Higher mortgage repayments are squeezing families

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by Kay Murchie

According to the Alliance & Leicester, higher mortgage repayments due to the 5 interest rate hikes since August 2006, means that UK families are feeling the pinch.

The latest Borrowing Monitor has established that Britons are cutting down on credit card spending and borrowing as well as cutting back on the amount of money they save.

The research discovered that homeowners are feeling ‘less comfortable’ with borrowing money and are, therefore, cutting back.

A spokesperson for Alliance & Leicester, said that families are having to cut back on saving and borrowing so that they can afford increasing mortgage repayments and other bills.

The spokesperson concluded by saying in spite of interest rates on unsecured borrowings declining over the past year, this has not been enough to attract mortgage borrowers to undertake more unsecured debt.