Prime Minister Rishi Sunak has vowed to do everything he can to limit the rise in mortgage rates as the market reacts to the latest interest rate rise.
Last week the Bank of England increased interest rates by 0.75% to 3%.
As such, the UK’s roughly 2.2 million borrowers on Standard Variable Rates (SVRs) are, in some cases, facing increased mortgage bills.
In an interview with The Times Sunak said: “I absolutely recognise the anxiety that people have about mortgages. It’s one of the biggest bills people have.
“So what I want to say to people is that I’m going to do absolutely everything I can to grip this problem, to limit the rise in those mortgage rates.
“I think inflation is the number one enemy, as Margaret Thatcher rightly said. Inflation has the biggest impact on those with the lowest incomes. I want to get a grip of inflation.”
Liberal Democrats leader Ed Davey proposed a mortgage protection fund over the weekend to try and help those struggling with increased mortgage rates.
Davey said the £3bn needed to fund such a scheme could be paid for by reversing cuts to taxes on banks dating back to 2016.
Last week the Bank of England warned that the UK is set to fall into the longest recession the country has seen since records began in the 1920’s.
