Mortgage repayments mean Christmas sacrifice
Published On 3 December 2007
A significant number of homeowners are choosing to go without this Christmas in order to meet rising mortgage repayments.Research carried out by Lloyds TSB found that 64 per cent of the nation's remortgagers will be splashing out less this festive season as monthly loan payments increase.
According to the study, 71 per cent of homeowners face higher repayments after their current fixed-rate deals expire.
As well as cutting back of seasonal expenditure, one in six people remortgaging over the next couple of months said they would take extra part-time work to cover costs.
"Cutting back on festive spending offers a short-term solution but it's a good idea for people with mortgages to take a longer term view of their financial situation to ensure their mortgage is suited to their specific needs and changing circumstances," warned Alison Burns from Lloyds TSB.
The report also found that 35 per cent of homeowners would postpone holiday plans in order to afford mortgage costs and 22 per cent would delay home improvement.
A separate study from Nationwide revealed recently that 250,000 borrowers will come to the end of their two-year fixed-rate mortgage deals by the end of December 2007.
