Keir Starmer warned families across the country that they will face “eye-watering” \u00a3500 mortgage hikes, as experts said the average two-year rate is now the highest in 14 years.<\/p>\n\n\n\n
The Labour leader said Kwasi Kwarteng’s humiliating mini-Budget U-turn after days of market turmoil was too late, with Britons already “suffering the consequences” of higher bills.<\/p>\n\n\n\n
Moneyfacts reported on Wednesday that the average two-year fixed-rate mortgage had breached 6% for the first time since 2008.<\/p>\n\n\n\n
A typical two-year fix stood at 6.07% across all deposit sizes, up from 5.97% on Tuesday.<\/p>\n\n\n\n
“These eye-watering mortgage increases will cause homeowners across the country sleepless nights – and the Tory Government is entirely to blame,” Mr Starmer said, referring to the mortgage market’s chaos.<\/p>\n\n\n\n
According to Labour, the average buyer taking out a two-year fixed mortgage in the third quarter of 2020 would face an interest rate of 1.6% and monthly repayments of \u00a31,057.<\/p>\n\n\n\n
Therefore, if interest rates reached 6%, the monthly increase would be \u00a3498.<\/p>\n\n\n\n
The increase is more pronounced in London, where homeowners could face average increases of \u00a3915 per year, while those in the North East will face an average increase of \u00a3320 per year.<\/p>\n\n\n\n
Mr Starmer went on to accuse the Prime Minister and Chancellor of crashing the economy with unfunded tax cuts “This was a crisis made in Downing Street but paid by working people.<\/p>\n\n\n\n
“The Prime Minister must reverse her kamikaze Budget, including her totally unfunded \u00a317 billion corporation tax giveaway to the biggest companies.\u201d<\/p>\n\n","protected":false},"excerpt":{"rendered":"
Keir Starmer warned families across the country that they will face “eye-watering” \u00a3500 mortgage hikes, as experts said the average two-year rate is now the highest in 14 years. The … <\/p>\n