Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of taking steps to encourage the provision of discounted mortgage products for first time buyers in the context of increased interest rates.

The Government does not set mortgage or interest rates: the pricing and availability of mortgages is a commercial decision for lenders, while the Base Rate - which is one factor that lenders may use to set mortgage rates – is set by the Monetary Policy Committee of the Bank of England, which is independent of Government.

However, the Government remains committed to making the aspiration of homeownership a reality for as many households as possible whilst ensuring fairness and value for public money.

We operate a range of schemes that aim to increase the supply of low-deposit mortgages for credit-worthy households, including first-time buyers, increase the availability of new housing, and stimulate economic growth. These include the Mortgage Guarantee Scheme, which is open until the end of 2023 as well as First Homes and Shared Ownership through the Affordable Homes Programme. The Government also helps first-time buyers to save for a deposit through the Lifetime ISA and Help to Buy: ISA.

Over 837,000 households have been helped to purchase a home since Spring 2010 through Government-backed schemes.