Interest rates see 'Brits in the mood to save'

Predictions that the Bank of England will continue to raise interest has seen millions of Brits beginning to save, it has been reported.

Although the bank's Monetary Policy Committee recently decided to halt any further interest rate hikes, it seems that the possibility of more increases to come has put UK consumers "in the mood to save".

A survey by Legal and General has revealed that at the end of last month 66 per cent of those asked said they were planning to put some money away.

This, according to the financial services company, is the highest figure since its MoneyMood survey first commenced in September 2004.

"Clearly higher interest rates are good news for savers and this is reflected in the highest figure for 'mood to save' that we've seen since we started interviews in 2004," said Julia Clayworth, wealth management customer marketing manager at the lender.

"That would suggest that the current level of interest rate is having the desired effect - i.e. saving up, spending down."

A predicted slowdown in house price growth, however, is expected to encourage more people to obtain first-time buyer mortgages. Mortgage lender Nationwide has predicted that house price growth will halve next year.

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