Posted March 23, 2023
The Money Advice Trust, the charity that runs National Debtline and Business Debtline, has responded to the Bank of England’s Monetary Policy Committee’s decision to increase interest rates to 4.25 percent, a rise of 0.25 percentage points.
Today’s rate rise comes after figures published yesterday by the Office for National Statistics showed inflation rose to 10.4 percent in February.
“Storm clouds are building for many households with today’s rise in interest rates coming a day after inflation was shown to have risen again in February.
“For homeowners already struggling, further increases in mortgage costs will be a major concern, especially for those on variable rates or coming to the end of their contracts. And for many, affording higher repayments will be even harder, as the sustained pressure of rising prices continues to be felt.
“Renters are also likely to be hit, as landlords pass rate rises on to tenants, leaving many peoples’ budgets with no stretch left.
“I would encourage anyone worried about their mortgage repayments to contact their lender as soon as possible. You can also contact a free debt advice service like National Debtline or Business Debtline.”