Labour analysis reveals that the average household in Ogmore is set to be put under more pressure than ever by Conservative mismanagement of the economy.
Analysis from the Labour Party allows people to search the amount that mortgages are predicted to rise, including by £1,700 in Ogmore. 8,000 families in the constituency are set to be affected.
It follows the news that many mortgage deals are being withdrawn by Banks and interest rates being increased, with Moneyfacts data suggesting the typical rate on a two-year fixed-rate loan had increased to almost 6%, almost double a year ago, and the Resolution Foundation estimating that 6.5m households will be affected by the post-mini budget rise in mortgage rates by 2026.
Figures out this week shows that Britain’s inflation is above inflation for other European states, compounding the situation with food prices 20% higher than they were last year and energy bills continuing to be high.
Chris Elmore said:
“The country is buckling under 13 years of Conservative mismanagement and a crashed economy, and it is families being asked to pay more on their mortgage once again.
First it was energy prices rocketing, then it was food prices soaring, and now we’re seeing our mortgage repayments rise. For many families, the combined shocks to the family budget are simply more than they can bear.
A UK Labour Government will put ordinary people first, support the creation of well-paid jobs so that people can afford to live and ensure that our economy grows. People have paid for Tory economic errors for far too long. It’s time for a change.”
Notes
- Moneyfacts data on typical two year mortgage rate: https://www.bbc.co.uk/news/business-65925224
- HM Treasury summary of external forecasts: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1157160/_Independent_Forecasts_for_the_UK_Economy__May_2023.pdf
- The calculations are based on estimates of the number of households in each constituency who own their home with a mortgage or loan, as recorded in the 2021 Census of England and Wales. This was sourced from https://www.nomisweb.co.uk/
- Uses house price data from the House of Commons Library. https://commonslibrary.parliament.uk/constituency-data-house-prices/
- UK Finance Data says that 8.8m households have a mortgage. Recently the Resolution Foundation have estimated that 6.5m of these households either have already remortgaged since Q4 2022, the first quarter after the mini budget, or will have to by 2026 and be affected by the rise in rates. That is around 74% of all households with a mortgage. And the Resolution Foundation estimated that on average they will pay an extra £2,900 this year. Source: UK Finance Table AP1, 28 April 2023 – sheet ‘AP1Q – OO’. Figures are for first charge mortgage lending only, on a borrower rather than account basis. They exclude buy to let mortgages. https://www.resolutionfoundation.org/publications/the-mortgage-crunch/
- Labour have applied this 75% figure to the numbers of households with a mortgage in each constituency.
- And Labour have adjusted the £2,900 cost figure in line with the difference between national average house prices and average house prices in each constituency.