BOURNEMOUTH residents have dubbed the crisis surrounding mortgage rates "terrible".

This comes after the shock announcement that the Bank of England is raising rates to 5 per cent from 4.5% in a bid to tackle inflation.

The Labour Party and Liberal Democrats have slammed the Conservatives even after chancellor Jeremy Hunt agreed that mortgage holders struggling with repayments will be given a 12-month grace period before repossessions begin.

Mr Hunt said tackling high inflation, which measures the rate of rising prices, is the Government's "number one priority".

Residents on the streets of Bournemouth gave their views on the ongoing crisis.

Mike Pennington, a 67-year-old retired teacher from Bournemouth, ended up selling his car to be able to afford the rent after the landlord increased it in 2022.

He told the Daily Echo: “It’s terrible, I’m not happy about it. The knock-on effect for me is my landlord putting the rent up. It doesn’t just affect mortgage owners; it affects people who rent as well.

He added: “My daughter is 29. My son is 31 and they’re both renting. It’s hard to rent, let alone save.”

Jennifer, a retired 68-year-old from Christchurch said: “My husband and I are pensioners, and we get no help.

“With the mortgage situation, it must go up because of cost of living. I know it's not going to help anyone get out of the property ladder but we're out of Brexit now, things are going to go up.

“I understand why it’s going up, money has got to come from somewhere."

She added: “The cost of living and housing crisis is nowhere near as bad as it was in the 70s. I got repossessed [and] I couldn’t pay the mortgage because the interest rate was so high.

Alan Hellier, her son said: “If anything, it’s cheaper - even if it is 0.5% at least it’s something.”