Commons Sense

House of Commons · Ministers' Questions

Homeowners with Mortgages: Support

Tuesday 6 February 2024 · 3 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 2 Not answered 0

Key points

  • Laurence Robertson inquired about specific measures to support homeowners facing difficulties due to higher mortgage payments.
  • The response indicated the government's commitment to the Bank of England's inflation target to achieve lower interest rates.
  • Marion Fellows raised concerns over the significant increase in two-year fixed mortgage rates and the financial strain on homeowners in Scotland.

Topics (select to filter)

Questions & Answers

Q1 Laurence Robertson Con
Economy Housing
Context

Concerns about the impact of rising interest rates on mortgage borrowers, leading to financial difficulty.

Question

I am concerned about the steps being taken to help support homeowners experiencing difficulties due to increased mortgage payments. What specific measures are in place or planned to alleviate this issue?

Answer from Bim Afolami

The path to lower interest rates is through lower inflation, which is why the Government are fully committed to supporting the Bank of England in achieving its 2% target. For those in financial difficulty, the mortgage charter includes new flexibilities for managing repayments.

Partly answered

Not addressed: Specific actions beyond existing policies not addressed

How: General Commitment To Lowering Inflation

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Q2 Laurence Robertson Con
Economy Housing
Context

Continued concern over the impact of rising interest rates on mortgage borrowers.

Question

Given that many mortgage holders are suffering due to recent hikes in interest rates, will the Government continue discussions with the Bank of England and lenders to find ways to reduce these rates further? This could provide significant relief for homeowners.

Answer from Bim Afolami

I completely agree on the need to drive mortgage rates down, which is why we support the Bank of England's efforts. We also ensure that our policies do not exacerbate inflation by avoiding additional borrowing.

Partly answered

Not addressed: Specific dialogue plans with Bank of England and lenders not detailed

How: Focus On Not Worsening Inflation

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Q3 Marion Fellows SNP
Economy Housing Scotland
Context

High monthly payment increases for mortgage holders, with over 900,000 borrowers facing significant rises and government resignations due to these issues.

Question

The two-year fixed mortgage rate is more than double the level from December 2021, leading to monthly payments increasing by £500 or even £1,000 for many. Given that Government Ministers are having to step down over rising mortgage costs, how does the Chancellor expect people in Scotland to manage these increased rates?

Answer from Bim Afolami

Firstly, the best way is to support cost of living rather than increasing taxes as proposed by the SNP. Secondly, we maintain our backing for the Bank of England in reducing inflation and subsequently interest rates.

Not addressed: Specific measures for Scottish residents not addressed

How: Redirecting Focus To Tax Increases, General Commitment To Reducing Inflation

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