John Healey MP urges government for temporary mortgage measures as 10,000 families face steep payment rise

John Healey MP called for the measures after the latest figures revealed mortgages are predicted to rise by £1,600 a year across Wentworth and Dearne, affecting almost 10,000 families.

Many mortgage deals are being withdrawn by banks and interest rates being increased, with Moneyfacts data suggesting the typical rate on a two-year fixed-rate loan had increased to almost six per cent – almost double the figure of a year ago.

Mr Healey said: ““The Tory mortgage penalty is devastating for family finances and is holding back our economy.

"Labour will bring financial and economic security back, so that families aren’t constantly on a cliff edge, and so that we can urgently grow our economy.”

Labour has called for a number of temporary government measures including requiring lenders to allow borrowers to switch to interest-only mortgage payments for a temporary period and allowing borrowers to lengthen the term of their mortgage period.

They also want the government to instruct the Financial Conduct Authority to urgently issue consumer guidance stating that borrowers making such temporary switches to their mortgages should not be subject to their credit score affected.