Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the increase risked in non-payment of mortgages in the context of a potential increase in Bank of England interest rates in (a) Liverpool Wavertree constituency and (b) the North West of England.

Mortgage arrears levels remain at historically low levels. According to the latest UK Finance data, there were 74,560 homeowner mortgages in arrears at the end of June, 10% fewer than in the same period in the previous year.

Around 75% of residential mortgage borrowers are on fixed-rate deals and are therefore shielded from interest rate rises in the short term.

However, the Government has already taken immediate action to help households, including those in the Liverpool Wavertree constituency and the North West of England, through the Energy Price Guarantee. This is in addition to the £37 billion of targeted support for the cost of living this financial year.

For mortgage borrowers that do enter financial difficulty and struggle to keep up with payments, Financial Conduct Authority guidance requires firms to provide support through tailored forbearance options. This could include a range of measures depending on individual circumstances.

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.