Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of trends in the level of interest rates on people who are mortgage prisoners.

Ministers and officials meet regularly with industry, trade bodies, and regulators to understand their policies and the impact of the increased cost of living on all mortgage borrowers. I am also in regular contact with mortgage prisoner campaigners about their concerns.

The Treasury continues to work with industry to determine if there are any further solutions which would meaningfully benefit mortgage prisoners and are fair to other borrowers in the wider mortgage market, including those who are also paying variable rates.

The Government continues its efforts to support mortgage borrowers by offering Support for Mortgage Interest (SMI) loans to homeowners in receipt of an income-related benefit to help prevent repossession. Recently, the Prime Minister announced a package of homeownership measures, including changes to SMI Loans. When introduced, these changes will provide support more quickly to homeowners by reducing the qualifying period for SMI loans and remove the ‘zero earnings rule’. There is also protection in place in the courts under the Mortgage Pre-Action Protocol which stipulates that repossession should always be a last resort for lenders.

On the cost of living more broadly, the Government has introduced over £15bn of additional support, targeted particularly at those with the greatest need. This package builds on the over £22bn announced previously, with government support for the cost of living now totalling over £37bn this year. Millions of the most vulnerable households will receive at least £1,200 of one-off support in total this year to help with the cost of living.