Citizens Advice Stockport calls for increased financial support for consumers after latest interest rate hike

Citizens Advice Stockport, Oldham, Rochdale and Trafford has expressed its concern about how the latest interest rise from the Bank of England will impact those already affected by increased living costs.

On 3rd August, the Bank of England’s Monetary Policy Committee voted to raise the base interest rate to 5.25%, its highest level since prior to the 2008 financial crash. The move was the bank’s 14th consecutive rise and the continued trend underscores the financial challenges that millions of individuals and families across the nation are grappling with in an era of rising living costs.

The latest rate rise puts increased pressure on housing costs for owner-occupiers making mortgage repayments, and also renters whose landlords own their properties with buy-to-let mortgages, the terms of which often require rents to be set at a certain level above repayments.

Steve Hughes, Chief Operating Officer of Citizens Advice Stockport, Oldham, Rochdale and Trafford, said:

 “Many of our clients are facing rent and mortgage increases that are often larger than the energy cost rises we witnessed last winter.

“As an organization committed to helping individuals navigate complex financial situations, we believe that it is essential to address this growing concern urgently. It is a testament to the increasing burden on consumers who are already struggling to keep up with the rising cost of living. 

“We urge the relevant authorities and policymakers to consider the significant impact of these repeated interest rate hikes on everyday people.”