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Lib Dems propose £300 monthly grants for struggling homeowners

The Government is being urged to create a mortgage protection fund to support homeowners who are struggling with repayments.

It comes as new polling commissioned by the Liberal Democrats has found a quarter of mortgage holders are worried about losing their home due to unpaid bills as interest rates rise. 

Almost half of mortgage holders are even worried about cutting down on their food bill as payments spiral in the wake last month’s mini-Budget.


Overall, seven in ten of those with a mortgage said they expect to pay more in housing costs over the next year. 

The research also found that 26% of mortgage holders are worried about needing to downsize to a smaller property due to rising costs.

Liberal Democrat leader Ed Davey has called on the Government to establish a mortgage protection fund to support struggling borrowers.

It would let those who have seen their mortgage payments increase by more than 10% of their income apply for grants of up to £300 a month to help cover the cost of the rise. 

He said this would protect families from falling into arrears or losing their homes because they can’t afford spiralling mortgage rates. 

The estimated £3bn cost of the fund would be paid for through reversing Conservative cuts to the Bank Levy and Bank Surcharge since 2016, Davey said.

The Liberal Democrats are also calling for measures to support renters, including bringing in the long-promised ban on “no fault” evictions and bringing in longer tenancies that protect against rent hikes.

Davey added: “These shocking figures reveal the true horror of this Government’s failure to manage Britain’s economy.  

“The Conservative government has added hundreds of pounds to people’s monthly mortgage bills through their disastrous budget. Struggling families are being forced to pay this Conservative Property Penalty, with many worried sick about how they will get by or even afford to stay in their homes.

“The government has a responsibility to step in and fix their own mess, by providing grants to those struggling to afford eye-watering mortgage hikes. No family should face losing their home because of the Conservative party’s reckless mismanagement of the economy.

“This mortgage protection fund could be paid for by reversing the Conservative party’s unfair and unnecessary tax cuts for the big banks who are making huge profits.”
Meanwhile, separate analysis by call intelligence and speech analytics platform Infinity, has identified increased anxiety among homeowners.

During the week of 25 September, following former Chancellor Kwasi Kwarteng’s mini-Budget, Infinity’s data shows there was a 20% increase in calls from anxious customers looking for vital information about their finances.

Warren Newbert, chief executive of Infinity, said “The increase in calls around interest rates, and consequently mortgage payments, skyrocketing emphasises customers’ financial worries.

“Bank of England has now raised interest rates to 3% and expects the UK to fall into its longest recession. 

“In response, banks must prepare their customer service teams to provide an outstanding customer experience, supporting those with.”

  • icon

    Another classic from the Libdems… almost as good as Labour’s environmental reparations suggestion.
    Do these people know where government money comes from?

  • Chris Arnold

    So taxpayers are being asked to provide support whilst the owner enjoys the long term rise in equity?


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