Karin Smyth, MP for Bristol South, has branded the Tory Government’s Budget a “mortgage bombshell” for families in the constituency. This comes as details have emerged showing each household will pay circa £1,500 per year more in higher interest payments.
The average rate on a two-year fixed-rate deal increased by an entire percentage point between last Monday and yesterday to 5.75 per cent, a post-financial crisis high.
The rise raised monthly repayments on a £200,000 home loan by £124 a month to £1,167 — £1,486 more a year. Last December the average rate on a two-year fix was 2.34%.
Following the announcement of the so-called Mini-Budget the Conservative Government has been buffeted by market turmoil as the cost of government borrowing has rocketed – which directly affects the cost of people’s mortgages and other borrowing.
The actions of the Tories also saw the pound crash in value. This resulted in the Bank of England having to bail the Government out to the tune of £65 billion. If no action would have been taken it was believed that several large pension schemes would have gone bust.
Karin Smyth, MP for Bristol South, said:
“The Tory Government’s management of the economy has been nothing short of catastrophic. The actions of the Prime Minister and her Chancellor have placed a mortgage bombshell under households in south Bristol. On average households will now see a Tory premium of £1,500 per year added to their mortgage repayment: money people cannot afford.
“This is an economic crisis made in Downing Street, paid for by working people.
“The Chancellor’s recent speech to Tory Party Conference showed him to be completely out of touch. He mentioned “turbulence” being experienced in the hope of laughing off his mismanagement. It’s clear that the Tory Government cannot be trusted to run our economy. A Labour Government will bring regain the UK’s reputation for sound management of our finances and ensure the cost-of-living crisis is ended.”