To ask His Majesty's Government what assessment they have made of recent cuts to mortgage rates announced by lenders; and what assessment they have made of the prospects of further reductions to mortgage rates in the near future.
Answered on
24 January 2024
Inflation reduces real incomes, creates uncertainty, and threatens our growth outlook so it’s essential that the government continues with its efforts to drive it down and not fuel it further.
The path to lower interest rates is through low inflation, and the government is fully committed to supporting the Bank of England get inflation back down to the 2% target, including by keeping borrowing under control.
While the pricing and availability of mortgages is ultimately a commercial decision for lenders in which the Government does not intervene, our plan is working, and the average offered mortgage rates on 2-year and 5-year fixed rates have now fallen from their peak in Summer 2023.