According to reports in The Guardian, the party has warned that 630,000 borrowers face a rise in their monthly mortgage costs before the May local elections next year.
Labour’s analysis suggested more than 3,400 households would remortgage every day in the six months between today and 1st May 2024, based on figures from the Office for National Statistics.
These borrowers are likely to be facing much higher mortgage rates than they pay on their current deal, compounding the cost of living crisis with larger monthly repayments.
Further financial pain
Figures released yesterday revealed that mortgage arrears in the UK are already at their highest level since the financial crisis, before many borrowers have yet to renew their rate.
The Bank of England is expected to hold the base rate at 5.25% today, but higher refinance rates are already baked in for vast majority of the 630,000 reaching the end of their current deal in the next six months.
Plus, there’s no guarantee that wider interest rates won’t rise further during that time.
