Analysis reveals mortgage hikes of up to £1,750 a year in Morecambe and Lunesdale

Figures show that the predicted rise in mortgages in Morecambe and Lunesdale are set to average at £1,750, with Lancaster rising by £1,600.

The calculations are based on estimates of the proportion of households in each constituency who own their home with a mortgage or loan.

This was requested from the House of Commons Library using 2021 census data.

It follows the Bank of England warning in December that around half of households with a mortgage, a total of 4m, will be exposed to rate rises this year, and Bloomberg reporting that around 800,000 will see their mortgage rates double.

Lizzi Collinge, chair of Morecambe and Lunesdale Labour group, said: "We've all already felt the hit to our bank balance of the Conservative mismanagement of the economy and this is a further blow to people in Morecambe and Lunesdale.

"People work very hard to pay their mortgage and bills and are seeing the value of that hard work continually eroded by inflation, stagnant wages, and increased mortgage costs.

"A Labour government will stabilise the economy and stop this continual lurch from crisis to crisis. We will invest in British manufacturing, transforming our economy to create green jobs and low-carbon infrastructure.

"This will allow us to recover as a country and stand proud again as a global economic leader."

This week, the International Monetary Fund chief economist singled out higher mortgage rates as a reason for Britain’s poor performance after the country’s growth was downgraded, leaving it as the only major economy expected to shrink in 2023.