Remortgagers prepare for higher rates

Two thirds of British people who intend to remortgage say that they will cut back on festive spending in order to cope with increased rates.

Many borrowers are set to find themselves paying a lot more in the coming months as a result of their fixed-rate periods ending and the global credit crunch that has taken place in the meantime.

According to research by Lloyds TSB, 64 per cent of remortgagers intend to spend less at Christmas than they would normally.

A further 51 per cent intend to reduce other household bills and 35 per cent have cancelled their holiday.

"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," said Alison Burns from Lloyds.

The Bank of England is due to decide upon the base rate of interest on December 6th.

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