The first is that absolutely anyone can speak to their bank or lender without it impacting your credit score. Thanks to that agreement, the banks will deliver three key commitments. While mortgage arrears and defaults remain below pre-pandemic levels – which were themselves extremely low – we are not complacent. That’s why last week I met major mortgage lenders to ensure they are living up to their responsibilities to support customers in financial difficulty. The International Monetary Fund agrees that we have taken ‘decisive and responsible’ action so far to bear down on inflation – and we have seen some results, with inflation down from highs of 11 per cent last year to 8.7 per cent today.īut I know people are still worried and are struggling right now. This is a global problem and something that many governments are tackling – so ignore the predictable calls from those blaming Brexit. Germany, the Netherlands and the wider Euro area are in recession. The UK is not alone in facing these challenges – core inflation is higher in 14 EU countries and interest rates are rising around the world. We have our plan of action and we need to stay the course – it is the only way to relieve pressure on families with mortgages and reduce costs across all our bills. The Prime Minister and I promise that we will get through to the other side. I want to reassure those families that, if we don’t act now, it will be worse later. Jeremy Hunt takes an early morning run in Westminster with Poppy his dog on Thursday, the day The Bank of England raised interest rates I know that many people will be feeling anxious about the Bank of England’s decision to increase rates once again to 5 per cent – the knock-on impact for mortgage rates will understandably be causing great worry for thousands of families coming to the end of their fixed rate agreements in the months ahead. But we must be patient things will get better. It is working in other countries, and it will work here too.
There is no alternative.Īnd despite how painful it is for many across Europe right now, one of the most effective methods of bringing inflation down is by increasing interest rates. The single best way to reverse this trend and bring down costs – from the weekly shop to mortgage payments – is by squashing inflation.
With inflation you get absolutely nothing in return. It is the most insidious of taxes, because at least through general taxation we all benefit from well funded public services like our NHS, schools and police. It eats away at people’s pay cheques, making food, energy and other essentials more expensive. High inflation is one of the most destabilising forces in any economy.
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