Written questions, answers and statements

Mortgages

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Question for Treasury

UIN 237207, tabled on 26 March 2019

Question

Seema Malhotra
Labour
Feltham and Heston
Commons

To ask the Chancellor of the Exchequer, with reference to Mortgage customers: proposed changes to responsible lending rules and guidance CP19/14 published by the Financial Conduct Authority on 26 March 2019, what estimate his Department has made of the number of mortgage customers currently unable to switch their mortgage product who will not be able to benefit from modified affordability assessment proposals.

Answer

John Glen
Conservative
Salisbury
Commons

Answered on

1 April 2019

HM Treasury welcome the FCA’s announcement that it intends to change its mortgage lending rules to move to a relative affordability assessment for customers seeking to switch to a cheaper mortgage without borrowing more. We have worked closely with the FCA in the lead up to the publication of their Consultation Paper.

The Economic Secretary and Andrew Bailey, the FCA’s Chief Executive, wrote to the Treasury Select Committee in response to questioning on who might be helped by the FCA’s proposed changes.

Copies of these letters can be found here:

https://www.parliament.uk/documents/commons-committees/treasury/Correspondence/2017-19/EST-to-Chair-re-mortgage-prisoners-300119.pdf

https://www.parliament.uk/documents/commons-committees/treasury/Correspondence/2017-19/Chief-Exec-of-FCA-to-Chair-re-mortgage-prisoners-150219.pdf

Answered by

Treasury
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