Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has made an assessment of the impact of interest rate rises on the affordability of mortgages for low-income mortgage holders.

The path to lower interest rates is through low inflation, and the Government is fully committed to supporting the Bank of England get inflation back down to the 2% target, including by keeping borrowing under control.

While the pricing of mortgages is ultimately a commercial decision for lenders in which the Government does not intervene, our plan is working, and the average offered mortgage rates on 2-year and 5-year fixed rates are lower compared to their peak in Summer 2023.

The Government’s Mortgage Charter - in addition to the significant safeguards already in place - is providing support to vulnerable households; and mortgage arrears and repossessions remain low.