Commons Sense

House of Commons · Ministers' Questions

Mortgage Interest Rates

Tuesday 14 November 2023 · 2 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 1 Not answered 0

Key points

  • John McNally inquired about recent assessments of government policies in light of current mortgage interest rates.
  • The Government's mortgage charter supports vulnerable households, and arrears and repossessions are at historic lows.
  • The response stated that real household incomes have risen by 2.7% year on year according to the latest data.

Topics (select to filter)

Questions & Answers

Q1 John McNally SNP
Economy
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.

Question

What recent assessment has been made of the implications for government policies given the current level of mortgage interest rates?

Answer from Bim Afolami

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.

Partly answered

Not addressed: Specific implications of high mortgage interest rates on policies were not addressed directly

How: Acknowledging General Economic Conditions But Focusing On Positive Trends

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Q2 John McNally SNP
Economy Taxation
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.

Question

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?

Answer from Bim Afolami

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.

Not addressed: The specific request for mortgage interest tax relief was entirely avoided

How: Changing Subject To Growth And Labour Market Data

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