For immediate release:

CALLS TO SUPPORT HOUSEHOLDS AS MORTGAGE INTEREST RATES INCREASE AGAIN

The Bank of England, which sets interest rates across the UK, has hiked interest rates yet again – in a fresh blow to local mortgage holders who face even higher borrowing costs and renters who might see those costs passed on.

Interest rates will now rise from 4.5 percent to 5 percent – taking it to its highest level since the 2008 financial crisis.

It’s the thirteenth time the central bank has raised rates in the past 18 months from a low of 0.1 percent in 2021.

It comes as former Bank of England governor Mark Carney warned Brexit is causing “a weaker pound, higher inflation and weaker growth” – and the Institute for Fiscal Studies warned rising interest rates could mean 1.4 million UK mortgage holders see their disposable incomes fall by more than 20%.

Higher interest rates are intended to lower inflation, however UK inflation remains higher and more stubborn than the EU and US.

The Office for National Statistics announced the consumer price index measure of inflation stood at 8.7% in the year up to May, despite expectations inflation would fall.

Rutherglen MSP Clare Haughey has called for the UK Government to step in and protect mortgage holders and renters.

Commenting, Ms Haughey said:

“The news of further increases to interest rates will add misery to households across Rutherglen and Cambuslang who are already struggling in this cost of living crisis.

“The Tory Government has trashed the economy and Brexit – which both they and the Labour Party fully support – has led to increased inflation which in turn has led to increased mortgage interest rates.

“The UK Government must urgently provide help for homeowners and renters at risk of losing their homes or falling into unmanageable debt, through no fault of their own.

“Families shouldn’t have to foot the bill for Westminster failure.”

ENDS