Britons' Savings Reach Record Levels (Consumer)

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For Immediate Release: 24^th September 2007

• UK consumers tread with caution over borrowing and up the ante when it comes to savings
• For every pound saved in the last quarter, the British public owed just eight pence
• Savings have increased to record levels in the second quarter of 2007, while borrowing has dropped by almost £8 billion
• Visit www.unbiased.co.uk/getsaving to take control of your finances and help the UK continue to Get Saving!

UK consumers are taking advantage of recent interest rate rises with savings levels for the second quarter of 2007 topping a record £47 billion, according to Unbiased.co.uk’s latest Savings Brake* figures, which reveal the ratio of how much we are borrowing, not including mortgage debt, contrasted with how much we are saving.

It appears that borrowers are feeling the effects of higher interest rates - for every pound UK consumers saved during the second quarter of 2007, they only borrowed 8 pence – a sizeable drop from the 32 pence borrowed against every pound in the previous quarter. However, savers are reaping the benefits from the increased rates with savings figures up by almost £10bn on the same period last year.

UK consumers took out almost £4bn worth of secured and unsecured debt during the months of May to June in 2007, nearly £13bn less than in the same quarter of 2006, according to new figures from Unbiased.co.uk, the find an independent financial adviser service.

David Elms, Chief Executive of Unbiased.co.uk, commented: “It is extremely encouraging to see that savvy consumers are taking advantage of the recent rate hikes with previously unseen record levels of savings now taking place! Plus it’s even better that Britons appear to have tightened their belts and are approaching borrowing far more cautiously than in previous months.  

“Last quarter saw the Savings Brake* ratio worryingly move back up above the 40 pence mark – a consequence of paying off Christmas debt - so it’s with relief that we see it fall by a staggering 24 pence in Q2. However we shouldn’t take these figures for granted - it’s important to note that personal debt in the UK continues to rise and, as such, UK consumers should continue to be savvy when it comes to saving and spending their money.”    

To take control of your spending and borrowing, visit www.unbiased.co.uk/getsaving to download your free copy of Unbiased.co.uk’s dedicated guide - Join the Savings Revolution - which looks at how you can budget to save more, and options of where to put any extra money.  You can also obtain details of local independent financial advisers to talk though the most suitable savings options for you by visiting www.unbiased.co.uk/getsaving or calling 0800 085 3250.

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Notes to editors

*According to independent analysis of the most recent official figures conducted by independent agency, RAKM, on behalf of IFA Promotion.  Data sources are Bank of England, British Bankers Association (unsecured borrowing + equity release, no mortgages), ABI, AIC and IMA.  With detailed queries on this analysis call Paul Hersey on 01737 342863.

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1.      Independent Financial Adviser Promotion

Unbiased.co.uk is the consumer brand of IFA Promotion, the organisation established in 1989 to promote the value and accessibility of independent financial advice to the public. It represents around 9,000 firms of independent financial advisers across the UK, incorporating over 17,000 registered individuals. These individuals hold over 20,000 incremental qualifications which are each individually verified by the awarding body. IFA Promotion welcomes the prominent display of incremental qualifications and further developments into the credentials of independent financial advice. 

IFA Promotion is sponsored by 27 leading financial institutions, and in the past 12 months, over 600,000 consumers and businesses used unbiased.co.uk to find local independent financial advice.

IFA Promotion believes Independent financial advice should be:

·         Affordable. The option to take independent financial advice should be available, by right, to all- not just the wealthiest in society.

·         Convenient. IFAs should be available in the location of the consumer’s choice, wherever they live in the UK.

·         Transparent. It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.

2.      Independent Financial Adviser Promotion’s sponsors

Registered Office: IFA Promotion Ltd, 90 St. Vincent Street, Glasgow G2 5UB. Registered in Scotland: No. 114606

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