Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of higher bond yields on mortgage repayments.

The government does not comment on specific financial market movements. Gilt yields are determined by a wide range of international and domestic factors, and it is normal for the price and yields of gilts to vary when there are wider movements in global financial markets.

The Chancellor has commissioned the Office for Budget Responsibility for an updated economic and fiscal forecast for the 26th of March, which will incorporate the latest data.

The pricing of mortgages, which is influenced by a number of factors, is a commercial decision for lenders in which the Government does not intervene. It is worth noting that, at present, average mortgage rates are well below the recent peaks seen in Summer 2023 and Autumn 2022.