Pressure on borrowers mounts as interest rates continue to rise

The further rise in rates comes a day after new research showing the significant impact rising bills are already having on peoples’ day-to-day-lives was published by the Money Advice Trust, the charity that runs National Debtline and Business Debtline.

The findings reveal that an estimated 10.9 million (21 percent) of UK adults are already behind on one or more household bill, an increase of 3 million people since March 2022.

Additionally, the data shows that one in nine (5.6 million) have gone without food as a result of the cost-of-living crisis.

The findings have also revealed five percent of UK adults said they are currently behind on their mortgage repayments – an increase of 2 percentage points from March this year, as well as finding that 15.3 million people (29 percent) say they have had to use credit to pay for essentials – an increase of 2.1 million since March 2022.

Joanna Elson CBE, chief executive of the Money Advice Trust, said: “Rising prices are already having a severe impact on millions of people and tackling high inflation is important in reducing the pain many households are experiencing.

Elson continued: “Today’s further increase in interest rates, however, comes at a time when millions of peoples’ budgets are already at their limit.  Our findings show that five percent of UK adults say they are struggling to meet mortgage repayments, and for many homeowners, this rise will add to their concerns.”

Elson concluded; “For those on variable mortgages, the challenge is more pressing.  With repayments likely to rise immediately, this will heap more pressure onto many already precarious situations.”