Found: for Mortgage Interest loans, leasehold dilapidation provisions and Social Fund net lending

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 25 March 2024 to Question 19031 on Universal Credit: Housing, for what reason there are different qualifying criteria for (a) Support for Mortgage Interest and (b) support that homeowners receive in respect of service charges.

Answered by Mims Davies - Minister of State (Department for Work and Pensions)

Support for Mortgage Interest (SMI) and help with service charges cover different costs and different eligibility criteria apply.

SMI is paid at a rate that the lending industry generally accept as sufficient to avert the threat of repossession. This help is often significantly less than the homeowner’s contractual liability, although eligibility was recently extended to assist homeowners with rising interest rates. While SMI provides support at the point of need, this help is in the form of an interest-bearing loan that is recoverable from equity when the property is sold.

Eligible service charges are met in full and this help is in the form of a non-recoverable benefit.

Given these differences the Department see no compelling argument for aligning entitlement rules.

Question to the Department for Levelling Up, Housing & Communities:

To ask His Majesty's Government, following reports that mortgages in arrears hit a seven-year high in the final quarter of 2023, what assessment they have made of the impact on (1) housing stability, and (2) homelessness rates.

Answered by Baroness Scott of Bybrook - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)

The Government is closely monitoring levels of arrears and repossessions, which remain low by historic standards. Affordability assessment and stress testing of mortgage applications is helping ensure households do not move into arrears.

Lenders representing over 90% of the market have agreed to our Mortgage Charter, which includes new flexibilities to help customers manage their repayments over a short period. This is helping to support vulnerable households.

Financial Conduct Authority (FCA) 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 put in place 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).

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if he will make it his policy to bring homeowner service charge support in Universal Credit in line with Support for Mortgage Interest by (a) removing the zero earnings rule and (b) reducing the nine month qualifying period.

Answered by Mims Davies - Minister of State (Department for Work and Pensions)

The Department has no plans to amend the support that homeowners receive in respect of service charges.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the impact of trends in the level of interest rates on homeowners in Warwick and Leamington constituency.

Answered by Bim Afolami - Economic Secretary (HM Treasury)

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

Rising interest rates are in part driven by Bank Rate. Monetary policy is the responsibility of the independent Monetary Policy Committee (MPC) of the Bank of England. The MPC continues to have the Government’s full support as it takes action to return inflation to target through its independent monetary policy decisions.

The average offered mortgage rates on 2-year and 5-year fixed rates have now fallen from their peak in the Summer.

The Government has taken steps to limit the impact of rising interest rates on mortgage holders, through the Mortgage Charter. This Charter sets out the standards that signatory lenders – who represent over 90% of the UK mortgage market – will adopt when helping their customers.

We have also taken a number of measures aimed at helping people to avoid repossession, including protection in the courts through the Pre-Action Protocol, the Housing Loss Prevention Advice Service (HLPAS), and Support for Mortgage Interest (SMI) loans. Accordingly, arrears and repossessions remain low by historical standards, despite the rise in interest costs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the impact of trends in the level of interest rates on homeowners in St Helens North constituency.

Answered by Bim Afolami - Economic Secretary (HM Treasury)

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

Rising interest rates are in part driven by Bank Rate. Monetary policy is the responsibility of the independent Monetary Policy Committee (MPC) of the Bank of England. The MPC continues to have the Government’s full support as it takes action to return inflation to target through its independent monetary policy decisions.

The average offered mortgage rates on 2-year and 5-year fixed rates have now fallen from their peak in the Summer.

The Government has taken steps to limit the impact of rising interest rates on mortgage holders, through the Mortgage Charter. This Charter sets out the standards that signatory lenders – who represent over 90% of the UK mortgage market – will adopt when helping their customers.

We have also taken a number of measures aimed at helping people to avoid repossession, including protection in the courts through the Pre-Action Protocol, the Housing Loss Prevention Advice Service (HLPAS), and Support for Mortgage Interest (SMI) loans. Accordingly, arrears and repossessions remain low by historical standards, despite the rise in interest costs.

Found: People in receipt of a Support for Mortgage Interest Loan will also usually be eligible.

Found: Support for Mortgage Interest statistics May 2018 to November 2023

Found: Support for Mortgage Interest statistics May 2018 to August 2023

Found: for Mortgage Interest-16,149,000 (Section AC) Changes in provision based on latest forecasts for estate

Found: for Mortgage Interest-16,149,000 (Section AC) Changes in provision based on latest forecasts for estate

Found: Pension Credit (PC) Entitled to WH P Support for Mortgage Interest loan (SMI) In receipt of a Support

Found: Sent: 24 October 2022 16:21 To: [redacted] Subject: RE: Annex G Data items WHP DSA I took out Support

Found: income based Job Seeker ’s Allowance •PC – Pension Credit •PIP - Personal Independence Payment •SMI - Support

Found: £13,400 for single people) a year outside LondonPrivate and SocialPhased introduction from April 2016 Support

Found: for Mortgage Interest _____________________ 25 Annex 1: Summary of main welfare reforms affecting housing