Energy price cap possibly worth the read

Those that can, need to take a look at Martin Lewis's advice. Basically fix your tariff now before the price cap change. EDF for example tariffs are not on the increase at the mo. And a fixed tarrif of 12months on offer. Saving most if not all the 10% increase.
I am trying to contact Octopus as I'm into a fixed tarrif till february. And seeing if I can get into the 15m quote on offer on their site without having to pay a switch/admin
charge.
I'm no expert by any means but worth the look.
Those not on fixed tarriffs or in contract are in a decent positions to be able to shop around for the best deals before next Tuesday.

Edit
For those that might be in the same position as me. I've got this in a reply to my email on the subject. :-

Yes, we have sent you the details of the new Octopus 15M Fixed tariff in a separate email for you to review. You can check that email for the quote and further information.

As for changing your tariff, there are no exit fees for our fixed tariffs, so you can switch without any penalties. If you have any trouble accessing the quote or need further assistance, please let me know, and I’ll be happy to help!

Edit
gone ahead and changed for 15 months
and the actual tarriffs are around 1p cheaper than what my present tarriffs are.
As I say I'm no expert but wanted to put it out there for you to look at and decide if it's for you.
I'm not a financial advisor lol.

 

We switched from flexible octopus to the fixed 15m one main attraction for us was the £0 exit fee

 

Pfft Martin Lewis some of us listened to him 2 years ago and ended up on a variable rate ! No thanks cost me thousands

 

I'd be interested to know how you lost thousands Jud, was it genuinely that bad. there will be winners and losers. I remember him saying variable tariffs are exactly that and a risk. Fixed tarriffs give you the comfort you are knowing what you'll be paying within reason. The main difference again is usage. I have always chose the latter given I know what the payments are. Since the oil companies held us to ransom.

I'd check for leaks lol.
Joking aside, In this case re a fixed rate. Unless the tarrif drops to an abnormally smaller rate than at present you'd be quids in. You are about to get a 10% increase. I will be around £175 better off than if I stay still. (Given £150 would be going onto my Bill at the present yearly usage.)
One thing I do know unless my usage increases. My duel fuel Bill's over 12 months. are going to be circa £25 less than last year in comparison.

 

He sad stick so we did on variable and it kept going up and up

 

My variable with EON Next went down a few times, would have been worse off on a fixed.

 

Did the downs outweigh the ups then. ?. Cos as far as I can tell. That wasnt the case in general.
From government stats.
Under the July to September 2024 direct debit price cap the average annual bill for typical gas and electricity consumption is £1,568. This is well below the peak level of £2,380 level under the Energy Price Guarantee from October 2022 to June 2023, but still 29% higher than in Winter 2021/22.

I've looked at my direct debits in 2022 and I paid £160pcm to Shell. When Octopus took over in feb this year. Their fixed tarriffs were far better than Shells. And I now pay £131..it is easier to manage my outgoings. it covers all bills over the 12month period and I generally end up still in credit once winter is over.
The sooner the war is over let's hope we can get back to normality. In the energy supply world.

 

Actually ignore me I think now it was mortgages not energy but was definitely Martin Lewis.

 

Could never ignore you Jud. Tha knows where I live.

 

I love Martin for a lot of good that he does, however never listen to him on mortgages. He's not qualified and is well known in the mortgage advisor world to talk quite a bit of nonsense about mortgages!

 

Probably my wisest moment on here was trying to tell anyone who would listen in late 2021/early 2022 that it was a good idea to lock in for 5 years if you can because interest rates were about to go ******* mental. I had to pay an early redemption penalty to do it myself but getting 5 years at 1.18% has saved me much more.

 

Interesting, could you give an example?

 

I've been expecting Mortgage rates to climb for about 10 years, ever the pessimist.
Though it was fairly obvious as the decision was made to crash the economy during covid the outcome would be harsh financially.
I too managed to fix I believe I have 2 more years left on that fix and will see what the damage is at the time.
The thing that always frustrates me most about Mortgages are the best deals being locked away so you have to go through a advisor or similar.

 

I'm always surprised that's legal.

"You can pay this rate if you want, or pay a lower rate if you give my mate some money on top"

 

It really feels like jobs for the boys.

Now I know some people will need an advisor as they have poor financial knowledge. Which is a huge failing in our education system that i can't help feel is intentional.

 

To be fair, you're massively underselling the role of a mortgage broker. Yes sometimes we can get marginally cheaper deals, but that's done by lenders as a bit of an incentive for people to get ADVICE on borrowing of the most money people will borrow in their lives. It's not always the case, and isn't really the reason people go to a broker.

My job involves all kinds of complexities, going through and learning criteria, sometimes even almost convincing a lender to lend.

Many, many people nowadays have credit issues, more and more are self-employed with complex incomes among all sorts of other things.

Mortgages aren't straightforward, they have different repayment charges, different fees, conditions and all sorts. I'd recommend that almost everyone use a broker, and that's not just because I'm one.

To comment on SuperTyke's post saying 'lower rate if you give my mate some money on top' is complete rubbish. We aren't mates or friends with banks, what we do is make sure their customers get expert, impartial financial advice on an often complex and huge financial commitment.

One thing Martin Lewis does get right about mortgages is that he recommends using a broker.

I also get involved regularly with the whole purchase process, chasing solicitors, councils, lenders and more, helping to relieve stress and pressure from clients, and saving them time.

I also offer completely free advice on protection (income protection, life insurance etc) which is just as important to get right (and can be equally complex) as the mortgage.

 

Martin Lewis provides solid advice when he recommends using a broker. So how is it possible that he simultaneously offers poor advice?

I don’t believe SuperTyke was implying you have personal relationships with lenders. Rather, they were suggesting that the system appears to penalise customers by withholding better deals, even when those customers are informed enough to handle things on their own.

Offering free advice on a product you’re also selling is standard practice across many sales roles.

I apologise if it seems like I’m belittling your profession. I have no doubt it involves complex aspects, and I have no reason to think you’re not skilled at what you do. However, I ultimately view the role as that of a salesperson. Realistically, the money to pay your salary has to come from somewhere, and we know it’s the customer who covers that cost. This leaves me puzzled as to why I would end up paying more by not using an advisor, which, in my simplistic view, suggests something isn't quite right.

 

There’s far too much to cover on a BBS post, however a few quick points:

1. Martin tries to loosely ‘advise’ on elements of mortgage related advice, which he isn’t qualified to do, and I have seen him say things that I don’t think he should be discussing given that.

Suggesting someone should speak to an expert is correct in most situations and is good advice - rather than listening to unqualified people.

2. I save people money (and time) multiple ways. Eg,

a) most people buying a house look to push their budget as far as possible. In the majority of purchase applications I do, a fair number of lenders won’t lend enough - they all have different ways of calculating affordability. Not unusual for say Halifax to be happy to lend a couple £230k but Santander only say £170k. It’s almost impossible without an incredible amount of time for a consumer to know who will lend what they need and at the best rate. I can do this quickly and efficiently due to knowledge, expertise etc.

Many people just speak to their own bank that they have a bank account with. The chances of them being the best deal are extremely slim.

Many clients due to issues mentioned above aren’t eligible for a mortgage with a lot of lenders. I know which ones to look at and consider given their situation.

b) After securing a client a mortgage offer, if rates drop before they complete their purchase/remortgage, I am usually able to move them onto cheaper deals. This is not something an ordinary consumer would ever think of/have the time and wherewithal to do. I saved one client £8k over 5 years last year by moving him to a cheaper deal 5 times before he completed his purchase.

I can say categorically that mortgage advice is not selling at all, other than getting people to buy into you; trust you etc. I’ve done sales in the past a long time ago and it’s not similar at all.

 

While mortgage advisors can be useful in certain situations, I think their value is often overstated, and they’re not always essential.

These days, the mortgage market is far more accessible than it used to be. There are plenty of online tools and comparison sites that allow buyers to check affordability and compare rates across multiple lenders almost instantly. Many of the tasks advisors claim to handle, like finding the right lender or calculating affordability, can now be done by buyers themselves using these resources.

Mortgage advisors may present themselves as being impartial, but many of them are incentivised by commission structures. This means there’s always the possibility they’ll steer you towards a lender that offers them a higher pay-out, rather than the deal that’s best for you. While they may argue it’s not about "selling," the reality is that commissions can influence the advice they give.

Advisors often charge fees or earn a commission from lenders, which can end up cancelling out some of the savings they promise. If you’re willing to put in a bit of time comparing rates on your own, you can avoid these extra charges and likely still find a deal that suits your needs.

Advisors often argue they save you time by navigating the mortgage market for you, but many online platforms allow you to quickly assess affordability and compare deals, so the idea that you’ll spend hours wading through options is a bit exaggerated.

On the Subject of Mr Lewis you say he isn't qualified to give any advice however its also possible a advisor may influenced by someone else's commission.

I can see the benefit of using a mortgage advisor, especially in navigating complex situations or finding the right lender quickly. However, what I don’t like is the restriction on certain deals for those who choose to go it alone. Many lenders offer exclusive products through advisors, which means consumers who prefer to handle their own mortgage search may miss out on potentially better deals. This creates an unnecessary barrier for those who are capable of managing the process independently but still want access to the full range of options.


Again to stress these are all general points, i have no reason to believe any of this applies to you personally.

 

At the end of the day, you're entitled to your opinion, as anyone is, and can understand why you might think some of those things, but I disagree with almost all of it, knowing how it all works from inside the industry.

Mortgage advice is VERY heavily regulated and works in a way where you aren't financially incentivised to recommend one deal over another, and you have to clearly justify your advice in a letter to the client.

Clients aren't charged for the commission paid by lenders to mortgage brokers.

With respect, I presume it isn't your job so to tell me I'm 'exaggerating' is a little disrespectful to be honest. It's rare these days that it's just a case of comparing the whole market and finding the cheapest deal. For most people, the lender that pops up at the top of the deals is rarely the one they end up with due to eligibility. I had a case this month where only ONE lender would lend the lady enough money to buy the house she wanted. She'd have had no realistic chance of finding that lender without my help. There wouldn't be hundreds of brokers all over the UK that are busy, if people didn't need advice.

I'd go as far as to say, if anything, banks should be made to make it obligatory to use a mortgage broker to ensure they make the right decision over what is one of the biggest financial decisions a person will ever make.

Anyway, there's not much point keep going on, so I'll leave it there for anyone reading to make their own minds up