Interest rate rise will take a “heavy toll” on households

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 4.5 percent, a rise of 0.25 percentage points. 

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

“Today’s decision to further raise interest rates will be met with anxiety from many homeowners as higher costs pile yet more pressure on household budgets. 

“For people on variable rates, and others coming to the end of fixed rate terms, this rise is likely to take a heavy toll as repayments increase. 

“Higher interest rates will also impact swathes of renters, as higher mortgage costs are passed onto tenants.  Millions are already struggling with rising costs across the board.  

“If you are worried about meeting mortgage repayments, or are struggling with your rent, help is available from free, independent debt advice services like National Debtline.  It is never too early or late to get in touch and our advisers can talk you through your options.”