Mortgage Interest Rates

Treasury – in the House of Commons am ar 14 Tachwedd 2023.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of John McNally John McNally Scottish National Party, Falkirk

What recent assessment he has made of the implications for his policies of trends in the level of mortgage interest rates.

Photo of Bim Afolami Bim Afolami The Economic Secretary to the Treasury

The Government’s mortgage charter is providing support to vulnerable households, and arrears and repossessions remain at historic lows. Government support has helped real household incomes rise by 2.7% year on year in the latest data.

Photo of John McNally John McNally Scottish National Party, Falkirk

With the economy flatlining and interest rates remaining at 5.25% and more than likely to remain above 5% next year, it simply follows that households’ disposable incomes will continue to be squeezed throughout 2024. Surely the Chancellor agrees that mortgage interest tax relief must be reintroduced to support households facing high interest rates alongside inflation.

Photo of Bim Afolami Bim Afolami The Economic Secretary to the Treasury

As the hon. Member has already heard from the Chancellor, the economy is still growing. The latest labour market data shows that incomes are going up at a higher rate than inflation, so I do not recognise the picture that he paints.