Look for ways of reducing the cost of your borrowing. This is one of the areas for the biggest savings. If you have a mortgage, check that the rate is still competitive. With interest rates falling and competition for your business increasing, it's worth comparing your mortgage rates with those from other lenders. Changing your mortgage can mean filling in more forms, but the savings can be substantial. Generally, the bigger your mortgage the more worthwhile it is to shop around.

Current offers include a discounted variable rate of 4.5% and rates as low as 1.10% in some cases.

On a £50,000, endowment, Pep/ISA or pension mortgage, the monthly savings make it worthwhile filling in some forms:

% Interest Rate reduction Typical Monthly Saving

1% £39.17

2% £78.33

3% £117.49

You'll find lenders are offering valuation fee refunds, nil legal costs and occasionally cashbacks. But there are a couple of things to watch out for:

•   Compulsory Buildings and Contents insurance. This cover can be expensive from the lender

•   Redemption penalties on your existing mortgage. Check the small print to see how much you will have to pay to move your mortgage.

Consider the new 'flexible' style of mortgage. This type of mortgage allows you to make payments above your required payment when your budget allows. The amount of interest you have to pay is then reduced. If times become difficult, you can reduce your payments. In some cases you can borrow back any overpayments you have made. This allows you to keep more control of your money.