The average borrower will pay ‘an extra £500’ per month on their mortgage that could rise to ‘up to £900’ in some parts of the country, according to new Labour party analysis.
The claims from Labour are based on the fact that, in summer 2020, the average two-year fixed rate mortgage had an interest rate of 1.6 percent and monthly repayments of £1,057 a month. Should interest rates on those mortgages hit six percent, as financial research service Moneyfacts says happened for the first time in 14 years this week, then that would mean repayments would rise to £1,550 - a monthly increase of £498, Labour says.
Outlining her party’s analysis was Wigan MP Lisa Nandy, appearing on Sky News this morning (October 6). She also accused the Conservative government of ‘crashing the economy, pouring fuel on a global crisis, and working people are paying the price’.
