Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of the increase in interest rates on (a) homeowners and (b) mortgage availability in Hornsey and Wood Green constituency.

There are c.28.1 million households in the UK, 8.4 million of which have a residential mortgage. Around 75% of residential mortgage borrowers are on fixed-rate deals and are therefore shielded from interest rate rises in the short term.

When mortgage borrowers are in financial difficulty and struggling to pay their mortgage, Financial Conduct Authority guidance requires firms to provide support through tailored forbearance options. This could include measures such as a payment holiday, partial payment, or an extension of mortgage term.

The Government has also taken a number of measures aimed at helping people to avoid repossession, including Support for Mortgage Interest loans for those in receipt of an income-related benefit, and protection in the courts through the Pre-Action Protocol, which makes it clear that repossession must always be the last resort for lenders.

There remains a broad range of mortgage products on the market, and those looking to take out a mortgage are encouraged to shop around and speak to a mortgage broker. The pricing and availability of loans is a commercial decision for lenders in which the Government does not intervene.