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<p>The pricing of mortgages is a commercial decision for lenders in which the Government
does not intervene. However, we recognise this is a concerning time for mortgage borrowers.</p><p>
</p><p>The path to lower interest rates is through low inflation. The independent
Monetary Policy Committee continues to have the Government’s full support as it takes
action to return inflation to target.</p><p> </p><p>At a meeting with the Chancellor
in June, lenders agreed to a new Mortgage Charter to support borrowers struggling
with their mortgage payments. The Charter sets out the standards signatory lenders
will adopt when helping their customers, including new flexibilities to help customers
manage their mortgage payments over a short period.</p><p> </p><p>The Charter is in
addition to the significant safeguards already in place for consumers in the mortgage
market. Financial Conduct Authority rules require lenders to engage individually with
their customers who are struggling or who are worried about their payments in order
to provide tailored support. The Government has also taken measures aimed at helping
people to avoid repossession, including Support for Mortgage Interest (SMI) loans,
protection in the courts through the Pre-Action Protocol, and the Housing Loss Prevention
Advice Service (HLPAS).</p><p> </p><p>More broadly, the Government has taken decisive
action to support households across the UK through the cost-of-living challenges,
whilst remaining fiscally responsible. Overall, the Government is providing support
worth over £104 billion over 2022-2025 to help households and individuals with the
rising cost of living – an average of over £3,700 per UK household.</p>
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