LiveMore comment on inflation rate - "trapped"

18 December 2024

Simon Webb, managing director of capital markets and finance at LiveMore, commented:

“Inflation has crept up from 1.7% in September to 2.3% in October and reached 2.6% in November. This latest rise in inflation isn’t surprising, bearing in mind financial market reactions to the Autumn Budget and the hike in energy bills.

“It’s not great news for consumers still straining to make payments. This financial climate can be particularly challenging for borrowers aged 50 to 90 plus. Mid-life borrowers are struggling to get on the housing ladder, while borrowers who have come to the end of their interest-only term and can’t pay off the capital, mistakenly believe themselves to be trapped on their lenders’ standard variable rates. Many aren’t mortgage prisoners at all but are eligible for affordable specialist and mainstream loans aimed specifically at these age groups.

“These latest inflation figures will probably reinforce predictions that the Bank of England will skip a December cut in the Bank Rate.”