According to media reports, Labour analysis shows that the average UK buyer refixing from a two-year fixed rate could see a £498 monthly increase in their mortgage bill as rates now surpass six per cent.
Moneyfacts figures yesterday showed that two-year fixed rates had surpassed 6.07 per cent and the average five-year fixed rate was 5.97 per cent.
At the start of September, an average two-year fixed mortgage was 4.24 per cent while a typical five-year fix had a rate of 4.33 per cent.
Compared to the start of October last year, two and five-year fixed mortgages have increased from averages of 2.25 per cent and 2.55 per cent respectively.
The Labour figures are based on a 20-year mortgage term, and they would pay up to six per cent interest rate once they come onto a new product.
London homemowners would be worse impacted, with the monthly increase ranging from £689 to £915, whilst repayments in the North East would rise between £247 and £327.
Labour leader Keir Starmer (pictured) said these “eye-watering increases” would lead to sleepless nights for many homeowners and placed the blame squarely at the door of the government.
He continued: “Liz Truss and Kwasi Kwarteng crashed the economy with their attempts to hand enormous, unfunded tax cuts to those who least need it.
“The humiliating U-turn they were forced into came too late – the damage had been done. Now we are all suffering the consequences. This was a crisis made in Downing Street but paid by working people,” he added.
He urged prime minister Liz Truss to reverse her budget, including its changes to corporation tax.
The government was contacted for comment.
