Product switches could save £5,200 in 2007
Wednesday, 20 December 2006 12:00
Switching to more competitive financial products could net consumers more than £5,000 over the next 12 months, new figures from a price comparison site show.
Moneysupermarket.com finds someone with a typical portfolio of financial products making it their new year's resolution to save money by switching products could save £2,500 on a mortgage, £305 by moving to a cheap credit card, £170 on a personal loan and over £140 with a store card balance transfer.
"People should always review their finances on a regular basis. However, new year may be just the trigger many need actually to do it. And for those suffering a financial hangover from the festive period, recovery could be all the quicker if they follow some simple switching tips," explained Stuart Glendinning, managing director of Moneysupermarket.
"Savings can be significant - a family with a typical financial portfolio could save anywhere up to £5,168.93 over the coming year simply by reviewing their existing finances.
"By searching for more competitive deals on financial products such as their mortgage, credit card, personal loan, savings, home and motor insurance they can make significant savings."
Moving from a standard variable rate mortgage at 7.25 per cent to a more competitive two-year fixed rate at 4.69 per cent will see monthly payments drop from £1,081.21 to £854.82.
On a personal loan of £7,000, switching from the pricier 9.9 per cent APR charged by one provider to a cheap loan with a 5.8 per cent APR loan. Moneysupermarket calculates this would save almost £850 over the loan's five-year term.
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