With many householders readying themselves to tackle their annual big ‘spring' clean and tidy up, consumers who tidy up their finances as well as their homes could save £3,469 over the next 12 months simply by switching to the best deals on their financial products, according to moneysupermarket.com.
The price comparison website says this is enough cash to pay for a family’s annual summer holiday.
Mortgages
Mortgages account for the biggest single financial commitment you are ever likely to make so it is vital homeowners stay on top of the game and ensure they really are getting the best deal possible, says moneysupermarket.com.
Over the last month or so the website has seen many standard variable rates (SVR) increase; rates for new borrowers falling and an increase in the availability of mortgages even at higher loan to value (LTVs). With Base Rate at an all time low, and only likely to increase, now may be the time to consider a longer-term fixed rate mortgage.
For those with high level of savings, the website says it may also be a good time to consider an offset mortgage to make best use of all your capital.
Moneysupermarket.com recommends that someone with a £150,000, two-year mortgage from Yorkshire Building Society fixed at 3.09 per cent, could save themselves £1634.76 a year against the average SVR rate of 4.69 per cent.
Credit Cards
Recent research from moneysupermarket.com found that one in five of people carry more than three credit cards and that 17 per cent of credit card holders use their card at least once a day, with a further 28 per cent using their card at least once a week.
The data also showed that some consumers are savvy when it comes to making their plastic work hard for them - 25 per cent use their card specifically for the reward points, and 11 per cent use their card for cashback and zero per cent purchases.
If you have a good credit history, the website says there are some great offers to be had. If a £2,000 debt on a card at the average rate of 18.52 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 £264.11.
Personal Loans
Loan rates are at an all time high, but moneysupermarket.com reports that rates on the leading deals have started drop in the last few months.
If a £7,000 five year loan at an average rate of 12.33 per cent APR is swapped to an Alliance and Leicester loan at 8.9 per cent APR, an annual saving of £156.77 could be made.
Car & 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.
Moneysupermarket.com says that 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 cover instead of monthly can cut the cost of a premium. For car insurance adding a partner or, if you are a younger driver, adding an older driver to your 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. Moneysupermarket.com says that people who switch their providers can, on average, save £196 on motor insurance and £134 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 - especially after paying the price of a cold winter in the cost of winter bills.
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, moneysupermarket.com says customers could save on average £325 over 12 months.
TV, phone & Internet
Bundling your TV, landline and broadband can result in big savings, according to the website. 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 £170 a year by taking out standalone products.
"After months in the cold and dark, spring is just round the corner and what better time to take charge of the family's finances by checking to see that you're making the most of your financial products,” said Clare Francis, site editor at moneysupermarket.com.
“There are some really easy savings to be made, just by spending half an hour reviewing where you're at financially. It's easy to be complacent but some rates on products change quite regularly so literally, it really does pay to be vigilant."
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