To ask His Majesty's Government, further to recent data from the Bank of England which showed that mortgage arrears are at their highest rate in six years, what steps they are taking to mitigate the negative impact on homeowners in light of the increased cost of living.
Answered on
21 December 2023
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. The Government’s Mortgage Charter – in addition to the significant safeguards already in place – is providing support to vulnerable households; and mortgage arrears and repossessions remain low.
More broadly, the Government has taken decisive action to support households across the UK through the cost-of-living challenges, while remaining fiscally responsible. Overall, the Government is providing support worth over £104 billion over 2022-2023 to help households and individuals with the rising cost of living – an average of over £3,700 per UK household.