The SNP has warned Liz Truss is “taking the UK to the verge of a housing crash” – as mortgage rates soar and the mortgage debt burden grows to unsustainable levels.
It comes as the Royal Institute of Chartered Surveyors (RICS) warned “storm clouds are visible” – with house prices likely to fall, and mortgage arrears and repossessions likely to increase as the number of people struggling to pay mortgages is forecast to hit a 15-year high.
Since the Tory budget, average mortgage rates have risen to a fourteen year high.
The average two-year fixed mortgage rate has risen to 6.46%, and the average five-year rate has risen to 6.32% – the highest levels since 2008.
The Bank of England has forecast 1.7 million UK mortgage holders will have to refinance their loans in the coming year and face much higher rates.
It warned the number of people struggling to pay their mortgages will rise sharply in 2023 – with around 800,000 households having to spend more than 70% of their take-home pay on mortgage or rent and essentials.
Commenting, SNP Shadow Chancellor Alison Thewliss MP said:
“The Tories trashed the UK economy with their disastrous budget – and now Liz Truss is taking the UK to the verge of a housing crash, as mortgage rates rise to unsustainable levels.
“The Prime Minister has created a gathering storm of economic turmoil.
“She’s putting Scottish homeowners and renters under threat – and demonstrating exactly why Scotland needs independence to escape the constant chaos of Westminster control.
“Millions of mortgage holders will be forced to pay thousands of pounds extra in interest as a direct result of Tory incompetence.
“Most families will be worse off – and there is a danger that some will fall into arrears – and could even see their homes repossessed.
“The UK government must urgently get a grip of the crisis it has caused.
“As the Tories put our homes, pensions and incomes at risk, it’s clear independence is the only way to keep Scotland safe and get rid of Westminster Tory governments for good.”