Nice Loans.co.uk > News > Confidence in personal financial situations is still high in the UK
The UK still feels confident about finances despite higher costs of loans and mortgages.
The August GfK NOP Consumer Confidence Index carried out on behalf of the European Commission shows little change from July figures and reflects the current feel-good environment surrounding personal finances in the UK.
The Index, based on consumer research, indicates the population's feelings on a number of finance areas including an individual's personal financial situation, general financial situation, propensity to save and whether people feel they have the right climate for making a major purchase.
In spite of recent interest rate increases and warnings from worldwide financial markets the survey reports only a slight drop in people's view of the general financial situation in the country. People still rate their own financial situations as being more positive than at the same time last year, but their opinion for the outlook for the next 12 months dropped a couple of points.
A outcome of loan and mortgage interest rates slowly creeping up has been an increase in the savings component of the Index. People now rate the present as the best time to save money since the late 80's.
People now feel much happier about the general economic climate than they did 12 months ago. This could be the result of a number of factors including a falling inflation rate, a bouyant housing market and even the recent change in government leadership.
Industry analysts always warn than interest rate increases have a delayed effect, so it will be interesting to see what happens to the index over coming months as higher monthly repayments on loans and mortgages start to bite and the reported downturn in house prices starts to become more widely reported.
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