- 14
- May
Those with debts accrued from personal Loans and other forms of borrowing will be the ones to suffer most from the last week’s increase to interest rates, an industry expert has suggested.
According to Lloyds TSB chief economist Trevor Williams, the decision by the Bank of England to increase the base rate to 5.5 per cent could squeeze affordability pressures for consumers making monthly repayments on loans.
He said: "It will add to the pressure on those who are on stretched incomes."
Mr Williams added that the decision will have a "negative impact" for Britons already struggling with debt management.
However, he suggested that interest rates have now peaked, which may come as a relief to secured loan borrowers, with Mr Williams also predicting inflation will fall.
Last week, Stephen Smith, director of housing for Legal & General suggested that a raise to the base rate would "hit" secured loan borrowers.
Interfinancial providing you with breaking loans news.
