Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al Mayadeen's correspondent: One was killed, another injured in a raid by an Israeli drone on the city of Khiam in South Lebanon
London views possibility of setting fire to tanker in port of friendly country to Russia to damage port infrastructure, initiate an international probe: Moscow
One of London's scenarios involves setting up accident with 'undesirable' tanker in one of the bottlenecks of maritime communications: Russian foreign intelligence agency
London plans to organize major sabotage with tankers to declare transportation of Russian oil to international shipping: Russian foreign intelligence agency
UK intelligence agencies plan to use NATO allies to launch massive raid on 'Shadow Fleet': Russian foreign intelligence agency
Palestinian Ministry of Health: Two were martyred in Israeli shelling that targeted a besieged house in the town of Qabatiya in Jenin
At least 68 dead in migrant shipwreck off Yemen: IOM
Trump: We want to feed the people in Gaza, we do not want them to starve.
US President Donald Trump: We will impose sanctions on Russia if it does not end the war on Ukraine.
Israeli media: Polls show that 52% oppose Prime Minister Benjamin Netanyahu while only 29% support him.

Tory MPs warn mortgage crisis could cost them elections

  • By Al Mayadeen English
  • Source: News Websites
  • 18 Jun 2023 17:40
3 Min Read

Tory MPs are warning of an "interest rate catastrophe," claiming that the party has underestimated the impact of soaring mortgages.

  • x
  • Tory MPs warn Mortgage crisis could lose them election   
    Conservative MP Liz Truss (AFP)

Tory MPs are warning of an impending "interest rate catastrophe," claiming that the party has underestimated the impact of soaring mortgages.

Last week, Santander warned mortgage brokers that it will cease accepting new applications for its "new business" residential and buy-to-let fixed and tracker rates until June 14. 

The construction of new homes is being cut back in the UK amid indications that buyers fear a spike in mortgage rates over the next few months. 

With interest rates on the rise in the Bank of England this week and significant mortgage lenders increasing their own rates in recent days, Conservatives are growing concerned about how this will affect their campaign in the upcoming elections.

Lucy Allan, the Tory MP in Telford's typically marginal area, questioned her party's stance on the matter, claiming that her party may not have fully understood the catastrophe at hand. “People [are] telling me their monthly mortgage payment is exceeding their salary," something Allan called "unsustainable" after announcing she would not run again in the next election. 

Related News

Palestine Action wins bid to defy UK ban under anti-terrorism laws

Situation in Gaza 'reached new depths, continuing to worsen': Starmer

Other Conservatives said they hadn't seen many cases yet, but that the problem may worsen later in the year.

While ministers are fully aware of the situation, Rishi Sunak and Chancellor Jeremy Hunt are primarily concerned with tackling inflation, making any plan geared to assist families in mortgage distress impossible. "It is very hard because there aren’t many levers we can pull," a Tory member said.

“When you look at what is happening to mortgages, it’s really killing our own people,” another Tory revealed, adding that it feels like "the end of a cycle – 13 years coming to an end.”

According to an alarming analysis from the Resolution Foundation think tank, UK homeowners who reach the end of their fixed-rate mortgage terms next year would face an average £2,900 rise in yearly payments. This year, the average two-year fixed mortgage rate is expected to be 6.25%. This week, a torrent of additional data to back up the fears is expected.

A response to rising rates is another dilemma for Labour, which has prioritized budgetary discipline over all other concerns. It recently cut back a vow to spend £28 billion a year on green investment, instead deciding to gradually build up to that sum. Only the Liberal Democrats have so far supported a specific package geared at mortgage hardship, consisting of a £3 billion "mortgage protection fund" for families facing repossession.

According to the Treasury, in response to the ResolutionFoundation report, “We know this is a concerning time for mortgage holders, which is why the FCA [Financial Conduct Authority] requires lenders to offer tailored support to borrowers struggling to make their payments, and we continue to support mortgage holders through the Support for Mortgage Interest scheme."

“Behind this, though, is global inflation, continuing to eat away at incomes around the world, which is why the single biggest thing we can do to help families is to halve the rate this year.”

  • Conservative Party
  • United Kingdom
  • Britain
  • London
  • mortgage rates

Most Read

A rescued crew member from the ETERNITY C vessel in a video released by the Yemeni Armed Forces on July 28, 2025 (Yemeni Military Media)

Yemen Navy reveals fate of targeted Eternity C ship crew

  • Politics
  • 28 Jul 2025
An Israeli tank explodes following an ambush by al-Qassam Brigades in Gaza, Occupied Palestine, undated (Al-Qassam Military Media)

Al-Qassam strikes Israeli vehicles in Gaza, inflicts casualties

  • Politics
  • 30 Jul 2025
UAE lodges complaint against Israeli ambassador over 'misbehavior'

UAE lodges complaint against Israeli ambassador over 'misbehavior'

  • Politics
  • 1 Aug 2025
Protesters chant anti-Israeli slogans as they carry a banner that reads:" Freedom for Palestine, Alliance stop the war," during a demonstration in support of Palestinians in Gaza, outside the Israeli embassy, in Athens, Monday, June 9, 2025 (AP)

Athens mayor slams Israeli ambassador over Gaza war, graffiti claim

  • Politics
  • 3 Aug 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
A member of the al-Qassam Brigades, the armed wing of Hamas, takes part in a parade as he celebrates a ceasefire agreement between Hamas and the Israeli regime in Deir al-Balah, Gaza Strip, Sunday, January 19, 2025 (AP)
Politics

Al-Qassam: We’ll allow aid to Israeli captives if Gaza siege ends

Freed Lebanese freedom fighter Georges Abdallah during an interview on Al Mayadeen, which aired on Sunday, August 3, 2025 (Al Mayadeen screengrab)
Politics

Exclusive: Resistance key to building state, Georges Abdallah says

United Nations Secretary General Antonio Guterres gives a statement about the situation in Gaza at UN headquarters, Friday, June 27, 2025 (AP)
Politics

UN warns Gaza faces water crisis, looming famine under Israeli siege

Israeli soldiers drive their armored personnel carrier along the Gaza Strip, in southern occupied Palestine, Wednesday, July 30, 2025 (AP)
Politics

Ex-Israeli general says Gaza starvation campaign isolated 'Israel'

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS