Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to mitigate the financial pressure faced by mortgage holders due to inflation rising interest payments.

The pricing of mortgages is a commercial decision for lenders in which the Government does not intervene. However, we recognise this is a concerning time for mortgage borrowers.

The path to lower interest rates is through low inflation. The independent Monetary Policy Committee continues to have the Government’s full support as it takes action to return inflation to target.

At a meeting with the Chancellor in June, lenders agreed to a new Mortgage Charter to support borrowers struggling with their mortgage payments. The Charter sets out the standards signatory lenders will adopt when helping their customers, including new flexibilities to help customers manage their mortgage payments over a short period.

The Charter is in addition to the significant safeguards already in place for consumers in the mortgage market. Financial Conduct Authority rules require lenders to engage individually with their customers who are struggling or who are worried about their payments in order to provide tailored support. The Government has also taken measures aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans, protection in the courts through the Pre-Action Protocol, and the Housing Loss Prevention Advice Service (HLPAS).

More broadly, the Government has taken decisive action to support households across the UK through the cost-of-living challenges, whilst remaining fiscally responsible. Overall, the Government is providing support worth over £104 billion over 2022-2025 to help households and individuals with the rising cost of living – an average of over £3,700 per UK household.