While millions of UK homeowners are reeling from two successive base rate rises adding around £30 a month to the typical monthly repayments, Moneynet (www.moneynet.co.uk) says the average homeowner can claw this back and more by fine-tuning key outgoings.
Research out this week from the online financial supermarket has found that simply by switching life insurance, home cover and credit card provider, around 10 million mortgage holders could instantly save nearly £70 a month.
The savings would allow millions to claw back the impact of the recent base rate rises and help protect against up to three more quarter per cent increases assuming a typical £100,000 mortgage arrangement.
Richard Brown, Moneynet chief executive, says: “We have looked at three prime areas affecting the majority of homeowners – life cover to protect the mortgage, home insurance and one standard credit card.
“The savings are there to be made although the reality is that most people are apathetic when it comes to switching. A bit of time spent online looking for the best deals can make very significant savings.”
Moneynet's research found that the average saving made by homeowners when switching household insurance cover is £103 a year or just over £8.50 a month. Savings on life cover are far higher.
Moneynet has uncovered savings of almost £15 a month for the cheapest term cover for the average non-smoking, 35 year old male. Skandia Life – the most expensive – would charge £25.00 per month, while the lowest cost life cover available through Moneynet is just £10.80 per month.
Brown adds: “With credit cards, millions of people carrying over monthly balances are being hammered by expensive APRs because they have not bothered to switch.”