Bank of England raises rates by 0.25%
The Bank of England has raised interest rates by 0.25 per cent today.
While the decision was widely expected, initial reaction from experts has shown concern over levels of debts for homeowners facing high mortgage repayments.
James Falla, managing director of debt consultancy Thomas Charles, told 24dash.com that the decision marks the fourth rise since August last year.
He added: “At Thomas Charles we are seeing more and more homeowners struggling with debt repayments.
“Incomes have not risen by 20 per cent during the last year and so people are meeting the growing cost of their mortgage in other ways - all too often through the increased use of credit cards and loans.”
He added that with people taking ever larger mortgages to get onto the property ladder, consumers can expect this trend to continue “and inevitably end in debt problems and insolvency for some people”.
Homeowners concerned about their finances and the level of their outgoings may wish to seek debt help.
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