rate (SVR) of 4.53 per cent to the current market leading two-year fixed rate from Chelsea BS at 1.38 per cent would save £2,168 annually over the term of the deal.1

Savings – Earn £99

Despite low rates being available on the best buy savings accounts, the majority of savers sit on deals that return little or no interest at all. Switching from an easy access account paying the average rate of 0.41 per cent to The AA Internet Extra account offering 1.40 per cent could generate an extra £99 in interest based on a savings pot of £10,000. Savers shouldn’t be put off by lower rates – it’s still worth moving your money to get the best returns possible.

Personal Loans – Save £100

For consumers looking to borrow over £5,000 it pays to shop around. Consolidating a £5,000 five-year personal loan at an average rate of 8.70 per cent to the Hitachi Personal Finance loan at 5.3 per cent would generate an annual saving of £100.

Current Accounts – Earn £150

Switching your current account provider to one that pays a good rate of interest could earn you some additional cash. Halifax’s Reward Current Account currently offers a £5 per month credit as well as £100 cashback for those switching to the account. This would earn you £160 over the year compared to £9.75 in an account with an average rate of 0.51 per cent.

Credit cards – Save £249

Recent research from MoneySuperMarket revealed only a quarter of credit card users (23 per cent) are likely to switch their credit card within the next year. Those carrying over debt from Christmas spending into the New Year should ensure they get the best deal with a balance transfer card. By switching £2,000 worth of debt on a card with an average APR of 17.76 per cent to the market leading Barclaycard Platinum credit card, there would be no interest to pay for 34 months. This would amount to an annual saving of £249 taking into account the balance transfer fee.

Car and home insurance – Save £308

Drivers and homeowners should make it a New Year’s resolution to reduce their insurance premiums. According to recent research from MoneySuperMarket, car insurance premiums are at a two-year high. Comparing policies instead of agreeing to stick with your current insurer for another year can see motorists save up to £238 when using MoneySuperMarket’s comparison tool. Comparing home insurance prices can also offer substantial savings of up to £70.

Utilities – Save £200

Wholesale energy prices have been falling over the past year with suppliers failing to pass on the fall in costs to standard customers. However, recent MoneySuperMarket analysis has shown that over the last six months, the majority of energy suppliers have cut prices on market leading tariffs. This means there hasn’t been a better time for households languishing on their supplier’s standard tariff to switch. By doing so you could save up to £199 per year.

Total Saving = £3,274