Tom Swarbrick caller proposes 'radical' solution to mortgage crisis by 'taking interest rates out entirely'

21 June 2023, 23:22

Caller's 'radical' solution to mortgage crises

By Anna Fox

As 1.4m UK mortgage holders face 20% hit to disposable income from rate hikes, caller Barry is optimistic in his solution to the impending crisis.

Caller Barry began by telling Tom Swarbrick: "Let's be radical, shall we take interest rates out of mortgages entirely?”

Providing a personal anecdote, Barry said: "When I bought my first house when I was 21 in Dublin I gave a 5% deposit.

“My payments were 18% of my previous year's P60, and that was estimated that would be 30 years if I stayed on that salary”.

Continuing, Barry said to Tom: “Now as people progress in their careers their earnings go up, you mentioned earlier that people are probably paying 28% at the moment in terms of rent, that 28% they are currently paying, is in most cases equivalent to what their mortgage is going to be”.

READ MORE: Chancellor says Government will ‘stick to its guns’ as UK inflation stays at 8.7%

‘There are more food banks in this country than McDonald’s’ says Leader of Women's Equality Party

Asserting his point Barry said: "What you do is take interest rates out and you say to people 'ok give us a 5% deposit, 28% of what you have been used to paying, if you get on in your career, and make more money you will own that property in 20 years, if you stay on current wages you will own it in 40 years’.

"If you take interest rates out, you’ve got a level playing field and everybody’s happy”.

Their conversation follows an announcement from Chancellor Jeremy Hunt, who said the Government will "stick to its guns" and insisted patience is needed for the Bank of England rate rises to curb inflation.

READ MORE: Inflation has experienced a rocky road over the last 50 years!

Barry maintained his view telling Tom: “The banks get their money but they don’t have to go through the whole thing of repossession, people don’t become homeless because of spikes in interest rates, it’s logical is it not?”

Tom replied saying: “If I’m honest Barry, I don’t know.

“My assumption is, if it works, it would have been done before.”

The latest annual inflation figures put prices 8.7% higher than a year ago and follow already inflated costs.

Factors including Brexit, the pandemic and the Ukraine war have pushed up prices by a quarter on average compared to 2018.

More Tom Swarbrick

See more More Tom Swarbrick

A sister has described the moment she punched a crocodile to save her sister.

'I wasn't going to leave her behind': Twin recalls punching crocodile to save sister

Susan Hall has dismissed Ed Miliband's claim that she would be an 'embarrassment' to Britain as the next London mayor.

Susan Hall dismisses as 'nonsense’ after Ed Miliband said she would be an ‘embarrassment’ as London Mayor

UK should prepare for 'something close to war', Nato's deputy tells LBC, amid warning members have 'neglected defence'

UK should prepare for 'something close to war', Nato's Deputy General tells LBC, as he warns Russia 'cannot be trusted'

Emma Webber (left) speaking to LBC

Mother of Nottingham attack victim Barnaby Webber blasts police ‘mistruths’ after force is put in special measures

Lord Harrington said there should be a cap on the number of asylum seekers the UK takes.

Former refugees minister Lord Harrington calls for a cap on the number of asylum seekers the UK takes

Mel Stride has backed the PM

Rishi Sunak has 'absolutely not' betrayed nation over Rwanda plan, insists minister after Braverman's attack on PM

Tom and caller

'Our family is there': Mother shares heartbreaking experience of being a British Jew during Israel-Hamas conflict

The ban will be brought into effect in months

'Children should be in the classroom to learn': Gillian Keegan orders 'blanket ban' of mobile phones in schools

Tributes have been paid to Elianne after she was stabbed to death in Croydon

Fellow pupil of schoolgirl stabbed to death in Croydon describes heartbreaking moment students were told of her killing

Scotland's first safe drug consumption space set to be openned

'Isn't this just decriminalising heroin?': Tom Swarbrick questions Labour MSP over first safe drug consumption room

The education secretary discusses educational reforms with Tom Swarbrick

Shadow education secretary says 'Building Schools for the Future Programme' would have prevented Raac crisis

Tom Swabrick

'Is it not completely mental?': Tom Swarbrick astonished as schools shut due to crumble-risk concrete before new term

Exam results

Equation sheets given to GCSE cohort in attempt lessen reduced grade inflation blow, schools minister says

Crime commentator on Adam Provan

Internal review of rapist ex-Met officer is the equivalent of 'marking your own homework', says crime commentator

Education Secretary discuss new Eton free schools on LBC

‘Bailed out by Eton’: Education Secretary discusses new free schools with Tom Swarbrick

Lucy Letby: We have to know what went so 'catastrophically wrong' says Tom Swarbrick

Lucy Letby: We have to know what went so 'catastrophically wrong' says Tom Swarbrick