Consumers ready for May interest increase

Britons were prepared for the impact this month’s interest rate increase may have on personal loan repayments, it has been revealed.

Findings by Lloyds TSB indicate that the majority of consumers took the base rate rise in “their stride” and as a result were ready for any subsequent increase in secured and home loan repayments.

Chief economist Trevor Williams said: “Pretty much everyone expected the base rate to rise last week.”

“With high price expectations and the recent rate rise we’re likely to see some slowdown in consumer spending but with job security remaining strong, the impact won’t be drastic,” he added.

Meanwhile, about 80 per cent of those surveyed expected interest rates will be higher this time next year, which could put increased pressure on making personal loan repayments.

Last week, Adrian Coles, director general of the Building Societies Association, claimed that the fourth base rate rise in the space of a year could see homeowners develop a problem paying the mortgage.

Interfinancial providing you with breaking personal loans news.