Saturday, July 09, 2005

Summer Energy Savings...Shave your Mortgage costs

For those of us who live in Northern Climates and are faced with heating bills, summer presents an opportunity to save money on Gas and Electricity rates.

Depending on how you approach your energy expenses, summer also presents an opportunity to roll the difference between your higher winter energy costs and the lower cost summer period into your mortgage and save a significant amount off your mortgage.

This article from the UK, illustrates the point more concisely.

Homeowners use lower electric bills to shave years off their mortgages
7 July 2005

New research from The One account reveals that homeowners could shave nearly £6,000 off their mortgage payments by simply saving energy during the summer.

Longer days and warmer temps mean British households spend an average 20% less on their gas and electricity every summer. The savings, worth an average £100-£200 per home each year, could lead to even bigger savings for homeowners that plough the cash into their mortgages.

By simply using the extra £200 each summer towards the mortgage, a homeowner with a £100,000 repayment mortgage could save £5,969 in interest and be 16 months closer to owning their own home.

Savvy earners who use the One account can benefit even more from summer savings. By simply depositing their paycheques into the One account, the average borrower can save £12,374 and shave 26 months off their mortgage term.

Jayne-Anne Gadhia of The One account says: "The dream of debt-free living is closer than ever for today's energy-conscious homeowners. Rather than splashing out on a new bathing costume or night on the town, Brits are realising they can use even small savings to achieve their long-term goal of home ownership much sooner. The One account's flexibility allows homeowners to overpay whenever they want without penalty, so every little extra is saving them money."

The majority of savings comes from lower gas bills, which can drop by up to 80% when households cut their central heating during the summer months. The electric bill also drops, as homes keep the lights off and use their appliances less, too. The result is an average saving of £100-£200 per household during July and August.

Jayne-Anne says: "Lower energy bills benefit the environment and save money. When homeowners realise the potential savings they could achieve by overpaying their mortgage, there's never been a more compelling argument to turn off the television, fire up the barbeque and enjoy the sunshine this summer."

The One account is the first 'fully flexible' mortgage in the UK. By bringing together the benefits of a mortgage, current account, personal loan and credit card, the One account helps homeowners consolidate their finances and reduce the amount of interest they pay on their borrowings. Customers pay just one competitive rate of 5.95% on their net balance at the end of the month. It's very simple, but the effect it has on our customers' personal finances can be quite amazing.


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