Homeowners are facing massive hikes in their mortgage payments (Picture: Shutterstock/Getty)
Families are paying at least £530 more for their mortgages than at this time last year, new analysis shows.
Laying the blame with Liz Truss, the Labour Party said tens of thousands of households are suffering ‘because the Conservatives crashed the economy’.
The opposition’s analysis is based on a 70% mortgage for a £295,903 house – the UK’s current average property price – meaning £207,132 is being borrowed.
Last October, annual interest rates stood at 2.25%, which left a typical monthly repayment of £791.75 in Labour’s scenario.
But rates had increased to 6.65% when the PM announced her resignation on Thursday, taking repayments to £1,329.72 – a 68% jump.
Over two years, this amounts to an extra £12,911.06 families would have to cough up.
‘This is a Tory crisis, made in Downing Street and being paid for by working people,’ shadow levelling up secretary Lisa Nandy said.
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Calling for a general election, she added: ‘Despite the U-turns, the damage has been done. Even now, families are still paying more because the Government has lost all credibility.’
UK Finance expects 1.8 million people to remortgage next year, which is around a quarter of all mortgages.
Responding to Labour’s analysis, a Treasury spokesperson said: ‘Growth requires confidence and stability.
‘A central responsibility for any government is to do what is necessary for economic stability, and we have done so.
‘But the UK’s long-term economic prospects remain positive as we deliver our mission for growth, and according to the IMF the UK is on course to have the fastest growth in the G7 this year.’
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The Labour Party said tens of thousands of households are suffering ‘because the Conservatives crashed the economy’.