Homeowners face mortgage hikes of up to £14,000 a year, says Labor

Homeowners could face mortgage increases of up to £14,000 a year as they exit low fixed rate deals, adding to lower living standards, Labor said.

The party’s analysis shows the expected annual increases in costs for buying a median home with an 80% mortgage across all UK constituencies.

London seats top the ranking, with the highest increases expected in Kensington, where costs will skyrocket by £13,980.

The cities of London and Westminster follow, and then Chelsea and Fulham, with possible increases of £11,730 and £11,480 respectively.

Richmond Park could see mortgages rise by £9,040, Hampstead and Kilburn £8,740 and Westminster North £8,450, according to the analysis.

Further down the list, Sheffield Hallam mortgages are forecast to rise by £3,080, North East Derbyshire by £2,070 and Plymouth, Sutton and Devonport by £1,850.

Homeowners in Rhondda and Easington will see the smallest increases, at £1,030 and £910 respectively.

Shadow Chancellor Rachel Reeves said: “The Conservative Mortgage Sanction is devastating to household finances and is holding our economy back.

“The country is sinking under 13 years of conservative mismanagement, and families are being asked to pay more on their mortgages once again.

“People wonder if they or their families are better off with the Tories. The answer is no.

“By stabilizing the economy, strengthening it and making it grow, Labor will prevent us from going from one crisis to another and make Britain prosperous again.”

Ms Reeves will visit estate agents in Finchley and Golders Green on Thursday, where the cost of a typical mortgage will rise by £7,490 a year, to discuss how rising mortgages are affecting the business, homeowners and buyers.

The Office for National Statistics has forecast that more than 1.4 million households face the prospect of interest rate increases when they renew their fixed-rate mortgages this year.

A series of Bank of England base rate increases have taken place over the past year, but fixed-rate mortgage borrowers have been shielded from their immediate impact. Some may be scared when they come to renew.

A senior Conservative source said: “Under Labor, the number of first-time buyers fell to an all-time low, the number of homes built was an all-time low and home ownership was out of reach. of millions.

“The Labor Party…offers no real change on the issues that matter to the British people. We have a real plan to halve inflation this year and build a better Britain.”

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