Families are paying more than £530 more on their mortgage than at the same time last year, according to a Labor Party analysis.
Blaming Liz Truss’ ‘disastrous premiership’, Labor says a family with a mortgage on an average property is paying £537 more a month than they would have been a while ago 12 months.
MP Lisa Nandy, secretary of Shadow Leveling Up, said tens of thousands of families would be paying higher mortgages for years “because the Tories have brought the economy down”.
The Conservatives simply cannot be trusted for the economy
“This is a Tory crisis, made in Downing Street and paid for by working people. Tens of thousands of households will be paying higher mortgage bills in the years to come because the Tories have taken the economy down,” she said.
“Despite the U-turns, the damage is done. Even now, families are paying even more because the government has lost all credibility.
“The Conservatives simply cannot be trusted in the economy. Only Labor offers the leadership and the ideas to get Britain out of this mess, which is why we need a general election now.
The current average price of a property in the UK has been estimated at £295,903.
Labor’s analysis applies the median loan-to-value ratio for UK mortgage sales, which is 70%. A 70% mortgage for a £295,903 house would be £207,132.
The average term of a mortgage reached a record 30 years in June.
On October 20, 2020, the annual interest rate was 2.25%, while on October 22 last year, it was 6.65%.
At 2.25% interest the monthly mortgage payments on a £295,903 property would be £791.75, while at 6.65% they would be £1,329.72, a monthly increase of £537.96.
Over two years, that would add up to an additional £12,911.06, according to Labor figures.
UK Finance expects 1.8 million people to repay next year, around 26% of all mortgages.
Responding to Labour’s analysis, a Treasury spokesman said: “Growth requires confidence and stability.
“A central responsibility for any government is to do what is necessary for economic stability, and we have done that.
“But the UK’s long-term economic outlook remains positive as we deliver on our growth mission, and according to the IMF, the UK is on track to experience the fastest growth in the G7 this year.”