How badly is YOUR neighborhood affected by mortgage increases?
Conservative-held seats in “blue wall” areas are likely to be hit hardest by the rise in mortgage costs, a new analysis has found.
South Northamptonshire, the constituency of former Tory Cabinet Secretary Andrea Leadsom, has the highest proportion of mortgage lenders in England and Wales.
Of the 51,122 households in South Northamptonshire, almost 40 per cent (20,420) are owned with a mortgage or loan.
Wokingham, held by senior Conservative Sir John Redwood, is the constituency with the second highest proportion of households owning a mortgage or loan.
This is followed by Nadine Dorries’ seat in Mid Bedfordshire, Louie French’s seat at Old Bexley and Sidcup, and Gareth Johnson’s Dartford constituency.
Deputy Prime Minister Dominic Raab’s Esher and Walton constituency has the 10th highest proportion of households owned with a mortgage or loan (38 percent).
Leveling Up The seat of Surrey Heath Minister Michael Gove is 15th.
The seat of Mr Raab – one of southern England’s traditional Tory constituencies, often referred to as the ‘Blue Wall’ – is a top target for the Liberal Democrats as they look to push further into the conservative heartland in the next election.
Of the top 50 constituencies with the highest proportion of households with a mortgage or loan, 48 are Conservative-held and many are in commuter areas that are typically Tory voters.
Only Cardiff North, held by Labour’s Anna McMorrin, and St Albans, held by Lib Democrat Deputy Leader Daisy Cooper, are non-Tory seats in the top 50.
Census data shows that a high proportion of households in commuter areas are owned with a mortgage or loan
Deputy Prime Minister Dominic Raab’s Esher and Walton constituency has the 10th highest proportion of households with a mortgage or loan (38 percent).
| British Parliament constituency | % of households with a mortgage or loan | group |
|---|---|---|
| 1) South Northamptonshire 2) Wokingham 3) Middle Bedfordshire 4) Old Bexley and Sidcup 5) Darford 6) South Derbyshire 7) Pudsey 8) Cheadle 9) North East Hampshire 10) Esher and Walton | 39.94% 39.87% 39.09% 38.32% 38.26% 38.25% 38.05% 38.03% 37.99% 37.92% | Conservative Conservative Conservative Conservative Conservative Conservative Conservative Conservative Conservative Conservative |
The analysis, conducted by the Lib Dems and based on recently released census data, will fuel Tory concerns that rising housing costs could hurt them in the next general election.
The turmoil in the mortgage market was most evident after former Prime Minister Liz Truss’ disastrous “mini-budget” in September.
‘Blue Wall’ seats such as Chesham and Amersham, North Shropshire and Tiverton and Honiton have already been lost by the Conservatives to the Lib Dems in the recent by-elections.
More than 1.4 million households in the UK will face increased mortgage costs in the next 12 months alone, a separate study by the Office for National Statistics has found.
It found that the majority of fixed-rate mortgages up for renewal this year were at rates below 2 percent.
This means these borrowers are set for a steep increase in their monthly repayments when they renew, with interest rates skyrocketing since taking out their mortgages.
The average interest rate for new fixed-rate mortgages is currently around 6 percent and for variable-rate mortgages around 4.4 percent.
Interest rates have skyrocketed since the beginning of last year, and borrowers are expecting a steep increase in their monthly repayments as they roll over
The ONS found 353,000 fixed rate mortgages to be renewed between January and March this year, with 371,000 due to be renewed between April and June
A recent Bank of England report suggested that those currently on fixed interest rates that expire by the end of 2023 face average monthly repayment increases of around £250 (or an additional £3,000 a year) if they move to a refinance new fixed rate.
The Liberal Democrats have urged the government to set up a “mortgage protection fund” funded by reversing bank tax cuts to help families facing crippling increases in their loan repayments.
This would target those most at risk of repossession, such as homeowners on the lowest incomes and those experiencing the steepest rises in mortgage rates.
Under the party’s plans, anyone who sees their mortgage payments increase by more than 10 per cent of their household income would receive a subsidy to cover the cost of that increase for the next year, up to a maximum of £300 a month.
The party’s Treasury spokeswoman Sarah Olney MP said: “This Conservative Government has cheated homeowners by adding thousands of pounds to people’s mortgages.
“Millions of people are now facing the need to downsize or even sell their home, with commuter zones set to be hardest hit.
“Conservative MPs on the other side of the ‘Blue Wall’ will have to settle accounts at the next election if they don’t fix this mortgage nightmare.
“People will never forgive the Conservative Party for crashing the economy, pumping up mortgages and paying the public to clean up their mess.”
https://www.dailymail.co.uk/news/article-11618511/How-hard-neighbourhood-hit-mortgage-hikes.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 How badly is YOUR neighborhood affected by mortgage increases?