Revealed: The London constituencies that will be worst hit by mortgage rate rises

Mortgage holders in London and the Southeast are set to be the worst hit by the “crippling” mortgage rate rises on the horizon, new data shows.

The top twenty areas of the country set to see the highest increase in their mortgage repayments increase are concentrated around the capital and the commuter belt, according to new analysis by the Labour Party.

By 2026, residents in Kensington, the Cities of London and Westminster, and Chelsea and Fulham will be the worst hit in the UK, facing average repayment increases of more than £10,000 – rising by £15,000, £12,900, and £12,100 respectively.

The remainder of the top ten areas that will be worst hit – Richmond Park, Hampstead and Kilburn, Westminster North, Battersea, Wimbledon, Finchley and Golders Green and Islington South and Finsbury – all face an average increase of between £9,600 and £7,800.

Non-London constituencies in the top twenty are Esher and Walton, rising by £7,500, and Chesham and Amersham, jumping by £7,100.

Average future repayment increases in Holborn and St Pancras, Twickenham, Ealing Central and Acton, Hammersmith, Ruislip, Northwood and Pinner, Tooting, Hornsey and Wood Green, and Putney all range from between £7,700 to £6,900.

Speaking in the Commons on Tuesday, Labour’s Rachel Reeves said: “This is the consequence of the Conservative government’s mini-budget and 13 years of economic failure, with inflation higher here than in similar countries.

“Where does the Chancellor think families will find the money to pay this Tory mortgage penalty?”

It comes as analysis by the Telegraph today indicated the crisis could see the Conservative Party lose one in three of its seats at the next election.

Homeowners facing rocketing repayments outnumber the party’s majority in more than a third of Tory constituencies – 121 out of 352, the paper reports – including in Boris Johnson’s old seat of Uxbridge and South Ruislip, ahead of an upcoming by-election.

Mortgage rates have rocketed as inflation has remained unexpectedly high. Figures out this morning showed that inflation had remained steady at 8.7 per cent in May, while core inflation increased month-on-month.

Investors now expect the Bank of England to eventually hike interest rates to six per cent, up from 4.5 per cent at the moment. As markets readjust to higher rates, banks have been pulling mortgage deals at short notice and putting more costly offers back on the market. 

According to Moneyfacts, the average rate on a two-year fixed rate mortgage has now climbed over six per cent, while the average rate available on a five-year deal was around 5.8 per cent.

More than 1 million people are expected to remortgage over the next year, according to the Resolution Foundation.