Sand, Sea and Interest Rate Rises!

Just when you thought it was safe to go on holiday and enjoy yourself…

Financial Services Research

Were you relaxing on the beach with your family, with thoughts of the daily commute and household bills on hold, when you heard that base rates had gone up?

We surveyed consumers within a day of the rate rise using Harris 24 to understand their current financial situation and how the rate rise impacts on them.

  • 25% feel their financial situation has got worse in the last 6 months (vs 15% improved), rising to 30% amongst vulnerable customers.
  • Confidence is split: 22% expect their situation will get better in the next 6 months, with 21% thinking it will get worse.

From a list of 15, the public’s main money concerns are currently:

  • Inflation/rising prices 38%
  • Paying household bills 28%
  • Value of your savings/investments 28%
  • Interest rates 27%
  • Value of your pension 22%
  • Cost of holidays 21% (rising to 30% amongst under 35s).

In terms of the rise in interest rates, overall 27% feel they will be worse off as a result of the increase.

  • However, 37% of under 35s feel they will be worse off. This also ties in with the main money concern for this age group, which is house prices (36%)!
  • 48% of mortgage holders feel they will be worse off. 23% of homeowners state they will need to cut back on non-essentials as a result of the rate rise and 31% feel they will start to have difficulties with their personal finances and those of their household if rates rose by a further 0.5%.

So another interest rate rise that on its own does not break the bank – but how many more rises will it take? As the summer holidays come to an end, holiday credit card bills and increased mortgage payments will arrive together this autumn increasing the financial pressure for families. This is when progressive providers offering support and encouraging customers onto the most suitable products will capitalise and build loyalty. Which type of provider are you with?

Get in touch to find out how Harris 24 can help you get the answers you need quickly. Harris 24 survey conducted by Harris Interactive on Thurs 2nd – Fri 3rd August 2018 following the announcement amongst a sample of 1,034 UK adults aged 18+.

Share

  • base rate rise
  • financial consumers
  • Harris 24