New analysis from Mansfield Labour reveals how local households are set to be put under more pressure than ever by Conservative mismanagement of the economy.

Mortgages are predicted to rise in Mansfield by a staggering £1,610 a year. Across the country mortgage hikes range from annual increases of £1,000 to £13,000:

It follows the Bank of England warning in December that around half of households with a mortgage, a total of 4 million, will be exposed to rate rises this year, and Bloomberg reporting that around 800,000 will see their mortgage rates double.

Mansfield Labour’s Mayor, Andy Abrahams said:

“The cost of living crisis is hammering families in Mansfield, and thanks to the Conservative’s crashing the British economy, the Tory mortgage penalty is set to stretch family finances even further.

“After 13 years of economic failure local people are asking themselves whether they or their family are better off under the Tories. The answer is no.

“But Labour has a plan for places like Mansfield. By stabilising the economy, making it stronger and getting it growing, Labour will stop us lurching from crisis to crisis, and make Britain thrive again.”

Ends

Notes

· The calculations are based on estimates of the proportion of households in each constituency who own their home with a mortgage or loan. This was requested from the House of Commons Library using 2021 census data.

· This was combined with data sourced from Nomisweb.co.uk using the Annual Population Survey for 2021 on the number of households who live in each constituency overall. https://www.nomisweb.co.uk/

· In August 2022, the month before the government’s mini-budget, Moneyfacts said that a typical two-year fixed mortgage rate was 3.95%.

https://www.thesun.co.uk/money/19414221/bank-england-interest-rates-hike-mortgage-bills-repayments/

· This month, Moneyfacts said a typical two-year fixed mortgage rate was 5.75%.

https://www.telegraph.co.uk/business/2023/01/09/mortgage-rates-almost-triple-nearly-800000-homeowners-year/

· Using house price data from the House of Commons Library, the analysis assumes an 80% loan to value ratio and compares how much would be paid at an interest rate of 3.95% and how much would be paid at 5.75%.

https://commonslibrary.parliament.uk/constituency-data-house-prices/

· Attached is a spreadsheet showing the number of households with a mortgage in each constituency and the estimated increase in mortgage costs a year for median house purchase at 80% mortgage.

[link to data]