The ever-changing state of the UK’s economy is starting to become a major worry for a percentage of consumers.
According to the findings of a focused study among British residents, almost 50% of people are having serious concerns about the current financial climate in Britain, as fears of yet another rise in interest rates looms on the Horizon.
Some analysts have suggested that the possibility of rates hitting 6% should not be ruled out, and speculate that such an eventuality would have a crippling effect on both consumer and commercial outfits. Almost ¼ of those surveyed fear that if interest rates do increase again this year, the security of their jobs could become unstable as businesses make necessary “corrections” in order tackle increased costs.
Views of future housing market conditions also seem to differ quite dramatically among consumers. Around 25% of respondents feel confident that house prices will continue to grow throughout 2007 and into 2008; whereas an opposing 20% fear that a correction in the housing market is inevitable. A further 15% of people fear that our current financial situation is so bad, that the country will be forced into recession as a result.
Numerous credit lenders are making provisions in order to protect themselves from any type of negative eventuality. A number of competitively priced secured loan plans have been withdrawn from the market, and the level of approved sub-prime lending is down.
