Labour says 630,000 will be hit by increase in mortgage costs before 2024 elections

Labour says more than half a million homeowners face a surge in mortgage costs before the local elections in May, as ministers battle to contain the damage from an expected long period of high interest rates.

- Richard Partington

With the Bank of England expected to maintain its base rate at 5.25% today, the party released analysis showing that 630,000 more homeowners will be hit by higher costs.

Based on figures from the Office for National Statistics, Labour's analysis suggests more than 3,400 households will re-mortgage every day from 2 November to 1 May 2024.

Financial markets give a more than 90% chance of the Bank holding borrowing costs at the highest level since April 2008, after Threadneedle Street paused its most aggressive tightening cycle in decades in September.

With inflation in the UK at the highest level in the G7, after sticking at 6.7% in September, the Bank is likely to say that high interest rates will be required for a prolonged period to ensure inflation falls back to the 2% target set by the government.