Mortgage Interest Rates 2023-11-14
2023-11-14
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
▸
Context
The question follows recent trends in mortgage interest rates, which have implications for the government's policies. The MP is concerned about the impact on household finances.
What recent assessment has been made of the implications for government policies given the current level of mortgage interest rates?
The Government's mortgage charter is providing support to vulnerable households, and arrears and repossessions remain at historic lows. Government support has helped real household incomes rise by 2.7% year on year in the latest data.
▸
Assessment & feedback
Specific implications of high mortgage interest rates on policies were not addressed directly
Acknowledging General Economic Conditions But Focusing On Positive Trends
Response accuracy
Q2
Partial Answer
▸
Context
The economy is experiencing stagnation, with mortgage interest rates at 5.25% likely to stay above 5% in the coming year. This situation is causing a squeeze on households' disposable incomes.
Given that the economy is flatlining and interest rates are at 5.25%, surely the Chancellor agrees that mortgage interest tax relief must be reintroduced to support households facing high interest rates alongside inflation?
As the hon. Member has already heard from the Chancellor, the economy is still growing. The latest labour market data shows that incomes are going up at a higher rate than inflation, so I do not recognise the picture that he paints.
▸
Assessment & feedback
The specific request for mortgage interest tax relief was entirely avoided
Changing Subject To Growth And Labour Market Data
Response accuracy