press release

Press Release - 22/06/04

MORTGAGE RATES SET TO MOVE UP AGAIN - BUT HOMEOWNERS CAN OFFSET THE NEXT 3 BASE RATE RISES WITH A FEW SIMPLE TWEAKS

WHILE millions of UK homeowners are reeling from two successive base rate rises - adding around £30 a month to the typical monthly repayments - Moneynet (www.moneynet.co.uk) says the average homeowner can claw this back and more by fine tuning key outgoings.

New research this week from the leading online financial supermarket has found that simply by switching life insurance, home cover and credit card provider, around 10 million mortgage holders could instantly save nearly £70 a month.

The savings would allow millions to claw back the impact of the recent base rate rises - and help protect against up to three more quarter per cent increases assuming a typical £100,000* mortgage arrangement.

"We have looked at three prime areas affecting the majority of homeowners - life cover to protect the mortgage, home insurance and one standard credit card," said Moneynet chief executive Richard Brown.

"The savings are there to be made - although the reality is that most people are apathetic when it comes to switching. But a bit of time spent online looking for the very best deals can make very significant savings."

Moneynet's research* found that the average saving made by homeowners when switching household insurance cover is £103 a year - or just over £8.50 a month. Savings on life cover - currently a hugely competitive market - are far higher.

Moneynet has uncovered savings of almost £15 a month for the cheapest term cover for the average non-smoking, 35 year old male. Skandia Life - the most expensive - would charge £25.00 per month, while the lowest cost life cover available through Moneynet is just £10.80 per month.

"Again, with credit cards, millions of people carrying over monthly balances are being hammered by expensive APRs because they have not bothered to switch," said Richard Brown.

"Simply by transferring a £3,000 balance from a high charging card like NatWest's 17.40 per cent Visa or Mastercard to Barclaycard's new zero charge Platinum card - which offers 0 per cent until August 2005 - would save nearly £500 a year or over £40 a month."

These savings - adding up to the best part of £70 a month - would take much of the heat off the typical homeowner's monthly budget, added Brown.

"Like it or not we are now in a rising interest rate environment and many mortgage holders may soon begin to feel the pinch.

"It may sound blindingly obvious, but with all the scare stories in the media about rising interest rates accompanied by falling property values, much of the worry about balancing the household books could be allayed by taking advantage of the best deals in a busy market," said Brown.

"We could easily have another three quarter per cent rate rises this year, sufficient to make many homeowners feel distinctly uncomfortable. There has never been a better time to take stock and switch key financial services providers to make those savings."

*Research based on a £100k mortgage over 25 years on a capital and interest basis: each 0.25 per cent base rate rise putting just over £15 a month on typical SVR mortgage.

PRESS ENQUIRIES

Richard Brown, Chief Executive, 0208 313 9030

David Andrews/Cathy Tully, David Andrews Media Ltd 07941 255855 / 01273 774109 / 07747196854

Consumer enquiries: info@moneynet.co.uk / www.moneynet.co.uk

Moneynet.co.uk is the UK's longest established online personal finance research and data analyst company. The company offers consumers a choice of thousands of low cost financial services products. From mortgages, personal loans to motor, home and medical insurance, credit cards, savings accounts and best buy fixed rate products, Moneynet is one of the most comprehensive online services of its kind in the UK. Founded by chief executive Richard Brown, the Moneynet brand is destined to become one of the UK's major players in consumer finance products.

A DAVID ANDREWS MEDIA LTD - RELEASE FEBRUARY 2005