The Financial Position of British Households: Evidence from the 2009 NMG Survey

12 Pages Posted: 30 Dec 2009

See all articles by Tomas Hellebrandt

Tomas Hellebrandt

Bank of England

Silvia Pezzini

Hong Kong Monetary Authority

Jumana Saleheen

Bank of England

Richard Williams

Bank of England - Monetary Analysis

Date Written: December 14, 2009

Abstract

The severe recession of the past year might be expected to have put the financial position of British households under considerable strain. Unemployment has risen significantly, credit conditions have tightened and many homeowners have seen their housing equity eroded. But many borrowers have also benefited significantly from the effects of lower mortgage interest rates. Evidence from the latest survey of households, carried out for the Bank by NMG Financial Services Consulting in late September and early October, shows how these and other changes impacted on households’ budgets and their decisions on whether to spend or save. Despite the weak economic backdrop, a slightly smaller proportion of households reported problems repaying their debts than in the 2008 survey. Partly this was because around half of mortgagors had benefited from lower interest rates. Around a quarter of households had increased or planned to increase saving.

Suggested Citation

Hellebrandt, Tomas and Pezzini, Silvia and Saleheen, Jumana and Williams, Richard, The Financial Position of British Households: Evidence from the 2009 NMG Survey (December 14, 2009). Bank of England Quarterly Bulletin 2009 Q4. Available at SSRN: https://ssrn.com/abstract=1529645

Tomas Hellebrandt (Contact Author)

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Silvia Pezzini

Hong Kong Monetary Authority ( email )

3 Garden Road, 30th Floor
Hong Kong
Hong Kong

Jumana Saleheen

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Richard Williams

Bank of England - Monetary Analysis ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

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