New analysis, based on research by the Resolution Foundation, reveals that a staggering 7,680 households in Lewisham face a £2,300 Tory mortgage penalty this year thanks to soaring interest rates.
After the Conservatives crashed the economy, interest rates have soared, leaving homeowners facing huge rises in their repayments when they renew their mortgages. The Resolution Foundation estimate that about 1.6 million households will see their fixed-rate deal expire this year and are set to face an average increase in their annual mortgage bill of around £2,300 if they re-fix. That’s the equivalent of 7,680 households in Lewisham paying a combined total of £17,662,000 more a year.
Analysts expect more pain to come with some predicting rates will go as high as 5.75%, with mortgage stress levels set to hit heights not seen since the 1980s. The Resolution Foundation estimates that families have only experienced about one third of the £12 billion increase in total annual repayments that we expect to see by 2026.
Publishing the analysis, Cllr Amanda de Ryk, Lewisham Labour’s Cabinet Member for Finance and Strategy, said,
“The Conservatives crashed the economy, and we are all paying the price. The cost-of-living crisis is deepening for families in Lewisham – in large part thanks to the huge rise in mortgages and rents thanks to the Tory mortgage penalty.
“After years of Conservative failure families in Lewisham are asking themselves a simple question – do I feel better off than 13 years ago? For most people the answer is no.
“We cannot go on like this – the economy has stalled, the cost-of-living crisis is deepening by the day, NHS waiting lists are soaring and nothing seems to work. It’s time for change – and Labour has a plan to build a better Britain. No more sticking plaster politics, but real mission-driven government to get this country back on its feet.”