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Daily Mirror
Daily Mirror
Politics
Dave Burke

Grinning Liz Truss says it's not her job to give mortgage advice as budget causes chaos

Liz Truss grinned as she was asked what advice she would give someone considering buying a home in the current climate - saying it is not her job.

The shameless Prime Minister also appeared to deflect blame for rising interest rates onto the Bank of England and claimed a global global economic pressure is responsible for the UK's woes - despite no other currencies plummeting to the same extent.

Asked why she had opted to lift a cap on bonuses for bankers rather than uplift Universal Credit, the PM said she would make "no apologies" for wanting the City of London to be successful.

She and Chancellor Kwasi Kwarteng face growing pressure to make a U-turn as huge borrowing and massive tax causes panic among traders and sent the pound plummeting to its highest level on record.

Prospective homeowners now face having to pay hundreds of pounds more each month as the measures cause turmoil and send interest rates soaring.

Earlier today The Mirror reported that banks are pulling mortgage offers in the meltdown that followed the catastrophic Tory mini-budget.

Speaking to BBC London's political editor Tim Donovan, she was asked what advice she'd give to someone planning to buy a home right now.

The question prompted a chuckle from Ms Truss, who said: "I'm not going to give people advice on their property purchases, but what I would say is that we are facing very very difficult economic times at the moment.

"That is why the government has acted particularly on areas like energy bills, making sure taxes are competitive and helping the economy keep moving at a very very difficult time globally,."

When the question was put to her again she said: "I'm not going to come on your show and give financial advice, my job is being Prime Minister and in that job what I want to do is first of all make sure we're supporting people through this difficult winter."

She heard that soaring interest rates mean a homebuyer who might have been able to get a mortgage with a 2.5% interest rate is now likely to face a 5.5% rate.

Ms Truss and Kwasi Kwarteng face huge pressure to reverse their budget cuts for the richest 1% (PA)

This could mean some have to come up with an additional £880 more per month - a direct result of the "turmoil" that followed her mini-budget - Mr Donovan told her.

"What I think is important about interest rates is that they are set independently by the Bank of England and they have been done since 1997," Ms Truss deflected.

"It's very important politicians don't get involved in those decisions but what we have seen as a result of Putin's war in Ukraine, we have seen interest rates rising globally."

Responding to soaring rates being the result of her mini-budget, she said: "I don't agree with that statement. We're facing a difficult global economic situation, interest rates are going up around the world"

Ms Truss also said that she would make no apology for lifting the increase on banker bonuses, saying: "We've made it easier for the city to be successful.

The PM tried to deflect blame for the financial chaos unfolding at the moment (Getty Images)

"I don't apologise for saying I want a successful city of London, what we want is a competitive City of London that's attracting investment into our country including parts of our country that are left behind."

The Prime Minister is doing a series of interviews across BBC regions. She was told on BBC Yorkshire that a charity in Leeds which provides beds for children who don't have one had 40 referrals in a week - the highest ever.

"It feels terrible," said Ms Truss when asked how she felt about it.

"The best way to help the children you're talking about is to have a growing economy, is to have more jobs.." the PM said.

She continued: "This is about not putting up taxes at a time when there's a growing economic slowdown, if there's fewer jobs there's a consequence for everybody.".

The Prime Minister told the East Midlands Political Editor, Tony Roe, that without the mini Budget “we would be facing higher inflation and more likelihood of an economic slowdown.”

Asked by Look East Cambridge’s Janine Machin how long it would take for the “growth plan” to work, Liz Truss admitted, “some of these things will take time, that's no doubt true, but the best time to start is today on those programmes.”

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