New figures released last week show that the average cost of a typical two-year fixed mortgage across England and Wales has dropped from £1,185 per month in June 2024 to £1,071 per month in December 2025. That reduction means households taking out a new mortgage are saving around £114 each month, a total of £1,368 a year on average.
In Chesterfield, families are saving around £1,280 a year compared with the cost of an identical mortgage before Labour came to office, putting significant extra money back into local household budgets.
The fall in mortgage costs follows six interest rate cuts since the General Election, the fastest pace of cuts in 17 years, as the Labour Government has restored stability after years of economic chaos.
Chesterfield MP, Toby Perkins, commented, “Families in Chesterfield paid a heavy price for years of Conservative economic mismanagement. Labour is cleaning up their mess. By restoring stability and responsibility to the economy, we’re bringing mortgage costs down and saving Chesterfield families over £1,250 a year. That’s real help with the cost of living, and it’s exactly the change people voted for.”
Mortgage rates surged by over 6% in October 2022 following the Liz Truss mini-budget, making it far more expensive for people in Chesterfield to buy a home or remortgage. Since the General Election, rates on typical two-year fixed mortgages have fallen from 5.16% to 3.97%, easing pressure on homeowners.
Toby added, “There are no easy fixes to the economic mess we inherited, but we are now starting to turn the corner and people can see tangible improvements that are making a massive difference to the economy and household budgets. We have had the first real terms wages increase across the country in 15 years, mortgages are coming down, energy bills are falling by £150 this year and people are starting to feel the benefit of a Labour Government. This will mean we all have a bit more money in our pockets, boosting consumer spending and helping grow the economy.”