FAMILIES across Stratford district face eye-watering mortgage hikes of £311 as a result of “the Tories’ crashing the economy”, analysis by Labour reveals.
Bank of England data shows that homeowners coming off two-year fixed term mortgages are set to be hit even harder in the pocket due to tax cuts set out in the Tories’ mini budget.
And Stratford’s Labour Party say the district’s homeowners deserve better.
Labour leader Keir Starmer has renewed his calls for Prime Minister Liz Truss to reverse the “kamikaze budget” that has “crashed the economy” and seen interest rates and borrowing costs skyrocket.
Despite the government’s 45p climbdown, mortgage rates are still likely to top five or even six per cent. That would leave homeowners in London and the southeast facing average rises up to £915. Even in the northeast of England, where house prices are typically lower, the monthly spike will be up to £320. The increases are likely to prove unaffordable for many.
An average buyer taking out a two-year fixed mortgage in the third quarter of 2020 faced an interest rate of about 1.6 per cent and monthly repayments of £877. Should interest rates reach five per cent, those repayments would increase to £1,188, an increase of £311. The average increase across the United Kingdom is almost £400 a month.
The increase in repayments only adds to the struggle already faced by households due to a rise in energy bills.
Keir Starmer MP, leader of the Labour Party said: “These eye-watering mortgage increases will cause homeowners across the West Midlands sleepless nights – and the Tory government is entirely to blame.
“Liz Truss and Kwasi Kwarteng crashed the economy with their attempts to hand enormous, unfunded tax cuts to those who least need it. The humiliating U-turn they were forced into came too late – the damage had been done. Now people across the West Midlands are suffering the consequences. This was a crisis made in Downing Street but paid by working people.
“The prime minister must reverse her kamikaze budget, including her totally unfunded £17 billion corporation tax giveaway to the biggest companies. The burden of the Tories’ fantasy economics should not fall on working people.”
Stratford Labour’s Lee Rhodes added: “Families across Stratford deserve so much better than this Tory-made crisis.
“There is an alternative. Last week at our party conference Labour announced a comprehensive plan to target a homeownership rate of 70 per cent and 1.5 million new homeowners.
“We set out proposals to build more houses, raise stamp duty on foreign buyers to stop them buying whole developments off-plan, and give first-time buyers first dibs on newly built homes.
“Our message is unequivocal – Labour is the party of home ownership.”
