Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of whether banks charge fair and reasonable arrangement fees, and of the impact of such fees, combined with restrictive affordability criteria on the affordability of consumer mortgages.

The availability and pricing of mortgages, including arrangement fees, is a commercial decision for lenders in which the Government does not intervene.

It is important for both lenders and consumers that proper checks are carried out to ensure that borrowers will be well placed to repay the mortgage. Since April 2014 all lenders must now conduct an affordability assessment, which includes a robust income and expenditure analysis that will include a consideration of other debts owed. Lenders must also obtain evidence of that income to support this assessment.

The Government remains committed to making the aspiration of homeownership a reality for as many households as possible.

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.