Mortgage lenders under fire from Mid Wales MP David Chadwick
Welsh Liberal Democrat MP David Chadwick, who represents Brecon, Radnor, and Cwm Tawe, has criticised lenders for keeping mortgage rates high, despite recent cuts to the Bank of England's base interest rate.
Mr Chadwick said: "It's really disappointing to see that hard-working homeowners in Brecon, Radnor, and Cwm Tawe and across Wales are being used as cash cows by mortgage providers, particularly in the midst of a cost-of-living crisis tightening so many people's purse strings."
Research from the House of Commons Library, commissioned by the Liberal Democrats, shows that mortgage rates have not fallen in line with the Bank of England's base rate.
As a result, homeowners are paying more than £1,000 extra each year.
The average monthly payment on a new two-year fixed mortgage has dropped by just £90, from £1,279 to £1,189.
On a five-year fixed mortgage, the monthly reduction is only £26, down from £1,204 to £1,178.
If mortgage rates had fallen by 19 per cent, in line with the base rate, homeowners would be paying £41 less per month on a two-year fixed rate and £87 less on a five-year fixed rate.
This would mean annual savings of £492 and £1,044 respectively.
Mr Chadwick has called on Chancellor Rachel Reeves to take action on behalf of homeowners.
He said: "The Government has been far too timid and wrong-footed in tackling the cost-of-living crisis.
"Mortgage rates are crippling homeowners, and spiralling energy bills leave people wondering how they will put food on the table.
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