The cost of living crisis is continuing to take hold of homeowners in the UK with the soaring cost of food, energy and fuel prices. Earlier this month the Bank of England announced they were increasing interest rates by 0.5 per cent to 1.75 per cent - which was the biggest rise in 27 years.
The interest rate hike is yet another blow for households who are being crippled by rising bills, with interest rates expected to increase monthly mortgage repayments for millions of homeowners who are on variable rate deals and other forms of borrowing.
According to the Office for National Statistics, UK workers have also suffered the biggest drop in their spending power in more than 20 years. Real wages, which reflect the power of employee pay after accounting for inflation, fell by an annual 3% in the last quarter, and the total pay in July including bonuses fell by 2.5%, reports The Mirror.
