Richard Foord, Liberal Democrat MP for Tiverton & Honiton, has blamed the Government’s mini-budget for the predicted rise in interest rates.
Adam Manning www.midweekherald.co.uk
Following the chancellor’s budget, 26,288 mortgage borrowers across East Devon & Mid Devon are expected to be hit by a “monster” mortgage rate over the coming months, new analysis by the Liberal Democrats has revealed. Almost 1-in-4 homes across East & Mid Devon are owned with a mortgage.
The fallout from last week’s budget is predicted to force the Bank of England to raise interest rates to as much as 5% next year, costing the average mortgage borrower on a Standard Variable Rate a staggering £2,100 per year.
Those on an average tracker mortgage would face an even higher annual increase of £3,000 per year if interest rates rise to the predicted 5% next year. This would more than wipe out the government’s assistance on energy bills for average households.
The Liberal Democrats are calling on Liz Truss to recall Parliament and amend the budget which has crashed the pound and seen the national debt skyrocket, as well as leading to predicted rises in mortgage interest rates.
Commenting on the situation Richard Foord MP said: “Local homeowners have been betrayed by this out of touch Conservative Government.
“In her first budget as Prime Minister, Liz Truss has chosen to prioritise unfunded tax cuts for big banks and the wealthy, which have sent the financial markets into turmoil.
“It is now mortgage payers across our part of Devon who are left to pick up the tab.
“People across our communities are telling me that they are really frightened by this upcoming interest rate rise. Many simply don’t know how they’ll afford to pay thousands of pounds more a year, especially in the midst of a cost of living crisis.
“Liz Truss owes local people an apology for this shambolic budget and must recall Parliament to fix this budget before things spiral even more. This government’s experiment has clearly failed, and people across Devon are paying the price.”