New warning for credit consumers

It is widely expected that the Bank of England will increase the cost of borrowing in an effort to limit inflation and millions of credit consumers around the country look set to find it more difficult to find a debt solution as a result, Mr Glendinning suggests.

To make his case, the moenysupermarket.com boss points to research from his own company, which shows 25 per cent of British homeowners with a mortgage are “struggling” with their repayments following the most recent rise in interest rates.

“Mortgage borrowers could be facing a massive rise in their mortgage repayments with a typical monthly payment rising to £1,037.08 per month from the current £818.75 if the group of leading economists are right and the base rate rises to 7.5 per cent to quell inflation,” said Mr Glendinning.

It was revealed recently that the Bank of England’s monetary policy committee was not unanimously in favour of maintaining the base rate of interest at 5.25 per cent when last they met.

track