Homeowners being hit by £500-a-year ‘Labour mortgage premium,’ say Tories
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HOMEOWNERS are being hit by a £500-a-year “Labour mortgage premium” after government borrowing costs have risen, the Tories say. The most popular deals have spiked to their highest level since August — with five-year fixed rates hitting 5.3 per cent, Moneyfacts analysis reveals.
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Lenders pushed up mortgage costs after the recent market turmoil. The Tories say it leaves mortgage borrowers £500-a-year worse off than before October’s Budget. Shadow Chancellor Mel Stride said: “This Rachel Reeves mortgage premium leaves mortgage holders paying the price for Reeves’ reckless Budget.
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“In only six short months Keir Starmer and Rachel Reeves have left the British people facing higher costs, higher tax and a weaker economy.”. It comes after Ms Reeves had a boost this month with better-than-expected inflation figures. The Chancellor saw inflation sink 0.1 per cent to 2.5 per cent in December, the drop defying expectations.
