Pain for households “baked in” as interest rates held
Charity behind National Debtline responds to latest interest rate decision.
Posted November 2, 2023
The charity behind National Debtline has today responded to the Bank of England’s Monetary Policy Committee’s decision to maintain the base rate at 5.25 per cent.
National Debtline research shows that almost one in five (17%) mortgage holders – equivalent to 2.2 million people – have struggled to afford higher monthly payments as a result of rising interest rates.
Two in five (40%) of private renters said their rent had increased since the start of 2023.
David Cheadle, acting chief executive at the Money Advice Trust, the charity that runs National Debtline said:
“Interest rate pain is set to continue for millions, with higher housing costs now ‘baked in’ and continuing to bear down on household finances.
“Our advisers at National Debtline are seeing the impact that higher interest rates are having as people come to the end of fixed rate deals, and for the minority who are on variable rate products.
“For renters, the situation has led to sustained pressure and uncertainty as rates are passed on by landlords. Coupled with the high cost of other essentials, like energy and council tax, many of the people we help are struggling with budgets that simply no longer stretch to meet them.
“Anyone worried about their mortgage should reach out to their lender - there is help that they can offer. And if you are worried about paying your mortgage, rent, or other bills, contact National Debtline. Our expert advisers are here to help and provide free, independent advice.”
National Debtline provides free, independent, expert advice. Contact us on 0808 808 4000 or via www.nationaldebtline.org.
