The Chief Executive of the Resolution Foundation has said that this is by far the worst unforced economic policy error of a lifetime while the former chief advisor to the Bank of England says that because of the budget, “we can say goodbye to growth”.
The former Governor of the Bank of England accused the government of “undercutting” the UK’s economic institutions and said this was directly responsible for the market reaction. The National Institute of Economic and Social Research said “uncertainty caused by (the) fiscal event” was directly pushing up longer-term borrowing costs.
Practically, this means higher mortgages. An average buyer taking out a two-year fixed mortgage in the third quarter of 2020 faced an interest rate of about 1.6 per cent and monthly repayments of £1,057 a month. Should interest rates reach five per cent, those repayments would increase to £1,432. They would top £1,550 if interest rates hit six per cent.
Coupled with the general risies in cost and the current energy crisis many people will need help. If that’s you then get in touch with us and we’ll do what we can to find you help.