Which? responds to the news that the Bank of England has raised interest rates to 4 per cent

Sam Richardson, Deputy Editor of Which? Money, said:

“Households with both variable mortgages and fixed-rate mortgages due to expire this year are in for a financial shock as rates have now risen to 4 per cent. We’re concerned this sharp rise in repayments could push even more people over a financial cliff as our research shows 2.3 million households missed payments in the last month. 

“Housing costs could also become unaffordable for an increasing number of renters with rents soaring at record speed, as landlords react to rising mortgage rates.

“Anyone at risk of missing payments should speak to their lender or landlord. The Financial Conduct Authority has set out how it expects banks and building societies to support mortgage customers who need help. If you’re behind on your rent, it’s important to access the support out there.”

ENDS

Notes to editors

• If you’re struggling to pay your mortgage bills, talk to your lender as they can help you get your payments back on track. Support measures they could offer include a temporary payment holiday, lengthening the term of your mortgage to cut your monthly instalments or switching you temporarily to interest-only repayments.
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