[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Hey Big Spender
The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.

The calculations undertaken in this model are only an approximation of the actual income and expenditure patterns of households partaking in the survey. Some types of expenditure are estimated by reference to an average level of spending for a particular household type, using data from the Family Expenditure and Food Survey.

Limitations of the model:
1. The calculations can be used for a typical working or pensioner household. They do not work well for the unemployed or those on very high incomes.

2. By using the Family Spending Survey (FSS) to estimate a few key expenditure items, some individual household accuracy is lost. This is because we have provided some estimates of average household expenditure. The same can be said for household sizes, exact composition and regional base.

3. With the calculation of the impact of rising interest rates on debt repayments we have assumed that only the mortgage element rises. This is purely an assumption in the absence of knowledge about an individual's particular debt profile. The same is true of the assumption that the mortgage repayment will rise (it could be a longer-term fixed rate for example), or by how much - we have used the Standard Variable Rate (SVR), but the borrower may be using a mortgage which charges a different interest margin.


Americas Africa Europe Middle East South Asia Asia Pacific