Insulate to help sell your home
Fuel prices are starting to bite and they're hitting the householder hardest. Since 2003 electricity prices have risen by 30% and gas prices are up by 40%. The average household now spends a whopping £870 a year on fuel and power according to the Energy Savings Trust, but the average home could save up to £300 a year from the installation of energy-saving measures and by changing energy-wasting behaviours. And now that mortgage repayments are on the rise, that's a significant saving. The best saving could be that when you come to sell your home it is more attractive to the purchaser and is actually worth more on the open market.
You do not need to follow David Cameron by attempting to install a generating windmill on your home to save on your fuel bills. The big savings are to be found in common sense solutions that heat your home and protect its value.
Many renewable energies are in their infancy, which means they are still relatively expensive and will not save you money during its lifetime. Wind turbines are especially expensive — costing anything from £3,500 for a basic model to more than £8,000. Many are sold by consultants plugging new and expensive technologies who may also be agents for the companies that make these emerging technologies.
However, money can be saved through the old-fashioned method of insulating your home. 88% of all the energy used in your house is for heating, and around half of the heat lost seeps out through lofts and walls. Installing 10 inches of loft insulation can save you about a third on heating charges. This should cost no more than £220-£250, saving you around £80-£100 a year. Likewise, cavity wall insulation can reduce heat lost through walls by 60%, which translates into a saving of £130-£160 a year for the average home. It will cost around £260-£380 to install.
The regulator for the water and sewerage industry, Ofwat, has calculated that the average customer who switches to a water meter saves an average of 5%-10% on water bills. Price comparison website Uswitch.com claims more than 14 million water customers could save up to £125 a year by switching. The good news is they cost nothing to install and can be removed within 12 months of installation if you're not happy with the results. Your water firm should be able to advise beforehand to ensure the switch is right for you.
Light bulbs are another overlooked energy-waster. Houses with designer lights installed can suck up more than 12,000 watts in lighting bulbs alone. With careful; placement and by using energy saving bulbs, others can use as little as 180 watts for the whole house. Low energy bulbs cost about £3 each. The difference between low- and high-energy fridges is also worth a look — using £20 of electricity a year, compared to £150 for normal ones.
But the biggest saving may come when it is time for you to sell up. Making your house energy-efficient can also make it easier to sell. Yorkshire Bank says in a new survey one in four home-buyers and one in three first-time buyers wouldn't buy a property if it was energy-inefficient. And with the new grading scheme for energy efficiency due in June 2007, these houses will be easier to weed out for the concerned house buyer. So insulate your home and make sure you sell your house for the price you want.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The overall cost for comparison is 7.1% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There may be a fee for the mortgage advice. The precise amount will depend on your circumstances, but we estimate it will be 1.5% of the loan amount with a minimum fee of £500 added on to the loan.
Mayfair Consulting Limited is an Appointed Representative of The Mortgage Times Group Limited, 279 Tottenham Court Road, London , W1T 7RJ , which is authorised and regulated by the Financial Services Authority no. 303007.
