Payday loans surge to keep homes safe

The number of people turning to payday loans to cover rent or mortgage has more than doubled, new figures reveal.

In the past two years the numbers applying for short term loans who said they needed help paying for their accommodation increased by 115 per cent.

The new data from shortterm credit broker Cash-Lady claimed the number of peo - ple applying for loans has also nearly doubled since 2015, up 93 per cent.

As well as the number of loan applications rising, the average amount requested has increased by 45 per cent, from £ 224 in 2015 to £ 325 in 2017.

The statistics come just weeks after the Financial Conduct Authority revealed that one in six people, or 17 per cent, say they would struggle to pay their mortgage or rent if it increased by just £50. Earlier this month, the Bank of England’ s monetary policy committee announced it would increase interest rates for the first time in ten years – from 0.25 per cent to 0.5 per cent.

The figures have been released ahead of the tomorrow’s Budget, where the Chancellor Philip Hammond is expected to address housing. CashLady managing director Chris Hackett said: “Keeping a roof over your head is a basic human right.”