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<p>The pricing and availability of mortgages is a commercial decision for lenders
in which the Government does not intervene.</p><p> </p><p>However, we recognise this
will be a concerning time for all households with a mortgage, particularly those who
are due to come to the end of their existing deal in the immediate future. The Prime
Minister has been clear, the best and most important way that we can keep costs and
interest rates down for people is to halve inflation, and then return it to the 2%
target.</p><p> </p><p>On Friday 23 June the Chancellor met with mortgage lenders,
UK Finance and the FCA to discuss a new package of support for those who encounter
problems keeping up with their mortgage payments. These commitments include an agreement
permitting customers to switch to an interest only mortgage, or extend their mortgage
term, for 6 months, after which they can switch back without a new affordability check
or it affecting their credit score. Lenders also agreed borrowers won’t have their
home repossessed within 12 months from their first missed payment without their consent
or unless in exceptional circumstances.</p><p> </p><p>If you are concerned about making
your mortgage repayment, you must speak to your lender as soon as possible. Contacting
them will not affect your credit score</p><p> </p><p>The Government has also already
taken a number of measures aimed at helping people to avoid repossession, including
Support for Mortgage Interest (SMI) 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.</p><p> </p><p>The
Government also recognises the challenges facing households due to elevated costs
of living, so has taken action at Spring Budget 2023 to go further to protect struggling
families. Taken together, support to households to help with higher bills is worth
£94 billion, or £3,300 per household on average, across 2022-23 and 2023-24 – one
of the largest in Europe. The government’s successful economic strategy will provide
further help. The Bank of England forecast that inflation will fall to 5.1% by the
end of 2023, before falling close to target by the end of 2024.</p>
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