'LOAN PAIN'
Homeowners being hit by £500-a-year ‘Labour mortgage premium,’ say Tories
Lenders pushed up mortgage costs after the recent market turmoil
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.
“In only six short months Keir Starmer and Rachel Reeves have left the British people facing higher costs, higher tax and a weaker economy.”
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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.
Contributory factors included lower hotel prices and slower air fare rises, said City analysts.
No 10 said it was “focused on restoring economic stability and driving economic growth”.
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