Mortgages: Defaulters
Question
Navendu Mishra
To ask the Chancellor of the Exchequer, if his Department will make an estimate of the number of mortgage defaults in Stockport constituency in each of the next twelve months.
Answer
Andrew GriffithWe recognise this will be a concerning time for homeowners and mortgage holders. Anyone worried about making their mortgage repayments should speak to their lender as soon as possible.
Mortgage arrears and repossessions remain below pre-pandemic levels, which were themselves extremely low. The FCA reported 0.86% of total residential mortgage balances in arrears in the first quarter of 2023 which is significantly lower than the 3.32% rate in 2009. However, where mortgage borrowers do fall in financial difficulty, Financial Conduct Authority guidance requires firms to offer tailored support. This could include a range of measures depending on individual circumstances.
The Government has also taken a number of measures aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans for those in receipt of an income-related benefit, and protection in the courts through the Pre Action Protocol, which makes it clear that repossession must always be the last resort for lenders.