Hundreds of people in Rye are being hit by the mortgage crisis and the government is not doing enough to help them, says Labour’s Helena Dollimore.
Labour analysis reveals that 9,200 families in Hastings and Rye face an annual mortgage payment increase of £3,200 a year. Many mortgage deals are being withdrawn by banks and interest rates are being increased. Chancellor Jeremy Hunt has ruled out government help on mortgages and has urged homeowners to be “patient” with “necessary” interest hikes.
Helena Dollimore, parliamentary candidate for Hastings and Rye said: “The Tory mortgage penalty is devastating for family finances and many are constantly on a cliff edge.”
The party has said it would force banks to take a range of steps to protect borrowers and would seek protection for renters affected by the rise in mortgages.
Helena added: “Labour will bring financial and economic security back, so we can grow our economy to grab hold of opportunities of the future.”
Data from Moneyfacts suggests the typical rate on a two-year fixed-rate loan had increased to almost 6%, almost double a year ago. The Resolution Foundation estimated that 6.5m households will be affected by the post-mini budget rise in mortgage rates by 2026.
Image Credits: Helena Dollimore .
Someone who has no knowledge of history, in 1992 my mortgage company fixed my yearly interest rate at 17.5%. For the last 25 years we have had low interest rate, easy money, to borrow on everything, 92% of 10 year old and younger cars are on PCP and the like, if one is able to get a delivered takeaway and pay in installments, then the economy is in a mess, with The Bank of England being at the heart of this mess, printing money for quantitative easing, covid funding, and still no understanding that it is has always been other things going on in the world that effects the UK’s economy. If I earn £1 from a client and then spend that £1, The Bank of England would calculate £3 had been created/spent, when actually its only been the same £1. At any one time there has always more savers than borrowers, but no one has been bothered about them for the lass 25 years, but what was the point to save with the dismal interest rates, or pension annuity rates. Now people want everything and they want/demand it now, so they borrow rather than saving and buy once they have enough money, my 1st car was a 25 year old Mk 3 Triumph Spitfire, because that’s all I could afford. Stop blaming everyone else, and wanting a bale out.
What goes up must come down eventually, once again Labour playing the blame game, for years people have had zero interest rates,how many people put the savings away for a rainy day. Many of us remember 17% interest rates, now that was hardship, time for people to remember next time,don’t mortgage yourself up to the hilt, and try saving any gains when interest rates come down again.
I think in comparing the higher percentages charged on mortgages in the past, people are forgetting, with the increase in property values, people are having to borrow bigger sums to buy their home. So the lower rates on larger sums end up equating to just as much very real financial burden on hard-pressed families today as there was forty years ago. Houses back in the 80s were cheaper compared to incomes, don’t forget. People were borrowing, say, twice their income, when it’s now maybe three or more. So, I’m fairly certain the ‘percentage’ of pain felt by families today is just as hard to deal with as it was in the past!
Well said, Guy. Commenters above are also forgetting the huge benefit they enjoyed from MIRAS (Mortgage interest relief at source) which, a scheme in place from 1983 until its abolition in 2000, when they were given tax relief on mortgage interest. So, combined with the higher loan amounts due to the explosion in property prices since the 80s and 90s, this means in fact this crisis will be much worse for people now.