StepChange responds to Bank of England’s Money and Credit figures

Responding to the latest Money and Credit figures for July published today by the Bank of England, Richard Lane, Director of External Affairs at StepChange Debt Charity, said:

“Today’s Money and Credit figures from the Bank of England reveal the rate of interest on new mortgages rose by 3 basis points in July. This comes on top of significant rises already and will not only cause further pain for homeowners, but also private renters as landlords could pass on higher costs to tenants. Recent ONS figures showed the average price of rent across England had reached its highest level since records began, with renters paying larger and larger proportions of their income toward housing costs. Without targeted support, many will be vulnerable to the risk of problem debt as they struggle to keep up with other financial commitments on top of rising rents. Meanwhile, new StepChange client data confirms that the number of people in need of debt advice continues to climb – client volumes were 8% higher year-on-year in July.

“This winter we’ll see the pressure on households ramp up as energy bills rise in the colder months, while food inflation remains stubbornly high. It’s important that government is ready to step in with further interventions to support low income households, while lenders and regulators must proactively identify and support customers in difficulty, and not cause further hardship by seeking unaffordable debt repayments.”