Rachel Reeves has demanded that banks be forced to help families struggling with crippling mortgage hikes.
The Shadow Chancellor made five pledges if Labour wins power, including that it will require lenders to let borrowers switch to interest-only payments temporarily, or lengthen the term of their loan.
Banks would have to wait a minimum of six months before initiating repossession.
Labour would also tell the Financial Conduct Authority to advise lenders that borrowers’ credit ratings should not be affected if they take help.
Ms Reeves said: “Unlike this Government, Labour will not stand by as millions face a mortgage catastrophe made in Downing Street.”
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BPM Media)
A Treasury spokesman said: “Lenders are already required to engage individually with their customers who are struggling, to provide support.”
He said such support could include a switch to interest-only or lengthening a loan term.