A decreasing number of Britons are willing to risk unsecured lending, according to Alliance & Leicester.

In light of the recent base rate increases, many households are reining in their expenditure, the financial service provider observes.

Director of strategic planning Sean Murphy comments: "Families are cutting back on their borrowing and their saving to help ensure they can afford higher mortgage and other household bills."

But Alliance & Leicester predicts that interest rates are unlikely to hit the six per cent benchmark, meaning budgets could become more robust in coming months.

Consumers still unwilling to take on unsecured debt could turn to secured loans as an alternative.

The research also identified that homeowners with outstanding mortgages are 50 per cent more likely to try and tackle their unsecured debt over the coming year.

"With the next move in base rates now seen as more likely to be downwards, this could bring them some welcome comfort," asserts Mr Murphy.

Secured loans could now prove a tempting option to many borrowers as figures from the Office of Fair Trading previously showed about four-fifths of lending was unsecured.ADNFCR-1287-ID-18326151-ADNFCR

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