Debt management problems look likely to worsen for credit consumers across the country following the latest rise in the cost of borrowing and property will become less affordable particularly for first time buyers, the CML suggests.
“For anyone wanting to get a foot on the property ladder or move house, each month affordability is becoming worse,” said Michael Coogan, the CML’s director general.
“The record number of borrowers who are now paying stamp duty makes a difficult situation even worse, despite the financial windfall to the Treasury.”
Recent data from the council also revealed that an increasing number of British mortgage borrowers are looking to avoid the impact of rising interest rates by securing fixed-rate deals.
The Insolvency Service revealed earlier this year that more than 30,000 Britons entered an Individual Voluntary Arrangement by way of a debt solution during the first quarter of 2007.