A big thank you to all of you who completed last month’s survey on the subject of your finances in 2009. Many of the results reflected the current economic climate of low interest rates, unstable banks and falling house prices.
We asked people how they have used, or plan to use, any savings made from falling mortgage repayments. For many people, overpayments on the mortgage take priority over building up savings. From the feedback, it’s also clear that paying off credit cards and other debts is important. With most savings accounts offering very low rates of interest, paying off debts with higher rates of interest is a sensible move.
41% of respondents said that when looking for a savings account, the security of their savings was more important than the interest rate. With interest rates falling at a time when banks are continuing to struggle, this focus on security is understandable.
On the subject of protection, one worrying statistic is that 24% of people said they have no life or critical illness cover at all. Having protection that at least covers your mortgage in the event of death is something that all borrowers should consider.
Find out more about our life insurance service here.