7 easy steps YOU can take now to get ready for a slump

1 Fix your mortgage

THE Bank of England base rate rise from 1.25 per cent to 1.75 per cent last week is the biggest increase in 27 years. But it will not stop there, so mortgage rates will continue to rise.

A one percentage point interest rate increase on a 25-year £200,000 repayment mortgage that tracks the base rate is equivalent to a monthly repayment hike of £104, so consider fixing your mortgage now.

If your existing fixed-rate deal ends in the next six months, start looking for a new deal so you can lock into a rate before prices rise again.

First-time buyers can get a 3.49 per cent two-year fixed deal with Cambridge Building Society with a 95 per cent loanto-value. A £199 fee is payable.

Among the best five-year fixed-rate remortgage offers is one from First Direct at 3.09 per cent – assuming a 60 per cent loan-to-value. It comes with a £490 arrangement fee.

One of the best variable rate deals is 3.69 per cent from First Direct – based on a 75 per cent loan-to-value, and a £490 fee.

2 Lock in to better savings rates

SAVINGS rates are rising, but loyalty does not pay in this market. So shop around.

Al Rayan Bank is one of the best providers at the moment, offering 1.8 per cent on its Everyday Saver account – with a minimum balance of £5,000. This could be a bolthole for your cash as you wait for further rate rises.

If you are willing to tie up cash for longer, consider a 3.3 per cent three-year bond with Union Bank of India, or a Shawbrook Bank five-year bond paying 3.4 per cent. Both require a minimum of £1,000.

3 Cut payments to energy firms

THERE will be nowhere to hide this autumn when energy bills soar. Average bills could rise to above £3,300 a year in October when regulator Ofgem is expected to raise the cap on gas and electricity prices.

Sadly, there are currently no great deals to move to. But you should check how much your supplier is demanding by way of monthly direct debit payments. If cash is building in your account, ask for it back – it is your money.

4 Switch your broadband deal

THE internet has become an essential utility service that we increasingly rely upon. But once signed up that initial special deal soon lapses. According to comparison website MoneySuperMarket, the average household could save £180 a year by switching to a cheaper deal. Often it is not even necessary to change provider – just explain you have found a better offer elsewhere and demand that your existing provider matches or beats it. Most do.

Among the best current offers is a Virgin Media 18-month contract at £24 a month. As a sweetener, it throws in a £95 gift voucher.

5 Cancel TV subscriptions

NOW that lockdowns are behind us, it is time to re-evaluate the TV subscription services we were once addicted to – and ditch them if they are not being used.

Amazon Prime is raising its fees from £79 to £95 a year from September 15 – providing an excuse to cancel the subscription. Netflix hiked prices earlier in the year. If you still want to watch its shows, switch to its basic, one device, £6.99 a month plan – and away from the multi-device £10.99 deal.

And ask yourself: Do you really need Disney+ or Apple+, at £7.99 a month and £4.99 a month respectively, when you already pay the BBC £159 a year for terrestrial TV?

6 Economise around the home

IT may be hot now – but it won’t be long before we are forced to turn on the heating. The average home can save £375 a year, says Energy Saving Trust.

So now is the time to draughtproof windows and doors – where up to half our energy waste goes. You do not need to spend a fortune – just £10 on foam draught excluder tape. Then get into the routine of switching off electrics left on standby, turn off lights and stop using the tumble drier – hang your clothes outside instead.

7 Don’t pay interest on credit cards

IF you regularly whip out your credit card to make payments, stop now unless you pay off the balance every month. Instead, move the sum owed on to a zero per cent balance transfer deal – where you pay no interest on borrowing for a limited period.

Among the most competitive is Sainsbury’s Bank’s 34-month Mastercard. No interest is charged on balance transfers for 34 months, but you do pay a one-off transfer fee of up to 3.88 per cent of the amount being put on the card. Any new spending after three months attracts interest at 21.95 per cent.