Archive: MoneySavingExpert's Money Tips Email

10 BILL-BUSTERS: Save £1,000s on energy bills, credit cards, council tax, mortgages, broadband and more
 

For the last 10 weeks Martin's led this email on the rapidly changing coronavirus crisis, with need-to-knows often about maintaining income and cash flow. Yet expenditure is crucial too. So this week, as a half-term break from that, and as Martin's having a few days' rest, we're reminding you of the importance of managing your pelicans (big bills).

So whether you're one of millions struggling financially now, or even if everything is rosy, this is our masterclass to save £100s or £1,000s...

The secret to slashing costs is to pounce on short-lived promos, but the current standouts - incl some eye-catching deals for fast fibre speeds - all end in the coming days. This price war is timely as home b'band is a key lockdown utility for work, streaming, video-calling etc. Yet 9m households are out of contract, often on rip-off prices which can reach £45+/mth for slow speeds. So here are the top promos - fastest first...

Links take you via our Broadband Unbundled tool to check eligibility as deals are postcode-dependent. It shows others if you can't get these.
 
- Ends Thu. 63Mb fibre (ie, V FAST) b'band & line: Vodafone '£19.83/mth'
- Ends Thu. 54Mb fibre (V FAST) b'band & line: Virgin '£18.39/mth'
- Ends Mon. 35Mb (FAST) b'band & line: Shell '£18.82/mth'
- Ends Tue 2 Jun. 10Mb (standard) b'band & line: Plusnet '£15.21/mth'

More help, incl whether you'd need an engineer to visit (only a minority do), in switching during coronavirus. Also see what speed you need.

A balance transfer is where you get a new card to repay debts on existing cards, so you owe it instead, but at 0% interest, so more of your payments clear the debt. However, if you need one, it's worth sorting ASAP as some top deals were pulled on Tue, so why risk more going? Savings can be huge, as Richard tweeted: "@MartinSLewis, I have just done a balance transfer to a new provider and will be saving over £1,100 a year. Thanks."

It's best to use our 0% eligibility calculator to find cards most likely to accept you, but as not all top deals appear there, we've listed the cream for new cardholders...

- Longest 0%. TSB (apply*, sadly not in our eligibility calc yet) gives up to 30mths at 0% for a 2.95% fee of the amount shifted (19.9% rep APR after). Though some poorer credit scorers are accepted and offered 27 or 24mths at 0%. 

- Long 0% with a low fee. MBNA (apply via eligibility calc) offers up to 26mths 0% with a 1% fee of the amount shifted (20.9% rep APR after). But poorer credit scorers could be accepted and offered fewer months at 0% and/or a higher 3.49% fee.

- Longest no-fee 0% that's open to all. Santander (apply, sadly not in eligibility calc) gives 18mths 0% and if accepted, you get the full 0% length (18.9% rep APR after).

If you're struggling to pay existing card debt due to coronavirus, it's theoretically best to try this approach first, before seeking a payment holiday (see below), though it's unlikely most struggling so much they need the break will be accepted for a new card. Note that doing a transfer may give a mini hol anyway if you do it 1-2 weeks before a payment's due, as your first payment on the new card won't be due for 1-2mths.

Always follow the Balance Transfer Golden Rules:
a) Clear the debt or shift it before the 0% ends, or you pay the APR.
b) Never miss the min monthly repayment or you can lose the 0%.
c) Don't spend on the card/withdraw cash. It usually isn't at the cheap rate.
d) Normally you need to do the transfer within 60 days to get the 0%.
e) You normally can't transfer between two cards from the same bank

Full help and info in Best Balance Transfers (and see APR Examples).

Switchers' prices are at 3yr lows on the back of unthinkably low oil prices in recent weeks - and as we're using more energy than usual at home in lockdown, it's a key bill to sort.

But we've seen prices creep up a tad over the past week, so with rates still ultra-low, why wait to lock in low rates in case they jump further? Savings can be huge, as Michele tweeted: "Thanks for your excellent Cheap Energy Club - just switched to British Gas and saved £480/yr."

To help, here are the top-pick 1yr fixed deals for new customers. Savings below are based on the avg Big 6 price-capped tariff (which 50%+ are on) for typical £1,127/yr use. As YOUR winner depends on use and region, links go via our Cheap Energy Club comparison, to give specific results and MSE £25 dual-fuel cashback if we can switch you. Note that, other than Tonik, you won't find these deals direct - they're only via comparisons.

- Cheapest fix, save £356/yr. The Tonik Energy Green SuperPower (1 Year) v4 tariff is for new and existing dual-fuel and elec-only customers. Tonik's service rating is good although in recent weeks we've seen a spike in billing and switching complaints, likely on the back of an IT system switch. We call it the cheapest fix as, although there's one cheaper, we exclude it here due to a very poor service rating.

- Cheapest big-name fix for most & 'free' heating insurance, save £334/yr. If you prefer a name you know, the British Gas Energy & Home Services May 2021v2 fix comes with 100% green elec. It's available for new dual-fuel customers (sadly existing BG customers can't get it) and it includes 1yr's heating cover (normally £108/yr so cancel it after the year if you want to avoid that). You don't need to have/get smart meters. 

- Cheap big-name fix, save £326/yr. The E.on Fix Online Exclusive v37 tariff also comes with 100% renewable elec, and is available for new dual-fuel or elec-only customers (sadly existing E.on customers can't get it). You need to agree to have smart meters fitted if you don't already - installed for free once lockdown's over.

- EDF customer? You could undercut these big-name deals & save £337/yr. The EDF Simply Online 1 Year Fix May21v7 tariff, for existing dual-fuel or elec-only customers, is slightly cheaper on typical use than the BG and E.on deals above. You need to agree to have smart meters fitted if you don't already - installed for free once lockdown's over. 

Switching is no big deal: it's the same gas, elec and safety - only price and customer service changes. Your supply isn't cut off in the process and no one visits your home. See our switching FAQs for more help.

Typical bills are £1,000+/yr, yet many wrongly assume they have to pay it in full as a done deal without considering the ways to slash it...

a) Up to 400,000 are in too high a band. Are you? If you're in Eng or Scot, use our council tax check and challenge system. If you're in too high a band, you can reclaim past overpayments and get reductions in future. Ann emailed: "Your help meant after nearly 15yrs I queried my band. It was reduced and I got a £3k refund."

b) Many councils offer payment holidays to those struggling due to coronavirus - but only if you ask. See council tax payment holidays.

c) On benefits or a low income? Can you get up to 100% off? But claim ASAP, as it may not be backdate-able, so the longer you wait, the less you get.

d) 100,000s don't claim 'severe mental impairment' discount, which can be worth £1,000s. If you've Alzheimer's, Parkinson's etc you don't pay if living alone, or it's 25% off if you live with someone. See SMI discounts.

e) Live alone (or with under-18s/carers)? You can get 25% off and can claim for past years. See single person discounts.

f) Moved home since 1993? See how to claim back overpayments.

g) Disabled or caring for someone who is? You could drop a band.

h) In Eng? You can ask to pay over 12mths, not 10. See spread payments.

i) On pension credit? You could get a reduction. See pension credit help.

j) Full-time students are 'disregarded for council tax'. See student help.

UK interest rates are at their lowest for 325yrs and that means mortgages are cheap, but the problem is lenders are getting more picky during this crisis, eg, often needing you to have more equity before accepting you.

While millions are asking for payment holidays, if you're keeping up payments, and you've still full income, there are opportunities for huge savings on your current deal. To show the size of the savings possible, over to MC, who emailed: "Followed your remortgage help and can repay my mortgage 10yrs early and SAVE £55,000. Thanks." To help you save...

- Know your current mortgage deal. That'll help you determine if it's worth switching and know what key info to tell a broker or lender. So...

a) What's the rate? Plus monthly payments and outstanding debt.
b) What type is it? Fix, tracker, SVR etc? See fixes vs variables.
c) When's the intro deal over? Eg, when does the 2yr fix end?
d) When must it all be repaid? Eg, in 10, 20, 25yrs?
e) Will I be penalised to switch? Any early repayment/exit penalties?
f) What's the loan to value (LTV) - the proportion of the home's value you borrow? Eg, £180k on a £200k home is 90% LTV. See LTV help.

- Key links to help you save. These include...

a) To get advice to navigate the maze, read mortgage broker help.
b) For lots of mortgage info, read MSE's 62-page Remortgage Guide.
c) To benchmark the best rates, try our Mortgage Best Buys tool.
d) What can I borrow? What'll it cost? etc. Use our mortgage calculators.

If you're out of contract and happy with your handset, you can probably slash costs with a new Sim - the chip in your phone that dictates your allowances.

First, match your allowance to your use (note: two-thirds told us they use sub-3GB/mth in our latest mobile poll). So check old bills or use the Billmonitor* tool, which analyses your bills and finds Sims to match. As it doesn't spot every deal we've the best below for new customers to that firm - all with unltd mins & texts:

- 2GB/mth for £5/mth from Lebara* (uses Vodafone's signal)
- Ends Sun. 6GB/mth for £7/mth from Smarty* (Three's no-frills provider)
- New. 12GB/mth for '£8/mth' from Three* 

Lebara's and Smarty's deals are 1mth rolling contracts, Three's is 1yr. See our Best Sim only Deals guide for more options and help.

We covered car insurance in detail last week, including what to do if you're currently driving a lot less, and if struggling to pay monthly premiums. See 5 coronavirus car insurance cost-cutters from last week's email.

Insurers rely on people's laziness to jack up renewal prices, so always compare before you renew, and check about three weeks ahead for the best prices. It worked for Abz and his mate: "I helped a friend change his home insurance, saving £500 for this year. Thanks."

Full help in our Cheap Home Insurance guide, but in brief:

a) Use comparison sites to check dozens of insurers in mins - but they don't all cover the same providers, so check a few. Our current order is MoneySup*, Gocompare*, CTM* and Confused* (see how we rank 'em).
b) Biggies Direct Line* and Aviva* aren't on comparisons, so try 'em.
c) Check hot home insurance deals comparisons miss, incl a £55 Amazon voucher.

- Struggling to meet monthly payments due to coronavirus? If you contact your insurer, it must help you cut costs, eg, checking if dropping unwanted extras (eg, cover away from home) saves you, or it should offer a payment holiday. See home insurance help.

- Will these policies cover me whatever? No. Insurance protects against unexpected eventualities. No one checked if their travel insurance covered them for an Icelandic volcanic ash cloud before it hit in 2010, for instance. So check the policy details, make sure insurers are regulated by the Financial Conduct Authority, and if they unfairly reject a claim, take them to the free Financial Ombudsman.

PS: If working from home, insurance should cover you if it's 'office' work, but if you've any new stock/kit you must tell 'em to be sure. 

In a normal year we'd be telling you about top free-cash bribes to switch current account. There aren't any of those available right now, but the best offer for most pays you to pay your bills.

It's the Santander 123 Lite* account which, after the £1/mth fee, could net you an up-to-£14/mth profit on bills paid by direct debit, as it pays the following rates (limited to £5/mth per tier):

- 3% cashback on phone, broadband, mobile and TV bills
- 2% on gas and electricity and Santander home and life insurance
- 1% on water, council tax and Santander mortgages

How do I qualify? You must pay in £500+/mth, have 2+ active direct debits and log in to online/mobile banking at least once every 3mths.

For smaller bills, Co-op's Everyday Rewards may win. For more details on these and other accounts, see best bank accounts with cashback.

Many firms let you take a break for up to 3mths under Financial Conduct Authority guidance to lenders and insurers. If you're unsure if you need one, there's no immediate rush as you've time before application deadlines. So click the links below for help deciding, which we've put alongside those all-important deadlines. Though be warned interest still racks up if you stop paying:

- Until 9 Jul: Credit and store cards, personal loans and catalogue debt
- Until 27 Jul: Car finance (PCP, lease, HP), pawnbroking, buy-now-pay-later and rent-to-own, payday loans (interest and payment hols)
- Until 18 Aug: Insurance, eg, car, home, loan payments
- Until 20 Oct: Individual voluntary arrangements
- Until 31 Oct (likely): Mortgage payment holidays

Yet NEVER just stop paying - contact the firm first or risk big problems.

There's even more you can do to cut costs, eg...

- TV refunds for lack of live sport. BT Sport and Sky Sports help.
- Save with a water meter? See water help, but installations are paused.
- Working from home? How to claim tax back on extra expenses.
- Found a good deal? Can you get cashback on it?
- To attack all money leaks. Do a budget and a money makeover.