Brokers have called out the Liberal Democrats' for "stating the obvious to borrowers" as part of its latest research, after saying many would face mortgage rate hikes before the election.
The research, conducted by the House of Commons Library Research after being commissioned by the Liberal Democrats, found 100,000 households will face a mortgage increase between now and polling day on July 4.
This amounts to an average of 3,333 households a day experiencing higher rates and will see the typical mortgage holder’s payments increase by £240 a month.
The Lib Dems said Rishi Sunak’s claim that his economic plan is working shows he is living in a “parallel universe,” at a time when families are saddled with hundreds of pounds a month more on their mortgage.
However, Michelle Lawson, director at Lawson Financial, said: “The Bank of England is supposedly independent so the colour in charge shouldn’t make a difference when it comes to interest rates.
“The Lib Dems appear to be trying to do what Rishi has done and claim full glory for bringing inflation down when it was the economy and markets that did that, in the same way that they sent inflation up.
“Unless people have been hiding under a stone for the past couple of years, they will already be bracing for higher mortgage rates.”
A similar sentiment was shared by Yellow Brick Mortgages managing director, Stephen Perkins, who said: “The Bank of England is independent so blame it for how high and how fast it raised the base rate and the damage made to the economy as a result.”
He additionally pointed out that, even if the Bank of England reduces rates slightly this year as expected, no-one with a fixed rate prior to November 2023 is making a saving when their renewal comes.
Therefore, Perkins argued this will be an issue until 2028 as “we will not be seeing the super low rates we enjoyed for so long for at least another generation, if ever”.
Additionally, Lodestone Mortgage & Protection director, Craig Fish, said: “Interest rates were always going to increase and the fault lay firmly with the Bank of England.
“They were too slow to react to rising inflation and are now being too slow to react to falling inflation.
“These errors, coupled with geo-political events, are to blame, and the rates we had for so long following the Global Financial Crisis will never be seen again.
“Time to get used to the higher interest rate environment. Stop paying the blame game and just get on with solving the housing crisis.”
Meanwhile, Orchard Financial Advisers managing director, Ben Perks, stated: “While they are very much the underdog, the Lib Dems will gain a few votes from disenfranchised Tory supporters who can’t bring themselves to vote Labour.”
He added that it was good to the party “highlighting the issues within the mortgage industry” and acknowledged that “intervention and innovative schemes are needed quickly”.
