London homeowners facing biggest rise in mortgage interest payments since 2008

·1-min read
London homeowners facing biggest rise in mortgage interest payments since 2008

The parts of London set to be worst hit by an increase in mortgage interest payments have been revealed.

Data from the Office for Budget Responsibility (OBR) suggests mortgage interest payments are set to rise by 13% in 2023, reaching a peak of 14.8% in the second quarter of that year.

The data was contained in a report from the government’s independent forecasting unit that was published alongside the Budget.

It is believed that homeowners in the capital could be hit with the biggest increase in interest payments since the 2008 financial crisis.

Critics have urged the government to make a U-turn on the policy, claiming that it will exacerbate the cost of living crisis for millions.

The worst hit area in London is Kensington which will see rates soar by an astonishing £3,140 a year.

This is followed by Cities of London and Westminster (£2,196), Chelsea and Fulham (£2,083) and Hampstead and Kilburn (£1,780).

Liberal Democrat leader Ed Davey urged the government to make a swift U-turn in light of the revelations.

He said: ‘This budget will hammer homeowners in London with tax hikes and rising mortgage costs. From Westminster to Richmond, the cost of living crisis looks set to hit people hardest in the capital.

‘The government must act now to defuse this mortgage timebomb and scrap the crippling tax rises which will leave families thousands of pounds poorer a year.

‘Homeowners are being hit with a cost of living crisis which the government is completely failing to tackle. It shows that Boris Johnson is taking people in the capital for granted.’

According to analysis by the Resolution Foundation, the average household will pay an additional £3,000 per year in tax.

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