People in Britain are willing to give up some of their usual Christmas treats to ensure they can afford to meet their loan repayments.
According to research from Lloyds TSB, 64 per cent of remortgaging homeowners will spend less over the festive season to counter the effect of rising mortgage repayments.
A recent study from Nationwide forecast that 250,000 mortgage-holders would see their two-year fixed-rate mortgage deals come to an end by December 2007 and will therefore be likely to face higher monthly 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," advised Alison Burns from Lloyds TSB.
Some 51 per cent of homeowners said they will be looking to reduce other household bills and 35 per cent said they would delay holiday plans to meet home loan costs.
