As many as 33,986 of households in Newcastle will face an eyewatering jump in mortgage repayments next year as a result of the government crashing the economy. Analysis by the Labour Party using Bank of England data showed that homeowners coming off two-year fixed term mortgages in October 2022 are set to pay £500 a month more on average after the government’s disastrous mini-budget handed unfunded tax cuts to the wealthiest.
Further investigation has found that the number of people refinancing on the terms above is forecast to be 1.8 million people out of a total 6.8 million mortgage holders – or one in four of all mortgage holders in the UK.
That means an estimated 23.22% of households in Newcastle Central will be paying hundreds of pounds a month more from next year as rates top 6%.
Response from Labour
Lisa Nandy, Shadow Housing Secretary said:
“At our party conference last month, Labour announced a comprehensive plan to target 70% homeownership, including giving first-time buyers first dibs on new developments and a state-backed mortgage insurance scheme.”
Chi Onwurah, Shadow Science, Research and Innovation Minister and MP for Newcastle Central, said:
“The Prime Minister has been forced to abandon her unfunded tax cut for the richest one per cent – but it comes too late for families in Newcastle who will pay higher mortgages and higher prices for years to come.”
“The Conservative Party has crashed the economy, leaving people worried as they face up to higher mortgages and soaring costs., they have damaged the UK’s reputation on the global stage and left us all worse off. The fact the Bank of England had to step in with a £65 billion bailout with taxpayers money is deeply shameful. Their discredited trickle down economics don’t have the confidence of the country or the markets.”