LONDON: Britain on Friday unveiled help for millions of cash-strapped homeowners facing soaring mortgage costs in a cost-of-living crisis, after the Bank of England unexpectedly hiked interest rates to a new 15-year peak.
Those who have to change their mortgage because their fixed rate is coming to an end - and whose outgoings will go up - are also causing concern, he added. The mortgage crisis has also piled pressure on Prime Minister Rishi Sunak, as his Conservatives attempt to win back ground from the main opposition Labour party before next year's general election.
Sunak has vowed to halve Britain's inflation rate by the end of the year but it remains one of the highest in the G7."We are absolutely committed to supporting the BoE to do what it takes. We know the pressure that families are feeling."Labour finance spokeswoman Rachel Reeves blasted the measures as a"weak response on a mortgage crisis they created".
Markets are predicting a further rise in the BoE's key interest rate - which is used to set commercial mortgage rates - to 6 per cent by year-end.
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