The Liberal Democrats have warned that bailiffs will be reaping a 'bitter harvest' following industry figures showing a triple increase in lending.
Responding to Building Society Association figures which show lending has tripled over the past year and British Banker's Association figures showing mortgage lending for October at a record £6.1bn, Malcolm Bruce MP, Liberal Democrat shadow DTI secretary, says: “These disturbing lending figures show how seriously people are exposing themselves to further rises in interest rates.
“Much of this lending is underpinning the consumer and housing boom, and with manufacturing still in recession, the Bank of England now has a serious problem. All this money will have to be paid back. If this runaway lending continues, and unsustainable personal debt keeps growing, the bailiffs are set to reap a bitter harvest.”