Households face mortgage woes after mini-Budget

More than 8,000 households in Southwark will face a jump in mortgage repayments next year as a result of the Conservatives crashing the economy.

According to the Labour Party, using Bank of England data 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 mini-Budget

Further investigation 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 8,251 households in Southwark will be paying hundreds of pounds a month more from next year as rates top 6 per cent.

Cllr Kieron Williams, Leader of Southwark council said: “The Conservative Party’s mini budget has been a disaster for local families. My inbox is full of emails from homeowners terrified by skyrocketing mortgages, and private renters hit by completely unaffordable rents as landlords pass on their mortgage cost too.

“It is unforgivable that the Tories have caused so much distress and hardship just so they can give handouts to high earners, big business and bankers.

“Yet again, rather than acting to help families hit by the housing crises, the Tories have instead tipped thousands more families over the edge. Their failures are a stark contrast to the action Labour is taking in Southwark. With over 2,500 new council homes that local people can truly afford built or on site being built in our borough, and 1,000 more on the way.

“It’s time for this failed Conservative government to step aside and make way for a Labour Government with a serious plan to tackle the housing crises and restore hope to our country.”

The Treasury was asked for a response at the time of going to press.

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