Greater London boroughs most at risk of ‘monster’ mortgage rate hikes, say Lib Dems
Greater London boroughs are most at risk as “monster” mortgage rate hikes loom, according to research by the Liberal Democrats.
Sutton, Bexley, Kingston upon Thames and Redbridge are home to the highest proportion of properties owned with a mortgage, with one in three households ladened with the debt – far above the city average of 24 per cent.
Rising mortgage rates have been on the horizon for some time, as the Bank of England (BoE) seeks to tame spiralling inflation.
Lib Dems anticipate that last week’s controversial budget will prompt the BoE to raise interest rates to five per cent next year.
Annual repayments could rise by £2,100 per year for those on a Standard Variable Rate mortgage, the research cautioned. While households on an average tracker mortgage could face an annual increase of £3,000.
“Monster rate rises will now hit Londoners with unbearable mortgage bills in the middle of a cost of living crisis,” Lib Dem Treasury spokesperson, Sarah Olney, said in a statement today.
“Liz Truss and Kwasi Kwarteng must U-turn on their botched budget before it is too late. Frankly, Liz Truss owes an apology to homeowners in the capital who now face the anxiety of a mortgage ticking time bomb.”