Debt Help News: Interest rates on hold again

Interest rates are staying on hold again at 0.5 per cent.

The Bank of England's Monetary Policy Committee's kept the base rate at this record low since March 2009.

Economists now predict it will remain below 1 per cent for five years.

It should be good news for households struggling with mortgage and unsecured debt repayments, but although the base rate's remained unchanged, eight mortgage lenders have put up their standard variable rate since April.

The biggest rise has been from Accord Mortgages, who put theirs up by more than 5% in the last two months.

Kevin Still from debt management experts Atlantic says "The low rates may help consumers with disposable income to continue to pay down unsecured debt, but millions of people are struggling financially to cover contractual payments and many lenders are putting their rates up significantly reducing the speed at which balances are reduced."

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