Thousands of homeowners face an average mortgage increase of around £960 more a year since the announcement of Chancellor Kwasi Kwarteng’s mini budget according to analysis from Swindon Labour.
Since Mr Kwarteng’s mini-Budget last month banks have been forced to raise interest rates, leading to increased costs for mortgage borrowers with many mortgage products being removed from the market and new products released with variable and fixed rates offerings available between 1.5% and 2% higher than before the Chancellor’s announcement.
And despite the Government’s U-turn on abolishing the 45p rate of tax this week, mortgage rates are not expected to fall.
With 34,751 mortgage holders in Swindon homeowners will be forced to fork out an additional £33,360,960 in mortgage payments over the next twelve months.
Publishing the figures, Labour’s Councillor Jim Robbins said, “This is a crisis made by the Conservatives in Downing Street – and it is costing families in Swindon a fortune.
“The Conservatives have utterly lost control of the economy. They have lost all credibility thanks to their irresponsible plans to fund tax cuts for the rich by borrowing billions of pounds. That lack of credibility is pushing up the cost of borrowing for homeowners in Swindon, and that means mortgages are going up.
“This is incompetence on a colossal scale – and they have damaged our country. The Conservatives must reverse their whole economic, discredited trickle down strategy. As the party of fiscal responsibility and social justice, it will come to the Labour Party to repair the damage this Tory government has done. A general election can’t come soon enough.”
The Bank of England is now expected to increase interest rates by 1 percentage point at its next meeting in November, compared with a 2 percentage point jump forecast in the immediate aftermath of the mini-Budget.
