Pressure on homeowners remains despite drop in interest rates
National Debtline responds to the Bank of England's decision to lower interest rates to 5%.
Posted August 1, 2024
National Debtline has responded to the Bank of England’s decision to lower interest rates to 5 percent, down from 5.25 percent.
Findings from the charity reveal that:
- 6.8 million (13 percent) UK adults are struggling to pay for their essential costs, such as rent and council tax.
- An estimated 11.4 million (21 percent) people say their financial situation is worsening.
- Two in five (43 percent) of National Debtline clients have a broken budget – where they do not have enough coming in to cover essential costs.
Steve Vaid, chief executive of the Money Advice Trust, the charity that runs National Debtline, said:
“This small drop in interest rates will provide some welcome news for homeowners soon to renew fixed-rate deals, but for millions of people already facing higher housing costs, the financial pressure remains.
“When budgets are stretched, housing costs are often prioritised over other bills, risking debts growing in other areas. As we continue to see at National Debtline, too many people are struggling to cover essential costs, including food, energy, rent and council tax. The government rightly wants to support people struggling with high costs, and we would encourage Ministers to do this by making sure that Universal Credit always provides enough for people to afford the essentials.
“I would urge anyone who is struggling with their mortgage to contact their lender. Free debt advice services like National Debtline are also here to help.”
National Debtline provides free, independent, expert advice and can be contacted on 0808 808 4000 or via www.nationaldebtline.org