Proactive Investors - Rishi Sunak has no plans currently to provide help for people facing hefty mortgage cost increases, the prime minister told ITV (LON:ITV) today.
"The first priority at the beginning of the year was to halve inflation - that's the best and most important way that we can keep costs and interest rates down for people," Sunak said. "We've got a clear plan to do that. It is delivering. We need to stick to the plan."
Interest rates on new mortgages rose towards 6% last week as lender repriced their products after a surge in gilt yields, which are used as a benchmark for lenders.
That has left up to one million homeowners with their loans coming up for renewal facing a huge increase in monthly payments.
In an interview yesterday Levelling Up minister Michael Gove said the possibility of help with mortgages was “under review” but any action was down to the Treasury.
Gove also added that the best way to deal with higher mortgage rates was to reduce inflation.
According to financial data firm Moneyfacts, the cost of a £250,000 five-year fixed rate mortgage has risen to £1,553 a month from £1,175 per month 2.92% in 2018.
A Treasury source told the BBC that a bailout for homeowners would be "self-defeating" because it would push up inflation and lead to further interest rate rises.