The SNP has accused Andy Burnham of breaking his promises to cut the cost of living as homeowners face rising mortgage costs.
The claim comes after the average interest rate on a new five-year fixed mortgage deal hit 6% for the first time in three years, according to financial service MoneyFacts. Mortgages have been increasing in recent weeks amid concerns over rising prices, interest rates and government borrowing costs.
Analysis shows monthly mortgage costs up £279 since 2021
Analysis by the House of Commons Library, commissioned by the SNP, shows the cost of interest on the average two-year fixed rate mortgage on the average house price in Scotland increased by £279 a month since 2021.
According to the analysis, in November that year, the average mortgage rate for a two-year fixed deal on a £177,352 mortgage was 1.51% and cost £657 a month. By July 2026, the average rate had increased to 4.48% and cost £936 a month – leaving households £3,348 a year worse off.
SNP urges action at UK Budget
The SNP said mortgage rates had increased since Mr Burnham became Prime Minister. The Bank of England, not the UK Government, is responsible for setting interest rates.
SNP MP Kirsty Blackman said: “Andy Burnham is breaking his promise to cut the cost of living as mortgage rates soar to new highs on his watch – leaving many households thousands of pounds worse off.
“Burnham staked his reputation on his promise that he would cut the cost of living and deliver breathing space but hard-pressed families are being hammered as household bills have gone up, not down, since he became Prime Minister.
“The Labour Government must deliver urgent help with the cost of living at the UK Budget this month, including a meaningful package of measures to reduce bills and help households.
“People lost faith in Keir Starmer because he broke his promises and failed to deliver change – and Andy Burnham is making the same mistakes amid warnings that the Labour Government is presiding over the worst record for living standards in modern times.
“Scotland is an energy-rich country with huge resources. It’s a disgrace that under Westminster control we are stuck in an economic doom loop and forced to pay some of the highest prices in Europe. Scotland needs independence because real change will never come from Westminster.”
The UK Government has been approached for comment.
