AUGUST 6, 2025
By Bill Heaney
Scottish Labour has welcomed new analysis showing mortgages are on average £1,000 a year cheaper under the UK Labour government.
Under the last Tory government interest rates soared as a result of Liz Truss’ disastrous mini-budget, pushing mortgages through the roof.
Since Labour was elected, UK interest rates have been cut four times – taking an average of £1,000 a year off new mortgages.
Scottish Labour has said these figures show the difference a Labour government is making for working people.
They added that Labour has also increased the Minimum Wage and the National Living Wage, frozen fuel duty, and delivered a record budget settlement for Scotland.
The UK government’s historic trade deals with the US, India and the EU are also expected to benefit families by cutting costs on the essentials in supermarkets.
Scottish Labour has said this fall is a result of the economic stability Labour has overseen, warning that that the “fantasy economics” of both the SNP and Reform would push mortgages back up and leave families worse off.
First Minister John Swinney and Labour Finance spokesman Michael Marra.
First Minister John Swinney has previously called for the UK government to abandon the fiscal rules it uses to avoid a financial crash, while Reform UK’s Nigel Farage’s uncosted spending plans are estimated by the IFS to create an eye-watering £80 billion budget blackhole.
Scottish Labour Finance spokesperson Michael Marra said “Labour is delivering for working people and making families across Scotland better off.
“From lowering mortgage costs to boosting pay, Labour is working tirelessly to put more money in people’s pockets – but we know the job isn’t done.
“While Labour is cleaning up the mess left behind by the Tories, John Swinney and Nigel Farage are peddling fantasy economics that would make Liz Truss blush.
“Both the SNP and Reform are gambling with people’s livelihoods and risking another crash that would push mortgages through the roof again.
“Labour will continue working to build an economy that works for working people, but we need a change of direction in Scotland too and a Scottish Government that can be trusted with public money.”
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MORTGAGE CALCULATOR |
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Jul-24 |
Aug-25 |
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Average UK house price |
£262,623 |
£268,652 |
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Average loan amount (at 85% LTV) |
£223,230 |
£228,354 |
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Average interest rate (2-year fixed mortgage) |
5.37% |
4.52% |
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Life loan (in years) |
25 |
25 |
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Payments per year |
12 |
12 |
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Total number of monthly payments |
300 |
300 |
Monthly fall: |
Annual fall: |
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Payment per month |
£1,353.55 |
£1,271.86 |
£81.69 |
£980.26 |
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