Phoebus Software sales and marketing director Richard Pike says: “Today’s increase is one that most people were expecting and, hopefully, preparing for. The thing to understand is that this is a global problem, just yesterday the US increased its interest rates by the biggest percentage in 30 years, we are not alone in having to deal with spiralling inflation. Covid and the war in Ukraine have both taken a huge toll and the knock-on effect will be long lasting.”

“In this rising inflation and interest environment, even though the increments are small, real wages are reportedly already struggling to keep pace. So it is inevitable that some households will be starting to feel the pinch. It is encouraging, therefore, to read that the FCA has today reminded lenders of their responsibility to provide help to customers struggling with payments. However, this does of course mean that lenders will need the resources to identify vulnerable borrowers at an early stage to be able to offer the help that is required.”