Higher mortgage costs denting confidence, index finds by Finance News Bulletin

Published: 30/11/07

According to the Lloyds TSB Corporate Markets customer Barometer, higher mortgage costs as well as the increasing price of oil and food have hit consumer self-assuranceNearly three-quarters of those polled in November consider prices rose over the last year, with the outlook for the next 12 months not looking much betterA evidence high of 81 per cent of consumers think prices are likely to rise over the route of the next dayTrevor Williams, chief economist at Lloyds TSB Corporate Markets, commented that the pressure of higher prices is affecting a "evidence number" of consumers

Consumer spending is slowing as a result, he added, also referring to "worsening employment prospects""But as customers struggle to disburse their bills, we expect demand for higher wages to increase," Mr Williams saidEconomists and customers are expecting the Bank of England to decrease interest rates over the coming months, he added, but warned that if prices do carry on to rise over the next year, a rate cut "will approach as little relief to many household budgets"Last month, Alliance and Leicester renowned that families are having to reduce their spending and economy in order to meet the rising cost of mortgage and household bills

The bank's manager of strategic planning, Sean Murphy, said not even a fall in average interest tax on unsecured borrowings in the last 12 months could lure mortgage borrowers to take on more unsecured debt Higher mortgage costs denting confidence, directory findsNone of the information on this website is intended to endorse any specific mortgage manufactured goods or provide mortgage adviceThe sphere, with icon, its reflection

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