Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department is taking steps to help ensure that mortgage lenders do not make excessive profits.

The pricing of financial products, including on lending and savings products, is a commercial decision for firms, in which the Government does not intervene.

The decisions on Bank Rate by the independent Monetary Policy Committee (MPC) at the Bank of England guide commercial banks’ decisions over the retail interest rates they charge on loans and pay on deposits.

Nevertheless, we recognise this will be a concerning time for existing mortgage borrowers, and particularly those who are due to come to the end of their existing deal in the immediate future.

Following the commitments agreed to support borrowers in December, the Chancellor met with mortgage lenders, UK Finance and the Financial Conduct Authority on 23 June. At this meeting, lenders agreed to a new Mortgage Charter to support borrowers struggling with their mortgage payments, which was published on 26 June. This sets out the standards signatory lenders will adopt when helping their customers, including new flexibilities to help customers manage their mortgage payments over a short period.

This is in addition to the measures the Government has already taken aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans, and protection in the courts through the Pre-Action Protocol.