£41 million remortgage bombshell predicted for June amid “summer from hell” warning

7 Jun 2023

EMBARGO: 22:30 Thursday 8th June 2023

3,900 people a day are hit with eye-watering remortgaging costs.
Homeowners in some regions are facing an average increase of £615 compared to 2019 in mortgage costs as rates spiral.
Liberal Democrats call for an emergency Mortgage Protection Fund to stop families losing their homes amid warnings of “summer of hell”.

New analysis by the Liberal Democrats has found Britain is facing a £41 million remortgage bombshell this month. The party is demanding the Government take urgent action to stop people losing their homes.

House of Commons Library research commissioned by the Liberal Democrats revealed homeowners remortgaging this month will see monthly payments that are £356 higher compared to 2019, on average.

With the Financial Conduct Authority announcing 116,000 households are coming off their fixed-rate deals this month, it means Britain is about to get hit with an astronomical remortgaging bill worth tens of millions of pounds.

The pain of remortgaging is being felt hardest in London and The South. The House of Commons Library estimates a typical household in London which is about to remortgage will see their monthly payments rise by £615 compared to four years ago. Meanwhile, households in the South East will have their monthly mortgage payments rise by £448.

Overall, the average monthly mortgage payment will be 38% higher compared to 2019 for those remortgaging.

The Liberal Democrats are demanding the Government brings in a fund to help young families unable to afford the rise in mortgage payments and struggling to avoid being repossessed. Under the proposals, those who have seen their mortgage payments increase by more than 10% of their income could apply for grants of up to £300 a month to help cover the cost of the rise.

Liberal Democrat Treasury spokesperson Sarah Olney MP said:

“Families are facing a summer of hell as they scramble to find hundreds of pounds more each month. The Government needs to pull homeowners away from the mortgage cliffedge before it's too late.

“The Chancellor needs to act right now or else people are going to lose their homes. It is unthinkable that the Government is just going to sit on their hands whilst people face these remortgaging costs.

“Gross economic mismanagement has led to this point. From botched budgets to out of control inflation, is it just one economic calamity after another with this Conservative party.

“Families need bailing out from this mortgage disaster. The Government has made this mess, now they need to clean it up.”

ENDS

NOTES TO EDITORS

Mortgage squeeze for more than 100,000 households this month as lenders deliver another wave of rate hikes - This is Money

See below House of Commons Library commissioned by the Liberal Democrats

116,000 households remortgaging in June at an average additional cost of £356 leads to an estimated combined hit of £41.3m.