You are here: Home - News -

Liberal Democrats say government action on mortgage payments ‘inadequate’ and calls for support fund

  • 03/05/2022
  • 0
Liberal Democrats say government action on mortgage payments ‘inadequate’ and calls for support fund
More than half, 54 per cent, of homeowners say the government are not doing enough to help them with rising mortgage costs.

According to research conducted by the Liberal Democrats, renters are just as unhappy with 59 per cent expressing dissatisfaction with current government action on increasing rental costs.

The survey collated responses from 2,156 adults, 577 of which have a mortgage and 887 who pay rent.

The political party said the dissatisfaction towards action on mortgage and rental costs came as interest rates are due to rise this week.

Last week, chancellor Rishi Sunak stated that some mortgage borrowers not on fixed rate deals could see their mortgage payments increase by £1,000 over the next 12 months and said interest rates could reach 1.25 per cent.

The Liberal Democrats said that an Emergency Mortgage Support fund should be launched to support struggling homeowners, whereby payments are provided to those who can’t afford their monthly mortgage bill.

The waiting time for payment would be around 13 weeks and it would be aimed at “low income working families at risk of default”.

It said the Conservative government had cancelled a similar scheme in 2018.

The government currently offers loans with interest to those on benefits who are not in work. It also provides a Support for Mortgage Interest Scheme, but the Liberal Democrats said this included a 39-week waiting period which could put many in further financial straits.

The Liberal Democrats also called for VAT to be slashed, which it said could save a family around £600 a year.

Liberal Democrat treasury spokesperson Christine Jardine (pictured) MP said: “Homeowners are on the brink and urgently need help, yet this Conservative government is nowhere to be seen. The Chancellor is completely out of touch.

“All we’ve seen from Rishi Sunak is tax hikes and empty promises. People’s homes are on the line here, from first-time buyers who scrimped and saved to get on the ladder to pensioners still paying off their mortgage.”

She added: “Renters in high priced cities such as London and Edinburgh are also crying out for help. The government can’t ignore them any longer. There must be an emergency tax cut before it’s too late for families and pensioners.”

A government spokesperson said: “We understand that people are struggling with rising prices, while we can’t shield everyone from the global challenges we face, we’re supporting families to navigate the months ahead with a £22 billion package of support this financial year.

“In addition, some homeowners can get help towards interest payments on mortgages or loans taken out for certain repairs and home improvements, and for private renters we increased Local Housing Allowance significantly and beyond inflation during the pandemic, benefitting over one million households by an average of more than £600 over the year. We’re maintaining that boost, keeping support above pre-pandemic levels.

“Meanwhile, the Chancellor’s tax plan announced at Spring Statement delivers the biggest cut to personal taxes in over a quarter of a century.”


There are 0 Comment(s)

You may also be interested in