Three in four blame budget for higher mortgages

EMBARGO: 00:01 Friday 7th October

• Liberal Democrats demand the Government step in to save homeowners unable to keep up with spiralling mortgage costs, warning “people’s homes are now on the line”

New polling commissioned by the Liberal Democrats has revealed three in four (75%) blame the Government’s budget for higher than expected mortgage rates. 

The findings reveal even the majority of Conservative voters (68%) blame the expected rise in rates on the Government’s budget last month, which sent the financial markets into turmoil.

The Bank of England is expected to raise interest rates to as much as 6% next year, adding considerable costs to mortgages. This week Moneyfacts reported the typical two year fixed rate mortgage has topped 6% for the first time in 14 years.

Those who own their home with a mortgage also blame the likely rise on rates on the Government’s budget (76%). 

Around 2 million people in the UK on a tracker or variable rate mortgage could see their monthly costs rise even further following the budget. According to UK Finance around 1.8 million homeowners will come to the end of their fixed-rate deal in 2023.

The Liberal Democrats have accused Liz Truss and Kwasi Kwarteng of “betraying homeowners” and demanded the Government now step in to help those who cannot afford higher mortgage bills. 

Liberal Democrat Treasury spokesperson Sarah Olney MP said: 

“Struggling families are left to pick up the tab for this Government’s shambolic budget. The Conservative Government is betraying homeowners. 

“People’s homes are now on the line as a direct result of this Conservative Government’s failed attempt to run the economy. 

“Liz Truss and Kwasi Kwarteng are forcing struggling families and pensioners to fund tax cuts for big banks and the richest companies. Truss and Kwarteng crashed the markets and sent mortgage bills spiralling, all to pay for their fantasy budget. 

“It is time the Conservative Government cleaned up their mess. This should start with a new package to help people pay their spiralling mortgage bills. Frankly, I think Liz Truss owes every mortgage owner an apology for adding hundreds if not thousands of pounds to their bills.” 

ENDS

Notes to Editor:

Methodology: Savanta ComRes interviewed 2,240 UK adults aged 18+ online between 30th September and 2nd October 2022. Data were weighted to be representative of the UK by age, sex, region and social grade.

The Bank of England is predicted to raise interest rates higher than expected in the coming months, which will increase monthly mortgage payments. 

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