Predictions show much mortgages will increase in North East

The figures from, the Labour Party, suggest that after recent interest rate rises the average annual mortgage bill in the North East is set to skyrocket by more than £1,600.

In some parts of the region homeowners could face increases of more than £2,000 to their annual bills.

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It comes as a further rise to mortgage rates is expected on Thursday with experts saying a is unavoidable.

The Bank of England is expected to raise the base interest rate by 0.25 percentage points on Thursday, taking it to 4.75%, although some commentators have suggested there could be a more aggressive increase to 5.25%.

Homeowners on variable rate mortgages linked to the base rate would see an increase in their payments.

See how much mortgage rates could increase where you are

Chancellor Jeremy Hunt said he has spoken to consumer champion Martin Lewis, ahead of a meeting with banks on Friday.

Mr Hunt said on Twitter: “I know that many are worried about their mortgage repayments. Today I spoke to Martin Lewis ahead of my meeting with lenders on Friday.

“I want to ensure banks are living up to the commitments we agreed in December, and what more they can do to help.”

In Durham, where MP Mary Foy has branded price hikes devastating, bills could increase by £1,600, according to the analysis, while the biggest predicted increases are £2,400 in Tynemouth and £3,000 in Hexham.

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The smallest predicted rise is in Easington, but homeowners are still expected to face a £1,000 hike in their mortgage repayments.

City of Durham MP Mary Kelly Foy

Durham Labour MP Mary Kelly Foy said: “At a time when households in the North East have seen their pay packets stretched by runaway food and energy bills, this latest Tory mortgage penalty will be a hammer blow for family finances. Living standards have already taken the biggest hit since the 1950’s on the Tories watch, and this latest price hike will be devastating.

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“The Government is crashing the UK economy and it is working people in the North East who will suffer most. Our region is buckling under 13 years of Conservative mismanagement and a crashed economy, and it is ordinary people being asked to pay more on their mortgage once again.

“People are asking themselves whether they or their family are better off under the Tories. Every time they check their bank balance the answer is unequivocally no.

“Labour will bring financial and economic security back, so that families are not constantly on a cliff edge, and so that we can urgently grow our economy to grab hold of opportunities of the future.”