Which? responds to Bank of England increasing interest rates to 5%

Ele Clark, Which? Money Senior Editor, said:

“This further rate rise could help to curb inflation, but it will also push up housing costs for millions of people across the country. 

“Mortgage holders coming to the end of their fixed term, and those on tracker or standard variable rates, will be most affected by higher repayments. Anyone worried about paying their mortgage should speak to their lender, as they are obliged to offer support. Help could include payment holidays, interest-only payments or extending the term of your mortgage. Unplanned missed payments can harm your credit rating, so it’s best to speak to your lender and agree on a way forward before it comes to that.

“It’s vital that the financial regulator closely monitors whether banks are doing a good job of helping mortgage-holders during this difficult time and acts quickly if they are falling short. 

“It won’t be lost on savers that some banks have been very quick to increase mortgage rates, but they should not treat mortgage holders and savers differently by hiking rates at different times. The FCA should not hesitate to step in should banks continue to treat customers in this way.”

-ENDS- 

Notes to Editors: 

Which? – How to find the best savings account

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