Oral Answers to Questions

Emma Reynolds Excerpts

Tuesday 20th May 2025 Commons Chamber

[Harpreet Uppal (Huddersfield) (Lab)]

2. What recent discussions she has had with the Financial Conduct Authority on the adequacy of support from mortgage lenders for older people with interest roll-up lifetime mortgages.

[The Economic Secretary to the Treasury (Emma Reynolds)]

Lifetime mortgages have been regulated by the FCA since 2004. Those rules provide robust consumer protections, including requiring lenders to engage and provide tailored support to all their customers.

[Harpreet Uppal]

One of my constituents, a 96-year-old man, took out in 1990 what he thought was a £15,000 loan, but what was actually an interest roll-up lifetime mortgage. Despite paying £40,000 over the years, he now owes over £52,000 due to compound interest. He has been denied redress by the financial ombudsman due to time limits, and my team has also contacted the FCA and the lender without success. My constituent is now left to deal with the consequences. Will the Minister meet me to discuss this case, and how we can better support other people who have been mis-sold those products?

[Emma Reynolds]

I am really sorry to hear about the circumstances that my hon. Friend’s constituent is facing, and I would be happy to meet her to discuss the issue further. Lifetime mortgages are complex financial products, and I suggest that anyone considering equity release seeks independent financial advice to help ensure those products are suitable for their needs.

[Dr Al Pinkerton (Surrey Heath) (LD)]

An increasing number of pensioners are reaching the end of their mortgages with outstanding borrowing and finding themselves unable to meet later-life lending criteria, and this is likely to become even more prevalent in years to come as house price rises continue to outstrip earnings. What discussions is the Minister having with lenders and the mortgage industry about expanding those criteria and giving hard-working pensioners who might otherwise be forced to seek council support the opportunity to remain in their own homes?

[Emma Reynolds]

I thank the hon. Gentleman for raising this important issue. I discuss mortgages with lenders and, indeed, with the Financial Conduct Authority on a weekly basis, and I will ensure that I pass on his comments.

[Graham Stuart (Beverley and Holderness) (Con)]

3. What assessment she has made of the potential impact of the autumn Budget 2024 on costs for businesses.

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[Mr Joshua Reynolds (Maidenhead) (LD)]

T3. With interest rates still high, what assessment has the Chancellor made of the number of homeowners going into mortgage arrears and the impact that is having on families right across the UK?

[The Economic Secretary to the Treasury (Emma Reynolds)]

We are in weekly touch with the Financial Conduct Authority, which regulates mortgages, and under this Government we have seen four interest rate cuts since the election, which is bringing mortgage rates down for hard-working people across the country.

[Deirdre Costigan (Ealing Southall) (Lab)]

T7. Does the Chancellor agree that four interest rate cuts, three trade deals, two successive quarters of growth and almost 1% of growth announced last week show that our plan for change is working? Does she also agree that it is now essential that this House supports the Government’s Planning and Infrastructure Bill and other efforts to boost growth and put money in the pockets of my constituents in Ealing Southall?

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[Luke Myer (Middlesbrough South and East Cleveland) (Lab)]

Last week I raised with the Minister for Social Security and Disability the case of a local disability charity being hit by increased bank charges, and the Minister committed to work with me on the issue. Will Treasury Ministers do the same so that we can take these banks to task and support fantastic local organisations?

[Emma Reynolds]

I would be happy to meet my hon. Friend to discuss that issue.

[Wendy Chamberlain (North East Fife) (LD)]

Access to banking services is a particular issue in North East Fife, where the limitations of the access to cash legislation are becoming clear. Will the financial inclusion committee agree to look at the Financial Services and Markets Act 2023 to ensure that we get the access to banking services that local communities need?

[Emma Reynolds]

Our Government secured the commitment of the banking industry to roll out 350 banking hubs across the country; 200 have already been agreed and over 150 are open. The financial inclusion committee, which I chair, is looking at financial inclusion, including digital banking and ensuring that people have the bank accounts they need.

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[Mr Gregory Campbell (East Londonderry) (DUP)]

The roll-out of banking hubs is helping to a small degree, but what plans do the Government have to increase the number of banking hubs beyond those in the pipeline?

[Emma Reynolds]

As I said in my previous answer, we have secured the commitment of the industry to open 350 banking hubs by the end of this Parliament. The FCA keeps the access to cash rules under review. As legislated for under the last Government, it has the power to make rules to ensure that there is access to cash across the country.

[Mr Speaker]

I call the Chair of the Treasury Committee.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

Yesterday, there was a lot of coverage of the Chancellor’s comments about the ISA limit. She pledged to keep it at £20,000 but did not specify how much within that would be cash and how much would be investments. Can the Minister reassure me that she is seriously considering the impact on the mortgage-lending market of changing the cash ISA limit?

[Emma Reynolds]

As we announced in the spring statement, we are looking for options for ISA reform to ensure that we get the balance right between cash and equities. I can reassure my hon. Friend that we understand that cash savings are a vital tool for people and act as a financial buffer for a rainy day.

[Esther McVey (Tatton) (Con)]

I am sure that the Chancellor subscribes to the basic principle that if the cost of something is put up, we will see less of it. That is why Governments have, over many years, put taxes on things like smoking. Does she accept that the principle also applies to employing people—that the more expensive the Government make employing people, with their jobs tax increasing NICs for employers, the less we will see of that?