Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps his Department is taking to tackle cases of lenders potentially penalising mortgage applicants on the basis of them taking furlough or a Self-Employment Income Support Scheme grants.

Decisions concerning the pricing and availability of loans, including application requirements, remain commercial decisions for lenders and the Government does not seek to intervene. For individuals applying for new credit, it remains important that lenders are able to carry out proper checks to ensure that they are not lending in an unaffordable way, especially if, for example, a borrower’s income had not yet returned to the level it was at pre Covid-19. Where an individual has been refused a mortgage with one provider we would also urge them to shop around, recognising lenders do not all take the same approach to assessing affordability.