Treasury warns mortgages ‘would jump £2K under Labour’
Officials have done some number crunching of Labour's spending plans and claim they would add nearly £2,000 to mortgage bills.
Mortgages would jump by nearly £2,000 a year under a Labour government, according to figures from the Treasury.
Analysis of Labour’s plans to borrow £28 billion if elected, shows interest rates would be pushed up and that would impact on mortgages.
The Treasury says the increase in interest rates under Labour might be between 0.5 and 1.25%.
A rise of 1.25 per cent rise would mean £1,920 a year extra on a household mortgage of £200,000 over 30 years, The Sun reports.
‘Cat out of the bag’
Laura Trott, Treasury chief secretary, warned: “The British economy is turning a corner with inflation at its lowest level in two years, so don’t let Labour ruin it.
“The cat is well out of the bag. Labour’s reckless £28 billion-a-year borrowing binge will not only ratchet up debt and send mortgage rates sky high, but will lead to higher taxes for all.”
It was on Rishi Sunak’s watch that national debt soared to the highest levels in 60 years.”
But Labour responded: “The only party that has sent borrowing, mortgages and interest rates soaring over the last 13 years is Rishi Sunak’s Conservatives.
“It was on Rishi Sunak’s watch that national debt soared to the highest levels in 60 years.”
Mortgage rates fell further last week, as the inflation figure dropped from 4.6% to 3.9%, prompting some economists to believe the Bank of England may start cutting interest rates in the first half of 2024, much earlier than previously forecast.
