Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of trends in mortgage interest rates on household disposable income in (a) Wellingborough constituency, (b) Northamptonshire and (c) England.

The path to lower interest rates is through low inflation, and the Government is fully committed to supporting the Bank of England get inflation back down to the 2% target, including by keeping borrowing under control.

Inflation reduces real incomes, creates uncertainty, and threatens our growth outlook so it's essential that the Government continues with its efforts to drive it down and not fuel it further. In January 2023, the Prime Minister set out a plan to halve inflation, and that plan has worked.

While the pricing of mortgages is ultimately a commercial decision for lenders in which the Government does not intervene, the average offered mortgage rates on 2-year and 5-year fixed rates are now lower compared to their peak in Summer 2023. The Government’s Mortgage Charter - in addition to the significant safeguards already in place - is providing support to vulnerable households; and mortgage arrears and repossessions remain low.