Debt management reflected in 'savvy' approach to credit
Debt management reflected in 'savvy' approach to credit
Tuesday 2nd March 2010
Spokesperson for Moneyfacts.co.uk Darren Cook said the credit crunch has caused people to be more financially aware and as a result are shopping around for the best deals.
"The Bank base rate being maintained at a historical low for 12 months and the resulting low savings rates is causing people to shop around for the best returns from their hard-worked savings pot," he said.
Mr Cook was commenting on the release of the Bank of England's latest Lending to Individuals report, which reveals a sharp drop in mortgage approvals and a rise in consumer credit.
According to the figures, the number of loan approvals for house purchases dropped by 17 per cent between December and January, and consumer credit increased by £500 million.
The fall in mortgage lending can be attributed to a normal seasonal drop in January, the end of the stamp duty holiday and the adverse weather, said Mr Cook.
"With many reverting to very low standard variable rates, there is little or no motivation for individuals to remortgage to another deal and restrictive lending criteria makes higher loans to value products expensive to," he added.
An increase in consumer credit could simply be related to an overflow from December spending, Mr Cook said.
According to figures published by the British Bankers' Association, consumer credit declined in January but personal deposits held up.
New credit card lending continued to decline, being 3.7 per cent lower than a year earlier.
News article brought to you by Debt1 - UK Debt Management Specialists
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