Jeremy Hunt rules out direct cash boosts to help with mortgage rates and warns homeowners would pay MORE under Labour

JEREMY Hunt today ruled out direct cash boosts to help hard-up homeowners with soaring mortgage rates.

And he warned Brits that the cost of borrowing would be even WORSE under a Labour government.

The Chancellor insisted high interest rates are crucial to crushing insufferable inflation.

In the Commons he told MPs: "As much as we sympathise with the difficulties and will do everything we can to help people seeing their mortgage costs go up, we won't do anything that would mean we've prolonged inflation."

It comes as the average rate on a two-year fixed deal has now soared to 6.01 per cent.

And a typical five-year fixed deal is 5.67 per cent.

This leaves many households facing monthly payments more than 50 per cent higher than in 2021.

Former Cabinet minister Jake Berry warned a "mortgage bomb" could soon go off.

He asked Mr Hunt: "Is now the time to look at reintroducing a bold Conservative idea of mortgage interest relief at source?

"Because if we don't help families now, all the other money that we spent to help them will have been wasted if they lose their home."

The defiant Chancellor responded that direct help would put the government at odds with the Bank of England, whose mission is to strangle inflation as quickly as possible.

He added that the UK is on course to halve inflation by the end of the year.

Treasury Minister Andrew Griffiths highlighted mortgage lenders can help families struggling to make repayments.

He said: "There is range of measures that include term extensions, a switch to interest-only payment holidays, and the FCA guidance is very clear that any repossessions - and they are currently running at a historic low - any repossessions should be an absolute last resort.

The Chancellor confirmed he'll meet with big lenders later in the week to see what help they're providing customers.

He said: "Later this week I'll be meeting the principle mortgage lenders to see what help they can give to people struggling to pay the more expensive mortgages and what flexibilities might be possible for families in arrears."

Labour Shadow Chancellor Rachel Reeves accused Mr Hunt of imposing a "Tory mortgage penalty" on Brits.

She said: "Each and every family knows who is responsible for trashing the economy – the Conservatives.

"Yet the government shows a total disconnect about the impact its Tory mortgage penalty is having.

"Labour will bring the economic and financial security that Britain deserves."

Mr Hunt hit back declaring: "I'm proud of our economic record."

He added that homeowners would be paying far more under a Sir Keir Starmer government, as Labour wants to borrow billions to fund green projects.

This, he argued, would hike interest rates to levels more eyewatering than at present.