Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps the Government has taken to ensure that base rate cuts are passed on by lenders to mortgage prisoners.

The Financial Conduct Authority have written to all closed-book firms following the disruption caused by the COVID-19 pandemic, encouraging them to pass on base rate reductions in accordance with their fair treatment guidelines.

Data released in July 2020 stated that customers with inactive lenders pay on average just 0.4% more than borrowers with the same lending characteristics with active lenders. The Government is committed to helping mortgage prisoners where they will see genuine benefit and will continue to work with the Financial Conduct Authority and industry to provide switching options for borrowers with an inactive lender.