Vincent Cable

Liberal Democrats | Twickenham

LATEST RATE RISE WILL SQUEEZE STRUGGLING FAMILIES – CABLE

Responding to the rise in interest rates announced today, Liberal Democrat Shadow Chancellor, Vince Cable MP said:

“The continued boom in the housing market and rising pay demands look like the likely causes for this rise.

“UK mortgage holders have now seen three rate rises in the last six months. This latest and unexpected rise will spell further trouble for those already feeling the squeeze.

“It will be very unwelcome for countless families who are already struggling with a debt hangover from Christmas.

“These increases in interest rates will hike the monthly cost of a £150,000 mortgage by around £75 per month.

“Unfortunately this is likely to lead to a further rise in repayment difficulties on mortgages, including repossessions and bankruptcies.

“The Government has seemingly washed its hands of the whole problem of personal debt. It has spent a lot of time regulating savings and investments, while ignoring irresponsible lending.

“Thanks to the Government’s failure to promote independent debt advice, many families who find themselves in difficultly will not know where to turn.”