North Tyneside councillors to urge Prime Minister to act on spiralling mortgage costs and renting crisis
North Tyneside councillors have urged Prime Minister Rishi Sunak to do more to help homeowners struggling with their mortgages.
A motion has been put to North Tyneside Council’s political leadership asking North Tyneside Elected Mayor Norma Redfearn to write to the PM expressing residents’ “dismay” with spiralling costs.
According to the motion, as fixed-rate mortgages come to an end across the UK, some residents of North Tyneside will face higher mortgage rates and may end up paying an extra £2,000 a year. The motion is also concerned with banks and building societies failing to assist homeowners with payment holidays, longer repayment terms and interest-only products.
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Councillors fear that without help, more and more homeowners could face the repossession of their homes. Figures from the Office for National Statistics show that repossession claims across the country have jumped 40% from 2,889 in 2022 to 4,035 this year.
Repossession claims for landlords have also increased, from 19,031 in 2022 to 23,395 in January 2023. Nationally, 6.5 million people have been impacted by mortgage challenges.
Councillors Willie Samuel, Carl Johnson (also deputy mayor) and Karen Clark have put their names to the motion.
The motion reads: “It is disappointing that banks and building societies are failing to assist borrowers who are struggling to meet their mortgage costs by offering payment holidays, longer repayment terms and interest-only products. At the same time, they are failing to offer savers similar rises in interest rates as those they impose on borrowers.”
The motion also notes that renters are faced with rents 12-15% higher than they were at the same time last year. The motion also asks the Prime Minister to “end the crisis” in the rented private sector.
Councillors are scheduled to vote on the motion at full council, on Thursday, July 6 at the council’s Cobalt HQ.
