Press statement
Which? responds to Bank of England increasing interest rates and offers advice to mortgage owners and savers
2 min read
Response to the Bank of England's economic outlook
Rocio Concha, Which? Director of Policy and Advocacy, said:
"This rate rise will heap further pressure on homeowners, while the bleak outlook for the economy makes it clear that millions of families and households will struggle financially in the months ahead.
"To help those on tight budgets to plan ahead, the government needs to clarify what support will be available after the Energy Price Guarantee ends in April.
"People who are struggling need help with rising costs across the board, which is why Which? is calling for businesses in essential sectors like supermarkets, energy firms and broadband providers to do more to help their customers. For example, supermarkets should make sure budget lines for affordable essential items are widely available across their stores, broadband providers must improve access to social tariffs and allow customers to quit their contract if the price goes up and energy firms must ensure they have adequate support staff in place to deal with a deluge of inquiries from worried customers this winter."
Advice for mortgage owners and savers
Danielle Richardson, Which? Money Expert, said: "This rise in the base rate will impact both homeowners and savers. Mortgage rates are far higher than a couple of months ago and anyone on a tracker mortgage will see their repayments increase in line with the base rate change. "Borrowers with fixed-rate mortgages won't see any immediate change to their repayments but face the prospect of higher rates when they come to remortgage. Anyone at risk of missing a mortgage payment should speak to their lender, as banks and building societies should be able to offer support measures. "As for savers, after so many years of rock-bottom returns, people are finally starting to see some benefits of successive base rate rises. However, since banks have been quick to raise mortgage rates, they should start offering increasingly better deals for customers."
-ENDS- Notes to editors
-ENDS- Notes to editors