Ruth Cadbury MP has warned that over 10,000 households locally are set to be hit by a significant increase in their annual mortgage payments. This comes from new analysis which shows the predicted rise will be £5,900, impacting 10,900 households in her Brentford and Isleworth constituency.
It follows the news that many mortgage deals are being withdrawn by banks and interest rates being increased. Moneyfacts data suggests the typical rate on a two year fixed-rate loan had increased to almost 6% almost double a year ago, and the Resolution Foundation estimating that 6.5m households will now be affected by the post-mini budget rise in mortgage rates by 2026.
This week, economists warned that there is a real risk of job losses and a sharp recession. The latest forecasts of economic growth this year suggest that the UK is struggling to get out of the slow lane, with growth of just 0.2% forecast on the year.
Speaking about this analysis Ruth Cadbury MP said:
‘‘The Government’s mishandling and mismanagement of our economy over the past 13 years is having a disastrous impact on people locally and across the country. Food prices are skyrocketing and now mortgage repayments are set to increase while wages and pay remain low.
‘‘This will have a huge impact on so many people, especially many first-time buyers and those living in shared ownership or leasehold properties who are already facing a sharp increase in their service charge and building insurance. I know that the mortgage hike will also impact many people renting locally who could see their rents rise as a result of this.
‘‘So many families locally are already struggling with increased costs. It’s clear the Government have lost control of our economy and cannot provide the security that people locally desperately need.’’