Research initiated by the Liberal Democrats has uncovered that approximately 1.1 million UK households are on the brink of facing heightened mortgage costs ahead of a potential General Election in November. This situation emerges as the Bank of England contemplates a cut in the current 5.25% interest rates.
According to the House of Commons Library analysis, grounded on Financial Conduct Authority data, 1.1 million fixed-term mortgage contracts are scheduled to terminate from February to October. Notably, around 700,000 of these are fixed-rate mortgages concluding between May and October 2024.
This timing suggests that Prime Minister Rishi Sunak could encounter increased discontent from voters grappling with escalating mortgage expenses if the election is deferred to November, as is currently anticipated.
The findings also reveal that homeowners at the end of their mortgage terms are expected to see their monthly mortgage interest payments surge by £240 on average, marking a 39% increase. This translates to roughly 120,000 mortgage contracts ending each month, or over 4,000 each day.
In response, the Liberal Democrats are advocating for the creation of an emergency Mortgage Protection Fund to assist families at risk of foreclosure. The funding for this proposal would come from reversing recent tax cuts for banks implemented by the Conservative government.
Liberal Democrat Treasury Spokesperson, Sarah Olney MP (pictured), criticised the Government’s economic policies: “Every day thousands more homeowners are being hit with an astronomical rise to their monthly mortgage bills. This is a devastating blow to family finances in the middle of a cost of living crisis.”
Olney also attributed part of the blame to the economic impact of Liz Truss’s premiership, urging Rishi Sunak to support those in danger of losing their homes due to what she referred to as “the Conservative Party’s economic vandalism.”
Highlighting the need for a General Election, Olney added: “We need a General Election now to end this Conservative chaos. The sooner we put this Conservative government out of its misery the better for the economy, the country and the money in people’s pockets.”
