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'Devastating' interest rate hike could cost families £2,600 this year, says Birmingham MP


Birmingham Live, 22nd June 2023


Families in Birmingham could face mortgage hikes of up to £2,600 this year, new analysis by the Labour Party has revealed. Birmingham MP Preet Kaur Gill said today’s announcement on interest rates was ‘devastating’ for families.


The Bank of England today announced a hike in interest rates to 5% - the 13th time in a row that rates have increased. The Edgbaston MP said 7,400 families in her constituency would be hit by the ‘Tory mortgage penalty’ as homeowners with expiring fixed-rate mortgages face misery.


More than 1 million households across Britain are expected to lose at least 20% of their disposable incomes thanks to the surge in mortgage costs, according to the Institute for Fiscal Studies. Preet Kaur Gill said many of her constituents were on a ‘cliff edge' and called on Prime Minister Rishi Sunak to step in to ‘stop families from losing their homes.’


Labour analysis has forecast that 7,400 of families in Birmingham Edgbaston will face an annual mortgage payment increase of £2,600 this year under the Conservatives. This week, economists warned of further job losses and a sharp recession.


“The Tory mortgage penalty is devastating for family finances and is holding back our economy,” said Preet Kaur Gill, Labour MP for Edgbaston. “The country is buckling under 13 years of Conservative mismanagement and a crashed economy, and it is families being asked to pay more on their mortgage once again.


“People are asking themselves whether they or their family are better off under the Tories. The answer is no.#


“Labour will bring financial and economic security back, so that families are not constantly on a cliff edge, and so that we can urgently grow our economy to grab hold of opportunities of the future.”


With the Government and Bank of England under rising pressure over their failure to rein in inflation, Prime Minister Rishi Sunak insists he feels a "deep moral responsibility" to deliver on his pledge to halve inflation by the end of the year. But calls are mounting for the Government to do more to help.



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