Families face annual mortgage payment increase of £3500 this year under the Conservatives.

Labour analysis reveals that the cost of living crisis is affecting mortgage payers due to Conservative mismanagement of the economy.

It follows the news that many mortgage deals are being withdrawn by banks and interest rates being increased, with Moneyfacts data suggesting the typical rate on a two year fixed-rate loan had increased to almost 6%, almost double a year ago, and the Resolution Foundation estimating that nationally 6.5m households will be affected by the post-mini budget rise in mortgage rates by 2026.

This week, economists warned that there is a real risk of job losses and a sharp recession. The latest forecasts of economic growth this year suggest that the UK is struggling to get out of the slow lane, with growth of just 0.2% forecast on the year.

Jayne Kirkham, Labour Parliamentary Candidate for Truro and Falmouth said:

“The Prime Minister is failing to get control of the economy that his government damaged so badly and it is families being asked to pay more on their mortgage once again.

“People are asking themselves whether they or their family are better off under the Tories. The answer is no.”

Labour proposed a plan in Parliament this week to direct lenders to allow borrowers to lengthen their mortgage term, or switch to interest only mortgage payments, and receive six months’ protection from repossession, without their credit rating being affected. We would also help tenants by bringing in a Renters’ Charter, ending ‘no-fault’ evictions and introducing four-month notice periods for landlords. The Conservative government voted that plan down.

“Labour will bring financial and economic security back, so that families are not constantly on a cliff edge, and so that we can urgently grow our economy to grab hold of opportunities of the future.”