Over 12,000 households in Wirral will face an eyewatering jump in mortgage repayments next year as a result of the Conservatives crashing the economy, Birkenhead MP Mick Whitley has warned.
Analysis by the Labour Party using Bank of England data showed that homeowners coming off two-year fixed term mortgages in October 2022 are set to pay £500 a month more on average after the government’s disastrous mini-Budget handed unfunded tax cuts to the wealthiest.
Further investigation has found that the number of people refinancing on the terms above is forecast to be 1.8 million people out of a total 6.8 million mortgage holders – or one in four of all mortgage holders in the UK.
That means an estimated 12,365 households in Wirral will be paying hundreds of pounds a month more from next year as rates top 6%.
Lisa Nandy MP, Shadow Housing Secretary, said, “The Conservatives have sacrificed homeowners across the country who now have a Tory premium to pay on their mortgages. Young people in Wirral who have scrimped and saved for a deposit have in the blink of an eye been thrown under the bus.”
“This is not simply an unfortunate mistake. It is an unforgivable act of national self-harm that has crashed the economy.”
Mick Whitley, Member of Parliament for Birkenhead, said, “Liz Truss may have tossed her Chancellor to the scrap heap, but the damage has already been done – and my constituents will continue to pay the pay price for a Tory crisis, made in Downing Street. Soaring mortgage rates are set to have a devastating impact on homeowners who are already struggling to stay afloat in the midst of the worst cost of living crisis in a generation, as well as on all those who are seeing their dreams of home ownership slip away.”
“But I’m also deeply concerned about what this will mean for the very worst-off in my community – people living in the private-rented sector. There’s no doubt that rising rates will be passed on to tenants in the forms of higher rents and there’s a very real danger that that could lead to a surge in homelessness this Christmas.
“A radical course correction is now badly needed. It’s time that Liz Truss abandons her fantasy economics and steps up with a badly-needed package of financial support to help people get through this winter – beginning with a commitment to uprating benefits in line with inflation.”