Interest rates may be up, but savings on mortgages are also up

Moneyextra.com’s latest quarterly review of financial services highlights the savings available just by making the right financial decisions.

Despite rising mortgage rates, the savings available by choosing the right mortgage have actually gone up in the last three months. The annualised savings available on the average mortgage amount have risen from £2,832.00 to £3,132.00, even though interest rates have risen.

Robin Amlôt of Moneyextra.com commented, “Getting your mortgage right is the key financial decision in terms of financial efficiency. The potential savings on your mortgage account for almost 70 per cent of the total savings to be made.”

In fact, the total annual savings now available by replacing near-worst with near-best products across a range of financial services is £4,477.881. That’s up £150.10 overall on the savings available three months ago.

The savings available on personal loans (£9,000 over 60 months) fell from £386.76 a year to £279.36. However, behind the fall was a narrowing of the interest rate spread between near-worst and near-best products with interest rates on personal loans remaining highly competitive.

“Shopping around for the right savings products can also pay dividends,” adds Robin Amlôt. With £5,000 in an instant access savings account, the difference between near worst and near best accounts is £280 in interest – more than 11 times the £25 being offered at the bottom end of the scale.

Elsewhere, Moneyextra.com’s figures also show that picking the right term assurance policy could save you up to £135.48 a year while the right current account could put an extra £64 back into your pocket and a top cash ISA pay you £62.70 a year more in interest.