Interest rates may be up, but savings on mortgages are also up, thanks to a competitive market, says Moneyextra

June 26th, 2007

Moneyextra.com's latest quarterly review of financial services highlights the savings available just by making the right financial decisions.

Despite rising mortgage rates, the savings available by choosing the right mortgage have actually gone up in the last three months. The annualised savings available on the average mortgage amount have risen from £2,832.00 to £3,132.00, even though interest rates have risen.

Robin Amlôt of Moneyextra.com commented, "Getting your mortgage right is the key financial decision in terms of financial efficiency. The potential savings on your mortgage account for almost 70 per cent of the total savings to be made."

In fact, the total annual savings now available by replacing near-worst with near-best products across a range of financial services is £4,477.88 ¹. That's up £150.10 overall on the savings available three months ago. The savings available on personal loans (£9,000 over 60 months) fell from £386.76 a year to £279.36. However, behind the fall was a narrowing of the interest rate spread between near-worst and near-best products with interest rates on personal loans remaining highly competitive.

"Shopping around for the right savings products can also pay dividends," adds Robin Amlôt. With £5,000 in an instant access savings account, the difference between near worst and near best accounts is £280 in interest - more than 11 times the £25 being offered at the bottom end of the scale. Elsewhere, Moneyextra.com's figures also show that picking the right term assurance policy could save you up to £135.48 a year while the right current account could put an extra £64 back into your pocket and a top cash ISA pay you £62.70 a year more in interest.

 

For further information, please contact:

Robin Amlôt
Senior Editor, Moneyextra
Tel: 0870 191 5626
public.relations@moneyextra.com

 

NOTES TO EDITORS

Moneyextra.com's Compare and Buy Tool Searches May 2007

¹ Moneyextra's Potential Savings Q3 2007

* Mortgage, card and loan figures based on average Moneyextra.com site usage during May 2007. The mortgage figure is based on difference between normal monthly payments and excludes any related fees. Card savings assume minimum monthly repayment is made. Potential savings in subsequent years may differ.

** Balance transfer fee only.

Products quoted are examples of 'near' worst to 'near' best products matching the criteria but always available nationwide without restriction and are from a similar target market. Full details of criteria used and of products quoted and rates of interest charged/offered are available on request.

Moneyextra.com regularly wins awards - in 2007

• Finalist Customer Focus, National Business Awards Wales/West Country Region
• Finalist Growth Strategy, National Business Awards Wales/West Country Region
• Money Marketing IFA of the Year 2007 - won as part of AWD Group

Moneyextra.com is one of the UK's longest-established personal finance websites. It has 536,000 unique users and delivers 5.5 million page views every month and has 513,000 registered users.

As at 25th June 2007, Moneyextra.com featured:

• More than 10,000 Mortgages from 126 providers
• 205 Personal Loans from 55 providers
• 211 Credit Cards from 63 providers
• 1,505 Stocks & Shares ISAs from 58 providers
• 173 Cash ISAs from 91 providers
• 123 Current accounts from 36 providers
• 876 Deposit accounts from 149 providers