Money Wellness
A residential street in London
category iconHousing
calendar icon26 Sep 2023

Mini budget sees mortgages shoot up by £3k a year in some parts of the country

Homeowners in London and the South East who remortgaged in the wake of Liz Truss's mini budget have seen their payments shoot up by an average of £3,000 a year, new research has revealed.

Figures provided by the House of Commons Library show an average homeowner coming out of a two-year deal in the week after the mini budget last September would have seen their rate rocket from 1.69% to 5.17%.

This resulted in homeowners in London – where the average outstanding mortgage is £150,000 -  typically paying £3,066 a year more.

In the South East – where the average outstanding mortgage is £144,000 – homeowners have had to shell out an average of £2,944 more over the past year.

Across the rest of Great Britain, the typical mortgage holder has faced an annual hit of £2,003. This is the equivalent of £167 a month more.

Those who locked in for five years in the wake of the mini budget will have benefitted from a slightly lower average interest rate of 5.1%. But this still equates to an extra £12,893 in London and £12,377 more in the South East over the course of their deal.

Call for emergency support for homeowners and renters

The Liberal Democrats, who commissioned the research, have called on the government to offer more support to families at risk of losing their homes. They want an emergency mortgage protection fund, paid for by reversing tax cuts for big banks.

The party also want extra protections for renters. They are calling for an immediate ban on no-fault evictions and they want the default tenancy period extended to three years.

Lib Dem MP Sarah Olney said:

“People will never forgive this Conservative government for taking a wrecking ball to the economy and then forcing families to pick up the tab.”

Avatar of Rebecca Routledge

Rebecca Routledge

A qualified journalist for over 15 years with a background in financial services. Rebecca is Money Wellness’s consumer champion, helping you improve your financial wellbeing by providing information on everything from income maximisation to budgeting and saving tips.

Related posts


22 Apr 2024

Radical change is needed to help first-time buyers

First-time buyers are increasingly dependent on the ‘Bank of Mum and Dad’ and change is required to help those without support


26 Feb 2024

Plans unveiled for a 99% mortgage

Under a new scheme being proposed by the government, first time buyers would only need to put down a 1% deposit. Find out if this could help get you on the housing ladder.


21 Feb 2024

Rents fall for third month in a row

Rental prices in the UK have dropped for the third month in a row but they're se to rise again over the coming months. Find out what help's available if you're struggling to cover your rent.


01 Feb 2024

Bank of England keeps interest rates at 5.25%

As the Bank of England keeps interest rates at a 16-year record high, find out what to do if you're worried about rising housing costs.