Interest rate rise set to “add to the worries” of stretched households

The Bank of England’s Monetary Policy Committee has today voted to increase interest rates to 3.5 percent, a rise of 0.5 percentage points.

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

“Households are under pressure from all directions as the sustained impact of high food, fuel and energy costs continues to stretch peoples’ budgets to the limit. And with interest rates rising further, this will only add to the worries of millions of people as we head towards the New Year.

“For the majority of homeowners who are on fixed rate mortgages the effect won’t be felt straight away, but for those on variable rates, the impact will be felt more immediately. Higher mortgage payments are also likely to add to higher rents with landlords passing rate rises on.

“Lenders have an important role to play and need to be proactive in offering support to customers worried about their repayments. I would also 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.”

National Debtline offers free, independent debt advice at www.nationaldebtline.org.

Business Debtline offers free, independent debt advice for small business owners and self-employed people at www.businessdebtline.org