Oral Answers to Questions

Debate between Christine Jardine and Andrew Griffith

Tuesday 20th June 2023 Commons Chamber

[Christine Jardine (Edinburgh West) (LD)]

10. If he will make an assessment of the implications for his Department’s policies of the cost of mortgage products.

[The Economic Secretary to the Treasury (Andrew Griffith)]

We recognise that this is a concerning time for homeowners and mortgage holders, but we cannot ignore the fact, much as some may wish to, that interest rates have risen across western economies as a result of the covid pandemic and the impact of the war in Ukraine. The Bank of England sets the base rate, which can have an effect on mortgage pricing, and the Bank has been independent since the decision of the then Labour Government in 1997. We remain committed to responsible management to bring inflation under control, which is the only sustainable way to lower interest rates and lower mortgage rates.

--- Later in debate ---

[Andrew Griffith]

I thank the hon. Lady for her question. Not only are we taking action and taking the tough decisions to sustainably improve the nation’s finances, but we are working with lenders—the Chancellor and I regularly meet the mortgage industry—on the support they can provide to mortgage holders if they do get into financial difficulties. There is a range of measures, which includes term extensions and switches to interest-only payment holidays. The Financial Conduct Authority guidance is very clear that any repossessions—and they are currently running at a historical low—should be an absolute last resort.

[Christine Jardine]

As a result of the 6% rate that we have heard about, more than 1 million households on flexible-rate mortgages have already faced increases this year, and 1.8 million more will see their fixed-rate deals come to an end and face increases in this year. It is not just homeowners. The knock-on effect has meant that in my constituency in Edinburgh, we have had the highest rental inflation anywhere in the country at 13.7% in the last financial year, because landlords are facing increases in their mortgages. The Government have said that they are willing to support people, so would they be willing to consider the Liberal Democrat idea of a mortgage protection fund to protect those on the lowest incomes, and support those who are struggling?

[Andrew Griffith]

I thank the hon. Member for her question, but regrettably the proposal that she and her party put forward would not only delay the point at which we are able to bear down on inflation and deliver the nation’s mortgage holders the lower interest they need but, as I understand, it would do nothing for the plight of private renters.

Oral Answers to Questions

Debate between Christine Jardine and Andrew Griffith

Tuesday 9th May 2023 Commons Chamber

[Andrew Griffith]

The hon. Gentleman and I have talked a number of times about this. I do not think it is fair to say that the Treasury is dragging its feet. We have supported reform of the mutuals sector. We welcome a diversity of provision, which involves a greater expansion of and more commercial freedom for the mutuals sector. With the Law Commission, we are looking to take its work forward to see whether we can help, and I am always happy to sit down with him, or with any representatives from the sector, as part of my widespread programme of engagement.

[Christine Jardine (Edinburgh West) (LD)]

4. What fiscal steps he is taking to support businesses with energy costs.

House Business during the Pandemic

Debate between Christine Jardine and Andrew Griffith

Monday 8th June 2020 Commons Chamber

[Christine Jardine]

rose—

[Andrew Griffith (Arundel and South Downs) (Con)]

rose—