SNP’s Mhairi Black urges Government to take mortgage crisis ‘seriously’
The party’s deputy leader told PMQs people could not afford to wait until Christmas for help.
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Your support makes all the difference.SNP deputy Westminster leader Mhairi Black challenged the Deputy Prime Minister over the Government’s response to soaring mortgage rates as she urged him to take the issue “seriously”.
Ms Black told MPs at Prime Minister’s Questions people cannot afford to wait until Christmas, as “they need help right now”.
She criticised Prime Minister Rishi Sunak for saying people “need to hold their nerve” and Chancellor Jeremy Hunt for telling mortgage holders they should “just shop around”.
In response, Oliver Dowden, who was standing in for the Prime Minister who is at the Nato summit, attributed the surge in mortgage rates to global factors such as higher inflation caused by Russia’s invasion of Ukraine and disruptions in post-Covid supply chains.
He also emphasised the importance of curbing inflation to mitigate mortgage rates, highlighting the need for fiscal discipline across various sectors, including on public spending, public sector pay, and energy supply.
The SNP deputy Westminster leader told the Commons: “Last month, the Deputy Prime Minister dismissed warnings from these benches that mortgage rates were nearly back to where they were after the disastrous mini-budget.
“This week, mortgage rates have surpassed those levels. How high do they need to go until he and his Government take it seriously?
The Bank of England predicts that mortgage payments will rise by at least £500 for a million households. The Prime Minister says that people need to hold their nerve. The Chancellor said just last night that mortgage holders should just shop around
Mr Dowden replied: “She knows, people around the world know, that the driver of higher mortgage rates is higher inflation, and higher inflation is caused by Russia’s invasion of Ukraine and the post-Covid supply chains.
“But what we have to do is make sure we halve inflation. It’s only by getting inflation under control that we will be able to get mortgage rates down, and that requires discipline: discipline on spending, discipline on public sector pay and discipline on energy supply.
“All of which is lacking from that party.”
Ms Black said: “The Bank of England predicts that mortgage payments will rise by at least £500 for a million households. The Prime Minister says that people need to hold their nerve. The Chancellor said just last night that mortgage holders should just shop around.
“Speaking of his own party, the member for South West Devon (Sir Gary Streeter) said ‘if the circus doesn’t stop by Christmas, it’s over’. Does the Deputy Prime Minister understand that people can’t afford to wait until Christmas and that they need help right now?”
Mr Dowden replied: “The fundamental thing we have to do is to halve inflation. That is an approach that the IMF (International Monetary Fund), quote, ‘strongly endorses’ because higher inflation drives higher mortgage rates.
“But that’s not all we are doing. With the mortgage charter signed off by 90% of mortgage providers, we are giving people help to extend their terms, to go interest-only and to reduce their monthly payments.
“Now that action is supported by Martin Lewis, a real money-saving expert, unlike the big spenders on those benches.”
Later in the session, SNP MP Anne McLaughlin (Glasgow North East) said: “The day I had to phone my bank and tell them that I was having difficulty paying my mortgage was one that has lived with me for years.
“What I found was that because my income was so low at the time, ironically I was not eligible to switch to interest-only or get any help.
“I never want my constituents to feel the terror and abandonment that I felt that day.
“Can he understand that? Because his complete lack of empathy in his responses to (Ms Black) suggests not.”
Mr Dowden said: “Of course it’s deeply, deeply disturbing upsetting and worrying for anyone to contemplate losing their home. That is exactly why (the Chancellor) has introduced the mortgage charter… which will provide support for people.”
He added: “After three months people on Universal Credit can also apply for further support.”