Homeowners are being hit with a “mortgage penalty” of £7,000 per year as interest rates have tripled compared to what they were two years ago. Pat McFadden, shadow chief secretary to the Treasury, blamed what he called the “reckless economic gamble” taken by the Conservatives during September’s mini-Budget, PA reports.
Liz Truss became the shortest-serving prime minister in modern British political history after the fallout from her and then-chancellor Kwasi Kwarteng’s so-called Growth Plan that sent the value of the pound tumbling and mortgage rates soaring. Analysis by Labour suggests the average homeowner is forking out an extra £150 every week since what officials called the “kamikaze mini-Budget” in the autumn.
It means the average household with a mortgage now pays £223 a week in mortgage interest payments – an increase of £7,000 per year, party officials said. Labour said those with a 75% loan to value (LTV) ratio mortgage faced average interest rates of up to 4.63% in April.
