9,200 families in York Outer face annual mortgage payment increase of £3000 under Tories

Labour analysis reveals that the average household in York Outer constituency is set to be put under more pressure than ever by Conservative mismanagement of the economy.

A drop down spreadsheet created by the Labour Party allows people to search the amount that mortgages are predicted to rise by.

It follows the Bank of England warning in December that around half of households with a mortgage, a total of 4 million, will be exposed to rate rises this year, and Bloomberg reporting that around 800,000 will see their mortgage rates double.

This week, the IMF chief economist singled out higher mortgage rates as a reason for Britain’s poor performance after the country’s growth was downgraded, leaving it as the only major economy expected to shrink in 2023.

Labour’s parliamentary candidate for York Outer, Luke Charters said:

“”It’s already difficult and expensive enough to buy a family home in York”

“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 it’s 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.

“By stabilising the economy, making it stronger and getting it growing, Labour will stop us lurching from crisis to crisis, and make Britain thrive again.”

Ends

Notes

• The calculations are based on estimates of the proportion of households in each constituency who own their home with a mortgage or loan. This was requested from the House of Commons Library using 2021 census data.
• This was combined with data sourced from Nomisweb.co.ukusing the Annual Population Survey for 2021 on the number of households who live in each constituency overall.

https://www.nomisweb.co.uk/

• In August 2022, the month before the government’s mini-budget, Moneyfacts said that a typical two-year fixed mortgage rate was 3.95%.

https://www.thesun.co.uk/money/19414221/bank-england-interest-rates-hike-mortgage-bills-repayments/

• This month, Moneyfacts said a typical two-year fixed mortgage rate was 5.75%.

https://www.telegraph.co.uk/business/2023/01/09/mortgage-rates-almost-triple-nearly-800000-homeowners-year/

• Using house price data from the House of Commons Library, the analysis assumes an 80% loan to value ratio and compares how much would be paid at an interest rate of 3.95% and how much would be paid at 5.75%.

https://commonslibrary.parliament.uk/constituency-data-house-prices/

• Attached is a spreadsheet showing the number of households with a mortgage in each constituency and the estimated increase in mortgage costs a year for median house purchase at 80% mortgage.