Mortgages: Coronavirus

Treasury written question – answered on 5th July 2021.

Alert me about debates like this

Photo of Colleen Fletcher Colleen Fletcher Opposition Whip (Commons)

To ask the Chancellor of the Exchequer, what recent assessment he has made of the effect of the covid-19 outbreak on the number of households that have fallen into arrears with their mortgage provider in (a) Coventry North East constituency, (b) Coventry, (c) the West Midlands and (d) England.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

The Government is committed to supporting borrowers that have been impacted by Covid-19, and that is why we have worked with the Financial Conduct Authority (FCA) to oversee an unprecedented package of forbearance measures for mortgage customers, including the provision of 2.7 million mortgage payment holidays and a ban on repossessions. While these temporary measures have now ended, FCA guidance also requires firms to continue providing support through tailored forbearance options, including further payment holidays, for borrowers facing ongoing financial difficulties as a result of Covid-19.

The Government will continue its efforts to support mortgage borrowers. For example, the Government will continue to offer Support for Mortgage Interest (SMI) loans to homeowners on a low income to help prevent repossession. The Government also helps people avoid repossession through protection in the courts under the Pre-Action Protocol which makes it clear that repossession must always be the last resort for lenders.

HM Treasury does not hold arrears data at a regional or constituency level. However, Bank of England data released on 8 June shows that arrears remain at low levels, with the proportion of total loan balances with arrears at 0.96% across the UK. Any borrowers worried about being able to pay their mortgage should make early contact with their lender to discuss their options.

Does this answer the above question?

Yes1 person thinks so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.