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Look around for cheaper mortgage to reduce spending gap

Date: Thu, 09 Jun 2005

Mortgage holders are being advised to make sure they have the most competitive loan offer or they could face a growing spending gap.

Figures from the Office for National Statistics show that the average UK household is spending more than its income and the gap is continuing to increase.

In 2003-4, the average household spent £592 a week - £22 more than the average household income of £570 a week, this compares to 2002 figures which shows a lower gap with spending equalling £14 above the average gross income of £552.

Consumers are being advised to make sure they secure the best deal by looking around for competitive mortgage repayment levels in order to reduce the spending gap.

The research showed that the average UK weekly expenditure on mortgage interest payments and council tax is now £39.60.

Stuart Glendinning, managing director of Moneysupermarket.com, said: "It's well known that people have been borrowing lots of money over the past four or five years.

"Although house-price inflation may be fuelling this, people have definitely been spending above their means."

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