8,800 families hit by mortgage rises
Updated: Jun 28
8,800 families in Bournemouth West hit by Tory mortgage penalty as families face annual mortgage payment increase of £3,100 this year under the Conservatives
Labour analysis reveals that the average household in Bournemouth West is set to be put under more pressure than ever by Conservative mismanagement of the economy. Analysis from the Labour Party allows people to search the amount that mortgages are predicted to rise, including by £3,100 in Bournemouth West. It follows the news that many mortgage deals are being withdrawn by Banks and interest rates being increased, with Moneyfacts data suggesting the typical rate on a two year fixed-rate loan had increased to almost 6%, almost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 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. Jessica Toale, Labour Parliamentary Candidate for Bournemouth West, said: “The Tory mortgage penalty is devastating for family finances and is holding back our economy. “The country is buckling under 13 years of Conservative mismanagement and a crashed economy, 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 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." Ends
Notes • Moneyfacts data on typical two year mortgage rate: https://www.bbc.co.uk/news/business-65925224 • HM Treasury summary of external forecasts: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1157160/_Independent_Forecasts_for_the_UK_Economy__May_2023.pdf • The calculations are based on estimates of the number of households in each constituency who own their home with a mortgage or loan, as recorded in the 2021 Census of England and Wales. This was sourced from https://www.nomisweb.co.uk/ • Uses house price data from the House of Commons Library. https://commonslibrary.parliament.uk/constituency-data-house-prices/ • UK Finance Data says that 8.8m households have a mortgage. Recently the Resolution Foundation have estimated that 6.5m of these households either have already remortgaged since Q4 2022, the first quarter after the mini budget, or will have to by 2026 and be affected by the rise in rates. That is around 74% of all households with a mortgage. And the Resolution Foundation estimated that on average they will pay an extra £2,900 this year. Source: UK Finance Table AP1, 28 April 2023 – sheet ‘AP1Q – OO’. Figures are for first charge mortgage lending only, on a borrower rather than account basis. They exclude buy to let mortgages. https://www.resolutionfoundation.org/publications/the-mortgage-crunch/ https://www.resolutionfoundation.org/publications/macroeconomic-policy-outlook-q2-2023/ • Labour have applied this 75% figure to the numbers of households with a mortgage in each constituency. • And Labour have adjusted the £2,900 cost figure in line with the difference between national average house prices and average house prices in each constituency.