MORTGAGES: Struggling families are left to pick up the tab for shambolic Tory budget

By Bill Heaney

Liberal Democrats demand the Government to step in to save homeowners unable to keep up with spiralling mortgage costs, warning “peoples’ homes are now on the line.”

New polling commissioned by the Liberal Democrats has revealed three in four (75%) blame the Government’s budget for higher than expected mortgage rates.

The findings reveal even the majority of Conservative voters (68%) blame the expected rise in rates on the Government’s budget last month, which sent the financial markets into turmoil.

The Bank of England is expected to raise interest rates to as much as 6% next year, adding considerable costs to mortgages. This week Moneyfacts reported the typical two year fixed rate mortgage has topped 6% for the first time in 14 years.

Those who own their home with a mortgage also blame the likely rise on rates on the Government’s budget (76%).

Around two million people in the UK on a tracker or variable rate mortgage could see their monthly costs rise even further following the budget. According to UK Finance around 1.8 million homeowners will come to the end of their fixed-rate deal in 2023.

The Liberal Democrats have accused Liz Truss and Kwasi Kwarteng of “betraying homeowners” and demanded the Government now step in to help those who cannot afford higher mortgage bills.

Liberal Democrat Scotland spokesperson Christine Jardine MP, pictured right, a former journalist in West Dunbartonshire,said: “Struggling families are left to pick up the tab for this Government’s shambolic budget. The Conservative Government is betraying homeowners. 

“People’s homes are now on the line as a direct result of this Conservative Government’s failed attempt to run the economy.

“Liz Truss and Kwasi Kwarteng are forcing struggling families and pensioners to fund tax cuts for big banks and the richest companies. Truss and Kwarteng crashed the markets and sent mortgage bills spiraling, all to pay for their fantasy budget.

“It is time the Conservative Government cleaned up their mess. This should start with a new package to help people pay their spiralling mortgage bills. Frankly, I think Liz Truss owes every mortgage owner an apology for adding hundreds if not thousands of pounds to their bills.”

Leave a Reply