Rishi Sunak battered over mortgage meltdown as he pleads with Brits to ‘hold our nerve’

Rishi Sunak urged Brits to ‘hold our nerve’ today as he was battered over the mortgage meltdown.

The PM urged homeowners being crippled by soaring interest rates to recognise that inflation is ‘the enemy’.

He said he was taking the difficult decisions to ease surging prices and get the economy back on track – and ‘totally supported’ drastic action by the Bank of England.

Interviewed on the BBC‘s Sunday With Laura Kuenssberg, Mr Sunak also delivered a stark warning to unions that he would not sign off big pay rises for the public sector this year.

The bullish stance came despite polls showing Tory support sliding amid mounting challenges, with Tories up in arms after Mr Sunak and Chancellor Jeremy Hunt ruled out early tax cuts. 

Challenged that he was ‘living in a parallel universe’ over the pain being endured by mortgage payers, Mr Sunak said: ‘I have to make difficult decisions as Prime Minister. Everyone can see the context that we’re in with inflation and interest rates.

In a BBC interview today, Rishi Sunak urged homeowners being crippled by soaring interest rates to recognise that inflation is ‘the enemy’

The bullish stance came despite polls showing Tory support sliding amid mounting challenges

‘Now, I want to prioritise the things that are right for the country. So yes, we’re investing in the (NHS) long-term workforce plan.

‘When it comes to public sector pay I’m going to do what I think is affordable, what I think is responsible.

‘Now that may not always be popular in the short term, but it’s the right thing for the country.’

Mr Sunak said agreeing big pay rises would just be ‘giving with one hand and taking with the other through higher inflation’.

‘We have to hold our nerve, stick to the plan, and we will get through this,’ he said. 

The PM is scrambling for ways of shifting the focus from the massive hit Brits are suffering from spiking interest rates. He will unveil an NHS revival plan later this week.

But Tories are warning that the pain being heaped on homeowners will dominate the run-in to the general election next year. Analysis suggests that voters in London and the South East who took typical mortgages in 2020-21 will be at least £5,000 worse off. 

There are mounting signs that the misery is already feeding through, with polls this weekend showing the Conservatives slumping between 18 and 25 points behind Keir Starmer‘s party.  

YouGov research put the Tories on just 22 per cent, down two from last week, while Labour was up four on 47 per cent.

Opinium estimated that Sir Keir’s advantage had increased by six in a fortnight to 18 points, with Mr Sunak’s personal ratings they lowest the firm has ever detected at minus 23. 

Analysis by the Public First consultancy for the Observer suggested those under the age of 45 face the biggest rises, as interest payments make up more of their mortgage. 

Mr Sunak was challenged that he was ‘living in a parallel universe’ over the pain being endured by mortgage payers

The Bank of England hiked rates to a fresh 15-year high of 5 per cent last week 

Shock figures last week showing prices still not slowing down forced the Bank’s hand 

Rachel Wolf, a founding partner of the company who co-authored the 2019 Tory manifesto, said: ‘The consequence of ever-rising house prices, particularly for squeezed millennials and those in the south-east, will be devastatingly clear in the next year. 

‘With the end of low interest rates, the parts of middle Britain that aren’t yet retired will suffer in a way that for them will dwarf the energy bill crisis.’