One of Reading’s MPs has backed a move that would have made changes to how mortgages are repaid to help struggling residents.
Matt Rodda, who represents Reading East, spoke in support of the Shadow Chancellor Rachel Reeves parliamentary motion which would have introduced mandatory extensions to mortgage repayments to help those struggling with instalments.
He said: “One constituent – a gentleman called Peter – is in a good job. He has a young family, with two children, and they live in a three-bedroom house. They face an increase of £800 a month in their mortgage, and they simply do not know how they will cope.
“Another constituent, Donna, who lives in a flat in Reading town centre, faces a £400-a-month increase. Again, that is an absolutely incredible increase in what she has to pay for her home.
“Sadly, she is one of many residents locally who have been affected by the cladding scandal and by delays in removing various types of dangerous cladding.
“She is already under enormous pressure because of the emotional stresses and strains of having a flat with cladding problems. In addition, she now faces this enormous extra increase in her payments. She is self-employed and has a small business. Imagine how this feels to her.
“This truly is a dreadful crisis.”
The motion, debated on Tuesday, June 27, was defeated by 287 votes to 212 after it was introduced on Tuesday, June 27.
The Conservatives proposed a counter motion which acknowledges the government’s efforts to curb inflation, and the introduction of the Mortgage Charter, which it states provides payment flexibilities for mortgage holders.
The government says its cost of living support is worth an average of £3,300 per household to the most vulnerable, and argued that Labour’s policies would lead to greater inflation, higher interest rates and put more pressure on mortgage holders and renters.
The countermotion passed by 283 to 197, with Mr Rodda voting against it.
He said: “I called for a mandatory scheme for lenders to offer more time to residents who are struggling to pay their mortgages, following the recent rise in interest rates. The scale of the increase is significant with some residents facing an increase in payments of hundreds of pounds a month.
“So far, the Government has only offered a voluntary scheme to ease this pressure.
“I would like to have seen a mandatory scheme for lenders to offer help by extending the terms of mortgages to reduce the immediate pressure, which is why I called on Ministers to implement the five-point plan set out by the Shadow Chancellor’.”
Those struggling with mortgage repayments may be eligible for the government’s Support for Mortgage Interest scheme with information being provided online.
Sir Alok Sharma, the Conservative MP for Reading West, voted against the Labour motion and for the counter motion.
