Liberal Democrats in Business

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RATE RISE WILL HIT THOSE IN DEBT - CABLE

12.00.00am BST (GMT +0100) Thu 3rd Aug 2006

Responding to the Bank of England's decision to raise interest rates by .25% base points to 4.75%, Liberal Democrat Shadow Chancellor, Vince Cable MP said: "The rise in interest rates points to serious concerns over high energy and house prices.

"The impact of this rate rise will be felt most severely by those with variable rate mortgages.

"At the margin, this rate rise is likely to put further strain on the budgets of many households, with upward trends in personal bankruptcies and repossessions likely to continue.

"With banks once again reporting record profits this week, it would seem reasonable, though unlikely, for banks to take part of the hit."

ENDS

Notes to Editors

The additional cost on a mortgage of £200,000 is likely to be around £30 per month for an interest only mortgage and around £40 for a repayment mortgage.

[Print this news story]
[Previous news story]: BANKS TO BLAME FOR RISE IN BAD DEBTS - CABLE (Wed 2nd Aug 2006).
[Next news story]: HIGH PERSONAL DEBT LEVELS LEADING TO INCREASED BANKRUPTCIES - CABLE (Fri 4th Aug 2006).

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[Unemployment Rate Is A Work Of Fiction - Cable]

Thu 7th Jun 2007:

[Future Rate Rises Will Hit Homeowners - Cable]

Thu 10th May 2007:

[Rate rise heaps further pressure on family budgets - Cable]

Tue 8th May 2007:

[Further interest rate rise will hit homeowners hard - Cable]

Mon 2nd Apr 2007:

[Government's debt position not flattering - Cable]

Mon 15th Jan 2007:

[Financial advice must be available now to halt spiralling debt - Cable]

Wed 25th Oct 2006:

[Personal Debt Crisis Deepens - Cable]

Wed 20th Sep 2006:

[Government Should be Honest About PFI Debt - Cable]

Wed 9th Aug 2006:

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Sun 23rd Jul 2006:

[YOUNG PEOPLE'S DEBT SPIRALLING OUT OF CONTROL - CABLE]

Fri 14th Jul 2006:

[Urgent need to help young with debt - Cable]

Fri 24th Jun 2005:

[Liberal Democrats Welcome Funding for Debt Advice - Cable]

Thu 10th Jun 2004:

[Rate Rise Spells Trouble For Homeowners]

Thu 19th Feb 2004:

[Bank Profits Are At The Expense Of Consumer Debt - Cable]

Thu 5th Feb 2004:

[Interest Rate Rise Will Cost First Time Buyers £250 A Month - Cable]

Wed 5th Nov 2003:

[Rate Rise May Undermine Manufacturing]

Thu 18th Sep 2003:

[DEBT: Students mortgaging their futures, says Cable]

Fri 1st Aug 2003:

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