Map shows 10 areas facing highest and lowest mortgage hikes according to Labour

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  • February 2, 2023
  • Comments Off on Map shows 10 areas facing highest and lowest mortgage hikes according to Labour
Map shows 10 areas facing highest and lowest mortgage hikes according to Labour thumbnail

Homeowners are looking at possible mortgage rate increases of up to £14,000 a year, Labour claims.

The party used data from 2021’s census to calculate how much different areas can expect to see mortgages go up.

London tops the ranking, with the highest rises expected in Kensington, where costs are set to soar by £13,980.

The cities of London and Westminster, and then Chelsea and Fulham come next, with possible rises of £11,730 and £11,480 respectively.

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

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

Homeowners in Rhondda and Easington are to see the lowest increases, at £1,030 and £910 respectively.

Shadow chancellor Rachel Reeves said: ‘The Tory mortgage penalty is devastating for family finances and is holding back our economy.

‘The country is buckling under 13 years of Conservative mismanagement, and it’s families being asked to pay more on their mortgage once again.

‘People are asking themselves whether they or their family are better off under the Tories. The answer is no.

‘By stabilising the economy, making it stronger and getting it growing, Labour will stop us lurching from crisis to crisis, and make Britain thrive again.’

But a senior Tory source hit back: ‘Under Labour, the number first-time buyers fell to the lowest ever, the number of homes built the lowest ever, and homeownership was put out of reach for millions.

‘The Labour Party offer no real change on the issues that matter to the British people. We have a real plan to half inflation this year and build a better Britain.’

Breaking: Bank interest rates are going up to 4%, with the UK economy forecast to contract.

This will worry the many families already paying a Tory mortgage penalty.

We don’t have to continue on this path when Britain has huge potential to grow.

— Rachel Reeves (@RachelReevesMP) February 2, 2023

More than 1.4 million households are facing the prospect of interest rate rises when they renew their fixed-rate mortgages this year, the Office for National Statistics has predicted.

The past year has seen a string of Bank of England base rate hikes have taken place over the past year.

Borrowers on fixed-rate mortgages have so far been cushioned from the immediate impact but should expect to get a shock when they go to renew.

Just today, the Bank of England confirmed it will hike interest rates for the 10th time in a row in a bid to tackle high inflation.

Borrowing costs are rising to 4%, from the current rate of 3.5%, putting the fear of god into homeowners already struggling with their mortgages.

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