Savers choose to pay off debt - Savings - News |

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

Savers choose to pay off debt

Savers choose to pay off debt

Category: Savings

Updated: 29/06/2009
First Published: 29/06/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Households are looking to repay debt rather than save, according to the latest savings and mortgage figures from the Building Societies Association (BSA).

Gross mortgage lending by building societies amounted to £1,515 million in May, a level similar to that reported in the previous two months, but still 57% lower than a year earlier.

However, at the same time, there was a net withdrawal of £494 million from building society savings accounts, compared with net deposits of £855 million 12 months previously.

"While the mortgage market appears to have recovered slightly from the start of the year, levels of activity remain depressed," said Adrian Coles, director general of the BSA.

"There is evidence that households are looking to repay debt rather than save, and it is possible that there will be a net withdrawal from the total UK savings market in 2009.

"Overall, building societies offer attractive savings accounts that are trusted by savers. As a result, societies have attracted substantial inflows since the financial crisis began."

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 Any products featured may be withdrawn by their provider or changed at any time.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

Just 44 savings accounts beat inflation

Inflation recorded another large jump during December, and predictably, this has had a devastating impact on the number of savings accounts that beat it, so much so that you’ll need to lock your money away if you want an inflation-beating return.

Just 47% have money in a savings account

We’re often told of the importance of saving, yet unfortunately, the message doesn’t always get through. Indeed, research shows that just 47% of those surveyed have money in a savings account, and 17% have no savings or investment whatsoever.

How much will you save this year?

Many of us have set savings goals for the year ahead, and planning to budget better and save more will be at the top of many financial resolution lists. But how much are you hoping to squirrel away? Encouragingly, many people have impressive targets.