The Bank of England’s monetary policy committee (MPC) has only delayed the inevitable by deciding not to cut the base rate of interest this month, it has been claimed.
According to the online mortgage firm mform, a reduction in the cost of borrowing will have to be introduced soon and should have been brought by the MPC at the earliest opportunity.
Consumers, many of whom are dealing with serious debt management problems, are finding it increasingly difficult to borrow money and mform is convinced a base rate cut would have helped this situation.
“Lenders are becoming increasingly choosy about who they lend to and on what terms and that will impact on monthly mortgage payments,” said Eamonn Rice, chief executive of mform.
“The bank’s failure to cut has just delayed the inevitable and increased the probability that a bigger reduction will be needed soon.”
Last week, Citizens Advice reported that council tax, energy bill and mortgage repayment increases have been adding to the debt problems of families around the UK in recent weeks.