Welcome!

Symbian Authors: Jack Newton, Kevin Benedict, Matthew Lobas, Shelly Palmer, RealWire News Distribution

News Feed Item

MoneySupermarket.com Experts Reveal Their Personal Finance Predictions for 2013

CHESTER, England, December 17, 2012 /PRNewswire/ --

This year continued where 2011 left off, with consumers feeling the pressure of the rising cost of living and further austerity measures for the nation's finances. With 2013 just around the corner, experts from Britain's number one comparison site, MoneySupermarket.com offer their predictions for the year ahead:

  • Consumer finances will continue to be hit by rising costs, changes in benefits and further austerity measures;
  • Savers should look to find the best savings rates possible, as rates continue to fall;
  • 2013 will be the year for improved switching of bank accounts;
  • New technology will play a bigger part for Credit Cards in the year ahead;
  • Funding for Lending Scheme will continue to benefit borrowers, but interest-only mortgage "time bomb" set to be a big story in 2013;
  • Consumers will benefit from attractive loan rates as a result of Funding for Lending scheme;
  • Payday loans set to continue to be popular in 2013, but regulation should tighten up the market;
  • Effects of regulation changes will impact car insurance pricing in 2013;
  • Energy efficiency will be key focus for Government and households.

Consumer Finances

Clare Francis, site editor at MoneySupermarket.com, said: "There is no doubt that 2013 will see further pressures on household bills and income with rising costs, changes to benefits and other austerity measures taking effect. For many people, it may be difficult to see the light at the end of the tunnel. It is therefore vitally important that people take full control of their household expenditure and look to reduce outgoings and free up some cash - it is possible and straightforward to claw back important pounds for the family purse.

"With austerity measures lasting until 2018 at the earliest, it is clear that the pressures on our wallets won't ease for some time so taking action and being proactive is the only real option. Checking all of your outgoings and identifying where savings can be made should be a priority in 2013. For example, look to see whether you are on the cheapest energy tariff available, or make sure you aren't throwing good money after bad by making regular payments for services you no longer require. Using a comparison website to switch products is straight forward and could save you over £1,000 over the course of the year on your household bills."

Savings

Kevin Mountford, banking expert at  MoneySupermarket.com  said: "As predicted, during 2012 we saw an increase in the amount of money put into savings as the continued economic uncertainty pushed consumers to save more, and reduce their debts. The likelihood is that this trend will continue into 2013. However, even though inflation has fallen, savings rates have started to drop at a faster rate. There is no sign that the Bank Base Rate will increase in 2013 and as such it will make it difficult to secure the kind of rates that we have experienced over the last couple of years. That said, there will continue to be competition in the market and as most savers are earning interest below the Bank of England Base Rate of 0.5 per cent, there are better deals to be found for those who look to switch.

Bank accounts

"To date, banks have made huge strides in improving the switching process for current accounts but as yet this has failed to deliver the switching levels we see across other banking products. It is still the case that you are more likely to divorce than change your bank. Next year sees new switching rules come into force, forcing banks to switch accounts within seven days and also automatically re-direct any direct debits and standing orders for a period of 13 months after the move to another bank.

"These changes could also trigger the launch of further challenger products from the likes of Tesco Bank and Virgin Bank and these brands can join the likes of The Co-Operative Bank and Nationwide Building Society in trying to break the big bank strangle hold in this market. There will no doubt be more focus on fee based packaged accounts and next year there is likely to be more pressure on the free banking model.

Credit Cards

"Early 2013 is likely to see more of the same in the card market. If consumer confidence returns and retail spending picks up, then there could be more purchase and cash-back cards hitting the market. Card issuers may look to capture 'front of wallet' status by pushing a good old fashioned flexible friend which incorporates a range of benefits such as the recently launched Asda credit card that offers zero per cent balance transfer along with cash-back and other benefits. As we have seen in 2012, providers have improved the offering on rewards cards, focusing on consumer loyalty, and we can expect further improvements in the deals available next year.

"No doubt we will see charge cards play a bigger part and new technology can further shape the way credit card users behave with the likes of e-wallet and mobile playing its part."   

Mortgages

Clare Francis, site editor at MoneySupermarket.com said: "There was a slight improvement in the mortgage market in 2012 with the Funding for Lending Scheme (FLS) appearing to be helping the availability of mortgages for those with smaller deposits and rates have become more competitive. With the FLS continuing through 2013, I'd expect to see the impact of that filter through further to the residential mortgage market and that will hopefully mean more lenders offering competitive 90 per cent LTV products.

"However, while mortgage rates look set to remain low in 2013, and could nudge even lower because of the availability of cheap funding via the FLS, I think the trend for higher fees will continue. It's therefore really important that people don't get blinded by the headline rate when comparing mortgage deals and that they factor in the impact of the fee as well.

"Finally, I think interest-only mortgages will be a big story in 2013. The Financial Services Authority has said it thinks interest-only mortgages have a role in the market, albeit as a niche product, but with a number of lenders having already clamped down on the availability of interest-only loans, and some having stopped offering them altogether, there are real issues for many existing borrowers who have them. For some it's the question of how they'll ever repay the mortgage debt, while for those who are managing their mortgage well, there's the issue of what they'll do when their current deal ends as they may struggle to remortgage if they want to stay on interest-only. The FSA is currently looking into these issues so it will be interesting to see its conclusions and recommendations when its report is published."

Loans and Debt

Tim Moss, head of loans and debt at MoneySupermarket.com said: "With the Government's Funding for Lending scheme gathering full steam, the lenders have capitalised on this to produce the lowest loan rates on record. However, with borrowers still showing a cautious attitude, the numbers of loans available are still way off pre-Credit Crunch levels. As a result, we will still see these remarkably low headline rates remain during 2013 - which is great news for consumers. One note of caution is that while rates look attractive, banks are unlikely to change who they want to lend to - if you haven't got a perfect credit score the options to borrow remain limited.

"Consumer payday loan appetite sees no sign of abating. With bank's underwriting policies looking unlikely to change, we predict that customers will still flock to find loans in other places - for the moment Payday will remain at the top of that pile. However, with the new financial regulator, the Financial Conduct Authority (FCA), beginning work in 2013 there will be moves to tighten up the payday market. As such, those brands that adhere to the stricter guidelines will no doubt reap the rewards. However, consumers still need to exercise caution if using a payday loan as they are an expensive product and should only be used in an emergency, and if you have a clear way of repaying that loan at the end of the month.

"With increasing regulatory pressure being placed on the paid-for debt solution market, many companies' business models will struggle. It is likely that upfront fees will be outlawed next year and as such, debt management companies who pressurised consumers into paying fees before entering into a plan, will see tough times. As a result, the free sector may struggle to cope with an influx of enquiries as the number of alternatives within the paid-for sector reduces. However, for those in financial difficulty, there will still be many options available to them, whether paid-for or free debt advice."

Car insurance

Pete Harrison, insurance expert at MoneySupermarket.com  said: "The motor insurance market could become profitable in 2013 - we have seen operating losses narrow over the past two years as premium inflation and the sale of ancillary products has benefited insurers. A move to profitability will lead to greater competition and we could see further price deflation as a result. The impact of the ECJ ruling on gender will start to filter through into the New Year and it will become much clearer how motorists will be affected by the new prices. These changes in the market will make it more important than ever to shop around and not accept your renewal price from your existing insurer, as pricing is likely to fluctuate, particularly in the New Year."

Home insurance

Hannah Jones, head of home insurance at MoneySupermarket.com said: "Flooding will continue to be a major issue for home insurers next year, especially with the Statement of Principles coming to an end on 30 June. With over 200,000 properties at risk of having no insurance as a result, this needs to be a priority for the Government and the industry. The Funding for Lending Scheme has helped open mortgage lending a little, which in turn will increase demand for home insurance for new homeowners.

"The home insurance market is currently profitable so is attractive to existing and new insurers - as a result we can expect greater competition and potentially see further price deflation in the market as a result - a great thing for consumers."

Life Insurance

Emma Walker, head of life insurance atMoneySupermarket.com "The impact of gender neutral on life insurance is still unknown at this stage, and we expect it will take some time to understand the true impact on pricing and the impact on consumer take-up of protection products. Behind the scenes there will be lots of challenges and discussion about how simplified products can work in practice. The role of the comparison websites will become stronger, especially as the effect of Retail Distribution Review (RDR) is felt on the financial advice market."

Energy

Clare Francis, site editor at MoneySupermarket.com said: "Energy price rises have become an annual event over recent years and I expect 2013 to be no different. However, there are simple things people can do to protect themselves from higher bills. Firstly, switch to a fixed tariff - not only could this mean a reduction in the price you pay for gas and electricity now, you will also be insulated should we see another round of price hikes in 2013. Secondly, take measures to improve the energy efficiency of your home.

"There is likely to be increased interest in energy efficiency from government and the industry in light of the 2012 Energy Bill as politicians and providers seek to encourage us to use less gas and electricity in order to offset the additional amounts we will have to pay over the coming years to cover investment in renewable energy sources. Households should take advantage of offers such as free loft and cavity wall insulation - it can knock a few hundred pounds off your annual energy bill. And look to take other steps to reduce your consumption such as turning the heating down slightly, doing your washing at a lower temperature and having showers rather than baths. All of these things make a difference and can collectively result in significant savings."

MoneySupermarket.com compares (at 29th November 2012)

  • 130 car insurance brands and 99 home insurance brands
  • 9 broadband providers and 20 energy providers   
  • 30 unsecured loan and 5 secured loan providers
  • 62 mortgage lenders and 27 credit card providers
  • 63 savings providers and 38 current account providers.
  • Over 920,000 mobile phone deals

Our customers

We help our customers to save money on all of their household bills by providing a free, easy to use online service so they can compare a wide range of products in one place and find the product most suited to their needs. Our size means we are able to offer our customers exclusive, market-leading deals, including some they can't even get direct from providers.

Our providers

By having considerable volumes of informed customers actively looking for products and ready to purchase, we offer our providers an efficient and cost effective customer acquisition solution across all of our channels. This enables our providers to target their marketing spend in an effective and completely measurable way.

Our revenue comes predominantly from fees paid to us by product providers when a customer clicks through to their website and actually applies for or purchases a product. It is a success based marketing fee.

Our customer commitment

  • We make it easy to find the brands you expect to see
  • We strive to ensure a product cannot be found cheaper by going direct
  • We let you remain in control of your personal data
  • We are independent and impartial
  • We make it easy to switch and save
  • We strive to always show the most competitive product available

For further information, please contact:
Paul Lawler/ Nicki Parry
MoneySupermarket.com
+44(0)787-237-9545 / +44(0)1244-370-318
[email protected] / [email protected]

SOURCE moneysupermarket.com

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...