Interest rate rises ‘starting to bite’

Mr Cable maintains that with mortgage approval rates falling for the past three months and debt management difficulties continuing to impact millions of Britons there could be serious economic problems ahead.

Furthermore, the economic expert suggests that the apparent optimism among money lenders around the country over a “soft landing” as interest rate rises take effect could prove to be “naive”.

“I am concerned that because many homeowners lack proper insurance and because of the current irresponsible lending practices, there will be painful consequences over the next few years,” he said.

Figures from the Insolvency Service showed that during the first three months of this year more than 30,000 Britons entered into an Individual Voluntary Arrangement (IVA) by way of a debt solution.