Lib Dems   – Mortgage Strategy

Around 100,000 households will face a mortgage rate hike between now and polling day at the 4 July general election, say the Liberal Democrats.  

This amounts to an average of 3,333 households a day being hit with higher mortgage payments as they switch to new products, with typical a increase of £240 a month.  

The party commissioned its analysis from the House of Commons Library, which is based on data from the Financial Conduct Authority.  

It adds that households coming off fixed-rate mortgages ahead of polling day will pay an additional £290m in mortgage costs over the coming year.  

Liberal Democrat Treasury spokesperson Sarah Olney says: “This Conservative government crashed the economy and now they are condemning hard-working households to a mortgage nightmare.   

“[Prime Minister] Rishi Sunak’s claim that the government’s plan is working shows he is living in a parallel universe, as every day thousands of families are seeing their mortgages go up by eye-watering amounts.  

The data comes as the Bank of England maintained interest rates at 5.25% earlier this month. It has been locked at this rate since last August.  

Money markets currently expect the Bank of England to begin cutting rates in August or September.     

The average two-year fixed residential mortgage rate today is 5.93%, up one basis point from the previous working day, according to Moneyfacts.  

While the five-year rate is 5.50%, also up one basis point over the same period.