The latest hike in the interest rate today (Thursday) means people in Scotland could be over £100 a month worse off than this time last year, according to charity, Shelter Scotland.

The announcement of a 5.75 per cent base rate will leave some homeowners close to their financial limits and struggling to cover the cost of household essentials like food and utilities.

Shelter Scotland figures show that if someone earning an average wage (£21,419) tried to buy an averagely priced house in Scotland (£143,045), before the rate rises they would be left with just £334 a month to live on after paying basic households costs, i.e. mortgage, council tax, and waste and water charges. After today's rate rise, they would be left with only £225 a month - meaning £109 less in their pockets than before rates started rising.

Archie Stoddart, director of Shelter Scotland, housing and homelessness charity said: 'These figures give us a powerful indication of the immense pressure the cost of housing is putting on the pockets of people who want to get onto the property ladder.

'With people already overstretching themselves just to get on the housing ladder, this rate rise will push many to their financial limit, leaving them facing mortgage arrears, repossession and even homelessness. For many though, house prices are simply out of their reach. Housing is becoming increasingly unaffordable for ordinary families. We must see a commitment from our recently elected politicians to find ways to give people real choices about how and where they live. Housing is central to our nation's health, wellbeing and economic future.'

Homeowners struggling with the cost of their mortgages should seek help before the problem escalates by going to www.shelter.org.uk/repossession  and calling 0808 800 4444.

Notes to Editors

1. In the Shelter Scotland model, the 'average' person's mortgage payments are calculated on the 'average' house price of £143,045, and a 100 per cent mortgage rate at 6.15 per cent (base rate, plus 0.4 per cent) We assume they would have to pay out for council tax and waste and water charges, which leaves the remainder for other bills, food and travel.
2. Shelter Scotland, along with other housing organisations, are calling for 30,000 affordable rented homes for Scotland through this year's comprehensive spending review. For more information visit scotland.shelter.org.uk/media
3. Shelter believes everyone should have a home and helps 170,000 people a year fight for their rights, get back on their feet, and find and keep a home. We also tackle the root causes of Britain's housing crisis by campaigning for new laws, policies and solutions.
4. Spokespeople are available for interview, telephone the media office on 0844 515 2442. An ISDN line number is available for broadcast interviews.
5. For more information about Shelter visit www.shelter.org.uk