Families are throwing away an average of £1,700 a year because they are loyal and fail to switch providers for mortgages, mobile phones, TV and internet. Research found a typical household could be paying £1,000 over the odds on their mortgage, £360 for mobile phone contracts, and £290 for TV and internet packages if they have stayed with the same providers for five years.
The total comes to almost £1,700 a year and means that families who are not switch-savvy could have paid more than £8,000 over the odds since 2017, according to consumer experts nous.co. A survey of 2,000 families found that one in five people have never switched mortgage provider, while a quarter have not changed mobile phone supplier for more than five years, and 18 per cent remain on the same TV and internet package.
Nous.co founder and chief executive Greg Marsh said: “We were shocked when we did our research and then worked out the actual amount that a reluctance to switch providers is costing the average householder. The figure of £1,700 is vast at a time when the cost of living is soaring and inflation is galloping away at more than nine per cent. That is 10 per cent of average take-home pay, which is a massive sum for any family.
“We know many people find it hard to keep a track of their outgoings and find it painful to keep switching. But how many of them can afford to keep throwing this kind of money away?”
It is estimated that people who do not switch home loan providers could be paying 10 per cent over the odds on the average UK monthly payment of £860. TV and internet packages vary hugely and there can often be £25 a month or more difference in what you can pay for the same deal.
And a typical household with an average of three mobile phones can be paying around £10 a month over the odds on each contract, adding up to a whopping total of £360 a year. Mr Marsh added: “This just goes to show how vital it is to be on top of your outgoings in these difficult times. We're proud to be providing a service to help households keep track of their finances, enabling them to get the best deal on everything they can.
“The free www.nous.co app and online dashboard tool can really help you keep your head above water in this tough financial climate.”
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