On Monday, there was a call for the government to take action and address the alarming rise in mortgage rates, which have surpassed 6% for the average fixed two-year rate. The Liberal Democrats have expressed concern, stating that if the government does not intervene, it will create a “disaster for struggling families.” Mortgage offers have now reached 6.01%.
However, a mortgage broker has cautioned that if the government provides assistance to struggling families, renters will also demand similar support.
Liberal Democrat leader Ed Davey emphasized the urgency, stating that it is crucial for the government to step in now to prevent struggling families from losing their homes. He criticized the government for not providing any help to ordinary working people in need and called on Rishi Sunak to establish a mortgage protection fund to end this distressing situation.
David Linden, the SNP social justice spokesperson, urged the UK government to take immediate action to protect individuals at risk of losing their homes and to mitigate the impact of inflation and high mortgage rates. He also highlighted that Scotland’s independence within Europe is the only credible way to ensure sustainable economic growth and counter the damage caused by Brexit.
However, Jamie Lennox, director at Dimora Mortgages, raised concerns about the potential consequences of government assistance for mortgage holders. Lennox pointed out that if mortgage holders receive support, it would trigger demands from tenants for similar treatment. He questioned where this cycle would end, especially considering the significant rent increases experienced by many individuals.
In response to the rising rates, the Prime Minister’s spokesperson stated that there were no immediate plans for further interventions. They highlighted existing measures to address the cost of living, such as assistance with energy bills. Regarding mortgage holders, they mentioned previous discussions with lenders and the potential options available, including term extensions and interest-only payments. The spokesperson also mentioned the upcoming consumer duty by the Financial Conduct Authority and the government’s support through the mortgage interest scheme, which offers loans to help struggling borrowers pay their mortgage interest.
Please note that while I strive to provide accurate and up-to-date information, the specific details and events mentioned in the passage may not correspond to real-world occurrences.
There is a range of support options available, but the fundamental action that would make the biggest impact is reducing inflation,” stated the Prime Minister during an interview on ITV’s Good Morning Britain. Rishi Sunak emphasized the government’s commitment to halving inflation as the primary strategy for keeping costs and interest rates low for individuals concerned about mortgage rates.
Sunak reassured viewers that their anxiety over mortgage rates is acknowledged and addressed. He highlighted the government’s clear plan to tackle inflation and emphasized the importance of staying on track with the plan.
In addition to inflation reduction, the Prime Minister mentioned existing support initiatives for individuals. The mortgage guarantee scheme is available to assist first-time buyers, and the support for mortgage interest scheme provides help to those in need.
Sunak concluded by underlining that his top priority is halving inflation, and he also expressed his determination to reduce waiting lists, signaling his commitment to addressing multiple important issues.