- Entrou
- Out 5, 2021
- Mensagens
- 63,201
- Gostos Recebidos
- 1,960
How to stop Iran war leaving you skint and get best deals on petrol and energy bills
As the conflict in the Middle East sends shockwaves through the global economy, here is how Brits can minimise the financial damage and get the best deals on energy, petrol and mortgages
The Iran war has piled further pressure on the purse strings of hard-hit Brits struggling with the cost of living crisis. Hopes for a rapid end to the conflict continue to fade, sparking fears of rocketing energy bills, fuel costs and food prices.
As the fighting continues Iran has threatened to unleash a "full scale economic war" which could put the global energy market on its knees. But financial experts have given some tips on how to ease the pressure.
Energy bills
Since the start of the war gas prices have almost doubled. The top boss of Armco, one of Saudi Arabia's oil giants, has called the war "the biggest crisis the region's oil and gas industry has faced." Brits who want to protect themselves from energy bill uncertainty could choose to jump into a fixed-rate energy contract. These deals will fix your bill at a certain rate for a year or longer.
Director of personal finance at AJ Bell, Laura Suter, has explained how the energy cap from the UK’s energy regulatory body Ofgem will also protect people from seeing jumps in their bills.
Suter said: “The energy price cap from Ofgem helps to protect people from an immediate increase in energy costs, so people won’t see the change on their bills just yet. And anyone who has locked in a fixed-rate tariff will be protected from the impact for the duration of that deal.
“But if higher prices continue, the energy price cap set by Ofgem could increase later in the year.”
Petrol
Petrol prices have jumped by 10p a litre since the start of the war, according to the RAC. The organisation has also reported the price for diesel has jumped even higher.
To avoid coughing up too much at the pump the International Energy Agency has urged people to take a number of steps to curb their oil consumption. The agency has called for people to “work from home when possible," have “encouraged the use of public transport” and called for “increase car sharing”.
Alongside this a money-saving expert has told drivers looking to save cash on petrol to check prices of multiple petrol stations in their area before filling up.
Jordon Cox, known as The Coupon King on social media, has dropped a video on the money saving hack. In the video Cox said: “There’s a secret to getting the cheapest fuel.
“Instead of going to your closest one that’s probably more expensive, go to the cheapest one and save a bunch on your fuel.” Cox said: “If you go onto an app called Petrol Prices, it’ll bring up a map of all the prices in your local area at the pump."
The PetrolPrices app collects data from thousands of petrol stations across the UK and tracks prices at more than 8,000 forecourts. This allows drivers to compare petrol and diesel costs in their area and find the cheapest place for them to fill up. PetrolPrices says their app can help drivers save up to £200 a year.
Investments
The war has sent shockwaves through the stock market. The London stock exchange has nosedived, losing around £250 billion since the start of the war, with other European and Asian markets following similar trends.
Due to the volatility in the stock market Brits have been urged against keeping all of their eggs in the same basket to protect their pockets. Managing director of investment platform Bestinvest, Jason Hollands, has pointed out gold can provide a form of “portfolio insurance” at turbulent times.
Hollands stated: “We typically advocate a four to five per cent exposure to gold within portfolios.”
Hollands suggested Invesco Physical Gold ETC as his preferred pick to invest in gold explaining why he sees it as a smart investment.
Mr Hollands said: “Investors may wish to ensure that they have sufficient exposure to more defensive areas of the market, such as healthcare and consumer staples, alongside sectors that can benefit from sustained government spending and structural demand, including defence and infrastructure.”
Mortgage and savings rates
Due to inflation creeping back up because of the war there is uncertainty about the future of mortgages and saving rates. To reign inflation rates in central banks could attempt to freeze interest rates or hike them.
David Hollingworth of broker London & Country has warned borrowers could be in for a "bumpy ride" as increases on fixed rates mortgages are likely to keep rising. Mr Hollingworth said: "Increases to fixed rates are very likely to continue for now and borrowers should brace themselves for a bumpy ride.
"We’ve seen very significant levels of product repricing and a deal that is there today isn’t guaranteed to be there tomorrow. Borrowers will have to move quickly to secure rates which will protect against any further hikes."
Brits who are due to remortgage this year should speak to their broker or lender and lock in a new rate as soon as possible. It is possible to reserve a new mortgage rate as early as six months before your current one ends.
Daily Star Sunday
As the conflict in the Middle East sends shockwaves through the global economy, here is how Brits can minimise the financial damage and get the best deals on energy, petrol and mortgages
The Iran war has piled further pressure on the purse strings of hard-hit Brits struggling with the cost of living crisis. Hopes for a rapid end to the conflict continue to fade, sparking fears of rocketing energy bills, fuel costs and food prices.
As the fighting continues Iran has threatened to unleash a "full scale economic war" which could put the global energy market on its knees. But financial experts have given some tips on how to ease the pressure.
Energy bills
Since the start of the war gas prices have almost doubled. The top boss of Armco, one of Saudi Arabia's oil giants, has called the war "the biggest crisis the region's oil and gas industry has faced." Brits who want to protect themselves from energy bill uncertainty could choose to jump into a fixed-rate energy contract. These deals will fix your bill at a certain rate for a year or longer.
Director of personal finance at AJ Bell, Laura Suter, has explained how the energy cap from the UK’s energy regulatory body Ofgem will also protect people from seeing jumps in their bills.
Suter said: “The energy price cap from Ofgem helps to protect people from an immediate increase in energy costs, so people won’t see the change on their bills just yet. And anyone who has locked in a fixed-rate tariff will be protected from the impact for the duration of that deal.
“But if higher prices continue, the energy price cap set by Ofgem could increase later in the year.”
Petrol
Petrol prices have jumped by 10p a litre since the start of the war, according to the RAC. The organisation has also reported the price for diesel has jumped even higher.
To avoid coughing up too much at the pump the International Energy Agency has urged people to take a number of steps to curb their oil consumption. The agency has called for people to “work from home when possible," have “encouraged the use of public transport” and called for “increase car sharing”.
Alongside this a money-saving expert has told drivers looking to save cash on petrol to check prices of multiple petrol stations in their area before filling up.
Jordon Cox, known as The Coupon King on social media, has dropped a video on the money saving hack. In the video Cox said: “There’s a secret to getting the cheapest fuel.
“Instead of going to your closest one that’s probably more expensive, go to the cheapest one and save a bunch on your fuel.” Cox said: “If you go onto an app called Petrol Prices, it’ll bring up a map of all the prices in your local area at the pump."
The PetrolPrices app collects data from thousands of petrol stations across the UK and tracks prices at more than 8,000 forecourts. This allows drivers to compare petrol and diesel costs in their area and find the cheapest place for them to fill up. PetrolPrices says their app can help drivers save up to £200 a year.
Investments
The war has sent shockwaves through the stock market. The London stock exchange has nosedived, losing around £250 billion since the start of the war, with other European and Asian markets following similar trends.
Due to the volatility in the stock market Brits have been urged against keeping all of their eggs in the same basket to protect their pockets. Managing director of investment platform Bestinvest, Jason Hollands, has pointed out gold can provide a form of “portfolio insurance” at turbulent times.
Hollands stated: “We typically advocate a four to five per cent exposure to gold within portfolios.”
Hollands suggested Invesco Physical Gold ETC as his preferred pick to invest in gold explaining why he sees it as a smart investment.
Mr Hollands said: “Investors may wish to ensure that they have sufficient exposure to more defensive areas of the market, such as healthcare and consumer staples, alongside sectors that can benefit from sustained government spending and structural demand, including defence and infrastructure.”
Mortgage and savings rates
Due to inflation creeping back up because of the war there is uncertainty about the future of mortgages and saving rates. To reign inflation rates in central banks could attempt to freeze interest rates or hike them.
David Hollingworth of broker London & Country has warned borrowers could be in for a "bumpy ride" as increases on fixed rates mortgages are likely to keep rising. Mr Hollingworth said: "Increases to fixed rates are very likely to continue for now and borrowers should brace themselves for a bumpy ride.
"We’ve seen very significant levels of product repricing and a deal that is there today isn’t guaranteed to be there tomorrow. Borrowers will have to move quickly to secure rates which will protect against any further hikes."
Brits who are due to remortgage this year should speak to their broker or lender and lock in a new rate as soon as possible. It is possible to reserve a new mortgage rate as early as six months before your current one ends.
Daily Star Sunday