Calls for Government Help for Homeowners Facing Huge Rise in Mortgages

The UK government is facing calls to provide direct assistance to households whose mortgage payments have risen significantly following the UK’s biggest base rate hike in 30 years.

Trackers or variable rate islanders are paying hundreds of pounds more each month than they were at the beginning of the year, adding an additional financial burden to homeowners who are already facing significantly higher food and energy costs.

Mortgage interest rate rises

Now, Rep. Lyndon Farnham and Reform Jersey Rep. Lindsey Feltham are separately urging the government to consider expanding the interest tax relief scheme.

The initiative allows islanders to claim tax credits for interest payments on loans for the purchase or expansion of major properties, although the amount of credit available will be reduced annually until it is phased out in 2026. Decrease by 1,500 lbs.

Deputy Secretary Farnham added: [the rise in costs] will apply to islanders with mortgages and should be prepared to help during this time of high interest rates. I look forward to hearing the Finance Minister’s thoughts on this matter.

But he said it was “too early to say” whether the government’s plan to raise taxes would be amended.

Deputy Commissioner Feltham said: We also need to be aware of the potential impact. [of the increased rates] Regarding the rental fee. Homeowners aren’t the only ones affected, as landlords try to keep profits.

She added: “The solution proposed by Deputy Farnham may be part of addressing the wider problem, but it does not solve it entirely.”

After the Bank of England’s decision to raise the basic interest rate to 3%, housing minister David Warr urged lenders to show “compassion” to islanders who were unable to repay their mortgages.

His comments came on the heels of Skipton International reporting a profit for the quarter before tax of £11.4m, with the mortgage book “maintaining its performance” and lending in 2022 to the end of September. It said it recorded £334m against £376. For the full year of 2021 he will make $1 million.

“We are heading into a record-breaking 2022,” said Jim Coupe, the bank’s managing director.

Finance Minister Ian Ghost said: “Officials are in talks with island banks and they are working with customers to ensure the government will keep customers at home wherever it is most appropriate and achievable. We will continue to monitor the situation.

He said the rise in interest rates was “already expected” when the government submitted a mini-budget containing various measures to support the cost of living for islanders.

“Treasury and Economy officials are monitoring the fluid situation surrounding Britain’s finances and how it affects islanders. A number of plans are being considered,” he added. I was.

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