What is the primary consequence of high interest rates on consumers?

The primary consequence of high interest rates on consumers is higher mortgage repayments. When interest rates increase, the cost of borrowing also rises. This means that consumers who have existing variable-rate mortgages will see their monthly mortgage payments increase. Additionally, if consumers are looking to purchase homes and secure new mortgages, they will face higher costs associated with these loans, leading to higher monthly repayments. As a result, higher interest rates can significantly impact household budgets, forcing consumers to allocate more of their income toward servicing debt rather than spending on other goods and services. This can contribute to a slowdown in overall economic activity due to reduced consumer spending.

While the other options suggest various impacts related to interest rates, they do not capture the immediate effect on mortgage repayments as directly and clearly as the correct answer does.