Labour warns of “unbearable burden” as mortgage costs set to rise

Shadow Exchequer Secretary to the Treasury Abena Oppong-Asare MP (pictured) has warned that households will face an “unbearable burden” following yesterday’s increase to the base rate.

The Bank of England increased the rate by 0.5% and made dire warnings about the state of the economy.

And analysis from Labour found that the interest rate hike would see repayments on a variable rate mortgage for the average house rise by £600 a year.

Oppong-Asare said: “The huge financial impact on households as a result of Tory failure is unforgivable”.

“Families are already stretched, and this is yet another added unbearable burden. People should not have to live in constant worry about the fact their bills are rising to levels far above what their wage allows for.

“Labour would help struggling households by removing the tax breaks that are subsidising oil and gas producers and using that money to help people now, including by cutting VAT on energy bills.

“And with our climate investment pledge and plan to buy, make and sell more in Britain, a Labour government will build the strong, secure and fair economy we need.”

Labour’s analysis looked at what the increase will mean a 75% loan-to-value variable rate mortgage for the average house in the UK will see repayments rise by over £600 a year.

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