Families pay more than £530 extra on their mortgage because of Liz Truss, says Labor

Blaming the “disastrous premiership” of Liz Truss, Labor said a household with a mortgage on the average property is paying £537 a month more than it was 12 months ago.

Lisa Nandy The MP, the shadow secretary, said tens of thousands of families would be paying higher mortgages for years “because Conservatives ruined the economy.”

“This is a Tory crisis made in Downing Street and paid for by working people. Tens of thousands of households will be paying higher mortgage bills in the coming years because the Conservatives have wrecked the economy,” she said.

“Despite the reversals, the damage is done. Even now, families still pay more because Govt lost all confidence.

“The Tories simply cannot be trusted with the economy. Only Labor offers the leadership and ideas to get Britain out of this mess, which is why we need a general election now.”

The current average property price in the UK is estimated at £295,903.

Labour’s analysis applies the average loan-to-value ratio for mortgage sales in the UK, which is 70%. A 70% mortgage on a £295,903 home would cost £207,132.

The average term of a mortgage loan reached a record of 30 years in June.

On October 20, 2020, the annual rate was 2.25%, and on October 22 last year, it was 6.65%.

At 2.25% the monthly mortgage payments on a property worth £295,903 would be £791.75, while at 6.65% they would be £1,329.72 – a monthly increase of £537. 96 pounds sterling.

That would be an extra £12,911.06 over two years, according to Labor figures.

Finance UK expects 1.8 million people to remortgage next year, around 26% of all mortgages.

Responding to Labour’s analysis, a spokesman for the Treasury said: “Growth requires certainty and stability.

“The primary responsibility of any government is to do what is necessary for economic stability, and we have done that.

“But the long-term economic outlook for the UK remains positive as we deliver on our growth mission and, according to the IMF, the UK is on track for the fastest growth in the G7 this year.”