Have your financial priorities changed? - Money - News - Moneyfacts


Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Have your financial priorities changed?

Have your financial priorities changed?

Category: Money

Updated: 26/05/2010
First Published: 26/05/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The financial priorities of UK households continue to change as the fallout from the recession lingers on.

According to the latest data from the British Bankers' Association (BBA), people are increasingly choosing to forego saving in order to pay off their debts instead.

High street banks said the amount they lent to consumers through credit cards, loans and overdrafts during April was £0.3 billion lower than the amount they received back from consumers in repayments.

Meanwhile, personal deposits into savings accounts increased by just £0.4 billion over the month, significantly down on the £5.4 billion that savers had stashed away into their savings accounts in March.

"Household priorities are clearly reflected in these latest data, with people paying down debt rather than building up savings, even in the main ISA season," said David Dooks, statistics director at the BBA.

"Uncertainties about the impact of government policies and the economy on households and businesses will continue to dent consumer confidence and influence decision-making."

Amongst other figures revealed by the BBA, mortgage lending by the banks remained subdued in April.

Although the number of mortgage deals approved for people buying a house was higher than at the same point a year earlier, the BBA said the figure remained low when compared to historical trends.

However, Simon Rubinsohn, chief economist at the Royal Institution for Chartered Surveyors, said the unfavourable comparison was largely due to the rush of home moves completed at the end of last year prior to the expiry of the stamp duty holiday.

"The subsequent decision of the previous government to introduce a new incentive for first time buyers is likely to become increasingly visible in the mortgage data over the coming months," he added.

Find the best savings rates for you - Compare savings accounts

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Have your financial habits changed?

2016 was certainly a turbulent year, and it's had a notable impact on household finances. Indeed, research shows that recent events have influenced the way over half of UK respondents manage their finances, with many becoming more cautious.

Kids got £180 in pocket money in 2016

New research has revealed that kids aged 4-14 received an average of £180.44 in pocket money over the last year, which was topped up by an additional £47 on average received in cash over the Christmas period.

How much could it cost to get fit in 2017?

We’re almost a week into 2017, and hopefully, many of those New Year’s Resolutions are still going strong. Figures suggest that the most popular resolution is to achieve a healthier lifestyle, but just how much could that ambition set you back?