Photo: Andrew Matthews/PA Wire
The MP for Rochdale has claimed that thousands of households in his constitution will face an ‘eye-watering’ jump in mortgage repayments next year.
Tony Lloyd, Labor MP for Rochdale, said analysis by his party estimates that 7,490 households in Rochdale will be paying hundreds of pounds a month more from next year as rates top 6%.
Analysis by the Labor Party using Bank of England data showed that homeowners coming off two-year fixed term mortgages in October 2022 are set to pay £500 a month more on average after the government’s disastrous mini-Budget handed unfunded tax cuts to the wealthiest.
In a speech to the House of Commons, new Chancellor of the Exchequer Jermey Hunt, who replaced Kwasi Kwarteng last week, set out a new economic plan which he said would prioritize the needs of the most vulnerable.
Meanwhile a senior mortgage technical manager said he expects to see mortgage rates falling next week.
Mr Lloyd said: “People in Rochdale who have scrimped and saved for a deposit have been thrown under the bus by the Tories.
“This isn’t some kind of ‘unfortunate mistake’, it’s an unforgivable act of national self-harm that has crashed the economy. A Tory crisis, created at Downing Street, paid for by working people.
“It doesn’t have to be this way. A Labor government will target 70% homeownership, including giving first-time buyers first chance on new developments and a state-backed mortgage insurance scheme.”
Tony Lloyd said analysis by his party estimates that 7,490 households will be paying hundreds of pounds a month more.
Mr Hunt’s economic statement has now been marked as one of the biggest U-turns in British political history, with the Chancellor backtracking on nearly every single one of his Prime Minister’s policies from the mini-Budget.
In the speech he said: “The central responsibility of any government is to do what is necessary for economic stability.
“Behind the decisions we take and the issues on which we vote are jobs families depend on, mortgages that have to be paid businesses, savings for pensioners, and investing for the future.
“That means decisions of eye-watering difficulty. But I give the House and the public this assurance: every single one of those decisions, whether reductions in spending or increases in tax, will prioritize the needs of the most vulnerable.”
Ray Boulger, senior technical mortgage manager at experts John Charcol, said: “I think fixed mortgage rates are close to a peak and we will start to see rates falling by next week.
“Therefore anyone who can wait should talk to their broker now so they are ready but delay choosing a lender and rate.”
