Sense Check Your Figures Rishi!
So PM Sunak said yesterday the average mortgage increase is £200. Lets simplify the maths based on this figure as he is so keen on teaching maths. £200 A month is £2400 a year. The rise in base rate alone since Feb 2022 alone has been 4.5% up to yesterday.
So lets take £2400 divide by 4.5 and multiply by 100. That gives a figure of just over £53,000 as an average mortgage. This is based on interest payments alone.
I currently do not have the present average mortgage value but in 2023 it was £185,000 and I imagine it being a similar figure today. Interest rate rises of 4.5% on that figure would be £693 in interest alone a month.
Now I will be the first to admit this reasoning is very oversimplified. But my point is that when given any figure or statistic it pays to think critically and use simple maths to sense check what you are being told.