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Save money with a cheap mortgage and splurge on Christmas

Date: Wed, 23 Nov 2005

Saving money on a cheap mortgage deal could give some UK homebuyers more to spend during the festive period.

A survey by accountancy company Deloitte predicts that UK consumers are likely to spend around £400 million less this Christmas because of fears over borrowing levels, however, shopping around for a better mortgage deal could free up cash.

It is the first time in 11 years that spending over the holiday season has not increased and Deloitte forecast that the average shopper will spend £310 on presents this year, compared to £319 last Christmas – with many preferring to spend on debit rather than credit cards.

"Consumers are better informed and choosier than ever before," said Sharon Fraser, partner in the consumer business practice at Deloitte.

"In a Christmas market where pundits have predicted 'retail armageddon,' the savvy shopper may well delay shopping in the hope that retailers will cut prices to stimulate demand," she added.

However, there is evidence that some consumers are planning to spend more money on food and drink and socialising than in previous years – a figure that could be boosted if homeowners consider the possibility of switching to a cheap mortgage deal.


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