Commons Sense

House of Commons · Ministers' Questions

Growth Plan: Mortgage Interest Rates

Tuesday 5 September 2023 · 5 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 2 Not answered 0

Key points

  • Fleur Anderson questioned the Government on the impact of the growth plan on mortgage interest rates in Putney, Roehampton, and Southfields.
  • The Minister stated that higher UK lending rates compared to other countries are due to high inflation caused by the Ukraine war, not the growth plan.
  • Anthony Browne inquired about regulatory measures to ensure a level playing field between short-term and long-term mortgages.

Topics (select to filter)

Questions & Answers

Q1 Fleur Anderson Lab Putney
Economy Taxation Housing
Context

The question arises from concerns over rising mortgage costs in Putney, Roehampton and Southfields. The latest Bank of England data indicates that UK lending rates for home purchases remain higher than those in Germany, Italy or France.

Question

What recent assessment has been made of the potential impact of the growth plan on mortgage interest rates? Mortgage and rental costs are soaring in Putney, Roehampton and Southfields. The Government claims it's due to global shocks or Ukraine war but data shows higher UK lending rates compared to Germany, Italy or France. Is this difference because those countries did not have the devastating growth plan or mini-Budget last year?

Answer from Andrew Griffith

High inflation from Putin's invasion saw interest rates increase across most western economies. Path to lower rates is through low inflation, which is why halving inflation is one priority for this year. Pleased that latest Bank of England forecast shows we are on track.

Partly answered

Not addressed: Did not concede that the current economic conditions are a result of the Government's policies rather than global factors

How: Global Shocks

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Q2 Fleur Anderson Lab Putney
Ukraine Economy Housing
Context

The questioner highlights the rise in mortgage and associated rental costs in Putney, Roehampton and Southfields. She questions whether this is due to the Government's policies or global economic factors.

Question

Mortgage and rental costs are soaring in my constituency. The Government claims it's all due to global shocks or the war in Ukraine but data shows higher UK lending rates compared to Germany, Italy or France. Will the Minister finally concede that this difference is because of the disastrous growth plan and mini-Budget last year?

Answer from Andrew Griffith

Hon. Lady's constituents will benefit from mortgage interest support and double number of mortgage products now compared to October 2022. Repeats comment: if worried about constituents, best way is to do away with Mayor's ULEZ tax.

Not addressed: Did not acknowledge the impact of the Government's economic policies on mortgage costs

How: Ulez Tax

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Q3 Anthony Browne
Economy Housing
Context

The question highlights the dependence of UK homebuyers on short-term fixed-rate mortgages, which are more vulnerable to rising interest rates compared to long-term fixed-rate mortgages in other countries.

Question

Homebuyers in the UK are overwhelmingly dependent on short-term fixed-rate mortgages. In most other countries, they have long-term fixed-rate mortgages of 10 or 20 years. Does my hon. Friend agree that regulators should ensure a level playing field between short and long-term mortgages to give homebuyers free choice?

Answer from Andrew Griffith

Hon. Friend has great knowledge of these matters, privilege to work with him on offering consumers and homebuyers more choice including long-term fixed-rate mortgages.

Partly answered

Not addressed: Did not provide a direct answer agreeing or disagreeing with the proposition

How: Work With Sector

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Q4 Darren Jones Lab Bristol North West
Economy Taxation Housing
Context

The question arises from the estimated rise in mortgage bills for around 140,000 households. The questioner seeks reassurances that a Conservative win would not lead to similar economic instability as seen post mini-Budget.

Question

Estimates suggest 140,000 households will face higher mortgage bills this month. If someone in Mid Bedfordshire were to remortgage their house next six months, they could pay £300 more per month compared with before the Tory mini-Budget last year. What can the Chancellor and his team do to reassure constituents that a Conservative win would not mess up economy again?

Answer from Andrew Griffith

More than 90% of mortgage providers have signed up to our mortgage charter offering relief, term-out mortgages and interest-free periods for those facing adversity. Unfunded spending promises will push up cost of borrowing, defer point at which inflation falls.

Answered

Not addressed: null

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Q5 Darren Jones Lab Bristol North West
Economy
Context

The question seeks an apology from the Government for the economic instability caused by the former Prime Minister's policies, particularly regarding pension risks and mortgage bills.

Question

It is no answer whatsoever to people of Mid Bedfordshire who cannot afford bills over coming months. One year ago, former Tory PM took huge ideological gamble sabotaging Britain's economy. Crashed pound, put pensions in peril and exploded mortgage bombshell under homes of millions. Will Minister take opportunity to apologise to British people for wrecking hopes and aspirations?

Answer from Andrew Griffith

Welcomes hon. Gentleman to position, has had feisty morning reading Walworth Road brief. Offers opportunity to correct record, Labour spent past 12 months talking down economy but now larger than when entered covid and recovered faster than France or Germany.

Not addressed: Did not apologise for damaging economic policies

How: Walworth Road Brief, Economic Recovery

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