South East Cambs Labour claims that East Cambs families could be paying £15.57 million extra because of Conservative economic failure.
“Our investigation found that the number of people re-financing at the end of a fixed rate deal is one in four of all mortgage holders in the UK while one in eight are on tracker mortgages,” said Frank Danes, SE Cambridgeshire Labour’s Cost of Living spokesperson.
“That means an estimated 3,504 households in East Cambridgeshire will be paying hundreds of pounds a month more as they re-finance. A further 1685 on tracker deals have seen their bills go up almost every month as interest rates rose nine times in 2022.
“At the start of 2022, the Bank of England Base rate was 0.25%. Today it is 3.5%. This has a big knock-on to the mortgage rates that families pay for their homes. The interest rate rises are a direct result of the Conservatives crashing the economy.
“The Bank of England estimates an average of £250 per month extra each. Added up across East Cambridgeshire, mortgage holders will face additional bills totalling £15,570,000.
“The figure could be even higher as local housing costs are much higher than average.”
Mr Danes said: “The economy is under a triple threat of high energy, high food, and high household costs.
“Now, thousands of homeowners in our district have no choice but to re-finance their mortgage adding several hundred pounds to their monthly bills. This will be unsustainable for many.
“It is not just home-owners paying the price of Conservative failure. On top of this the 6000 private tenants in East Cambridgeshire could see their rents jump as buy-to-let landlords pass on increased mortgage costs.
“I was shocked and disappointed to hear local MP Lucy Frazer and Minister for Housing and Planning talk about ‘this difficult time’. She was challenged about the hikes in mortgages by Labour’s Lisa Nandy MP and Shadow Levelling Up Secretary.
“Mrs Frazer made no acknowledgement that the crisis in mortgage costs is a direct result of the Conservative Autumn mini-budget.
“The budget that put the economy into a tailspin. The budget that is having a lasting and disastrous effect. The budget that the Conservatives try to pretend was a simple error that they hope we will all forget about.
“As voters are telling us, they will not forget what the Conservatives have done, and they will not forgive them. We will see the results in forthcoming elections.
“And from what I am hearing on the doorstep, electors are turning towards a refreshed Labour Party that is ready for Government.
“In the meantime, as Lisa Nandy said to Lucy Frazer: sorry would have been a good start.”
Notes provided by SE Cambs Labour on research basis
Millions face £250 monthly mortgage rise https://www.bbc.co.uk/news/business-63961179
The ONS Estimates 6.8 million properties in the UK were owned with a mortgage or loan.
Source: Office of National Statistics
UK Finance expects around 1.8 million people to re-mortgage in 2023, which is 26% of all mortgages.
Source: Yahoo News
Approx 850,000 tracker mortgages in the UK https://www.ukfinance.org.uk/news-and-insight/blogs/how-the-bank-rate-affects-mortgage-rates (which is 12.5% of total mortgages)
ONS estimates the numbers of households by tenure in 2020
Source: Office of National statistics
|2020 Homes Owned with Mortgage or Loan
|Estimated number refinancing in 2023 (26%)
|Estimated number on tracker mortgages (12.5%)
|Estimated number facing increased mortgages
Lucy Frazer responds to Lisa Nandy https://twitter.com/haggis_uk/status/1612472799905611777?s=48&t=E2-qO_u7cXM3LrlMrddCWQ
Bank of England base rates rise nine times in 2022