HOMEOWNERS should get payments of up to £300-a-month to help with their mortgages according to the Lib Dem leader.
It comes as millions of households across the nation are facing rises with their deals scheduled to end next year.
Sir Ed Davey called for the creation of a £3 billion mortgage protection fund
Speaking in London, Sir Ed Davey said Brits were paying a “property premium” after Liz Truss and Kwasi Kwarteng’s disastrous mini-Budget.
And he called for the creation of a £3 billion mortgage protection fund in order to assist families facing crippling increases in their repayments.
Davey said this would be paid for by reversing cuts to taxes on banks dating back to 2016.
Under his proposal, homeowners who see their repayments increase by more than 10% of their income would be able to apply for monthly grants.
Homeowners have been warned they face a huge hike in their repayments after the Bank of England raised interest rates.
The central bank raised its base rate of interest on Thursday by 0.75 percentage points to 3% – the biggest increase in 33 years.
The bank warned that further rises might be required to bring down runaway inflation,
However, some major banks have cut mortgage bills for some customers – despite the Bank’s interest hike.
But there may be a glimmer of hope for homeowners, as some high street banks have announced a surprise cut to rates which will see some customers’ mortgage bills fall.
In an unprecedented move Barclays became the first bank to cut bills for mortgage customers on standard variable rates (SVRs).
Tips for getting the best mortgage deal
Getting the best rate on your mortgage can depend on the rates available at the time, but there are several ways to land the best deal.
Usually the larger the deposit you have the lower the rate you can get.
If you’re remortgaging and your loan to value ratio has changed this could also give you access to better rates than before.
A change to your credit score or a better salary could also help you access better rates.
If you have a fixed rate, you could see higher rates when you come to the end of the current term after the BoE rise., either when shopping for a new fixed deal or reverting to the standard variable rate (SVR).
But if you’re nearing the end of a fixed deal soon it’s worth looking now. You can lock in current deals sometimes up to six months before your current deal ends.
Fixed rates have historically been cheaper than SVRs, but that may not be the case now, so its worth comparing the costs before you leave.
To find the best deal use a mortgage comparison tool to see what’s available.
You’ll also need to factor in fees for the mortgage, though some have no fees at all, or you can add it on to the cost of the mortgage, but beware that means you’ll pay interest on it and so will cost more in the long term.
You can use a mortgage calculator to see how much you could borrow.
