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Ernst & Young: Families save £200 mortgage cuts

Posted on 19. Jun, 2009 in General News

The radical interest rate cuts by the Bank of England have yielded an average 25% improvement in the disposable income of households with mortgages, leaving families with a little over £200 more per month, according to Ernst & Young.

This boost in disposable income, however, does not benefit the High Street, as Britons remain cautious, anticipating tax rises after the next elections and fearing unemployment.

Jason Gordon, retail director at Ernst & Young, explained: “Many consumers are using their increased monthly spending power to repair savings balances and pay off credit cards and other debts.”

Source: Independent 19-06-2009

Tags: Disposable Income, Mortgage