Savings fall among mortgage borrowers

Mortgage borrowers across the UK have cut back on the amounts of money they add to their savings pots, according to research from Alliance & Leicester. The financial services firm suggests that five rises in the base rate of interest since August of last year have seen millions of mortgage borrowers struggle to save in the face of higher repayment demands.

Furthermore, families with a mortgage to pay have become increasingly reluctant to take on any other form of borrowing in recent months, with the amounts being spent on credit cards being cut back over the course of 2007. Sean Murphy, director of strategic planning at Alliance & Leicester, said: “Families are cutting back on their borrowing and their saving to help ensure they can afford higher mortgage and other household bills.

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