The SNP has called on the Chancellor to urgently tackle soaring borrowing costs, as new figures reveal UK mortgage borrowers could be around £500 worse off due to the Labour government’s recent budget decisions.
Analysis from Bloomberg Economics highlights that the cost of the UK’s most popular mortgages has reached its highest level since August, creating financial strain for millions of households.
At the end of last week, five-year fixed-rate mortgage deals climbed to 5.3%, according to Moneyfacts, marking the steepest rates in five months.
Bloomberg Economics estimates that the rise in rates will cost homeowners who are remortgaging this year an extra £500 annually on average, further squeezing household budgets.
SNP Westminster Deputy Leader Pete Wishart MP has warned that families across Scotland are already feeling the weight of the Westminster-driven mortgage crisis, and the Labour Party’s recent budget has compounded the problem.
“Millions of families across Scotland have been hammered by the Westminster mortgage crisis, which has seen the cost of borrowing and living soar through the roof,” he said.
“The Labour Party promised to fix this mess but instead they’ve made it worse – with mortgage rates rising further since the bungled budget, and experts estimating families could be £500 worse off as a result.”
Mr Wishart also flagged the wider implications of rising costs, with businesses and service providers warning that higher borrowing expenses are likely to trigger price increases across other sectors.
“With shops, supermarkets, phone, broadband and utility companies all warning they will also have to raise prices as a result of the Labour Party National Insurance tax hike, there is a very real danger the UK is heading for another damaging cost of living crisis,” he said.
The SNP has demanded immediate action to stop mortgage rates from rising further and has urged the Chancellor to provide clarity on the steps the government will take to reduce financial pressure on households.
“The Chancellor must outline what urgent action she will take to stop mortgage rates rising and rapidly bring costs down, before even more families pay the price for the Labour government’s failure,” Mr Wishart added.
The UK’s ongoing mortgage crisis continues to add strain to households already grappling with the cost of living pressures, with inflation and rising interest rates pushing financial security further out of reach for many.
Borrowers coming to the end of their fixed-rate mortgage terms face significant increases in monthly repayments, and with rates showing no signs of easing, many families are bracing for a difficult year ahead.
While the Labour government has promised economic stability, criticism from the SNP and other political parties suggests that recent policy decisions are failing to deliver the relief that households and businesses desperately need.
The impact of rising mortgage costs is rippling across multiple sectors, compounding challenges for families and businesses alike, and the calls for urgent government intervention are growing louder.
The question now is whether the Chancellor will act decisively to ease the burden on households and prevent the crisis from deepening further.