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Household costs increasing “at every turn” as interest rates rise again

The Bank of England’s Monetary Policy Committee...

Posted February 2, 2023

The Bank of England's Monetary Policy Committee has today voted to increase interest rates to 4 percent, a rise of 0.5 percentage points – the highest level in 14 years.

The announcement comes as findings from the Money Advice Trust reveal eight in ten (79%) National Debtline callers surveyed are worried rising costs will leave them unable to afford essential costs.

Joanna Elson CBE, chief executive of the Money Advice Trust, the charity that runs National Debtline and Business Debtline, said:

"Households are facing increasing costs at every turn, and today's further rate rise will only add to the worries of many homeowners - particularly the 1.8 million set to re-mortgage this year.

"With water prices set to increase to their highest level in decades, and energy and council tax bills likely to rise further for many in April, there is no escaping the sustained pressure on budgets. For those homeowners already just about managing, a significant increase in mortgage repayments in the coming months risks pushing them into difficulty.

"Higher mortgage payments also risks higher rents as landlords pass rising costs on to some tenants.

"Lenders have a vital role to play to support customers who are struggling and need to be proactive in offering support to customers worried about their repayments.

"Anyone worried about their mortgage repayments should contact their lender as soon as possible. You can also contact a free debt advice service like National Debtline or Business Debtline, who will be able to take you through your options."

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