Hidden mortgage time-bomb that could destroy Labour's new voters
Labourʼs recent victory brings unexpected challenges for new homeowners. Changes in stamp duty and rising mortgage rates might turn voters away from **Keir Starmerʼs** government
Boris Johnson won big about 5 years ago telling voters in northern England “you only lent us your vote“ Now Keir Starmer faces a similar situation - his win looks good but isnt as solid as it seems (thanks to Reform party taking tory votes)
The new governments housing decisions are already making waves: theyve changed stamp-duty rules which hit not just second-home buyers but also first-time buyers whoʼll need to pay more after april. Its a move that doesnt make sense for a party claiming to help new homeowners
You may only have lent us your vote
The real trouble is in the mortgage market - its getting worse: Back in the pandemic people got super-cheap deals (like HSBCs crazy-low 0.91% rate) Today rates are about 5 times higher. Letʼs do the math: if youʼve got a £300‚000 mortgage your monthly costs could jump from £1‚100 to £1‚800 - thats an extra £700 each month
The banking world is trying to help people keep their homes but heres the thing - when all those cheap pandemic-era mortgages run out in the next couple years Rachel Reeves economic plans wont save anyone from the shock. The governments low-growth forecasts and tax-heavy budget just make things look worse
