Council launches scheme to help Milton Keynes families with soaring mortgage rates

Milton Keynes City Council has confirmed it will help hard-working homeowners struggling with mortgage thanks to a new scheme.

The city council will be launching the new Homeowner Mortgage Interest Relief Fund, with £250,000 agreed as part of its 2023/24 budget.

The news follows today’s announcement that the Bank of England will increase interest rates again due a further rise in inflation this month.

This discretionary scheme will provide short-term support to homeowners facing increased mortgage payments, with reports local families could be paying up to £3,000 more on their mortgage each year.

The Homeowner Mortgage Interest Relief Fund will provide one-off allowances so people have more time to secure their finances and prevent defaulting on their mortgage.

City council Labour leader Pete Marland said: “Thousands of families across Milton Keynes are suffering with skyrocketing mortgage rates, and the latest data suggests the average household could be paying an extra £3,000 to keep their home. The Government’s economic mismanagement and lack of support for homeowners is leaving people out of pocket, but the city council will step up to help those in need.

“Sadly, the MK Conservative Group voted against this measure and all the other cost-of-living support we have proposed.”

Labour leader Robin Bradburn added the scheme would act as a ‘lifeline’ for hardworking families impacted by soaring mortgage rates and the cost-of-living crisis.

The Homeowner Mortgage Interest Relief Fund will be launched in the new council year, which starts in April, and more information will be provided as plans progress.