According to the Office for National Statistics data, households spent £900 more than they earned through income in 2017, amounting to more than £25bn of debt or savings-funded spending.
This marked the first occasion when UK families spent more than their income since 1988.
Yet, despite this shortfall in income compared to expenditure, more than 1.4 million home-owners are sitting with their mortgage on their lender’s “Standard Variable Rate”, which means they are paying an interest rate averaging 4.7%.
Using data from one of the main high street lenders, the average client saw an annual increase in mortgage payments of £200 when the Bank of England increased the base rate and are likely to have the same increase following the August base rate hike.
Despite this doom and gloom, there is light, not at the end of the tunnel, but burning brightly right here, right now.
Using this same ‘average mortgage’, switching to a competitive fixed rate deal could save you £120 per month. This £1440 average saving on your annual mortgage payments means that instead of overspending by £900, your account would be £640 up.
Give ZING a call today to arrange your free, no-obligation mortgage review. We’ll not only come to you and at a time when all your high street banks are long closed. We have access to more than 12,000 mortgages from over 130 lenders, so you’re almost certain to get the best deal on the market.