Bath MP Wera Hobhouse has blamed the Government’s mini-budget for the predicted rise in interest rates and the impact on her constituents.
Following the chancellor’s budget, 21,680 mortgage borrowers in Bath are expected to be hit by a “monster” mortgage rate over the coming months, new analysis by the Liberal Democrats has revealed.
26% of homes in Bath 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.
Liberal Democrat MP for Bath Wera Hobhouse said:
“Local homeowners have been betrayed by an out of touch Conservative Government. In her first budget as Prime Minister, Liz Truss has chosen unfunded tax cuts for big banks which have sent the financial markets into turmoil. It is now mortgage payers in Bath who are left to pick up the tab. The country is sick of Conservative governments lurching from one crisis to another.
“People on the doorstep 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. Parliament must be recalled to fix this budget before it’s too late. This government’s experiment has clearly failed, and people in Bath and across the country are paying the price.”
