Mansfield Constituency Labour Party For Mansfield, Mansfield Woodhouse and Warsop
3,743 households in Mansfield will face an eyewatering jump in mortgage repayments next year as a result of the Conservatives crashing the economy.
Analysis by Mansfield Labour using Bank of England data showed that homeowners coming off two-year fixed term mortgages in October 2022 are set to pay £500 a month more on average after the government’s disastrous mini-Budget handed unfunded tax cuts to the wealthiest.
Further investigation has found that the number of people refinancing on the terms above is forecast to be 1.8 million people out of a total 6.8 million mortgage holders – or one in four of all mortgage holders in the UK.
That means an estimated 3,743 households in Mansfield will be paying hundreds of pounds a month more from next year as rates top 6%.
Lisa Nandy MP, Shadow Housing Secretary, said:
“The Conservatives have sacrificed homeowners across the country who now have a Tory premium to pay on their mortgages. Young people in Mansfield who have scrimped and saved for a deposit have in the blink of an eye been thrown under the bus.
“This is not simply an unfortunate mistake. It is an unforgivable act of national self-harm that has crashed the economy. A Tory crisis, created in Downing Street, paid for by working people.
“At our party conference last month, Labour announced a comprehensive plan to target 70% homeownership, including giving first-time buyers first dibs on new developments and a state-backed mortgage insurance scheme.”
Mansfield Labour’s Craig Whitby, said:
“Today we saw the Chancellor sacked, but it’s families in Woodhouse, Warsop and Mansfield that will pay the price of his mistakes. We are in uncertain times and this government has poured petrol over the global economic fire.
“The economy is under a tripple threat of high energy, high food and high household costs. Now, thousands of homeowners in our district will have no choice but to re-finance their mortgage next year, adding several hundred pounds to their monthly bills. This will be unsustainable for many.
“We recently declared a cost of living emergency in Mansfield, but this emergency is in danger of becoming a catastrophe for homeowners.”
Notes to editors:
- The ONS Estimates 6.8 million properties in the UK were owned with a mortgage or loan.
Source: Office of National Statistics
- UK Finance expects around 1.8 million people to re-mortgage in 2023, which is 26% of all mortgages.
Source: Yahoo News
- ONS estimates the numbers of households by tenure in 2020
Source: Office of National statistics
|Region||Local authority name||2020 Owned with Mortgage or Loan||Estimated number refinancing in 2023*|
|Mansfield||Mansfield District Council||14,398||3,743|
- Previous Labour analysis found the average mortgage owner coming off a 2-year fixed rate mortgage will be paying £500 a month more on their mortgage following interest rate increases.
- Figures assumed a 20 year mortgage term. Interest rates in Q3 2020 for a two-year fix were 1.6 per cent according to Bank of England figures. Average mortgage advance in 2020 Q3 taken from ONS. Analysis assumes borrower now pays a 5% interest rate once their two year fix ends in Q3 2022.. Full breakdown by region below:
|Region||Mortgage advance (average Q3 2020)||Monthly repayments (1.6%)||Monthly repayments (5%)||Monthly repayments (6%)||Monthly increase at 5%||Monthly increase at 6%|