The results of direct action

THESE days, when looking for a hot financial bargain, you don't have to wear yourself out trudging round your local High Street banks and building societies. All you have to do is pick up the phone or reach for a mouse - it saves time, cuts down on paperwork and avoids any dealings with a pushy salesperson.

Most of all, going direct saves you money on a wide range of financial products, such as mortgages, loans, insurance and credit cards. But the main area where you can cut costs is by switching to a cheaper mortgage and the new online brokers can help you find a suitable loan quickly.

Moneysupermarket offers more than 4,000 mortgages and personal loans from 150 lenders, and e-loan provides quotes from 50 lenders. Others such as Ins-site and Promise cater for people remortgaging. Taking out a mortgage online can sometimes be cheaper and internet- exclusive deals are available at emfinance and John Charcol's online arm.

If you don't have access to a PC, try teleboker First Mortgage.

Some lenders will offer discounted rates if you apply by phone. Halifax Direct, for instance, offers a 2.15% discount on the standard variable rate for 18 months, giving a rate of 5.59%.

With premiums for household and motor insurance rising steadily, checking out quotes has become a necessity. Insurance brokers such as AA Insurance, Premium Search and Kwik-Fit claim they can get you the best price. AA Insurance also offers a 10% discount on motor insurance if you accept a quote at its internet site. Or try online broker Screentrade for home, car and travel insurance quotes.

Several direct insurers are now offering discounts if you apply online.

Eagle Star Direct will give you a 15% reduction on motor insurance and 10% on household if you buy online rather than by phone. Directline will give a 5% discount on household if you buy at its website and Churchill offers up to 10% on home and motor if you get a quote online.

Switching your credit card is one of the easiest and quickest ways to save money and there are some good bargains to be had. Egg is offering a six-month introductory rate of 4.7%, which reverts to 10.9%, while Tesco Personal Finance offers a rate of 4.9% until January 2001, which would then go up to 15.9%.

You can apply online for Egg's credit card. With Tesco you can print out an application form at its website. Online card Marbles offers a rate of 5.9% for six months, after which it increases to 14.9%.

Many financial companies offer loyalty schemes in order to hang on to your business and it is worth contacting your existing bank or lender to see what it has on offer. For example, if you have a Smile bank account you are offered an extra 1% on savings, giving a rate of 6% gross and a 3% discount on credit cards, giving a rate of 9.9%. The current account pays 4.8% on credit balances.

Direct savings accounts can help you boost your income, especially at a time when interest rates are relatively low. Halifax has launched its Web Saver service, with options to move funds between fixed and variable rates.

Interest starts at 6.25% gross with a cashcard and 5.5% without. The fixed-interest rates start at 6.29% for three months, and rise to 6.8% over five years.

Skipton Building Society recently introduced a new brand called Skipton Direct and its first product is a 30-day postal notice account. It pays an interest rate of 6.6% gross on sums between 10,000 and 29,000, and 6.85% on 30,000 plus.

The arrival of telephone and internet sharedealing companies from overseas has increased competition and led to a price war.

Commission fees are now falling dramatically. So much so that Charles Schwab is offering free trading on the internet for 30 days if you open an account. With others such as E-Cortal trades cost 10 up to 3,295, while Sharepeople's flat rate is 17.50.

Using new technology to run your finances puts you in control and gives you more instant and flexible access to all your financial information. With the Woolwich's Open Plan account, for example, you get one statement showing all your account balances, including your current account, ISA, unit trust and credit card. Account information is available via the internet, telephone, WAP-mobile phone and at a branch, so at any time you know what is going on.

Also, keep an eye out on the new ventures, such as the Halifax's Intelligent Finance, Abbey National's Cahoot and firstdirect.com, which all plan to open their electronic doors soon, and could offer some interesting packages.

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