Mini budget sees mortgages shoot up by £3k a year in some parts of the country

Homeowners in London and the South East who remortgaged in the wake of Liz Truss's mini budget have seen their payments shoot up by an average of £3,000 a year, new research has revealed.

Figures provided by the House of Commons Library show an average homeowner coming out of a two-year deal in the week after the mini budget last September would have seen their rate rocket from 1.69% to 5.17%.

This resulted in homeowners in London – where the average outstanding mortgage is £150,000 -  typically paying £3,066 a year more.

In the South East – where the average outstanding mortgage is £144,000 – homeowners have had to shell out an average of £2,944 more over the past year.

Across the rest of Great Britain, the typical mortgage holder has faced an annual hit of £2,003. This is the equivalent of £167 a month more.

Those who locked in for five years in the wake of the mini budget will have benefitted from a slightly lower average interest rate of 5.1%. But this still equates to an extra £12,893 in London and £12,377 more in the South East over the course of their deal.

Call for emergency support for homeowners and renters

The Liberal Democrats, who commissioned the research, have called on the government to offer more support to families at risk of losing their homes. They want an emergency mortgage protection fund, paid for by reversing tax cuts for big banks.

The party also want extra protections for renters. They are calling for an immediate ban on no-fault evictions and they want the default tenancy period extended to three years.

Lib Dem MP Sarah Olney said:

“People will never forgive this Conservative government for taking a wrecking ball to the economy and then forcing families to pick up the tab.”