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<p>The pricing and availability of mortgages is a commercial decision for lenders
in which the Government does not intervene. However, the Government recognises this
is a concerning time for mortgage borrowers.</p><p>Rising interest rates are in part
driven by Bank Rate. Monetary policy is the responsibility of the independent Monetary
Policy Committee (MPC) of the Bank of England. The MPC continues to have the Government’s
full support as it takes action to return inflation to target through its independent
monetary policy decisions.</p><p>The average offered mortgage rates on 2-year and
5-year fixed rates have now fallen from their peak in the Summer.</p><p>The Government
has taken steps to limit the impact of rising interest rates on mortgage holders,
through the Mortgage Charter. This Charter sets out the standards that signatory lenders
– who represent over 90% of the UK mortgage market – will adopt when helping their
customers.</p><p>We have also taken a number of measures aimed at helping people to
avoid repossession, including protection in the courts through the Pre-Action Protocol,
the Housing Loss Prevention Advice Service (HLPAS), and Support for Mortgage Interest
(SMI) loans. Accordingly, arrears and repossessions remain low by historical standards,
despite the rise in interest costs.</p>
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