Homeowners struggling to pay their mortgages after Liz Truss’ ‘disastrous budget’ should be helped with subsidies of up to £300 a month, Liberal Democrat leader says Ed Davey told to Observer.
In a “blue wall” seat where Conservative voters have shown their willingness to change parties, Davey has offered some householders a “mortgage penalty” after a mini-budget to improve the fortunes of his party. He said there were now people who were “worried about how they were going to stay home, or even be able to stay home.”
In a speech on the economy on Sunday, he will call for a temporary £3bn mortgage protection fund to help homeowners see a 10% increase in mortgage payments. He said the reversal of bank tax and bank surcharge cuts since 2016 will help pay for that.
“The Conservatives have collapsed the economy and added hundreds of pounds to millions of people’s monthly mortgage payments,” he said.. “Something must be done, especially for those who are really suffering, who are at risk of delinquency or even facing foreclosure.
“Banks should pay their fair share. We bailed them out during the financial crisis, so they should be supporting families who are suffering through this crisis. ”
He claimed the plan was “well-targeted” and targeted a quarter of the most cost-stricken households. He said it didn’t help renters, but the LDP was already backing a range of measures designed to give them more security and power over their homes.
Republicans expect the average two-year fixed rate to rise from 4.24% in early September to 6.55% now, adding an estimated £1,800 to a typical household’s annual mortgage bill by the end of 2023. Some 1.2 million households with floating-rate mortgages have already increased their monthly payments, while 1.8 million households have fixed-rate contracts that expire in the next year. increase.
“We’ve seen the Conservatives all our lives. With the blue wall and all the seats contested behind it, they say they’re in turmoil,” Davey said. “There is no doubt that the Lifetime Conservative Party is actually reassessing the vote and many supporters are coming to us. I think this is the type of approach needed to help those families. Many of them may have voted for Tory in the past, many may vote for the Liberal Democrats, but this is exactly the right thing to do.”