Surrey’s households face on average an extra £584 a month on mortgages

Local Lib Dems demand Government offer mortgage grants to families who risk losing their homes

New analysis by the Liberal Democrats has shown that people buying houses in Surrey this month will face between £455 - £713 more in monthly mortgage repayments than in early September, dependent on where they live in the county.

Surrey's Liberal Democrats are calling for a 'Mortgage Protection Fund' to help prevent mortgage holders in the county from falling into arrears or facing repossession as a result of soaring interest rates.

The news comes after a rapid rise in interest rates and weeks of turmoil following the Conservative government's disastrous mini budget. Last week, the Bank of England said that the typical mortgage could rise by roughly £3,000 a year by the end of 2023.

Recent months have seen mortgage rates soar, taking the average rate for a two-year fixed rate mortgage from 4.24% in September to 6.55% currently. This jump means that someone looking to buy a typical house in Surrey will have to pay between an eye watering £5,464 - £8,559 extra annually.

Under the party's proposals, anyone who sees their mortgage payments rise by more than 10% of their household income could receive grants to cover the cost of that rise - up to £300 a month.

The Liberal Democrats are also calling for measures to support renters, including bringing in the long-promised ban on "no fault" evictions and bringing in longer tenancies that protect against unfair rent hikes.

Commenting, Will Forster, Leader of Surrey Lib Dems said:

"These shocking figures reveal the true horror of this government's failure to manage Britain's economy.

"The Conservative government has added hundreds of pounds to people's monthly mortgage bills in our area. How on earth do they expect a nurse or teacher to pay up to £500 extra a month on their mortgage? It is simply not manageable given every other bill is going up.

"I don't want families in Surrey to lose their homes. People are telling me they are worried sick about these mortgage rises. I am proud to see the Liberal Democrats demanding a new fund which could help thousands of people who are in massive need of support."

Liberal Democrat Leader Ed Davey added:

"The government has a responsibility to step in and fix their own mess, by providing grants to those struggling to afford eye-watering mortgage hikes. This Mortgage Protection Fund could be paid for by reversing the Conservatives' unfair and unnecessary tax cuts for the big banks who are making huge profits."