Homeowners are being hit with a ‘Tory mortgage penalty’ of £7,000 a year, Labour has claimed.
Analysis by Labour found the average homeowner who had changed their mortgage product since Liz Truss and Kwasi Kwarteng’s mini-Budget last year is now spending an extra £150 every week.
Pat McFadden, shadow chief secretary to the Treasury, said: “Britain’s homeowners continue to suffer thanks to the Tories’ reckless economic gamble.
“This Tory mortgage penalty has increased the cost of home ownership by thousands of pounds a year, causing huge worry for families, while putting the prospect of owning a home further out of reach for many others.
“Rishi Sunak might want to forget the economic misery the Conservatives have inflicted, but the public can’t forget about it as their outgoings soar.
“Labour will make our economy stronger and more secure, and stop working people paying the price for 13 years of Tory failure.”
Today the Centre for Economics and Business Research (Cebr) warned that rising mortgage rates are expected to cost UK households £9bn over 2023-2024, with steepest hikes in London and South East.
Cebr now expects the 2-year (75% LTV) mortgage rate to average 5.1% in 2023, indicating the Bank of England is likely to raise rates even higher than initially anticipated.
