Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Government help for mortgage holders is being help ‘under review’, says Michael Gove

by June 19, 2023
June 19, 2023
Government help for mortgage holders is being help ‘under review’, says Michael Gove

Help for people struggling with their mortgages is being kept “under review”, cabinet minister Michael Gove has said.

But any financial assistance would be a decision for the Treasury, he told Laura Kuenssberg during an interview on her television show on Sunday morning.

He also warned any help similar to Covid or energy bill schemes risked driving up interest rates further.

It is understood that the Treasury has no current plans to give mortgage relief.

It comes as the average interest rate on a new two-year fixed mortgage is likely to breach 6% in the coming days as lenders grapple with upheaval in the sector.

Asked on Sunday with Laura Kuenssberg whether the government would consider stepping in to help those struggling to repay their loans, Mr Gove said there is a “difference between keeping under review and ruling out” a scheme similar to the wage support given during Covid.

But he said that using public money to “deal with particular crises” inevitably added to public debt, which put pressure on interest rates.

“The worst thing to do would be to spend money to provide a short-term relief which would then mean that our overall finances were in a weaker position, and interest rates were higher for longer, and inflation was higher for longer,” Mr Gove added.

It means people re-mortgaging face sharp increases in their repayments, while the purchasing power of first-time buyers is squeezed.

According to new figures from financial data firm Moneyfacts, a person fixing a £250,000 mortgage for five years back in 2018 would have paid an average rate of 2.92%, or £1,175 per month.

Today the average rate is 5.62%, with a monthly payment of £1,553. That’s £378 per month more, or nearly £23,000 more over the five-year term.

Mr Gove acknowledged people moving off fixed-rate deals faced “significant increases” along with broader cost-of-living pressures.

But he said the best way to tackle this was to bring down inflation.

A Treasury source added that a bailout for homeowners would be “self-defeating” because it would push up inflation and prompt the Bank of England to further raise interest rates.

The Sunday Times reported that the Treasury has ruled out mortgage support for this and other reasons. Instead, it will ask banks to do more to stop people losing their homes.

Read more:
Government help for mortgage holders is being help ‘under review’, says Michael Gove

0
FacebookTwitterGoogle +Pinterest
previous post
MusicMagpie turns corner from postal strike misery with earnings boost
next post
Which Lifestyle Factors are a Common Cause of Diabetes for People Living in the UK?

You may also like

IoD calls for an industrial strategy focused on...

June 5, 2023

UK house prices fall at fastest pace since...

September 7, 2023

Ministers pressed to address workforce health as UK...

February 24, 2025

Building a management team – why people are...

June 20, 2024

CEO of London-HQ’d software firm Forterro recognised for...

October 28, 2022

The benefits of networking for small businesses

October 25, 2023

More teacher strikes loom as unions vow to...

May 1, 2023

Jaguar to repurpose used EV batteries for Northamptonshire...

August 23, 2023

Labour unveils floating wind farm plans to boost...

March 25, 2024

Ed Sheeran facing a second copyright lawsuit

September 30, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved