Now mortgage misery will last years

MORTGAGE holders face years of extra financial burden after Labour's Budget, a report claims.

- Martyn Brown and Katie Elliot

Interest rates will fall by less than expected in the next two years as a result of Rachel Reeves's spending and borrowing plans, said the Economic for Organisation Co-operation and Development.

Millions will be hit by higher mortgage repayment costs for longer.

In further humiliation for the Chancellor, Bank of England governor Andrew Bailey said the Government's "biggest issue" after her Budget was the way businesses react to the increase in national insurance. He also warned economic uncertainty was rising both in the UK and globally.

The double blow came as Sir Keir Starmer avoided repeating his vow for the UK to have the fastest growth in the G7 group of countries.

The Prime Minister was challenged over his pledge by Tory leader Kemi Badenoch in the Commons.

Sir Keir, who will attempt to "reset" his troubled premiership in a speech today, is facing claims that the country is being sidelined, with seemingly little prospect of reaching that goal as the US is surging ahead.

Savvy