Consumer confidence grows - commercial mortgages

06 November 2008

Consumer confidence increased in October, buoyed by various plans of action taken by the government and the Bank of England, a new report has suggested.

The Nationwide Consumer Confidence Index for last month recorded an eight per cent increase compared to September's figures - which could be a positive development for those with commercial mortgages.

Levels rose by 23 per cent during the government's unveiling of a support package for UK banks, the report revealed.

In addition, consumers' spending confidence increased slightly, from 53 in September to 55 in October.

Nationwide's chief economist Fionnuala Earley said: "The actions taken by the government and the Bank of England to support financial markets do seem to have buoyed consumers' confidence."

Recently, Michael Baxter, an economist from Defaqto, estimated that interest rates could fall to as low as one or zero per cent - a move that could also be beneficial for borrowers with commercial mortgages.