Analysis by the Labour Party has suggested thousands of homeowners in Northumberland will face mortgage bills rising by hundreds of pounds in the coming months.
The party say 11,629 households in the county will see their mortgage repayments increase as their fixed-rate deals come to an end following increases in the Bank of England's base rate, which are expected to top 6% next year.
The bank was forced to act due to chaos in the financial markets following former chancellor Kwasi Kwarteng's " mini budget" that was reversed by his successor Jeremy Hunt on Monday after just three weeks.
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The Labour Party used Bank of England data to show the number of homeowners coming off two-year fixed-term mortgages in October 2022 - who are set to pay an average of £500 a month more following the increases in the interest rate. However, this is likely to be lower in the North East due to lower average house prices.
The Bank hiked interest rates by 0.5% to 2.25% on 22 September, with further rises expected in a bid to curb inflation.
The party has said that further investigation found that the number of people facing the refinancing of their mortgage deals on those terms is forecast to be 1.8 million people from a total of 6.8 million mortgage holders - equating to one in four of all mortgage holders in the UK. From those figures, the party has estimated the figure from Northumberland.
Scott Dickinson, Northumberland Labour leader, said: "I really fear for those hard-working families who have a mortgage and are already on the breadline.
"With the catastrophic economic policy and position people now find themselves in with the cost of living crisis, the increase in payments will see many lose their homes.
"Economic stability to support families, and businesses and the wider implications of this mess is now critical but I fear too late for many. The government needs an aid package to support people who have, through no fault of their own been plunged into this mess. Northumberland deserves better and so does the UK."
It comes after the chancellor addressed the House of Commons on Monday, and acknowledged the country was now facing serious financial issues following the effects of the mini-budget.
Mr Hunt told MPs: "Behind the decisions we take and the issues on which we vote are jobs families depend on, mortgages that have to be paid, savings for pensioners, and businesses investing for the future.
"We are a country that funds our promises and pays our debts. And when that is questioned, as it has been, this government will take the difficult decisions necessary to ensure there is trust and confidence in our national finances.
"That means decisions of eye-watering difficulty."
The next rate rise decision is due on November 3, with the Bank of England's governor Andrew Bailey warning it would "not hesitate to raise interest rates to meet the inflation target" of 2%.
Lisa Nandy, the Shadow Housing Secretary, hit out at the Government for the increases in mortgage prices.
She said: “The Conservatives have sacrificed homeowners across the country who now have a Tory premium to pay on their mortgages. Young people in Northumberland who have scrimped and saved for a deposit have in the blink of an eye been thrown under the bus.
“This is not simply an unfortunate mistake. It is an unforgivable act of national self-harm that has crashed the economy."
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