The year ahead in personal finance

With 2009 just around the corner, moneysupermarket.com's experts offer their predictions for utilities, mobiles, broadband, insurance and money.

Utilities manager, Scott Byrom, said: "The cost of gas and electricity will remain a hot topic; 2009 should bring some much needed price drops and early indications show prices could be slashed by as much as 20 per cent around March. The New Year will see bill payers proactively looking for ways to reduce household expenses - savings of up to £325 a year are still up for grabs for those who have never swapped energy supplier before.

"The record price increases of 2008 (47 per cent for gas and 28 per cent for electricity) saw growing concerns surrounding ‘vulnerable' customers; 2009 will see further changes to the way energy prices are structured. We can expect to see more consistent prices across different types of energy meter and payment methods as Ofgem makes loud noises about treating customers fairly. It will be interesting to see if the Government goes as far as forcing providers to reduce rates in an era of falling wholesale gas prices."

Mobiles and broadband manager, James Parker, said: "As SIM-only deals offer such good value, they're likely to become even more popular in 2009. Asda and Ikea have already entered the market from the high street and 2009 should see some more big names join the fray. With the market for SIM-only becoming ever more competitive we should see some great deals for consumers.

"Broadband on the go is the future and appetite will grow further in 2009. The lure of a contract-free internet service which you can take anywhere will be very attractive for budget-conscious consumers. 2009 will be the year of the dongle with providers competing with great offers, as the speed and technology on offer improves."

Managing Director for insurance, Andy Leadbetter, said: "The insurance market is a resilient one and while 2009 will be tough, I think it will nevertheless be a successful year. As the credit crunch deepens, people will undoubtedly be looking to save money on their insurance products. moneysupermarket.com is able to play a big role in offering consumers the best opportunity to find the best deal at the best possible value. Insurers are likely to push premiums up during the course of the year, to offset lower investment returns. However, with consumers shunning new cars and holding onto their existing vehicle for longer many consumers will be insulated from premium rises as the value of their vehicle falls."

Head of Protection, Emma Walker, said: "With the current economic outlook likely to remain uncertain throughout 2009, the focus will inevitably remain on the increasing redundancy and unemployment levels. More and more consumers fortunate or foresighted enough to have protected themselves against losing work will claim on their policy in 2009. With payouts rising insurers are likely to revisit how these products work and we expect to see some change to how these products look and it's very likely they could be more expensive in the future.

"Payment protection insurance for loans and mortgages will continue to be a major focus for 2009 as arrears and repossession figures remain a major concern for consumers. In light of this, we're likely to see the Financial Services Authority continuing to offer helpful information and advice on selecting the best cover.

"The continued decline of the mortgage industry will also mean financial advisers could continue to place focus on the protection market. In 2009 we can expect to see an increase in providers offering protection products, with some interesting but perhaps less traditional policies. This will result in much more choice for the consumer."

Head of Mortgages, Louise Cuming, said: "Lenders have found their 'comfort zone' of mortgage approvals so the low figures we've seen recently will continue. There will be no miraculous U turn despite the Government's call to loosen the purse strings; the story of restricted choice and deals only for the 'chosen few' will remain.

"In this low rate/low risk environment, the challenge for lenders will be profitability and targeting the right borrowers. Increasingly borrowers will be happy to remain on the standard variable rate when they come to the end of their product. This is loyalty at a potentially unacceptable cost to the lenders given some of the low SVR rates available. We've already seen a flurry of conditions preventing borrowers from benefiting from the SVR rate and I expect that to continue.

"For new borrowers, lenders will maintain a tight rein on credit, and the competition for the 'best' customers will increase as lenders continue to turn away those seen as 'riskier' applicants. The focus will be on high deposits and equity and there'll be little respite for the housing market, where house values will continue to fall

"For existing borrowers, the focus will be on the increasing number of people who fall behind on payments and there'll be a real spotlight on lenders ensuring they have the right support processes in place to manage customers through difficulties."

Kevin Mountford, head of Savings, said: "No one could have predicted 2008 was going to be so crazy for the world of savings. I believe more of the same is on the cards for 2009 as the security of savings continues to play a big part in consumer decision-making and consumers seek out the safest havens for their hard earned cash.

"A low base rate environment will mean less exciting headline rates on offer, but there will still be a gap between the best accounts and the average accounts so savers need to be as vigilant as ever.

"Despite tough barriers to entry for new brands, I expect we will still see a couple of new providers enter the market - good news for consumers as it will help to keep the new breed of super banks on their toes.

"As far as current accounts are concerned, hopefully 2009 will see a conclusion to the OFT overdraft charges saga. If, as expected, free banking comes to an end, we will see providers bringing out new and innovative fee based products that will help to kick start activity in this area."

Tim Moss, Head of Loans, said: "With rising redundancy levels and an ever-increasing squeeze on disposable income, the number of customers unable to meet their unsecured loan repayments will inevitably increase.

"The combination of more people defaulting on repayments and banks making less money from loan payment protection policies will inevitably result in increased APRs. I predict APR rates will return to levels last seen over five years ago when typical APRs were around 12 per cent, rather than single digit rates we've enjoyed in recent times.

"With limited funds available to the banks, they'll have to cherry pick their customers - making sure only the most prime customers are accepted for unsecured loans. Some borrowers who rely on being able to reconsolidate their loans every year may find themselves with nowhere to turn in 2009."

Peter Harrison, head of Credit Cards, said: "There's no doubt only those with excellent credit histories will receive the leading credit cards next year. With fewer providers offering 0 per cent introductory offers there will be a greater focus on acquiring customers over a longer period of time.

"Recently there's been an announcement regarding providers sharing information on usage behaviour to help responsible lending. This will make it increasingly difficult for consumers who've historically been able to transfer their balances at 0 per cent.

"It'll be very interesting to see how credit card providers will implement the new code of conduct to ensure fair practice, and whether they will still increase rates. Considering providers are no longer able to sell PPI alongside credit cards I'm very curious as to where they will get the extra cash from.

"I believe interest rates for credit cards will remain the same next year despite the lower base rate and we will also see an increase in balance transfer fees."