12 Apr When was the last time you switched your savings account or mortgage? It could boost your finances
As we enter the spring of 2022, many people are searching for ways to save money.
Some household bills have increased by more than 100% in the new year, according to a Guardian report, in what is being called the “cost of living crisis” that will affect households around the UK. This “crisis” is partly caused by rising inflation, which reached a 30-year high of 6.2% in February 2022.
If saving money is on your agenda, your borrowing and savings could be a good place to start.
There are currently more options than ever when it comes to financial services. Dozens of providers and strong competition means there are lots of lucrative avenues to explore when you want to save money.
Despite so many options being available, many people have never thought to switch their current account, savings, or mortgage. Indeed, a survey conducted by GoCompare revealed some of the top financial products that people had never switched.
This research showed that:
- 62% had never switched their current account
- 37% had never switched their savings accounts
- 19% had never switched their mortgage.
Although it can be difficult to stay up to date with the best deals, switching any of these products could save you money and provide valuable relief during the cost of living crisis and beyond.
Read on to find out how shopping around regularly and potentially switching your accounts or mortgage could save you money.
Switching your mortgage could provide you with a better deal for your circumstances
Research from Statista claims that, between 2011 and 2021, homeowners spent approximately 17.7% of their household income on their mortgage every month.
Indeed, your mortgage is likely to make up a significant portion of your monthly outgoings, yet 1 in 5 people have never switched their mortgage.
For many, switching their mortgage just seems too much hassle, while others may simply have not got around to it.
Whatever the reason, if your mortgage deal has come to an end or you can exit your mortgage agreement without paying fees, it could save you a significant amount.
Indeed, recent research published in MoneyAge suggests that borrowers could save almost £5,000 on their mortgage payments by switching to a new fixed-rate two-year offer.
In light of the Bank of England (BoE) raising the base interest rate to 0.75% in March 2022, your mortgage repayments may have increased if you have a variable- or tracker-rate mortgage.
If a previous mortgage deal has come to an end, you’ve likely been moved on to your provider’s standard variable rate (SVR), which isn’t usually competitive. As a result, choosing a new mortgage deal could reduce the amount of interest you’re paying.
A mortgage broker can help connect you with lenders who might provide a better deal than your current mortgage agreement.
Changing current accounts is safe, secure and fast
You use your current account most days, yet more than half of Brits rarely shop around for better deals when it comes to this type of bank account.
Some current account providers offer excellent benefits, such as savings on car insurance, groceries, and other key household outgoings. Plus, you could find that some banks offer perks to new customers that could make a big difference in the current economic climate. Some will even pay you a cash sum for switching.
Additionally, the current account switch guarantee means it takes just seven days to make the switch. Changing bank accounts doesn’t have to be a big hassle and your direct debits will even be transferred automatically.
Switching current accounts could give your finances the boost they need.
You could see positive returns on your savings and investments if you shop around
Your savings and investments accounts are a crucial part of your financial portfolio.
Whether you are saving for your first home, your retirement, or generally putting money away for a rainy day, you want to know your wealth is seeing positive returns where possible.
In an environment where interest rates are low, every boost you can give to the interest you receive is vital. So, make sure you shop around regularly to ensure you’re getting the best return you can on your cash.
Get in touch
Professional guidance can provide valuable insights into how your money could prosper if you switch provider. Get in touch with us if you’d like to explore whether there are better options available for you and what steps you can take to reach your financial goals.
Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.