An increase to 5.25 per cent will mark the third rate rise in the last six months for mortgage lenders, says Liberal Democrat shadow chancellor Vince Cable.
He adds that this “unexpected rise” will lead to further trouble for those homeowners “already feeling the squeeze”.
Mr Cable continued that the decision will be “very unwelcome” for many families already battling with a “debt hangover from Christmas”.
In a statement, the MP also warned of the likelihood of a rise in repayment difficulties such as 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.”
In related news, charity Citizens Advice has also criticised the Bank of England’s rate hike, stating its concern over the number of people who will face repossessions as a result.