Personal finances getting 'tighter'
28/03/2007The succession of interest rate rises is pushing people's incomes and what they can afford, according to new figures released from the British Bankers' Association (BBA).
The number of mortgage approvals dipped slightly in February, most likely after January's shock interest rate rise helped push many people to the edge of what their finances can afford.
If managing your loans.co.uk/debt-calculator.aspx">debt is proving a problem then taking a secured loan or homeowner loan could help you cut your monthly payments.
"[Property] demand appears to be moderating however, as the monthly number of house purchase approvals was lower than a year earlier for the third month running and net lending was below trend in February," said David Dooks, BBA director of statistics.
"Reflecting tighter conditions for personal disposable income, consumer credit continues to be weak," he added.
Credit card lending was also weaker in February, suggesting the higher interest rates are encouraging people to move their debt onto a more affordable secured loan or homeowner loan.
 © Adfero Ltd
<< Back to News page
|