Now’s the time to save yourself some cash

2.7 million homeowners currently on lenders’ standard variable rates and up to £74 billion worth of residential mortgages coming up to maturity in the first half of 2017, demonstrates the need for prioritising your mortgage review, especially with rates at an all-time low – twoyear products available for as little as 1.19 per cent and long-term products for just 1.39 per cent.

With savings in your back pocket, the surplus could be used to clear those unwanted debts that are often built up over the Christmas period or, for example, put towards shortening the mortgage term, that dream holiday that was last year out of your budget or even building up a fund for a rainy day.

Although increased consumer exposure has allowed the mortgage market to become more transparent and easier to digest, there are still many perceived obstacles as to why people don’t review their mortgage – they find it too difficult, don’t know where to start, think it could be expensive, and so it goes on.

However, cast aside these concerns, as annual mortgage statements are typically sent out from lenders this month, containing a full breakdown of your existing mortgage. This saves you having to wait in endless telephone queues to find out your details as the tools to be able to start reviewing your set-up will soon be arriving through the letter box.

With most lenders offering a fee-free product range, free valuation and the use of their own re-mortgage legal service, there really is no excuse.

But the household review doesn’t stop with mortgages – other typical household expenses should be analysed.

On top of gas, electric and food, both your household and protection insurance are worth rethinking because you may find that more suitable cover can produce savings, too.

The insurance sector is particularly competitive, so much so that over the past couple of years it has led to increased cover being available at cheaper premiums.

Many people make the mistake of not reviewing their insurance cover, instead opting to continue with their existing package, which can be a costly error given the current market.

Previous elements of cover – which used to cost extra – that can now be on offer as standard on household insurance include legal cover and trace and access… such as for after burst pipes.

For protection insurance, lifestyle changes could make life insurance or critical illness cover cheaper – like stopping smoking or resolving previous medical conditions.

As always, it is vital to get the correct advice when switching deals to ensure that the new one is right for you.

Some could seem attractive to start with, but when viewed in more detail and over the longer term they may actually put you at a loss. This is why using a broker is crucial.

Not reviewing is only costing you money, so put your new running shoes down and take the time out to save yourself some cash. Trevor Law is managing director of Merito Financial Services, chartered financial planners, based in Solihull. Email: tilaw@meritofs.com