Mortgage and Rental Costs

Ruth Jones Excerpts

Tuesday 27th June 2023 Commons Chamber

[Ruth Jones (Newport West) (Lab)]

I thank the shadow Chancellor, my right hon. Friend the Member for Leeds West (Rachel Reeves), for bringing this important debate to the House.

In my constituency, 9,500 people will now be forced to pay £2,400 more a year, and that sits firmly at the Government’s door. Across Britain, people are being hit hard by the Tory mortgage bombshell, and the banks are now withdrawing mortgage deals. After 13 years of Conservative Government, does it not just say it all that millions of people face that Tory mortgage bombshell and the threat of losing their homes? Unlike this Conservative Government, however, Labour will not stand by as millions face a mortgage catastrophe made in Downing Street. I commend our five-point plan, which will ease the effect of the Tory mortgage bombshell, and urge Ministers to get behind it.

We will allow borrowers to switch to interest-only mortgage payments for a temporary period. We will allow borrowers to lengthen the term of their mortgage period. We will require lenders to reverse any support measures when the borrower requests that. We will require lenders to wait for a minimum of six months before initiating repossession proceedings. We will instruct the Financial Conduct Authority to issue, as a matter of urgency, consumer guidance stating that the credit score of borrowers making temporary switches to interest-only mortgage payments and lengthening the term of their mortgage period should not be affected. I am particularly pleased to note that Labour would introduce a renters charter ending “no-fault” evictions with four-month notice periods for landlords. That is how we will give working people the certainty and support that they desperately need.

After the 2010 election and the global financial crash of 2008, we heard many times that the financial situation was down to the Government of the day. Conservative Members crowed from the treetops. Today, they say that everything is due to the macroeconomic climate and global economic challenges. I say to them, “You cannot have it both ways”, because as things stand, they are in office but not in power. I was elected to this place in April 2019, and the last four years have not been the easiest for our country. We need calm and sober leadership, we need decency and respect in our politics, and we need a real plan to protect jobs, homes and livelihoods for people in Newport West and across the country.

Last week, my constituent Jolene came to my surgery to talk to me about her fears for the future: fears about how she will pay her bills, how she will pay her mortgage, and how she will save her home. Jolene is now a full-time carer for her children, who have additional needs, but her husband is a full-time HGV driver who is working as hard as he can. The cost of living has hit them hard, and in the last few months their mortgage payments have risen from £520 to £750 a month; Jolene believes that they will go up again. Like thousands of other people across the country, she is sliding further and further into arrears, and is desperately concerned about how she will be able to look after her children, both now and in the future, and hold on to her home. What is the Minister’s message to Jolene? This morning I met another constituent whose monthly mortgage payment has rocketed from £400 to £1,100. Who can possibly budget enough to cope with such shocking increases?

I am sorry to say to the Minister that nothing we have heard from the Government in recent days gives me any confidence that they have a plan to do right by our people. Some 9,500 people in Newport West will now be forced to find money to protect their homes in the middle of a cost of living crisis. That sits at the door of the Conservative party and its ill-fated autumn mini-Budget, which did nothing but spook the markets and let down those most in need of a Government who were on their side.

Only Labour has a plan to build a stronger economy that will see us less exposed to inflation over the long term, to give our people the support they need and to finally restore economic credibility after 13 years of failed Conservative Government. The people of Newport West deserve that—and so do people in all corners of our United Kingdom.