Oct 23 2007
Many of the UK's mortgage borrowers are struggling to contribute to a savings vehicle that would help secure their own or their children's financial future, according to recent research.
Figures from Alliance & Leicester suggest that families with mortgage arrears are facing heightened financial pressures in the wake of five rises in the cost of borrowing since August of last year.
However, the financial services firm maintains that with the next interest rate change likely to be a reduction, the pressures on mortgage borrowers could be set to ease somewhat in months to come.
Sean Murphy, director of strategic planning at Alliance & Leicester, said: "The continued growth in mortgage borrowing masked a big change in the behaviour of mortgage borrowers in other areas of their personal finances as they felt the pressure of higher rates.
"With the next move in base rates now seen as more likely to be downwards, this could bring them some welcome comfort."
Investments in individual savings accounts reached record levels during the most recent tax year in the UK, according to figures from HM Revenues & Customs.
