Stroud MP Siobhan Baillie has received a commitment from The Chancellor of the Exchequer, Jeremy Hunt, that he will continue to talk to mortgage lenders and regulators to ensure that price reductions and support are passed onto consumers.
The chancellor met with high street lenders last week and 30 of them, or about 85 per cent of the market, have signed up to a Mortgage Charter to help borrowers with rising interest rates.
Under the charter borrowers will not be forced to leave their home in less than a year from their first missed payment unless in exceptional circumstances.
Mortgagees can request a better deal with their lender right up until their new term starts, if one is available.
They can also switch to interest-only payments for six months, or extend their mortgage term to reduce their monthly payments without a new affordability check or affecting their credit score.
In another move, Jeremy Hunt met with consumer watchdogs like Ofwat and Ofgem over concerns some companies are boosting their profits by exploiting the inflationary pressures.
Speaking in parliament Ms Baillie said: “The public are not daft; they can see there are incredible pressures across the world… Will he say more about how we can keep working with lenders – so it is not just a one-off conversation – to create solutions to help with some of the problems ahead of us?”
In reply, the Chancellor said: “I am happy to give my honourable friend that reassurance. I will continue to talk not only to the lenders but the regulators, who I am meeting, to see if there are any areas at all where price reductions that should be passed on to consumers are not being passed on. I hope to update the House further.”
Speaking afterwards, Ms Baillie added: “The government understands the concerns of borrowers about interest rate rises. I am really pleased to see the chancellor is being honest with people about the realities of this situation and finding ways to help people in Stroud and across the country.
“He is on top of these issues and if there is sharp practice by the mortgage companies, I know he will act.”
