Over 17,000 families in Portsmouth hit by Tory mortgage penalty as families face annual mortgage payment increase of nearly £3000 this year under the Conservatives.
Labour analysis reveals that the average household in Portsmouth is set to be put under more pressure than ever by Conservative mismanagement of the economy.
Analysis from the Labour Party allows people to search the amount that mortgages are predicted to rise, including by £2,900 in Portsmouth North and £2,600 in Portsmouth South.
It follows the news that many mortgage deals are being withdrawn by Banks and interest rates being increased, with Moneyfacts data suggesting the typical rate on a two year fixed-rate loan had increased to almost 6%, almost double a year ago, and the Resolution Foundation estimating that 6.5m households will be affected by the post-mini budget rise in mortgage rates by 2026.
This week, economists warned that there is a real risk of job losses and a sharp recession. The latest forecasts of economic growth this year suggest that the UK is struggling to get out of the slow lane, with growth of just 0.2% forecast on the year.
Stephen Morgan, Labour MP for Portsmouth South, said:
“The Tory mortgage penalty is devastating for family finances and is holding back our economy.
The country is buckling under 13 years of Conservative mismanagement and a crashed economy, and it is families being asked to pay more on their mortgage once again.
People are asking themselves whether they or their family are better off under the Tories. The answer is no.
Labour will bring financial and economic security back, so that families are not constantly on a cliff edge, and so that we can urgently grow our economy to grab hold of opportunities of the future.”
Earlier this week Mr Morgan voted in the House of Commons on the mortgage crisis urging the Government to get behind Labour’s package of mandatory measures to help ease the Tory mortgage bombshell hitting families.
Labour is calling on the government to bring in temporary measures to guarantee struggling mortgage borrowers can access support from their lenders. The measures would include:
- Requiring lenders to allow borrowers to switch to interest only mortgage payments for a temporary period.
- Requiring lenders to allow borrowers to lengthen the term of their mortgage period.
- Requiring lenders to reverse any support measures when the borrower requests.
- Require all lenders to make government repossession restrictions mandatory.
- Instructing the FCA to urgently issue consumer guidance stating that borrowers making temporary switches to interest only mortgage payments and lengthening the term of their mortgage period shouldn’t see their credit score affected.
Labour have also said they would bring in a Renters’ Charter ending ‘no-fault’ evictions and introduce four-month notice periods for landlords.
