Londoners lack credit confidence

Tue, 31 Jul 2007

Credit confidence in the capital is at an all-time low - new research out today has found - which could affect borrowers and credit card holders.

During the second quarter of June, CreditExpert recorded a four point slump in the Personal Credit Index and has now reached 89. Consumers in the north of England and Scotland are bucking the trend with confidence rising two points to 99.

Managing director of CreditExpert Jim Hodgkins commented that national consumer credit confidence hasn't hit rock bottom but there are regional fluctuations, with London suffering the biggest dip in confidence.

"Interest rates are clearly hitting Londoners and southerners hardest as house prices are higher there - and unfortunately for them it’s looking as if things are going to get worse," Mr Hodgkins remarked.

People in the south have been affected more by rising interest rates as house prices rise and mortgages become more expensive, he added.

Mr Hodgkins also noted that the widespread flooding has contributed to a dip in credit confidence in the midlands.

On Friday, the British Bankers' Association noted that mortgage approvals have slowed down over the last 12 months and demand for credit cards also weakened.


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