Brits ‘fear another interest rate hike’

Research carried out by Lloyds TSB found that around 79 per cent of Britons feel sure that the pressure on those facing debt management concerns will be increased at some point during the coming year.

Furthermore, with debt management pressures already having been heightened five times since August 2006, only five per cent of those polled felt that interest rates would be lower next year than they are now.

Trevor Williams, chief economist at Lloyds TSB Corporate Markets, commented: “The interest rate hike in July did little to reassure consumers there was an end in sight to the increases and they widely seem to agree with the prevailing view in financial markets that at least one more hike is on the horizon.”

A report from the Consumer Credit Counselling Service warned earlier this year that rising interest rates would put British homeowners “on the rack” financially throughout 2007.