Rate change will hit borrowers, say Lib Dems

The Liberal Democrats say the rate change last week will hit those in debt, especially borrowers with variable rate mortgages.

Shadow chancellor Vince Cable says: The rise in interest rates points to serious concerns over high energy and house prices.

“The impact of this rate rise will be felt most severely by those with variable rate mortgages.

“At the margin, this rate rise is likely to put further strain on the budgets of many households, with upward trends in personal bankruptcies and repossessions likely to continue.

“With banks once again reporting record profits, it would seem reasonable, though unlikely, for banks to take part of the hit.”