Consumer Saving Dives Amid Expected Interest Increases

Research conducted by the Spanish bank Santander has revealed that saving in the UK has fallen by a fifth since the beginning of 2010, with consumers now on average saving £102 a month, in comparison to £130 in February of this year. However, there were encouraging signs that this trend could soon be reversed with 25% of those surveyed saying they planned to increase the amount they save each month.

68% of those surveyed also said that they expected the Bank of England base rate to increase in the next twelve months, despite predictions by many leading economists that it will remain unchanged over that period. 11% also said that they expected the base rate to rise from half a percent to 2% or higher, which could see many homeowners on tracker and variable rate mortgages start to struggle and seek debt help.

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