24 July 2023 , 21:30
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Around 650,000 households are struggling with soaring mortgage costs and are at a higher risk of repossession, Labour has claimed.
The number of families finding it difficult making their monthly payments has more than doubled since the start of the Parliament.
In 2019, the figure stood at 310,000, according to a Labour Party analysis.
It comes after the Bank of England raised interest rates to the highest level in 15 years last month in an attempt to bring down inflation.
The Bank is still expected to raise interest rates - currently at 5% - at its next meeting in early August in another blow to stretched budgets.
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Labour highlighted the Bank's financial stability report which had warned the proportion of households struggling had risen to around 2%.
(Getty Images)These families are more likely to cut back sharply on spending or default, with the figure expected to climb to around 2.3% by the end of 2023.
The figure stood at 1.1% at the beginning of the current Parliament - but it should remain below the 2007 financial crisis peak of 3.4%.
Labour's Rachel Reeves said: “While the government fails to face up to the impact of their mistakes, hundreds of thousands families are grappling with the Tory mortgage bombshell."
The Shadow Chancellor added: “Labour will not stand on the side lines and leave working people to face this crisis alone, with our mandatory mortgage package stopping households falling through the cracks for support.
“But we know we need a longer term solution to the insecurity plaguing households. Labour’s plan will restore financial and economic security, so we can move forward into a better future.”
Last week the UK's biggest debt support charity Citizens Advice warned many were also "living on empty" as incomes failed to pay for even essential bills.
It reported a rapid rise in those classed as having "negative budgets" due to energy, food and other essential bills - but also surging interest rates for those with mortgages.
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%.
"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.
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“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.”