Homeowners across Wales face Tory mortgage bombshell

THOUSANDS of homeowners across Wales are staring down the barrel of a Tory mortgage bombshell this month, as their fixed rate mortgage deals expire.
Labour analysis of data from the Financial Conduct Authority shows that 7,962 fixed rate mortgages across Wales will come to an end this month, with the average estimated hike expected to be £240.
More than 62,000 homeowners will face the cliff-edge of their mortgage deal expiring this year.
Interest rates across the UK have spiked since the disastrous Liz Truss mini-budget, with rates reaching their highest level since the 2008 global financial crash.
The latest figures reveal that nearly 700 mortgage repossession claims were made in Welsh county courts up to the end of September 2023. The full year figures look set to be the highest since 2019.
This week, Shadow Welsh Secretary Jo Stevens is speaking to voters across north Wales to discuss the impact of the cost-of-living crisis on families, and the issues that matter most in their area. She will visit Clwyd North, Clwyd East, Wrexham, Yns Môn and Bangor Aberconwy.
Labour has pledged a series of measures to help people with mortgage cost uncertainty, including requiring banks to allow lenders to switch to interest-only repayments, extending mortgage repayment periods, the flexibility to switch these measures on and off, extending the repossession period to six months and protecting borrowers’ credit ratings.
Shadow Chancellor Rachel Reeves has also pledged to explore a shift to 25-year fixed rate mortgages, which are common in the US, Canada and Japan and are less exposed to changes in interest rates.
In November, the Welsh Government introduced Help To Stay Wales, a scheme that helps restructure mortgage payments for homeowners at risk of repossession and homelessness to give them a chance to stay in their homes.
This is on top of the Mortgage Rescue scheme, which has operated since 2008.
Shadow Welsh Secretary Jo Stevens said:
“The long shadow of Tory economic mismanagement continues to hammer families across Wales, with thousands facing eye-watering price hikes this month alone.
“People are worse off in almost every measurable way since the Tories first came to power in Westminster because of low growth and spiralling prices. This mortgage bombshell adds insult to injury.
“Building on the support that the Welsh Government is offering mortgage holders, a Labour government in Westminster would require banks to help protect homeowners, and drive the economic growth needed to put more money in people’s pockets.”