Money & Motoring12th October 2013
Money Savings Tips - Mortgages and Credit Cards
SL First's Money Saving Tips
If you’re standing in Tescos trying to work out whether buying 500 grammes of spagetti is cheaper than buying two 250 gramme packs, you might be able to save yourself a few pennies.
When it comes to mortgages and credit cards, the difference between getting the right deal or the wrong deal, could be costing you hundreds and even thousands of pounds every year.
With the economy having been in the doldrums for five years now, we have seen interest rates held at historic lows for a prolonged period of time. For the majority of us, this has seen our monthly mortgage payment go down, but how many of us have taken the opportunity to shop around, to see whether an even better deal is available.
Shortly after the recession hit, the banks were in turmoil, and their level of lending was severely reduced. With the house market also suppressed, competition in the mortgage market was virtually non-existent. However, with a full recovery now looming, the mortgage market is heating up and there are savings to be made.
The key question in recent months has been about the timing of locking in a fixed term mortgage and whilst no-one can predict with any great confidence when interest rates might start to rise, you may be allowing money to pour away if you have not already looked at whether there is a better deal out there, to the one you have now. If you currently have a mortgage with an interest rate above 3.5%, it might be worth your while having a look around to see if you can get a better deal, regardless of the type of mortgage you prefer, there are some fantastic deals out there.
One option is to go to your own bank to ask what they can do for you. A second option is to use a financial advisor who should do the legwork for you and come back with a couple of the best options. With the Internet rich with information, a third option is to do your legwork on-line, and with many sites offering a mortgage repayment calculator, you will see instantly how much money you could be saving!
If you hold debt on a credit card, then you are missing out on making savings if you don't frequently look to change cards and take advantage of some of the 0% transfer offers that are again flooding the market.
Take a look at how much monthly interest you pay, multiply by 12 or even 18, and then compare it against 0% interest offered on that transfer amount by some credit card providers. Some will ask for a transfer fee, but the chances are, that at the end of the 12 or 18-month interest free period, you will be quids in, and that will have helped you reduce your level of debt, so the savings continue even after that period, especially if you swap to a new 0% offer.
In relation to mortgages and credit cards, one thing is for sure, standing still and staying with the same provider, will cost you money in the long run, and in respect of credit cards and mortgages that could amount to significant amounts of money!
Article by Sarah Lawrence
posted in Deaf Lifestyle / Money & Motoring
12th October 2013