Self-employed People Covid-19 Support Schemes 2021-12-07
2021-12-07
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
In response to concerns about the impact of utilising government covid-19 support on future financial access, Toby Perkins asked for an assessment of mortgage and credit availability.
What recent assessment has been made regarding mortgages and credit availability for self-employed individuals who used Government's covid-19 support schemes?
Previous receipt of covid-19 support should not, in and of itself be a barrier to credit provided that the applicant meets the lender eligibility criteria. It remains important that lenders carry out checks to ensure that they do not lend to individuals in an unaffordable way.
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Assessment & feedback
The Minister did not provide specific assessments or data on mortgage and credit availability for self-employed individuals who used the schemes, nor did he address the issue of lenders penalizing applicants based on their use of government support.
Response accuracy
Q2
Partial Answer
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Context
In his supplementary question, Toby Perkins highlighted specific cases of self-employed individuals being denied mortgages and credit due to their use of government support schemes. He requested the Minister to engage with high street banks to address this issue.
The reality in my constituency is that business owners utilising Government's schemes are being told they cannot get a mortgage or other credit arrangements because of those schemes. Will the Minister work with banks to ensure businesses with sustainable track records do not face penalties for using these support measures?
The Government have worked with the Financial Conduct Authority and will continue to work with credit agencies to ensure payment holidays do not impact borrowers' credit ratings. However, commercial decisions remain outside direct government involvement; however, I will keep working with banks, financial institutions, and regulators to review the situation.
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Assessment & feedback
The Minister did not commit to engaging specifically with high street banks regarding the denial of mortgages or credit to self-employed individuals due to their use of support schemes.
Response accuracy