Households set to pay a record £20,000 each on mortgage interest payments and other borrowing costs over the next five years, new analysis suggests
- Families will pay out a combined £556billion between now and March 2028
Lib Dem leader Sir Ed Davey (pictured) said: ‘It is a perfect storm of soaring mortgages, food and energy bills and unfair tax rises’
Households are set to spend a record £20,000 on average on interest payments on mortgages and other borrowing over the next five years, official figures suggest.
Families will pay out a combined £556billion servicing their debts between now and March 2028, according to forecasts from the Office for Budget Responsibility.
The Liberal Democrats, who analysed the figures, said the ‘hard-working middle’ faced a lost decade as a result of the soaring interest payments on mortgages, personal loans and credit cards.
Total household debt servicing costs are set to rocket from £56billion last year to £134billion in 2027. That will swallow up 7.2 per cent of disposable income – compared with just 3.5 per cent last year.
Lib Dem leader Sir Ed Davey said: ‘It is a perfect storm of soaring mortgages, food and energy bills and unfair tax rises. Some families risk losing their homes in the coming years unless the Government steps in.
‘Conservative ministers need to take responsibility for the economic damage they’ve done and offer a lifeline to homeowners on the brink.’
The Lib Dems are calling for a fund to help young families unable to afford the rise in mortgage payments and at risk of repossession. The Bank of England has been hiking rates since December 2021, and last month they hit 4.25 per cent.
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