Commons Sense

House of Commons · Ministers' Questions

Mortgage Support

Tuesday 14 November 2023 · 4 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 3 Not answered 0

Key points

  • The path to lower mortgage rates is through lower inflation, which the government aims to halve.
  • We are increasing the number of homes, with an optimistic target of delivering 1 million new homes over this Parliament.
  • In the UK, US, and eurozone, there have been broadly similar increases in inflation and interest rates.

Topics (select to filter)

Questions & Answers

Q1 Steve McCabe Lab
Economy Housing
Context

The question arises from concerns about the rising cost of living and its impact on UK households due to increasing mortgage rates.

Question

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?

Answer from Bim Afolami

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.

Partly answered

Not addressed: Did not provide any specific assessment or statistics regarding the impact on household incomes from changes in mortgage interest rates.

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Q2 Nicholas Fletcher
Housing
Context

The question addresses the government's policies on increasing home ownership, particularly through measures like help to buy ISAs and mortgage models.

Question

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?

Answer from Bim Afolami

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.

Partly answered

Not addressed: Did not commit to bringing back the help-to-buy ISA or stopping 35-year mortgages.

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Q3 Steve McCabe Lab
Economy Housing Energy
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.

Question

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?

Answer from Bim Afolami

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.

Partly answered

Not addressed: Did not defend or justify the £9 billion cost impact on households from rising mortgage costs.

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Q4 James Murray Labour (Co-op) Ealing North
Economy
Context

Concerns about the impact of recent Conservative economic measures on working people, specifically regarding fixed-term mortgages and increased mortgage costs.

Question

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.

Answer from Bim Afolami

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.

Not addressed: Did not address whether it is fair for working people to bear the brunt of rising mortgage costs.

How: Changed Subject Entirely

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