and the rate of core inflation which strips out volatile items like food and fuel is actually going up. rising interest rates are piling the pressure on millions of mortgage borrowers here in the uk who are facing steep rises in monthly bills. the bbc has been hearing from some of them. rebecca from greater manchester, craig in cambridgeshire, and rose who lives in hampshire. just three homeowners out of hundreds of thousands of people facing a huge rise in their mortgage costs over the coming months. at this moment in time, at the end ofjune, i will make my final payment of £434 when my current deal ends, and thereafter i have been told to expect my payments will be over £1,800. i m currently paying £560 a month. at the end ofjuly, it will go on to variable and it will go up to £1,200 a month. 0ur mortgage has gone up by over £2,200 a year. - it s a huge impact on our- expenditure and has an impact on the family as a whole. rose has already been cutting costs on
which strips out volatile items like food and fuel is actually going up! rising interest rates are piling the pressure on millions of mortgage borrowers here in the uk who are facing steep rises in monthly bills. lets hear from some of them. at this moment in time, at the end ofjune, i will make my final payment of £434 when my current deal ends. and thereafter i have been told to expect my payments will be over £1,800. i m currently paying £560 a month. at the end ofjuly, it will go onto variable, and it will go up to £1,200 a month. 0ur mortgage has gone up by over £2,200 a year. - it s a huge impact . on our expenditure, and it has a huge impacti on the family as a whole. the government s finance chief chancellor of the exchequerjeremy hunt says bailing out struggling borrowers only risks stoking inflation further no matter what the pressure from left, right or centre, we won t be pushed off course. because if we re going to help families, if we re going to re
the soaring cost of borrowing is fast becoming a political problem for the uk government with a general election due within 18 months. it is coming under pressure to help people facing steep rises in mortgage repayments. here s our political editor chris mason. you have voices here including some conservatives saying, well, hang on a minute, what are you as a government going to do to help people with the soaring cost of borrowing? and they can point to recent huge state interventions back during covid also with the energy price spike recently. and when you speak to ministers privately, they re exasperated by those demands firstly because of the potential cost of them, given those bills associated with those big interventions recently, but also because of that sense that it could be counterproductive that if they were to help too much, if you like, it would help fuel inflation rather, than dampening it down. so that is the very definition, isn t it, of one heck of a politic
the government s finance chief chancellor of the exchequerjeremy hunt says bailing out struggling borrowers only risks stoking inflation further no matter what the pressure from left, right or centre, we won t be pushed off course. because if we re going to help families, if we re going to relieve the pressure on people with mortgages, on businesses, we need to squeeze every last drop of high inflation out of the economy. and if you look at what s happening in other countries, we know that there is enormous pressure for families with mortgages and it s a really big dealfor family finances but the one thing that would not help those families is to step in with short term support that meant that inflation stayed higherfor longer support that meant that inflation stayed higher for longer and as mortgage rates stayed higherfor longer. paul dales, chief uk economist at the economic consultancy capital economics.