The Conservatives’ unfunded spending commitments would lead to increased mortgage payments of £4,800 for the average family over the next Parliament, Labour has claimed.

On Friday, Labour is expected to set out the choices facing families when it comes to mortgages at the General Election.

Monthly mortgage repayments increased by £221 on average in 2023, according to Office for National Statistics (ONS) data.

The Labour Party blames Liz Truss’s mini-budget for the increases but Treasury minister Bim Afolami described the unfunded spending accusations as “desperate”.

Rachel Reeves sits in a chair and speaks to the audience during a question and answer session
Shadow chancellor Rachel Reeves (Lucy North/PA)

Labour’s shadow chancellor Rachel Reeves said: “After 14 years of Conservative chaos and decline, Britain has a chance to chart a different course.

“Labour will deliver the stability that our economy needs, keeping mortgages as low as possible. The Tories’ reckless unfunded spending will lead to families paying £4,800 more for their mortgages.

“It’s time for change. But change will only happen if you vote for it with Labour on Thursday July 4.”

According to the party, families who have remortgaged are spending £1 in every £3 of household budgets on mortgage repayments.

Liz Truss looks upwards as she speaks to a crowd
Labour said a mini-budget by Liz Truss was to blame for a rise in mortgage payments (Victoria Jones/PA)

Additionally, the party said renters are paying £90 more a month due to interest rate rises.

Mr Afolami said: “This is a desperate attempt to distract from the revelation that Rachel Reeves’ deputy has been caught red-handed blowing up the claim that Labour’s manifesto is fully funded – the reality is Labour will have to raise taxes to pay for ‘hundreds of billions of pounds’ of their unfunded net zero spending by 2030.

“Labour will impose a retirement tax on your state pension, hike your council tax and impose a pay-per-mile road tax on your car.

“Don’t surrender to £2,094 in higher taxes and higher mortgages under Labour. Only a vote for the Conservatives will stop Labour getting an unaccountable majority to hike your taxes. That is the choice at this election.”