Margaret Greenwood MP has spoken in parliament about what she called the “devastating impact” of rising mortgage costs.
She said that this is being felt not only by people with mortgages, but also by private renters as some landlords pass on the costs to them.
The Wirral West MP was speaking in the House of Commons as MPs took part in an opposition day debate that was called by the Labour Party.
Earlier this week, the government faced criticism after it became clear that its new mortgage charter, which aims to provide support for people struggling with their mortgage payments, will only cover 85% of the market, leaving potentially around one million homeowners missing out on support.
Labour has also highlighted that average mortgage costs will be increasing by £2,900 per year, with a typical household in the UK paying over £2,000 more per year than in France and over £1,000 more than in Ireland and Belgium.
Labour has itself come forward with a five-point plan to address the mortgage crisis which, among other things, would require lenders to:
- allow borrowers to switch to interest only mortgage payments for a temporary period
- allow borrowers to lengthen the term of their mortgage period
- wait a minimum of six months before initiating repossession proceedings
Labour has also said that it would bring in a Renters’ Charter ending ‘no-fault’ evictions which currently allow landlords to evict tenants without giving a reason.
Speaking after the debate, Margaret Greenwood MP said, “I was pleased to have the opportunity to contribute to this important debate.
“I have received correspondence from residents in Wirral West who are struggling to pay their mortgages, and I have also heard from people who are struggling to keep up with their rent. This is a matter of extreme concern.
“It is clear that millions of families across the UK are feeling the pain of 13 years of Conservative mismanagement of the economy.
“The government was slow to come forward with support on mortgages, and even now that it has, that support could lead to around one million homeowners missing out.
“It is clear that we need to see more support from the government for people with mortgages, and we need to see more support for people who rent too.
“Landlords issuing no-fault notices to tenants causes misery and upheaval, particularly for people with disabilities. This is something that I am acutely aware of because of constituents who have contacted me about this issue.
“The government should adopt Labour’s five-point plan to address the mortgage crisis. It should also bring forward a Renters’ Charter, as Labour has proposed, and bring an end to no fault evictions.”