StepChange responds to Bank of England Money and Credit statistics

^{29 September 2023}

Responding to the latest Money and Credit figures for August published today by the Bank of England, Richard Lane, Director of External Affairs at StepChange Debt Charity, said:

“The continued rise in mortgage borrowing alongside a slump in mortgage approvals shown in today’s statistics is no surprise given the pressures on homeowners from high interest rates and wider financial pressures. Our latest polling reveals that two thirds of mortgage holders (65%) say that rising interest rates has had a negative effect on their overall financial situation.

“The pause in rate rises last week will bring some relief, but borrowers are still facing significantly higher costs than they could have anticipated 18 months ago. Private renters are also trying to cope with increasingly unaffordable housing costs, with many seeing their rent rise due to landlords passing on higher borrowing costs.

“With a larger proportion of people’s incomes taken up by housing costs, there’s a risk of people falling behind with household bills or credit repayments as they try to maintain rent or mortgage payments to avoid falling into arrears.

“If you’re struggling with to meet your mortgage payments, or you’re worried about what having to renew your mortgage in the near future, don’t wait to get help. Charities like StepChange can offer free, impartial advice, and our new homeowner hub provides a one-stop-shop for mortgage-based advice and support.”