Labour sets out plans to ease mortgage crisis now
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With interest rates due to rise on Thursday, Labour sets out a
five-point plan today to ease the hit from soaring mortgages
and halt repossessions. It comes as the party releases new
figures showing mortgage rates are higher in the UK than in
other advanced economics – leaving households in Britain paying
more in mortgage payments than households in Germany, France, the
Netherlands and Ireland. That gap in mortgage rates with our
neighbours is...Request free trial
With interest rates due to rise on Thursday, Labour sets out a five-point plan today to ease the hit from soaring mortgages and halt repossessions. It comes as the party releases new figures showing mortgage rates are higher in the UK than in other advanced economics – leaving households in Britain paying more in mortgage payments than households in Germany, France, the Netherlands and Ireland. That gap in mortgage rates with our neighbours is costing a typical household in Britain £1,000 more in mortgage payments. It comes as figures reveal the average mortgage costs will be going up by a crippling £2,900 per year, and growing news of mortgage deals being withdrawn by banks. The party set out its five-point plan to ease the Tory mortgage penalty, calling on the government to urgently adopt their plan and introduce measures:
Labour have also said they would bring in a Renters’ Charter ending ‘no-fault’ evictions and introduce four-month notice periods for landlords. The party say that their long-term plan to bring fiscal responsibility and stability back to the UK economy – through strong fiscal rules, respect for economic institutions and Office for Value for Money – will also play a vital role in getting inflation and interest rates down. Moneyfacts data suggests the typical rate on a two-year fixed-rate loan had increased to above 6%, almost the rate double a year ago, and the Resolution Foundation estimates that 6.5m households will be affected by the post-mini budget rise in mortgage rates by 2026. The news comes ahead of Labour leader Keir Starmer and Shadow Chancellor Rachel Reeves visiting Uxbridge and South Ruislip on Thursday - where Labour revealed figures this week showing 10,000 households in that constituency will be paying on average £5,200 more on their mortgages. Rachel Reeves MP, Labour's Shadow Chancellor, said:
“Unlike this government, Labour will not stand by as millions face a mortgage catastrophe made in Downing Street. “Labour will restore the economic and financial security that families deserve. “Our five-point plan to ease the Tory mortgage penalty offers practical help now, while our commitment to fiscal responsibility and growth will secure our economy for the future. “With food and energy prices so high, higher mortgages are the last thing families need. “But it will not be the last burn from Tory economic failure they feel. “Because over the last 13 years, this government have failed to secure our economy, failed families and failed businesses. “Instead of squabbling over peerages and parties and ruling out any action on mortgages, the Tories should be taking responsibility and acting now.” Ends
Notes to editors:
Constituency figures
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