The average costs of remortgaging a home in west Wales is set to increase by more than £2,000 according to latest figures.

The Resolution Foundation, an independent think tank which focuses on improving living standards for those on low to middle incomes predicts that people looking to re-mortgage their homes would pay an average of £2,900 a year more from 2024.

Moneyfacts data also suggests that the typical rate on a two-year fixed-rate load had increased to almost six per cent, which is nearly double what it was a year ago.

It is said that almost 44,000 households in mid and west Wales will be affected by the increases with Eluned Morgan, MS for mid and west Wales, stating that the Tory mortgage penalty is ‘devastating’ for families.

It is said that in the Brecon and Radnorshire area, around 4,800 households could see an increase in mortgage costs of £2,600, with Carmarthen East and Dinefwr seeing an increase of £2,100 for around 6,300 households.

6,100 households in Carmarthen west and south Pembrokeshire could see an increase of up to £2,400 and 4,800 in Ceredigion could see an increase of £2,500.

Dwyfor Meirionnydd's 3,700 households could see an increase of £2,200, with 5,900 households in Preseli Pembrokeshire seeing the same increase. £2,300 is the rise that could affect 4,700 in Montgomeryshire.

Llanelli’s 7,400 households would see the lowest increase of £1,600.

The calculations are based on data from the 2021 census on who owns their own home with a mortgage or loan, with house price data from the House of Commons Library.

Eluned Morgan said: “The Tory mortgage penalty is devastating for family finances and is holding back out economy.

“The country is buckling under 13 years of Conservative mismanagement and a crashed economy, and it is families being asked to pay more on their mortgage once again.

“People are asking themselves whether they or their family are better off under the Tories. The answer is no.

“At the next general election, Labour will bring financial and economic security back, so that families are not constantly on a cliff edge, and so that we can urgently grow our economy to grab hold of opportunities in the future.”

Economists have recently forecast an economy growth of 0.2 per cent for the year and suggest there could be a risk of job losses and a sharp recession.

Some 8.8 million UK households have a mortgage, with the Resolution Foundation estimating that around 6.5 million of these have already re-mortgaged since the last quarter of 2022, the first quarter after the mini budget or will have to re-mortgage by 2026.