Homeowners Advised Against Burning Unnecessary Holes In Their Pocket

Although it may not be at their top of to-do list, it is important for those who have either recently moved home or are considering doing so to get in touch with their utilities provider, it has been indicated.

In research carried out by the Motley Fool, it was revealed that upon entering a new property some 2.4 million households - about 11 per cent of Britons - are transferred on to an energy supplier’s deemed tariff. Such a deal, the personal finance publication points out, is the standard quarterly bill offered by a firm and is around 25 per cent more expensive than the most competitive deals. The Motley Fool pointed out that after a consumer moves out and terminates their utility contact, the property automatically is transferred to a deemed tariff, a deal which the new occupier is obliged to take up when registering a home in their name.

And although it is possible for consumers to switch utilities provider after moving into a new home, the Motley Fool revealed that this could take up to a month for tariffs to be changed. As such, it was reported that people may come under more intense financial difficulties, with the average gas and electricity annual bill for a three-bedroom home already standing at about 1,400 pounds.

Following on from facing increased utility bills, it may be possible that homeowners develop problems with other areas of financial demand. This could see them experience difficulties with loan and mortgage repayments, credit and store card bills and paying council tax.

Overall, it was claimed that Britons are unwittingly spending some 70 million pounds per year because of failing to move from a deemed tariff.

David Kuo, head of personal finance at the Motley Fool, stated: “Moving house is an expensive exercise. And the expense in moving can be made more costly if consumers unsuspectingly sign up to penal energy tariffs. New occupants should not delay in switching away from deemed tariffs, even if it means transferring to a monthly direct debit tariff with the same lender first. The longer you wait, the longer you will be on the most expensive tariff. It can be easy to forget that you are on a deemed tariff when there are so many other things to remember at the time of moving house. But putting it onto the backburner could burn a hole in your finances.”

In an attempt to reduce unnecessary financial pressure from utility bills, consumers were advised to immediately register the gas and electricity supply in their name upon moving into a new home. Noting down consumption levels of a new house and scouring the market for the best deals offered by energy firm was also recommended.

For consumers worried about how they are to manage meeting household bills, getting a consolidation loan might prove to be of assistance. By selecting this type of loan, borrowers could find that they can pay gas and electricity expenses and other monetary demands, such as mortgage payments and credit cards, quickly and easily.

A struggling to keep up with payments on their energy bills. The price comparison website showed that more than a third of consumers spend between 61 and 100 pounds on energy per month, with 29 per cent stating that they have had to cut back on gas and electric usage due to concerns about their spending.

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