Start gaining Sterling pounds in 2010

While many Brits resolve to shift unwanted Christmas kilos in the New Year, moneysupermarket.com reveals how consumers can be gaining Sterling pounds through savvy savings on their financial products.

Research from the UK's leading price comparison site found on average people could save more than £4,000 over the next 12 months by making a New Year's resolution to move to more competitive deals.

Clare Francis, site editor at price comparison site moneysupermarket.com, said: "People should review their finances on a regular basis and the turn of year is a great trigger to do just that. We're all feeling the pinch at the moment and for those suffering an extra financial hangover from the festive period, recovery will be all the quicker in 2010 if significant savings are made.

"A New Year's resolution to look for more competitive deals and products could save a household over £4,000 by this time next year. The great thing about these savings is they can be made without changing your lifestyle at all."                              

Mortgages

Your mortgage forms the corner stone of your personal finances, as your home is likely to be the most expensive purchase you ever make. Those who have seen their required mortgage payments decrease over the past 12 months should take the opportunity to overpay on their mortgage (check that your mortgage allows this) to reduce the overall length of the mortgage and the total interest payable.

For interest only borrowers the move to capital repayment with their current lender will only cost around £75 and current interest only borrowers will see their monthly repayment increase by around £50 per month more than they were paying 12 months ago. Over the 300 month life of the mortgage, this switch will save approximately £40,000.

For those with a consistently higher level of savings one of the attractive offset tracker options may be preferable to make best use of all your capital, many of which now have no tie in allowing you to move your mortgage quickly and easily to a fixed option should the Base Rate increase. 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.

What looks like a small difference in rate can actually amount to a huge difference in monthly outgoings. Someone with a £150,000, two year mortgage from Coventry Building Society fixed at 3.5 per cent, could save themselves £2,278 a year against the average SVR rate.

Credit cards

Consumers are taking advantage of some of the excellent zero per cent credit cards currently available while avoiding expensive personal loans where rates are invariably higher than twelve months ago. 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 18.31 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 £313 (including the balance transfer fee).

Motor 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 home insurance can cut the cost of a premium, and adding a partner or, if you are a younger driver, adding an older driver to your car insurance 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 £180 on motor insurance and £122 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. 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.

There are also simple measures you can take to cut down energy costs - turning down the thermostat by 1°C can cut your annual bill by ten per cent and turning appliances off stand-by can help reduce costs

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 £130 a year by taking out standalone products.