Change supplier, save a fortune

THE LOWDOWN... WHY LOYALTY DOESN’T PAY

FROM energy suppliers to broadband firms, banks to mobile operators, providers make a packet out of punishing customers who stay put.

Rather than reward them for their loyalty, these firms are routinely using sneaky tricks and relying on people’s inertia to charge them more. We show how by jumping ship and signing up for a better deal the average household could save nearly £5,800 a year.

Broadband

Surfers who stick with their provider after the introductory deal has ended get stung with an average annual ‘loyalty’ penalty of £113, according Citizens Advice.

The charity found a third of households didn’t realise they would face a price hike and that people stayed with suppliers for an average of four years, so could end up coughing up an extra £452.

Check out what deals are around via comparison sites such as uSwitch.com and broadbandchoices.co.uk SAVE: £113 a year

Mortgage

Four million homeowners are paying over the odds on their lender’s Standard Variable Rate. L&C Mortgages analysed 1,000 borrowers who switched from an SVR to a cheaper fixed-rate home loan in January this year. They found the average saving was £2,500 a year.

The typical SVR, the default that borrowers end up on when mortgage deals end, is 4.5%, compared to fixed rate deals starting at less than 1%. Check out: landc.co.uk SAVE: £2,500 a year

Energy

Around four million homes switch their energy supplier every year, but that means 24 million don’t.

Figures from the Mirror’s energy switching service reveal the average reader saves £240.

A third of people have stayed with their energy supplier for more than five years, paying a potential £1,200 more than they needed to over that time period.

One in 10 have stayed put for 15 years – that adds up to an eye-watering £3,500. Check out: mirror.co.uk/energy or call 0800 0836 632 SAVE: £240 a year

Car Insurance

We pay an extra £1.5billion a year on car insurance as firms whack up premiums for those who don’t check if they can get a better deal elsewhere.

A study by Gocompare shows 5.25 million drivers allow their insurer to automatically renew their cover.

The comparison site says switchers drive off with savings of up to £286 a year. It’s worth checking if your existing insurer will match a better offer you find elsewhere. Check out sites such as gocompare.com and confused.com SAVE: £286

Credit Card

The average credit card balance is £2,500. At a typical rate of 18.9%, it would cost £2,493 in interest and take 19 years to clear if you repay just the minimum each month.

Two-fifths of card users don’t repay their balance in full each month and get slapped with interest charges.

Switch to a 0% balance transfer deal and clear the debt within the introductory period and you could end up not paying a penny in interest.

Sainsbury’s Bank or TSB have 28-month deals with 0% fees. Check out comparison sites such as Moneysupermarket.com SAVE: £2,493

Mobile Phone

Seven in 10 people are paying over the odds for their mobile phone bills and could save an average £159 a year if they switched on to the right deal.

Which? research shows people get caught out by signing up to a contract offering more minutes, texts and data than they really need or automatically upgrading their handset each time a contract ends. Instead, they could just keep the phone and opt for a sim-only deal.

Others pay for expensive insurance they don’t need. Remember, some paid-for bank accounts and household insurance policies cover mobiles anyway. SAVE: £159