Debt levels ‘reaching tipping point’
Levels of debt in the UK are reaching a "tipping point" spurred on by rate rises and burgeoning house prices, one expert has claimed.
The Bank of England's decision to increase the base rate by 0.25 per cent could seriously affect the country's continuing problem with debt, Nick Lord, head of money advice at Citizens Advice has said.
Rising house prices are having a "profound effect" on those people struggling with their finances, he told BBC Radio 4's Money Box programme.
Unsecured lending and credit card debts are also contributing to the nation's bills, he said.
"If you then factor in the number of people, particularly the younger people, first time buyers who have taken interest only mortgages, it's going to be very difficult [to arrange] reduced payments with their mortgage lender," Mr Lord added.
The base rate was increased to five per cent in the first week of November, with a string of mortgage providers announcing increases to their rates shortly after.
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