Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions she has had with (a) lenders and (b) other relevant stakeholders on the levels of early repayment charges for tracker mortgages.

HM Treasury is regularly in contact with mortgage lenders on all aspects of their mortgage business to understand their position and current lending conditions. However, the pricing of mortgages, including early repayment charges, is a commercial decision for lenders in which the Government does not intervene.

Nevertheless, Financial Conduct Authority rules set out that lenders should not impose early repayment charges at a level that is more than a reasonable pre-estimate of the costs that would be incurred as a result of a loan being terminated early.

Consumers should also be given adequate information about the existence of these charges in the pre-sale disclosure documents lenders are required to give them.