New analysis, based on research by the Resolution Foundation, reveals that a staggering 2,886 households in the Norwich local authority area face a £2,300 Tory mortgage penalty this year thanks to soaring interest rates. 

 After the Conservatives crashed the economy, interest rates have soared, leaving homeowners facing huge rises in their repayments when they renew their mortgages. The Resolution Foundation estimate that about 1.6 million households will see their fixed-rate deal expire this year, and are set to face an average increase in their annual mortgage bill of around £2,300 if they re-fix. That’s the equivalent of 2,886 households in Norwich paying a combined total of £6,639,801.00 more a year.

The number is for the Norwich City Council Local Authority Area. In Broadland, which covers part of Norwich North, 4,093 households are facing this increase paying a combined total of £9,414,636.00 more a year.

Analysts expect more pain to come with some predicting rates will go as high as 5.75%, with mortgage stress levels set to hit heights not seen since the 1980s. The Resolution Foundation estimates that families have only experienced about one third of the £12 billion increase in total annual repayments that we expect to see by 2026.

Publishing the analysis, Labour’s parliamentary candidate for Norwich North , Alice Macdonald,

“People in Norwich North are paying the price for the Conservatives crashing the economy. The cost-of-living crisis is deepening for families here– in large part thanks to the huge rise in mortgages and rents thanks to the Tory mortgage penalty. 

“It’s time for change. Labour has a plan to build a better Britain. No more sticking plaster politics, but real mission driven government to get this country back on its feet.”

Local Old Catton resident, Sophie Willis said

“My fiancé and I are lucky; we were able to buy our first home recently but with growing costs and mortgage rates we’re certainly keeping an eye on spending this year. We don’t know what the future holds but rising prices and bills makes it much harder to make ends meet.”

Clive Lewis, Labour MP for Norwich South said:

“All kinds of working-age people -  nurses, and shop workers, graduates and more – are already finding it hard to afford the essentials. That is set to intensify with this interest rate hike as earnings and benefits fall short of soaring prices and mortgages. Almost all of us are being ground-down by out of control bills and low incomes.

Labour is rightly talking about ending ‘sticking plaster politics’. We need to redesign our economy so that we strengthen our resilience against the routinely commonplace shocks which are driving the increasing financial insecurity of so many.

We could start with increased benefits paid for by wealth taxes; building far more affordable to rent and buy homes and keeping a permanent lid on energy prices by investing in home insulation and renewables.”