Savers 'drive the economy' - commercial mortgages

29 July 2009

The availability of commercial mortgages is driven by deposits into consumers' savings accounts by financially aware individuals, it has been noted.

Writing for MSN Money, Nick Louth explains that savings accounts provide banks with the money they need to lend through commercial mortgages and company loans.

He adds that, when economic turbulence impacted on trust in the financial sector, many people moved deposits over to the perceived security of accounts with National Savings & Investments.

Now, however, balances have been seen to be moving back - potentially driving the availability of commercial mortgages higher.

Companies seeking funding have "robust, clear-sighted individuals" who stay out of debt to thank for this, Mr Louth notes.

Mr Louth previously wrote for MSN Money of the need for accountability among mortgage advisers.

He added that this could ensure that the best products are recommended - whether they be commercial mortgages, home loans or bank purchases of securities.

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