People are willing to spend an increasingly larger proportion of their pay on mortgage repayments in order to pay for their dream home, new research suggests.
A third of mortgage holders admit that they spend more than a third of their take-home pay on their mortgage repayments, according to a poll by financial website, Moneyfacts, which described the statistic as "concerning".
"This indicates that people are stretching themselves to afford the home they want," comments Emma Butler, Moneyfacts editor.
She says that with mortgage rates at their current low levels, it is easy for consumers to borrow large amounts.
"However, it is the responsibility of consumers and lenders to ensure that they are aware of the consequences if mortgage rates increase," Ms Butler warns.
In the same Moneyfacts survey, it was revealed that six in ten credit card holders have a higher limit on their credit cards than what they expected or requested.
Ms Butler says this encourages consumers to get deeper into debt. Although it is the responsibility of credit card holders not to spend above their means, credit card companies are "not helping by luring people to spend more".
The survey also found that three-quarters of Britons are saving at least £100 a month.
"It is encouraging to discover that, although we are clearly a nation of borrowers, we may be moving more towards becoming a nation of savers," Ms Butler concludes.
Brits saving money but borrowing more, poll shows
Brits saving money but borrowing more, poll shows
Thu, 08 Dec 2005
Recommended links
Record year predicted for those saving money in ISAsCredit and Debt
How to choose savings and investments
Calculate your maximum borrowing
<% Randomize: ord=int(rnd*1000000000) %>
 %>?)
| savings news |
|---|
| Skipton BS launches new savings bonds - Mon, 05 Jan 2009 |
| People make savings resolutions - Fri, 02 Jan 2009 |
| Nationwide BS to cut savings rates - Wed, 31 Dec 2008 |
| More News |
