The Liberal Democrat Party has hit out at the government in the face of the latest rate rise, arguing that 5.25% base rate will lead to more indebtness in the UK
Vince Cable MP, shadow chancellor for the Liberal Democrats, says: “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.
“UK mortgage holders have now seen three rate rises in the last six months.
“This latest and unexpected rise will spell further trouble for those already feeling the squeeze.
“It will be very unwelcome for countless families who are already struggling with a debt hangover from Christmas.
“These increases in interest rates will hike the monthly cost of a 150,000 mortgage by around 75 per month.
“Unfortunately this is likely to lead to a further rise in repayment difficulties on mortgages, including repossessions and bankruptcies.