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Scottish mortgage shock as 540,000 households face £190 per month average rise

More than 500,000 households in Scotland face paying an average of £190 more a month on their mortgages by the end of next year, with those in Edinburgh the worst hit.

Analysis by the Labour Party published on Friday estimated that a total of 546,600 households north of the border would be affected by spiralling mortgage costs.

The figures were broken down by council area, showing that around 51,700 households in the capital could face increases of £280 a month when remortgaging, the steepest rise.

In East Lothian and East Renfrewshire households face rises of £270 per month, while in East Dunbartonshire the monthly increase was estimated to be £260.

In the cities of Glasgow and Aberdeen the figure was put at £180 and £170 respectively, while in Dundee it was £150. The average rise across Scotland was £190.

Labour’s calculations were based on estimates of the number of households with a mortgage or loan using the 2021 Scottish Household Survey and house price data from the Registers of Scotland.

The figures were released ahead of a visit by shadow Chancellor Rachel Reeves to the Centrica Green Skills Centre in Glasgow.

She will be appearing alongside Scottish Labour Leader Anas Sarwar and shadow Business Secretary Jonathan Reynolds to outline the party’s plans on green jobs and energy bills.

Ms Reeves said families across Scotland were facing the prospect of a “Tory mortgage bombshell”.

Under her party’s plans to address the mortgage crisis, lenders would be required to bring in temporary relief measures such as allowing borrowers to switch to interest-only mortgage payments or lengthen their borrowing term.

“Not only has their economic recklessness driven this crisis, but this Tory government’s failure to make its measures mandatory leaves households across Scotland missing out on the mortgage support they need,” Ms Reeves added.

A Treasury spokesman said: “The best thing we can do to help mortgage holders and renters is to drive down inflation, and we have a clear plan to halve it this year, then get it back down to 2 per cent.

“The mortgage charter sets out targeted support measures for mortgage holders, who are understandably anxious about high interest rates and the risk of losing their home.

“That’s on top of the £3,300 on average we are giving each household to help with the cost of living over this year and last.”

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