New analysis conducted by the Labour Party has revealed that even before the latest interest rate rise, new mortgages in the UK cost a typical household over £2,000 more per year compared to France and other neighbouring countries.
The analysis comes as Labour Shadow Chief Secretary to the Treasury Pat McFadden criticised the Government’s lack of proper support.
“The Tory Government’s refusal to step up and offer proper support is forcing families into a far worse financial situation than in neighbouring countries.”
According to the Labour Party, for a £200,000 loan paid back over 25 years, annual mortgage payments in the UK are approximately £1,100 higher than in Belgium and Ireland, and around £800 more than in Germany and the Netherlands.
These findings are based on Bank of England data, which indicates that effective interest rates on new mortgages in April averaged at 4.46%.
Comparatively, European Central Bank figures show that equivalent interest rates were on average 2.91% in France, 3.61% in Belgium, and 3.89% in Germany.
These findings add to the ongoing concerns surrounding mortgage costs and affordability in the UK.
Over the weekend both the Labour Party and the Liberal Democrats expressed concerns about the financial strain faced by mortgage holders and called for greater Government intervention to address the issue.
