The year ahead in personal finance

With 2008 just around the corner, moneysupermarket.com's experts have offered their predictions for Money, Insurance, Mobiles, Broadband and Utilities.

Utilities – Paul Schofield: "Gas and electricity providers are failing to inform customers of their cheaper tariffs, causing 63 per cent of people to languish on more expensive products. With energy prices likely to increase by 15 to 20 per cent in 2008, it is more important than ever that suppliers be compelled to improve this communication to customers. This system has been in banking for the past five years and should be replicated in the energy industry with a Utilities Code."

Mobiles – Rob Barnes:" We will see a raft of regulation in both the mobile and broadband industries. Tough regulation needs to be put in place for mobile cashback deals, with rogue retailers being wiped out.

"Ofcom also needs to address mobile 'slamming' – the often aggressive and misleading tactics used when people are bombarded with calls trying to sell them a new contract. Ofcom has introduced a voluntary code regulating the sale of mobiles, but it needs to be compulsory.

"With the huge discrepancy between the price of data downloads in the UK and abroad, the cost of data roaming needs to come down. The networks do little to inform people of the high costs involved so the European Parliament has launched an enquiry into the fees Britain's mobile companies charge. Hopefully this will lead to a significant reduction in charges.

"The O2 wallet – or wallet-on-a-phone – is technology at its best; both innovative and useful and should be very popular."

Broadband – Rob Barnes: "Broadband speed will be a hot topic with only 21 per cent of customers in 2007 getting the speed they signed up for. Providers should be forced to give clear advice on the speeds people will be able to get or – like O2 – refund people paying for a speed they cannot get.

"There will be some cracking new deals, especially in the triple play market, with the likes of Sky and Virgin offering competitive broadband, TV and phone bundles.

"VOIP (making phone calls over the internet) is certain to increase, with more providers bundling it into their broadband deals."

Insurance – Richard Mason: "Premiums are set to go up across the board. Last summer's floods and the increased take up of hybrid and electric cars, which are expensive to insure, are forcing providers to ponder how they can maintain profits without putting prices up.

"Thankfully the sheer number of providers and price comparison sites means consumers will still have the opportunity to save money.

"There has been a price war in travel cover, with providers shaving their premiums as much as they can to remain competitive. However this has led, in some cases, to negative margins, meaning we will see some price hikes here too.

"We may well see the introduction of a no-claims discount where travellers declare if they have made a claim before – unprecedented in the travel insurance world."

Protection – Louise Cuming: "With companies disclosing more statistics to increase consumer confidence, the focus will inevitably be on the percentage of declined claims across the industry. Innovative products and a simplified approach will be on the radar of many insurers. Other players will maintain a watching brief on the success or otherwise of PruProtect's vitality approach.

"Payment protection insurance for loans and mortgages will be a major focus as arrears and repossession figures rise, and the gap with state support will be under the spotlight. The Financial Services Authority plan to assist with readily available information on selecting the most appropriate cover, but it is unlikely this in itself will relight confidence in these products."

Loans – Tim Moss: "This could be the year of the secured personal loan. The credit crunch undoubtedly means good value unsecured personal loans will be difficult to come by for a lot more people.

"This makes it even more important to clean up your credit rating. Even small missed payments such as a couple of quid on a mobile phone bill will leave a black mark on your record that will make it much harder to borrow at good rates, if at all.

"This will be exacerbated by some lenders continuing the trend we have seen through the latter half of this year, and exiting the market."

Credit cards – Steve Willey: "Undoubtedly we’ll see the usual surge in 0 per cent deals to tempt customers who may have had a financial splurge over the festive season. With loan providers further tightening their lending criteria, we could see a shift in behaviour with more customers borrowing relatively low amounts of £3,000 or less on plastic rather than opting for an unsecured loan.

"We will probably see a hike in balance transfer fees but an increase in the length of 0 per cent deals. The use of fees will become more important as lenders try to offset the cost of changes to payment protection insurance regulations, longer 0 per cent offers and potentially increasing defaults.

"The best new deals are likely to be reserved for those with an angelic credit score, meaning a consumer's best friend next year will be their credit rating. Those with even a slight blemish could see their credit limit reduced without warning as lenders review their existing portfolios and attempt to protect themselves from any potential bad debts."

Savings and current accounts – Kevin Mountford: "Hopefully we will soon see a resolution of the Office of Fair Trading bank charges saga. This should in turn kick-start activity with providers pushing to acquire new current account customers. Datagate has reinvigorated the current account market with many child benefit recipients changing their provider.

"The Northern Rock debacle will have repercussions for the savings market, with the issue of the security of funds and trust in providers now at the forefront of consumers’ minds.

"Falling Bank of England base rates will instigate much activity as providers try and recoup margins while still attempting to attract retail funds. Many providers will devise more 'creative' products, meaning people will need to look more closely at the features, terms and conditions of the account. Rate though will remain the highest priority for consumers."

Mortgages – Louise Cuming:" This is going to be a challenging year in the mortgage industry. Although I am sure interest rates will be reduced, external forces such as the availability of funding and the cost of lending between banks will have an equally important affect on rates.

"Lenders will continue to keep a tight reign on risk, meaning competition for the 'best' customers will be fierce and there will be less choice for 'riskier' applicants. This will translate into higher fees and interest rates for the most vulnerable borrowers.

"High fees are likely to stay as lenders focus on profitability. The competition for remortgage customers will be intense as lenders become more focused on keeping borrowers.

"House prices will cool. We will only see modest average rises, with properties in some areas actually falling. London and the Home Counties however will remain buoyant.

"The buy-to-let sector will remain active as demand for rental properties increases and landlords will be able to demand higher rents. However, restrictions on BTL products will mean landlords will need to commit larger deposits to enter into this market."