The 'eye-watering’ mortgage increases which are facing families across the country are down to the Tory Government, the Labour leader has said. Sir Keir Starmer has called on the Prime Minister once again to review what he has called her “kamikaze” budget.
Liz Truss signed off the mini budget by Chancellor Kwasi Kwarteng just last month. But analysis by the Labour Party suggests an average UK buyer coming off a two-year fixed mortgage could experience a £498 monthly hike if interest rates hit 6% as the budget takes effect.
Labour's estimates are based on the assumption that a homeowner has a 20-year mortgage term and they pay a 5% or 6% interest rate once their two-year fix ends in the third quarter of 2022. Homeowners in London would be worst hit, with Labour’s estimates putting the monthly increase at between £689 and £915.
