You are here: Home - Saving & Banking - News -

Savings accounts benefit from the rate rises

0
Written by:
05/03/2007

Recent interest rate rises have prompted more people to compare savings accounts, with investors’ confidence in the property market dented, according to a survey. 

Insurer Standard Life said that interest rate rises introduced by the Monetary Policy Committee at the Bank of England have led people questioning the wisdom of investing in property rather than putting their spare cash into a saving and investment product.

The survey found that people’s enthusiasm for investing in buy-to-let or residential property for themselves had gone back to the level recorded in January 2006.

The survey asked a sample of 1,523 people if now was a good time or a bad time to invest in their own home or buy-to-let, and there was a significant proportion who said it was a bad or “very bad” time to dabble in property.

More were inclined to compare savings accounts and look for safer havens for their money while the interest rate environment remained uncertain. There was also concern that the rising costs of buy-to-let mortgages meant that investors would not cover their outgoings by rental payments on their properties.

However, the Council of Mortgage Lenders said that 330,000 buy-to-let mortgages were taken out in 2006, the highest annual figure recorded in the 10 years that buy-to-let in its current form has been running.

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Indian takeaway for Lloyds TSB call centres

Lloyds TSB - the fifth largest bank and provider of UK current accounts in the country - is bringing back its call centres...

Close