Member Article

North East 'confused' about interest rates

North East homeowners and buyers could be missing out on finding the right mortgage for their needs after research found confusion over the perceived direction of interest rates. The Newcastle Building Society surveyed almost 1,000 people in towns across the North East at the end of 2007 on their perceptions of whether interest rates were rising, falling or holding steady.

But despite widespread predictions from financial experts that 2008 would be likely to be a year of interest rate cuts, 41 per cent of people surveyed still said they thought interest rates were rising. Just nine per cent said they felt rates were falling, whilst 20 per cent felt they were holding steady. 30 per cent of those surveyed said they didn’t know which way interest rates were moving.

Steven Marks, lending executive at Newcastle Building Society, said: “All of us have an interest in knowing where rates are likely to be heading, whether we’re savers or borrowers, and their direction will be especially important for those 1.4m people who will be coming off low rate fixed term mortgages this year, for whom every change makes a big difference.

“The Bank of England cut rates by a quarter per cent in February, and there could be more cuts to come throughout the year.

“I would advise North East savers and borrowers to keep an eye out for the next interest rate announcement again on 6 March, and to make regular reviews of their finances, to make sure the financial products and services they’re utilising are the very best options for their particular needs.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .