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Written question asked by Gen Kitchen (Labour) on Thursday, 16 May 2024, in the House of Commons. It was due for an answer on Monday, 20 May 2024. It was answered by Bim Afolami (Conservative) on Thursday, 23 May 2024 on behalf of the Treasury.

Mortgages: Interest Rates

Question

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of trends in mortgage interest rates on household disposable income in (a) Wellingborough constituency, (b) Northamptonshire and (c) England.

Answer

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.

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. In January 2023, the Prime Minister set out a plan to halve inflation, and that plan has worked.

While the pricing of mortgages is ultimately a commercial decision for lenders in which the Government does not intervene, the average offered mortgage rates on 2-year and 5-year fixed rates are now lower compared to their peak in Summer 2023. 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.

Secondary information

Type
Written question
Reference
26820
Session
2023-24
Subjects
Interest rates Mortgages Disposable income
Link
View this Written question on www.parliament.uk