Money Advice Trust comments on interest rate rise and FCA intervention
The Money Advice Trust has warned of additional pressures facing mortgage-payers in the wake of today’s Bank of England’s rate rise to 1.25%, as the Bank seeks to combat soaring inflation.
The move comes as the Financial Conduct Authority has chosen today to write to 3,500 credit lenders to remind them of the standards they expect as firms support customers struggling with the cost of living.
Joanna Elson CBE, chief executive of the Money Advice Trust, the charity that runs National Debtline and Business Debtline, said: “This latest interest rate rise will be unwelcome news to homeowners with variable-rate mortgages, who will face this new additional pressure while also grappling with the same soaring prices the Bank of England is trying to tame.
“Many mortgage-payers whose fixed rate deals are coming to an end soon will also be facing this additional pressure at the worst possible time.
“Today’s action from the FCA to ensure financial services firms put in place the right support for customers in financial difficulty is welcome – and a timely reminder of how important it is to get the right support to people at the right time.
“I would urge anyone worried about their finances to seek free advice from a charity-run service like National Debtline as soon as possible. Whatever their circumstances, no one needs to go through debt problems alone.”