Ruth Cadbury Warns of Mortgage Payment Crisis in Her Constituency
10,900 households in Brentford & Isleworth face average rise of £5,900 per annum
Ruth Cadbury in the House of Commons
June 23, 2023
Brentford and Isleworth MP Ruth Cadbury has published figures which she says shows the true scale of the challenge presented by rising mortgage interest rates.
They show that the average increase in annual payments for 10,900 households in her constituency will be £5,900 this year.
It follows the news that many mortgage deals are being withdrawn by banks and interest rates being increased. Moneyfacts data suggests the typical rate on a two-year fixed-rate loan had increased to almost 6% almost double a year ago, and the Resolution Foundation is estimating that 6.5m households will now be affected by the post-mini budget rise in mortgage rates by 2026.
Economists are warning that these rises will bring about job losses and a sharp recession with economic growth already only forecast to be 02.% this year.
Speaking about this analysis Ms Cadbury said, ‘‘The Government’s mishandling and mismanagement of our economy over the past 13 years is having a disastrous impact on people locally and across the country. Food prices are skyrocketing and now mortgage repayments are set to increase while wages and pay remain low.
‘‘This will have a huge impact on so many people, especially many first-time buyers and those living in shared ownership or leasehold properties who are already facing a sharp increase in their service charge and building insurance. I know that the mortgage hike will also impact many people renting locally who could see their rents rise as a result of this.
‘‘So many families locally are already struggling with increased costs. It’s clear the Government have lost control of our economy and cannot provide the security that people locally desperately need.’’
The government does not set interest rates, this is done by the Bank of England which operates independently.
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