6,934 households in Haringey will face an eyewatering jump in mortgage repayments next year as a result of the Conservatives crashing the economy.

Analysis by the Labour Party 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 6,934 households in Haringey 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. People in Haringey 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.”

Catherine West MP, Labour MP for Hornsey & Wood Green, said:

“I’m already hearing from terrified constituents who’ve been seeing all their bills soar, and now also face mortgages they can’t afford.  It’s not just homeowners affected, many of Haringey’s 35,000 private renters are facing impossible rent hikes, as landlords pass the pain down or seek to make a quick buck out of the economic chaos the Tories have unleashed.  The Tory u-turns are coming too late for people in Hornsey & Wood Green, the damage has been done.”

ENDS

Notes to editors:

• The ONS Estimates 6.8 million properties in the UK were owned with a mortgage or loan. https://www.ons.gov.uk/peoplepopulationandcommunity/housing/articles/researchoutputssubnationaldwellingstockbytenureestimatesengland2012to2015/2020

• UK Finance expects around 1.8 million people to re-mortgage in 2023, which is 26% of all mortgages. https://uk.news.yahoo.com/sinking-pound-sterling-mortgage-debt-interest-rates-123320628.html

• ONS estimates the numbers of households by tenure in 2020 https://www.ons.gov.uk/peoplepopulationandcommunity/housing/datasets/subnationalestimatesofhouseholdsbytenureengland

*Assuming a national average 26% of mortgagers refinancing after a two-year tracker in 2023

• 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:

https://www.bankofengland.co.uk/boeapps/database/fromshowcolumns.asp?Travel=NIxAZxSUx&FromSeries=1&ToSeries=50&DAT=RNG&FD=1&FM=Jan&FY=2012&TD=13&TM=Nov&TY=2027&FNY=Y&CSVF=TT&html.x=66&html.y=26&SeriesCodes=IUMZICQ,IUMBV34,IUMZICR,IUMB482,IUM2WTL,IUMBV37,IUMBV42,IUM5WTL,IUMBV45,IUMBV48,IUMB479,IUM2WDT,IUMBV24,IUMTLMV,IUMZID4,IUMBX67,IUMHPTL,IUMCCTL,IUMODTL,IUMB6VJ,IUMB6VK,IUMB6VL,IUMB6VM,IUMB6VN,IUMZID2,IUMWTFA,IUMB6RH,IUMB6RI&UsingCodes=Y&Filter=N&title=Quoted%20Rates&VPD=Y