Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of reports of the impact of Brexit on interest rates and mortgage defaults.

The Bank of England has operational independence to set monetary policy. As set out in its latest assessment, the MPC’s “monetary policy response to EU withdrawal, whatever form EU withdrawal takes, will not be automatic and could be in either direction and will depend on the balance of effects on supply, demand and the exchange rate.”

The latest Bank of England Credit Conditions Survey (Q3) indicates that default rates on secured loans to households have fallen over the past 18 months and are expected to remain unchanged in the next quarter.