Mortgage News
Labour win will add £65 to mortgage: reports
A Labour victory or a hung parliament at the general election would add £65 a month to the average mortgage, Citigroup economist Michael Saunders has claimed, reports the Metro.
‘Unless we get a Conservative government with a clear majority, we think gilt yields will have to rise to about 4.75% and higher if inflation remains a threat,’ he said.
As all long-term lenders peg their rates to the price of gilts – or units of government debt – mortgage payments rise as the cost of gilts rise and he said a Labour victory would mean a rise in gilt yields.
If rates went up by just 1%, this could lead to higher mortgage rates costing families an extra £780 next year on a new £112,000 mortgage.
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