To ask His Majesty's Government what plans they have, if any, to support individuals and families facing difficulties in accessing affordable mortgages due to elevated interest rates.
Answered on
18 July 2023
The pricing and availability of mortgages is a commercial decision for lenders in which the Government does not intervene.
However, we recognise this will be a concerning time for all households with a mortgage. The Prime Minister has been clear, the best and most important way that we can keep costs and interest rates down for people is to halve inflation, and then return it to the 2% target.
Following the commitments agreed to support borrowers in December, the Chancellor met with mortgage lenders, UK Finance and the Financial Conduct Authority on 23 June. At this meeting, lenders agreed to a new Mortgage Charter to support borrowers struggling with their mortgage payments, which was published on 26 June. This sets out the standards lenders will adopt when helping their customers, including new flexibilities to help customers manage their mortgage payments over a short period.
This is in addition to the measures the Government has already taken aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans, and protection in the courts through the Pre-Action Protocol.
If mortgage holders are concerned about making their repayment, they must speak to their lender as soon as possible. Contacting them will not affect their credit score.