Homebuyers Save £1000 Per Year on Mortgages Under Labour

New analysis reveals local benefits, with Birmingham families to save over £700

Birmingham homebuyers are saving £720 per year on their mortgages thanks to falling interest rates since Labour came to power, Birmingham Edgbaston MP Preet Kaur Gill has announced.

The local savings are part of wider national benefits that have seen families across the UK save an average of £980 annually on their mortgage costs.

Since July 2024, the average two-year fixed mortgage rate has fallen from 5.37% to 4.52%, following four interest rate cuts by the Bank of England as economic stability returns after 14 tumultuous Conservative years. Today’s fifth base-rate cut, to 4%, will benefit mortgage holders even further.

Preet Kaur Gill MP, Birmingham Edgbaston, said:

"These figures show that Labour's focus on economic stability is delivering real benefits for Birmingham families. A saving of £720 per year makes a genuine difference to household budgets in our constituency.

"After the Conservatives' economic chaos, culminating in the Liz Truss mini-Budget that sent mortgage rates soaring to nearly seven per cent, we've been working urgently to restore stability and get costs down for working people."

Birmingham families are also benefiting from Labour's broader cost of living support through the Plan for Change, including the fuel duty freeze, protection of the pensions triple lock, expanded free school meals, and free breakfast clubs for primary school children.

Prime Minister Keir Starmer has also secured three historic trade deals with the US, India and the EU, which are set to further benefit families by cutting costs on essentials in supermarkets.

Preet Kaur Gill MP added:

"When Labour took office, our urgent priority was to restore economic stability after 14 years of Conservative failure. The five interest rate cuts we've seen since then are directly benefiting Birmingham homeowners with lower mortgage costs.

"Whilst this relief is very welcome for families in Birmingham Edgbaston who've been under real financial pressure, we recognise there's still more work to do. Our Plan for Change is about building an economy that truly serves working people in Birmingham and beyond."

Labour has warned that Reform UK's unfunded spending plans risk repeating the Liz Truss economic disaster. The respected Institute for Fiscal Studies recently exposed how just one of Reform's pledges could create a financial black hole of up to £80 billion – eclipsing the £45 billion Truss experiment that left working people paying through sky-high mortgages and bills.