Banbury Labour calls for a halt to mortgage price hikes as households struggle with food and energy costs

Banbury Labour says over 6,000 home buyers in Cherwell face having to find hundreds of pounds extra to pay for increasing mortgage payments.
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The group says 6,143 households in Cherwell will face an ‘eyewatering’ jump in mortgage repayments next year and claims it is as a result of the Conservatives ‘crashing’ the economy.

It said Labour Party analysis, using Bank of England data, showed homeowners coming off two-year fixed term mortgages in October 2022 are set to pay £500 a month more on average after the government’s contentious mini-Budget, which they say handed unfunded tax cuts to the wealthiest.

Further investigation by the party’s analysts found that the number of people refinancing on these terms is forecast to be 1.8 million people out of a total 6.8 million mortgage holders – or one in four of all mortgage holders in the UK.

Cllr Sean Woodcock, leader of the Labour group on Cherwell District CouncilCllr Sean Woodcock, leader of the Labour group on Cherwell District Council
Cllr Sean Woodcock, leader of the Labour group on Cherwell District Council

“That means an estimated 6,143 households in Cherwell will be paying hundreds of pounds a month more from next year as rates top 6 per cent,” said Banbury Labour leader, Sean Woodcock.

This week, the group sent out a public statement in which Lisa Nandy MP, Shadow Housing Secretary, said: “The Conservatives have sacrificed homeowners across the country who now have a Tory premium to pay on their mortgages. Young people in Cherwell who have scrimped and saved for a deposit have in the blink of an eye been thrown under the bus.

“This is not simply an unfortunate mistake. It is an unforgivable act of national self-harm that has crashed the economy. A Tory crisis, created in Downing Street, paid for by working people.

“At our party conference last month, Labour announced a comprehensive plan to target 70 per cent homeownership, including giving first-time buyers first dibs on new developments and a state-backed mortgage insurance scheme.”

Mr Woodcock, who is Leader of the Labour group on Cherwell District Council, said: “Thousands of people in Cherwell are already struggling with increases in food costs and the cost of fuel and energy are now facing another hit. We cannot go on like this.”

The Banbury Guardian has asked Banbury MP Victoria Prentis for a response to Labour’s claims.