Households struggling with winter fuel bills

According to recent reports there are now many households that are struggling with winter fuel bills as a result of very cold weather coupled with lack of price cuts from energy suppliers. The high energy bills that some households are having to try and cope with will add further strain to the already difficult financial situations of many people.

The average amount that households are expected to pay for the fuel that they used over the winter period is £532.70, and this takes it above the previous record of £475, reflecting an increase of over £50. Many have been keeping the heating on for longer during the cold weather and this has driven up the cost of their energy bills.

Whilst the spring is officially here and summer is only around the corner there are still warnings of cold weather being released, and this means that consumers are likely to continue using their heating at a time of year when they might usually have stopped using it. Many are also putting the temperature up when using their heating, which can also make a big difference on bills.

The figures relating to winder fuel bills were put together by Energyhelpline.com, which has accused the government of failing to stand up for consumers. Whilst wholesale prices on energy have fallen dramatically by around 60 percent there are concerns that household energy usage costs have only dropped by around 15 percent coming nowhere near reflecting the saving that the energy firms are making.

Officials are also concerned that some people may be receiving inaccurate bills and paying more than they need to because they do not take the time to check the bills. Consumers are also being advised to try and switch providers to get a better deal.

Energyhelpline.com stated: ‘In a privatised energy market, there is little governments can do and they need to be honest and tell people that the only way to reduce their bills is by taking personal responsibility to find the best deals.’ 

Tags: market, energy, wholesale prices, previous record, responsibility, energy suppliers, energy bills, Heating

CML: Fixed-rate mortgages ‘most popular’ with FTBs

The number of people looking to take out fixed-rate loans has soared following fears that interest rates could rise next year, according to the Council of Mortgage Lenders (CML).

First-time buyers (FTBs) have been plumping for fixed-rate loans in February, with figures showing 87 per cent of those looking for a mortgage for the first time opting for this method of borrowing.

This figure is up from the previous record of 84 per cent in January and up from 82 per cent at the same point last year.

Excluding mortgages, home loans totalled some £10.7 billion – the lowest for 12 months – with February typically being one of the quietest months of the year in the property market.

Commenting on the latest figures, CML director general Michael Coogan said: “With the chance of at least one more interest rate rise this year, first-time buyers are taking the sensible option of taking out fixed-rate deals, and locking into the payment security they provide.”

He added that the figures reveal that first-time buyers are showing the ability and desire to plan ahead, based on the fact that they are “the most financially stretched group”, and are having to take careful steps to avoid any interest rate increases in future.

Tags: Council, home loans, finance, GBP, mortgage lenders, Danish mortgage market, previous record, Michael Coogan