Expert rubbishes widespread 2008 `doom and gloom` theory

Consumers are not heading for a year of complete "doom and gloom", a financial expert claimed after last week`s interest rate decision.

According to Leeds Building Society, UK consumers - including those currently considering a debt management scheme - are generally in a good state of financial health to ride out the effects of last year`s credit crunch.

Gary Brook said that homeowners with fixed-rate mortgages would feel no signs of any interest rate change, while a large proportion of the UK has a good grasp of their financial capabilities.

Mr Brook added: "New borrowers and those remortgaging are already benefiting from cheaper fixed rate mortgage products as swap rates, which are currently around 0.55 per cent lower than this time last year."

In related news, Alliance & Leicester claimed that the Bank of England`s decision to hold interest rates at 5.5 per cent was not "a shock".