64% of homeowners are already planning to cut back on their Christmas spend due to the increased cost of their mortgage, according to research by Barrows and Forrester.
In the lettings agent’s latest survey of 3,621 homeowners, 29% of respondents claimed had seen the cost of their mortgage increase due to being on a variable rate, while a further 10% were on a fixed rate, but facing an increase due to this fixed term expiring soon.
What’s more, almost half (49%) of those surveyed said they were already struggling with the cost of their mortgage due to this increase and the wider cost of-living-crisis.
A further 73% stated that should the Bank of England choose to increase rates again in December (as rumoured), it will put a further strain on their already overstretched household finances.
James Forrester, managing director of Barrows and Forrester, said: “With the nation already struggling with the worst cost-of-living crisis in decades, and stretched even thinner with the festive period fast approaching, the Government looks set to gift them with the proverbial lump of coal in the form of a further interest rate hike.
“The average household on a variable rate mortgage has already seen the increase in their monthly mortgage repayment all but wipe out their average spend on Christmas presents since last December.
“So, a further increase will come as a real blow to those who have already had to scale back on their Christmas plans due to the higher cost-of-living.”
Furthermore, a staggering 64% of those surveyed stated that they would be cutting back on their Christmas spend this year in order to get by.
This statistic is only exacerbated by the increased cost of borrowing which, according to Barrows and Forrester, has increased by an average of £448 per month since last December.
Forrester added: “Effectively, the Government is cancelling Christmas for thousands of households, if not more and this January is going to look particularly bleak for many.”
He concluded: “If Rishi Sunak doesn’t wish to acquire the new status of government Grinch, he needs to start delivering both where economic growth is concerned.”
