Britons’ savings reach record levels

UK consumers are taking advantage of recent interest rate rises with savings levels for the second quarter of 2007 topping a record £47 billion, according to Unbiased.co.uk’s latest Savings Brake figures.

It appears that borrowers are feeling the effects of higher interest rates - for every pound UK consumers saved during the second quarter of 2007, they only borrowed 8 pence – a sizeable drop from the 32 pence borrowed against every pound in the previous quarter. However, savers are reaping the benefits from the increased rates with savings figures up by almost £10bn on the same period last year.

UK consumers took out almost £4bn worth of secured and unsecured debt during the months of May to June in 2007, nearly £13bn less than in the same quarter of 2006, according to new figures from Unbiased.co.uk, the find an independent financial adviser service.

David Elms, Chief Executive of Unbiased.co.uk, commented: “It is extremely encouraging to see that savvy consumers are taking advantage of the recent rate hikes with previously unseen record levels of savings now taking place! Plus it’s even better that Britons appear to have tightened their belts and are approaching borrowing far more cautiously than in previous months.

“Last quarter saw the Savings Brake ratio worryingly move back up above the 40 pence mark – a consequence of paying off Christmas debt - so it’s with relief that we see it fall by a staggering 24 pence in Q2. However we shouldn’t take these figures for granted - it’s important to note that personal debt in the UK continues to rise and, as such, UK consumers should continue to be savvy when it comes to saving and spending their money.”

To take control of your spending and borrowing, visit unbiased.co.uk/getsaving to download your free copy of Unbiased.co.uk’s dedicated guide - Join the Savings Revolution - which looks at how you can budget to save more, and options of where to put any extra money. You can also obtain details of local independent financial advisers to talk though the most suitable savings options for you.