Question to the HM Treasury:

To ask His Majesty's Government what consultations they have had with UK mortgage lenders regarding their assessment procedures, including the use of algorithms, for creditworthiness; and what steps they will take to ensure that first-time-buyers who have been renting from more than one landlord immediately prior to their mortgage application will not be disadvantaged during credit record checks.

The Treasury are in regular contact with mortgage lenders on all aspects of their business, including lending to first-time buyers. However, the pricing and availability of loans is a commercial decision for lenders in which the Government does not intervene. Likewise, beyond what is set out in regulation, the factors that lenders take into consideration when assessing mortgage applications is a commercial decision for individual lenders to make.

Nevertheless, this Government remains committed to making the aspiration of homeownership a reality for as many households as possible. Indeed, we are investing £11.5 billion to build more of the affordable, quality homes this country needs, and operate a range of schemes that aim to: increase the supply of low-deposit mortgages for credit-worthy households, increase the availability of new housing, and stimulate economic growth. These include First Homes, Shared Ownership through the Affordable Homes Programme and the Mortgage Guarantee Scheme. The Government also helps first-time buyers to save for a deposit through the Lifetime ISA and Help to Buy: ISA. Over 800,000 households have been helped to purchase a home since spring 2010 through these Government-backed schemes, with the annual number of first-time buyers at a 20-year high in 2021.