adiq Khan has called on the government to restore mortgage moratoriums to ease the financial burden on homeowners amid soaring inflation.
More than a quarter of London homeowners say they will struggle to pay their mortgages this winter as the cost of living crisis deepens, according to new City Hall survey data.
Last month, the average two-year fixed rate mortgage rate rose to 6.53%, the highest since August 2008.
The mayor of London has called on ministers to step up support for homeowners, including by reintroducing a moratorium on mortgage payments.
First introduced in March 2020 when the UK went into its first nationwide lockdown for the Covid-19 pandemic, the mortgage payment holiday will allow homeowners to: I was able to temporarily reduce or defer my mortgage payments.
Sadiq Khan also called for the reintroduction of a mortgage relief scheme that, before 2014, would allow households struggling to pay their mortgages to sell their homes to social landlords and continue to live as tenants. .
Khan said this was a “proper and balanced approach” to tackling the ongoing crisis, which “will only become more serious and dangerous.”
he said: Ministers to ensure Londoners don’t pay the price of losing their homes as the economic turmoil caused by this government has pushed re-mortgage rates to levels not seen more than a decade ago is essential to act.
The Solutions Foundation estimates that London will be the hardest hit region by rising inflation, with annual mortgage payments projected to increase by more than £8,000 by 2024.
HomeOwners Alliance chief executive Paula Higgins said homeowners are facing a “gloomy winter” due to rising mortgage rates and soaring food and energy costs.
“We support the mayor’s call to action and remind homeowners struggling with increased fees that they are not alone. Talk to your lender about your options, such as extending the term of your loan, reducing short-term payments, taking a break from your mortgage, or temporarily changing to interest-only payments.”