Shelter Scotland responds to interest rates being held
10 June 2010
Shelter Scotland today (Thursday) responded to the Bank of England's announcement that interest rates will be held at 0.5%.
Graeme Brown, Director, Shelter Scotland, housing and homelessness charity, said: “We know many hundreds of thousands of already financially stretched homeowners will have been crossing their fingers that interest rates would stay stable as they are dreading the news that their mortgage payments will go up.
“They can breathe a sigh of relief today, but for how long?”
“With inflation already above target it’s got to be a real possibility that rates will rise soon in an effort to curb the upward pressure on prices. Until now low rates and government support schemes have been crucial to keeping repossessions under control but there is no question that all that will change once they go up.
“It’s not a case of if repossessions will go up but how high, and the only thing the new UK Government can do to restrain them is continue current support available to help keep people in their homes.”
The housing and homelessness charity recently joined forces with the CML and other organisations to write a joint letter to the new Chancellor George Osborne and the new Business Secretary Vince Cable, calling for a clear commitment in the first budget to extend current support measures for borrowers in most financial difficulty.
This followed research by the charity which found 5.4million mortgage holders haven’t even thought about how they will pay their mortgage if interest rates go up. Half a million people said they simply won’t be able to make their monthly mortgage payments in full if they increase.
Mr Brown continued: “We know that many homeowners are already seriously struggling and if they suddenly have to find even £50 extra a month this money they simply don’t have.
“The new UK Government needs to be ready with a strong package of support in place once rates start to rise. In particular Support for Mortgage Interest, which is currently helping 220,000 struggling homeowners keep the roof over their head, must be maintained or thousands of homeowners will be at risk.”
Mr Brown added: “In the mean time we would urge anyone worried about rising mortgage payments to seek advice early to get advice on how to cope with a sudden hike in their mortgage payments. Visit Shelter Scotland’s website http://scotland.shelter.org.uk which provides specific information on what help is available and how to get it, or call our free helpline on 0808 800 4444.”
Notes to Editors:
- Shelter commissioned YouGov to conduct an online survey of 4,405 adults in Great Britain. Fieldwork was undertaken between 7th - 10th May 2010. The survey was carried out online. The figures have been weighted and are representative of all adults (aged 18+).
- Shelter Scotland, the housing and homelessness charity. Shelter Scotland believes that everyone should have a home. We help people find and keep a home. We campaign for decent housing for all.
- Spokespeople are available for interview, telephone the media office on 0844 515 2442. An ISDN line number is available for broadcast interviews.
