Labour Party outlines five-point plan in response to warnings of the impact of rising mortgage costs on the disposable incomes of millions of households

Shadow Chancellor sets out measures as Bank of England increases interest rates to a 15-year high of 5 per cent

The Labour Party has today outlined a five-point plan in response to warnings of the impact of rising mortgage costs on the disposable incomes of millions of households.

With the Bank of England having today increased interest rates for the 13th time in a row – to a 15-year high of 5 per cent – the Labour Party says that its plan would require lenders to –

• allow borrowers to switch to interest-only mortgage payments for a temporary period;
• allow borrowers to lengthen the term of their mortgage period;
• reverse any support measures when the borrower requests;
• wait a minimum of six months before initiating repossession proceedings; and

In addition, the Financial Conduct Authority would be instructed to urgently issue consumer guidance that those requesting support should not see their credit score affected.

Calling on the government to put the proposed measures in place for an initial period of 12 months, Shadow Chancellor Rachel Reeves said today –

'With interest rates rising  further today, I know many homeowners will be really anxious.

Unlike this government, Labour will not stand by as millions face a mortgage catastrophe … Our five-point plan offers practical help now while our commitment to fiscal responsibility and growth will secure our economy for the future.'

NB – the Shadow Chancellor also said that –

'If Labour was in power, we'd also bring in a Renters’ Charter to end ‘no-fault’ evictions and introduce 4 month notice periods for landlords.'

Source: Today, Labour sets out our five point plan to ease the hit from soaring mortgages: @RachelReevesMP