It may just be me but one of the things I’ve found interesting are the questions being put to the Government (and their answers) about the response for mortgage and credit customers being impacted by COVID-19.
Earlier today, HM Treasury published three written responses to questions 74750, 74751 and 74752. All of the questions were asked by a Labour MP, Kate Osborne. She asked:
– what recent discussions the Chancellor has had with representatives of the mortgage lending sector on easing the financial pressures faced by people paying “double interest” on their mortgage during covid-19 outbreak and what plans he has to help those people switch to new mortgage lenders;
– what assessment the Chancellor has made of the effect of the modified affordability assessment on the number of mortgage prisoners unable to access new mortgages; and
– what recent discussions the Chancellor has had with representatives of the mortgage lending sector on tackling the situation affecting mortgage prisoners.
All three questions received exactly the same answer:
“The Government remains committed to supporting these borrowers, which is why the Government and the FCA have taken action to remove the regulatory barriers that previously prevented switching.
Lenders are currently making the necessary adjustments and system changes to enable them to use the modified affordability assessment for borrowers looking to re-mortgage. Due to the operational constraints caused by Covid-19 there was a temporary retraction of mortgage products in the market, therefore it would not have been of benefit to contact borrowers when meaningful options were not available to them. We expect lenders to start offering these borrowers switching options by the end of the year.
Earlier this year I wrote to UK Finance outlining my expectation that as many of its members as possible should move quickly to offer new deals to borrowers that are eligible to switch under the new FCA rules. You can read the letter here.
The Government continues to work with the mortgage lending sector to ensure support is available for consumers.
The FCA also recently noted that firms should be reviewing their variable rates to ensure they adhere to regulations regarding the fair treatment of consumers. The full statement can be found here.”
Without wanting to be a pedantic lawyer, these answers do not really respond to the MP’s questions. Perhaps that’s the point. But I think I’ll continue to keep reading these answers as they give a useful insight into the Government’s views, and an insight into the issues being raised by consumers with MPs.