Mortgage Support 2023-11-14
2023-11-14
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The question arises from concerns about the rising cost of living and its impact on UK households due to increasing mortgage rates.
What recent assessment has been made of the potential impact of changes in mortgage interest rates over the course of this Parliament on household incomes?
The path to lower mortgage rates is through lower inflation, which is why halving inflation was made one of our five priorities for this year. The latest Bank of England forecast shows that we are on track for that. In June, lenders representing more than 90% of the mortgage market agreed to a new mortgage charter, which includes new flexibilities to help customers manage their repayments.
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Assessment & feedback
Did not provide any specific assessment or statistics regarding the impact on household incomes from changes in mortgage interest rates.
Response accuracy
Q2
Partial Answer
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Context
The question addresses the government's policies on increasing home ownership, particularly through measures like help to buy ISAs and mortgage models.
Does the Minister agree that the best way we can help the next generation of homeowners is to increase the supply of homes, bring back the help to buy ISA and stop the 35-year mortgage shared-ownership models?
We are increasing the number of homes with optimism that we will reach our target of delivering 1 million new homes over this Parliament. The help to buy ISA was closed in 2019, but existing holders can continue saving into their accounts. We support market choice for people making mortgage decisions.
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Assessment & feedback
Did not commit to bringing back the help-to-buy ISA or stopping 35-year mortgages.
Response accuracy
Q3
Partial Answer
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Context
The Centre for Economics and Business Research estimates that mortgage increases are expected to cost UK households £9 billion this year and next, raising concerns about the economic burden on homeowners.
According to the Centre for Economics and Business Research, mortgage increases are expected to cost UK households £9 billion this year and next. How do the Government defend that?
The reason for this situation is a global phenomenon and we are doing what we can. We are working closely with the Bank of England, and due to our policies, interest rates will come down over time.
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Assessment & feedback
Did not defend or justify the £9 billion cost impact on households from rising mortgage costs.
Response accuracy
Q4
Partial Answer
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Context
Concerns about the impact of recent Conservative economic measures on working people, specifically regarding fixed-term mortgages and increased mortgage costs.
In 2023 so far, 1.5 million fixed-term mortgages have expired, leaving working people facing significant increases in their monthly payments. For example, households in Wellingborough are paying an additional £190 a month due to the Conservative government's policies during a cost of living crisis.
In the eurozone, US and UK there have been broadly similar increases in inflation and interest rates. We are confident our policies will bring those down.
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Assessment & feedback
Did not address whether it is fair for working people to bear the brunt of rising mortgage costs.
Changed Subject Entirely
Response accuracy