Consumers ‘Worried’ At Thought Of Base Rate Rises
Keywords: interest, rate, rises, worrying, credit, cards, personal, loans, finance, secured
The prospect of changes to the base rate by the Bank of England’s monetary policy committee (MPC) are a source of concern for millions of Britons, the publication of new figures reveal.
In research by ICM commissioned by Intelligent Finance, some 41 per cent of consumers feel either “worried” or “extremely worried” in anticipation of the MPC’s monthly meetings. And with the committee voting to increase the base rate five times over the past 12 months, industry experts have predicted that more rises could be due to take place within the forthcoming months, which could consequently put even more pressure on consumers’ ability to pay off personal loans and other debts.
However, despite these concerns, only just over a quarter (26 per cent) of those surveyed claimed to have products that guard them against interest rate changes. The company reported that opting for an offset mortgage can help borrowers “shield” themselves from the “negative impact” of base rate hikes by the MPC. Instead of receiving interest on money put into their savings accounts, consumers are not liable to pay interest on an equivalent amount owed in a mortgage, which in turn gives them the flexibility to lower their monthly repayments.
The findings also indicated that young people are the most anxious about the prospect of rate rises, with four out of ten 18 to 24-year-olds said to be concerned about the effect that a hike may have on their personal finances, with a further ten per cent “extremely worried”. Despite these concerns, only seven per cent of people in this age group have actually taken out a product to protect themselves from any interest rate changes. Meanwhile, men are said to be more relaxed than women about the possible impact of MPC meetings. Some 38 per cent of males do not take any notice of upcoming rate changes, in comparison to less than a quarter of females.
ICM’s study also showed that twice as many women (14 per cent) as men have grave worries about base rate rises. However, it was females who seem to be more willing to choose those financial products which could help secure their monthly repayments, as a third of such consumers take precautions in their choice of services, in comparison to about a fifth of males.
Commenting on the findings, Mark Parker, managing director for Intelligent Finance, said: “With interest rates on the rise and purse strings tightening, it’s important to make every penny work as hard as possible. Offset mortgages give peace of mind, negating the effects of a rate hike and giving the flexibility to lower monthly payments. This is good news whether you’re a worrier or not!”
In related news, over 2.5 million Britons (about six per cent of the population) claim that despite a climate of rising interest rates placing more pressure on their personal finances they do not know how much debt they are in via personal loans, credit cards and other forms of borrowing. Young people were suggested as having the most difficulty in judging their financial situation as some 15.4 million do not know their total debt within 100 pounds.
Steve Smith writes for 1 stop finance shop where visitors can apply for UK debt consolidation loans and also focuses on cheap personal loans and bad credit secured loans for UK residents. Visit Today: www.1stopfinanceshopuk.biz
Previous Articles Highlighter:
You Can Get Loans For Wanderlust (1)
Finding a cheap holiday destination should not seem to be an uphill task. One can always just drive down to the countryside. Or one could check out one's own city.
Parents 'Increasingly Contributing Towards Children's Property Costs' (2)
However, some nine per cent of 18 to 24-year-olds are shown to be prepared to ask a grandparent for a financial "leg up" on to the housing ladder - if their parents are unable to provide sufficient assistance.
Car Buyers 'Need To Choose Suitable Finance Product' (3)
However, the financial services provider warned that when on the search for a new automobile it is important that consumers also take the time to shop around for the most competitively-priced financial deals possible.
Financial Freedom Not Reached Until Mid 50's (4)
Commenting on the study, Jason Robinson, director of savings operations for Birmingham Midshires, said: "After years of bringing up children and working hard, those in their 50s can look forward to a more relaxing way of life, with fewer financial strains.
British Consumers 'Uninformed' About Personal Finance (5)
Abbey said that following the examinations, 25 per cent of those that undertook the tests scored the equivalent of an A, whereas 30 per cent scored an A. When the 21 per cent that achieved a B level are added, some three-quarters are covered in the top three grades, but 24 per cent are not.
Of Jargon And Finance Tips (6)
Most online personal finance organizations offer financial help to help out loan seekers who have still not made sense of finance jargon. There will be pages and pages that are dedicated to defining and explaining the various terms that loan seekers will come across while looking for that ideal loan deal.
Secrets To Avoid A Home Foreclosure (7)
Barring a windfall of extreme financial gains, most will spend the largest part of their lives paying for their home, and the last thing anyone wants is to lose what they have worked to own for so long.
Borrowing For A Business Venture (8)
Sometimes, if money is required almost at once, the fastest way to meet that need would be to borrow the amount from the owner himself. Thus, the business person will advance the required amount from his own savings.
Getting Your House Ready For The Appraiser (9)
Keywords: refinance loans, release home equity, loans Getting the house ready for the appraiser is a big thing in the life of every mortgage seeker. Getting a mortgage or a remortgage requires not only a long line of documents, but also a visit from the appraiser.
Insurance For The Four Legged Folks (10)
Keywords: Life insurance quotes, best pet insurance, car insurance Insurance has certainly become a necessity nowadays. You never know when things might go wrong and you might have to cough up large amounts of dough to pay for unforeseen expenses.
Enlightening Students About Credit (11)
Sometimes there is no running away from rising credit card debt. However, if you are a student with a newly-acquired credit card, see to it that you do not end up having to spend more than is necessary.
10 Reasons Why People Don't Want To Be Rich (12)
They just need to be educated. 10. They are overly dependent. They would much rather their spouses, company or government takes over the job of their financial planning and look after them for the rest of their lives.
Student Loan Consolidation Information - How Credit History Affects Student Loans (13)
FICO scores are calculated on outstanding debt and defaults, the amount of late re-payments and how late and how late they are 30 days, 60 days, 90 days or longer along with the amount of credit available and number of recent credit inquiries and other factors, all these are weighed up and thus for example, a default counts very heavily as do any late payments with higher late days counting more, the number of recent credit inquiries counts much less.
Choosing Your Malibu, CA Real Estate Appraiser (14)
If you have a real estate agent, he or she will more than likely be able to make a recommendation. Keep in mind that this does not mean the recommendation is the best; it is just someone who your agent works with.
Student Loan Consolidation Information - What Are Co-Signer And No Co-Signer Loans (15)
Lowering that rate to 5% (the official amount for a need-based Perkins loans) reduces these numbers to $417.00 and $4,820.00, however keep in mind that the case assumes that re-payment begins straightaway, deferring repayment until six months after leaving school which is the most likely outcome will result in higher amounts unless the interest is deferred or subsidized, using a co-signer with good credit can considerably reduced the total interest paid along with improving your chances of getting desirable loan features, go through a few sample strategies by using a loan calculator which are available on-line, this information will become a critical part of any student loan consolidation information.
Student Loan Consolidation Rates - It Pays To Shop Around (16)
It's easy to take the first offer that comes along, but the first offer might not be the best, it might just have been the fastest to travel through the student's grapevine.
Foreclosure Epidemic Likely Means Additional Tax Liability (17)
By being relieved of the obligation to pay $50,000, the IRS considers that Joe has in effect put $50,000 in his pocket. The debt relief is subject to ordinary income tax.
Finding The Right Student Loan (18)
Even if you have no money, they are there to help you get you your tuition. Private Student Loans Private student loan debt consolidation programs are one way to get money for your college.
How To Sell Your Home If You Are Faced With A Foreclosure (19)
A certification from an inspector can move the sale process along a lot quicker. Next, you will need to talk with a real estate agent about getting your house sold as fast as possible.
The Right Penny Stock Can Make You Money (20)
It is usually contained in articles written about the company, or in TV or radio interviews with company officials that are sometimes archived on certain websites. You can also look for the information on message boards or forums where stock traders chat with each other.
Newer Articles Highlighter:
Mortgage Refinance-The Easy Way To Get The Adjustable Rate Monkey Off Your Back (1)
Keep in mind, equity is the difference between the remaining home loan balance and its current market value. So what can of rate is possible? All of the mortgage providers have access to comparable rates in the market.
Student Loan Consolidation Information - What Is The William D Ford Direct Loan Plan (2)
More concrete differences between the two products do exist, though since FFELP loans are funded and serviced by private financial institutions who you sign a promissory note and could possibly not be who you re-pay the loan to, it is a basic practice for lenders to re-sell loans to other businesses, mortgage companies have been doing this all the time, you may have gone to the trouble to discover a lender and their services you like, you could have decided over and above the rate and repayment terms preferring their customer service and then for example finding the loan has been sold to another business, you may now be repaying the loan to a company you rejected, however in the situation of Direct loans since the Federal government is the lender the loans are not sold to any third party.
Why Is Credit Important For Your Federal And Private Student Loans? (3)
It is nice to start a lot earlier with credit when you turn 18 back during high school or at the end of it. One of the best things I had for me was that my parents got me a credit card and taught me how to properly use it.
Five Ways To Secure Online Financial Information (4)
After working in banks and large brokerage firms, Jared Irish has learned some keys to success in internet and banking privacy. His E-Letter has helped many institutions and individuals keep their financial information safe.
Retirement Tax Planning Tips (5)
Electing the most favorable method for computing the tax on lump sum payments of prior year social security benefits. Determining the percentage of disability insurance premiums you paid a to maximize the nontaxable portion of your disability benefits.
College Student Credit Card Debt. Tips For Parents (6)
Think of your student credit card much like a student apartment. While you would eventually like to move into a larger house or condo, there's nothing wrong with student apartment at the moment.
Student Loan Consolidation Information - What Is The FFELP - Federal Family Education Loan Program (7)
The other major plan, the PLUS (Parent Loans for Undergraduate Students) loan plan, supplies over $8 billion per calendar year in money to parents and as of July 1, 2006 professional and graduate students are also eligible for PLUS loans, providing dollars to parents to assist cover expenses they would frequently pay for anyway, the PLUS program commonly forms part of the total financial aid package today.
What Is A Secured Loan? (8)
You can do a lot of research on the Internet to get a better sense of what is available in secured loans of all types. Peter Kenny is a writer for The Thrifty Scot, please visit us at www.loansubmit.co.uk and www.thriftyscot.co.uk
Budget Planning For Youngsters (9)
It can be quite a shock if it catches you unawares. And credit cards are one of the factors that add to the novelty of life on campus. That is why more and more colleges are taking it upon themselves to teach their students about the various aspects associated with credit cards.
All About Bridge Loans (10)
. However, you must realize that a bridge loan has serious risks. It is still something that will need to make sense for your business. If you feel taking on this type of loan is the right thing to do, you will be far better off going through a specialist commercial lender.
Employer Health Insurance Covers Fewer Employees Today (11)
This article discusses some of the many elements contributing to these escalating costs and provides some basic strategies for employers to explore to improve the cost and benefit offering. Health insurers are essentially repackagers of the vast American health care system.
Checking Out New Communities And New Home Builders In Cherokee County (12)
If the community is well into the development stage, ask for a personal tour so that you can get a feel for the layout and the "personality" of the neighborhood.
Some Great Options - When Purchasing New Construction (13)
Because of the prime nature of this real estate, more often than not such properties do come with a noticeable price tag. With the dip in the real estate market at the present time, there are some instances in which a home buyer can get his or her hands on new homes in the Tampa Bay area for a less than anticipated purchase price.
Why People Live In Gated Communities (14)
Community Master planned gated communities like Lake Arrowhead are specifically planned to be offer easy access to amenities and needs like dining, recreation, community involvement and shopping. While critics of gated communities in general bemoan a lack of community involvement among those who live in gated communities, actual experience tells a far different story.
Custom Homes In Atlanta - Choosing A Builder (15)
Getting started is as simple as browsing the directory on the HBA web site for members and certified members. Check your local real estate listings and with local realtors to find out about new project construction and home building in your area.
Talking Business With New Home Builders In Cherokee County (16)
In most cases, if the company is working with a development corporation in a new construction planned community, the answer to this question will be yes. Most developments offer a range of home styles for sale, each of which has been chosen for the way that it fits into the overall community and environment.
The Top Golf Course Communities In America: What Makes Them So Special? (17)
While most include membership at some level for the golf course, those that call themselves the top golf course communities in America. These amenities can make or break a golf course community site.
Why Every Business Owner Needs To Own A Small Business Credit Card (18)
After you have had it for awhile you can probably get anything you need for your business without any questions asked. Gregg Hall is an author living with his beautiful wife and family in Navarre Beach Florida.
Student Loan Consolidation Information - Differences Between Graduate & Undergraduate Financial Aid (19)
Both types of students will want to researching all available alternatives, nonetheless keep mindful that though it ordinarily requires combinations of funds from considerable sources, cash to pay for school is now more easily available than ever, the total amount of funds borrowed last calendar year by all students was over $50 billion, those funds are going to someone and without too much difficulty it could easily be you, if you keep this information in mind when looking at any student loan consolidation information.
How To Reduce The Cost Of Car Insurance For Teenagers (20)
Although many people unfortunately do not realize it, there are quite a few different things that you can do in order to reduce the cost of car insurance for teenagers, of which will be discussed here.
Permalink to Consumers ‘Worried’ At Thought Of Base Rate Rises