Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what his Department's policy is on the introduction of restrictions on the ability of banks and other mortgage lenders to repossess a home where that would make a family homeless.

The Government has put a number of protections in place to limit repossessions.

It established the independent Financial Conduct Authority (FCA) and gave them the responsibility to put in place robust protections to ensure fair treatment of borrowers facing payment difficulties. The Department for Work and Pensions also provides help for pensioners and those out of work to meet their mortgage payments through Support for Mortgage Interest. In addition, all borrowers can seek protection in the Courts using the Mortgage Pre-Action Protocol, which makes it clear that repossession must always be the last resort for lenders.

However, a well-functioning mortgage market will always need to keep the possibility of repossession open as a last resort. Without this option, lenders have no reliable security against which to lend and the likely consequence would be higher mortgage rates.