Mortgages Up, Spending Down.
Published on 27th June, 2007
when the interest rate was 16%
There's an old saying in business that expensive consultants only tell you what you already know. And nothing could be nearer the truth than with this survey carried out by the world famous Deloitte organisation who studied the effects of rising mortgage interest rates.
Their astonishing findings showed that when people have an enormous jump in their mortgage payments, they tend to spend less on other things! Well blow me down, who'd have thought that?
Earning their fee, they go on to say that this affects people's annual holidays, going out for meals, buying a new car and the obvious one, buying a second home!
Anyway, the Benidorm Hoteliers have scrutinised this report and decided that it will hardly affect them at all. The reason given is that Benidorm did just fine in the good old days when the interest rate was 16%, so today's rate of 5% shouldn't trouble anybody. Perhaps somebody should tell them that people have to borrow about ten times more to buy a house these days!
Where am I? 
Back to News Index for June, 2007
