Households will pay a record £20,000 in mortgage interest payments and other borrowing costs over the next five years, new analysis suggests
According to official figures, households will spend a record £20,000 on interest payments on mortgages and other loans over the next five years.
According to projections from the Office for Budget Responsibility, between now and March 2028, families will pay a total of £556 billion to service their debts.
The Liberal Democrats, analyzing the numbers, said the “hard-working middle” was facing a lost decade due to skyrocketing interest payments on mortgages, personal loans and credit cards.
Total household debt will skyrocket from £56bn last year to £134bn in 2027. That will eat up 7.2 per cent of disposable income – compared to just 3.5 per cent last year.
According to official figures, households will spend a record £20,000 on interest payments on mortgages and other loans over the next five years. [File image]
Lib Dem leader Sir Ed Davey (pictured) said: ‘It’s a perfect storm of skyrocketing mortgages, food and utility bills and unfair tax hikes’
Lib Dem leader Sir Ed Davey said: ‘It’s a perfect storm of skyrocketing mortgages, food and utility bills and unfair tax increases. Some families are at risk of losing their homes in the coming years unless the government intervenes.
“Conservative ministers must take responsibility for the economic damage they have caused and provide a lifeline to homeowners on the brink.”
The Lib Dems are calling for a fund to help young families who can’t afford the surge in mortgage payments and are at risk of repossession. The Bank of England has been raising rates since December 2021 and last month they reached 4.25 percent.