Yorkshire families "face repossessions" to pay for £5,000 mortgage rises

Analysis from the party found that the fall-out from Liz Truss’ mini-budget has meant that homeowners are facing mortgage hikes of £4,846 a year in Yorkshire.

It said that the 6.48 per cent rise in interest payments for a 24-month fixed deal mean that those in London will also see rises of over £12,000.

Previous estimates suggested that 1.8 million people will have to re-mortgage in 2023.

Rachel Reeves, the shadow chancellor, said: “The Conservatives crashed the economy and mortgage rates were pushed sky high as a result.

“Next month’s mortgage costs are eye wateringly more expensive for so many hardworking families, leaving them worried sick and cutting back. The Tories’ choices are devastating family finances, risking repossessions, and turning people’s dreams into nightmares.

“This is a Conservative crisis made in Downing Street. The latest Prime Minister offers nothing more than a record of economic failure and a habit of making working people pay. Only Labour can provide the strong, stable economy that people need.”

Analysis from the Bank of England found that the number of mortgage approvals for home-buyers fell significantly in September to 66,800, down from 74,400 in the previous month.

A large chunk of mortgage products vanished from the market after the mini-budget was unveiled on September 23, and lenders re-priced their home loans upwards. Many of the announcements made in the mini-budget have since been reversed.

Alice Haine, personal finance analyst at investment platform Bestinvest, said the “mortgage pain is far from over”, adding that those with deals expiring soon will have difficult decisions to make.

“The mini-budget spooked the financial markets,” she added.

Jeremy Hunt, the Chancellor, and Rishi Sunak, the new Prime Minister are this week working on plans to reverse Ms Truss’ budget and set out a plan to reduce Government spending and borrowing.