To ask His Majesty's Government what meetings they have held with this year with representatives from the mortgage lending industry regarding the increased cost of living and its impact.
Answered on
22 November 2022
Treasury Ministers and officials are regularly in contact with lenders on all aspects of their mortgage business to understand their position and current lending conditions. This includes recent discussions on the impact that the increased cost of living is having on mortgage borrowers and the support that lenders have in place should a mortgage borrower fall into financial difficulty.
It is worth noting that, if a mortgage borrower falls into financial difficulty, Financial Conduct Authority (FCA) guidance requires firms to provide support through tailored forbearance options. The Government has also taken a number of measures aimed at helping people to avoid repossession, including Support for Mortgage Interest loans for those in receipt of an income-related benefit, and protection in the courts through the Pre-Action Protocol, which makes it clear that repossession must always be the last resort for lenders.
More broadly, the Government has announced £37 billion of support for the cost of living this financial year. In addition to the Energy Price Guarantee, millions of the most vulnerable households will receive £1,200 of support this year, with additional support for pensioners and those claiming disability benefits.