By Lucy Ashton
The Tory mortgage bombshell is causing a housing crisis in West Dunbartonshire, Labour MSP Jackie Baillie has said.
A new analysis reveals more than 60,000 homes are at higher risk of repossession as a result of soaring mortgage costs.
The Bank of England has warned that the number of people likely to struggle with debt repayments is rising, sparking fears of a potential wave of repossessions.
Scottish Labour’s analysis of their projections suggests that by the end of the year around 61,410 Scottish households will be facing difficulties with debt repayment, putting them at higher risk of repossession.
This shocking figure is based on Bank forecasts from before the interest rate rise in early August and comes just weeks after Scottish Labour analysis revealed that 546,600 households in Scotland could be paying an average of £190 more a month on their mortgages next year – with costs now set to rise further still.
Jackie Baillie has labelled these latest figures ‘damning’ and called on both governments in Holyrood and Westminster to do more to support those at risk of repossession.
In contrast to both the Tories and the SNP, Labour has set out plans to ease the pain of soaring mortgage rates and help those facing repossession.
This includes a UK-wide pledge from Labour to make mortgage support measures mandatory, and Scottish Labour’s plan to revamp the Mortgage to Shared Equity scheme to expand eligibility and give maximum support to avoid repossession wherever possible.
Jackie Baillie said: “The stress and anxiety facing many homeowners across Dumbarton, the Vale of Leven, Helensburgh and Lomond and indeed across Scotland right now is palpable, but the disastrous response from government has left them with nowhere to turn.
“While people are seeing their monthly mortgage payments soar outwith their budget and their control, both the Tories and the SNP are missing in action and have no long-term plan to support homeowners.
“We cannot afford to stand on the side lines and let people weather this storm alone. Only Labour has a real plan to support people through this crisis by forcing banks to provide support for those at risk of repossession, and by revamping the Mortgage to Shared Equity Scheme in Scotland.”
There’s a war to be fought – economic and physical and it’s costing billions.
The country is also struggling from a decling economy as the UK slips down the world rankings
Brexit too has adversely impacted the economy.
And UK debt that is so high, as it is in the US, that inflation is the only way that the Anglo Saxon economies can get it reduced.
If anyone thinks this all happened by accident then they need their heads looked at.
All this is.no accident. It is the legacy of decades of Tory – Labour neo Conservative mismanagement.
But as the old song goes we maybe ain’t seen nuthin yet.