The Bank of England has warned that the number of people likely to struggle with debt repayments is rising, sparking fears of a potential wave of repossessions.
Scottish Labour’s analysis of their projections suggests that by the end of the year around 61,410 households across the country will be facing difficulties with debt repayment and putting them at higher risk of repossession.
This figure is based on Bank of England forecasts from before the interest rate rise in early August and comes just weeks after Scottish Labour analysis revealed that 546,600 households in Scotland could be paying an average of £190 more a month on their mortgages next year – with costs now set to rise further still.
READ NEXT: ‘Owning a home an impossible dream’ says MSP amid soaring house prices
Dumbarton and the Vale’s MSP Jackie Baillie has labelled these latest figures ‘damning’ and called on both governments in Holyrood and Westminster to do more to support those at risk of repossession.
She said: “The stress and anxiety facing many homeowners across Dumbarton and the Vale of Leven right now is palpable, but the disastrous response from the government has left them with nowhere to turn.
“While people are seeing their monthly mortgage payments soar outwith their budget and their control, both the Tories and the SNP are missing in action and have no long-term plan to support homeowners.
“We cannot afford to stand on the sidelines and let people weather this storm alone. Only Labour has a real plan to support people through this crisis by forcing banks to provide support for those at risk of repossession, and by revamping the Mortgage to Shared Equity Scheme in Scotland.”
A general view of the Bank of England in London, after the UK interest rate was raised (Image: PA) (Image: PA)
A Treasury spokesperson said: “We know that rising prices are worrying for households across the country, which is why halving inflation this year and getting back to the 2% target is our priority.
“We are supporting people through these difficult times with one of the largest cost-of-living packages in Europe, worth £3,300 on average per household over this year and last, while taking millions out of paying income tax, boosting pay with the largest-ever cash increase to the National Minimum Wage and helping those struggling with mortgage costs through our new Mortgage Charter.”
