Homeowners are being hit by an average rise of almost £8,000 in mortgage interest payments after borrowing rates trebled in two years, Labour warns.
Analysis found the average household is shelling out an extra £150 every week – £7,800 per year.
It means the average person getting a new mortgage deal now pays £223 a week in mortgage interest payments alone – up from £71 in 2021.
People with a 75% loan-to-value mortgage faced a typical interest rate of 4.63% in April, which is three times the 1.49% charged two years earlier. Labour blamed skyrocketing rates on former Chancellor Kwasi Kwarteng ’s disastrous mini-Budget during Liz Truss ’s brief stint as PM last year.
Mortgages are up by almost £8,000 a year (Anadolu Agency via Getty Images)Hundreds of fixed-rate mortgage deals were axed from the market last weekend, with some lenders pulling their entire range. Pat McFadden, Shadow Chief Secretary to the Treasury, said: “Homeowners continue to suffer thanks to the Tories’ reckless economic gamble.
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“This Tory mortgage penalty has increased the cost of home ownership, causing huge worry for families.”
The Treasury said: “Central banks around the world are raising interest rates to combat high inflation. We are providing around £3,300 per household to help with rising costs.”
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