Consumer charity Advice NI has raised concerns that the latest interest rates rise will have a negative impact on those struggling financially.
Kevin Higgins, Head of Policy at Advice NI, said that the charity is especially worried about the effect the climbing rates would have on those who claim social security benefits.
He said, “The Support for Mortgage Interest (SMI) scheme is designed to help pay towards the interest on your mortgage or loans taken out for certain repairs and improvements to your home, yet we’re seeing a surge in service users who are reliant on the government SMI scheme and struggling to make ends meet."
Sinead Campbell Head of Money, Debt and Quality at Advice NI says "The Bank of England’s decision to raise interest rates will undoubtedly put additional financial strain on households and for those on variable rate mortgages the hike will immediately impact their budgets.
"We know more people will turn to credit to ease financial pressure during this time, however this will only add more stress in the longer term."
Shadow chancellor Rachel Reeves said today: “This latest rise in interest rates will be incredibly worrying for households across Britain already struggling to make ends meet.
“The Tory mortgage bombshell is hitting families hard, with a typical mortgage holder now paying an extra £220 a month when they go to re-mortgage.
“Responsibility for this crisis lies at the door of the Conservatives, who crashed the economy and left working people worse off, with higher mortgages, higher food bills and higher taxes.”