We all know that the cost of TV and broadband packages can be expensive, but new research shows that cutting out the TV could save you far more than you may think – if you used the money saved to overpay your mortgage instead, you could shorten your mortgage term and save a whopping £20,000 in the process!
That's according to figures from Freesat, which certainly make for interesting reading. Let's say you're a first-time buyer who bought a home for £205,170 – the average price for a first home, according to Halifax – and were able to put down a deposit of 10%. This would result in a mortgage of £184,653, with monthly repayments of £925 (based on a 25-year mortgage term with a 3.5% interest rate).
At the same time, the average TV customer pays £44 a month for their contract, but Freesat's calculations show that if you quit the contract and used the £44 to overpay your mortgage each month instead, you could clear your mortgage a year and nine months earlier than planned.
Those extra monthly payments could amount to £12,276 over the shortened mortgage term of 23 years and three months, and thanks to the earlier repayment, you'd save £7,255 on interest, equating to a combined saving of £19,531 – all from cancelling your TV contract!
Given that typical pay-TV customers only use a small amount of the content they pay for – the report cited research showing that 99% of Sky TV customers' most-watched shows are available on free to air channels, while 24% of sports channel subscribers admit to watching just one hour or less of sports content a week – it could be far more cost-effective to move away from paid-for TV.
Many subscribers aren't happy with their current deal, anyway: Freesat found that 42% of those surveyed are unhappy with their contract, with 32% thinking about quitting, and a further 42% feel taken advantage of by regular price hikes. So don't put up with it!
"Paying for a TV subscription may not seem like a significant outgoing when you consider the cost on a month-by-month basis, but over the course of 25 years, TV customers will spend £13,000 on their contract," said Freesat spokesperson Jennifer Elworthy.
"While we don't expect everyone will consistently overpay on their mortgage, our calculation illustrates how a moderate monthly saving can add up to a life-changing amount of money. Free-to-air channels already offer a great range of quality TV to consumers, and for those looking for surplus entertainment, there are far cheaper options."
If you're paying more than you'd like for your current TV and broadband package, it's time to take a look at the alternatives. Use our broadband comparison tool to get started – you may find a cheaper TV offering, or you may want to forego paid-for TV altogether and opt for a simple broadband deal instead. Whatever you decide, we can help you get the best deal possible, so get searching and see how much you could save!
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.