Financial Services Bill — Report (2nd Day) — Amendment 21 — 14 Apr 2021 at 21:15

Moved by Lord Sharkey

21: After Clause 40, insert the following new Clause-“Interest rates for mortgage prisoners(1) The Financial Services and Markets Act 2000 is amended as follows.(2) After section 137FD insert-“137FE FCA general rules: interest rate for mortgage prisoners(1) The FCA must make general rules requiring authorised persons involved in regulated mortgage lending and regulated mortgage administration to introduce a cap on the Standard Variable Rates charged to mortgage prisoners and to ensure that mortgage prisoners can access new fixed interest rate deals at an interest rate equal to or lower than an interest rate specified by the FCA.(2) In subsection (1)- “mortgage prisoner” means a consumer who cannot switch to a different lender because of their characteristics and has a regulated mortgage contract with one of the following types of firms-(a) inactive lenders, or firms authorised for mortgage lending that are no longer lending; and(b) unregulated entities, or firms not authorised for mortgage lending and which contract with a regulated firm to undertake the regulated activity of mortgage administration;“new fixed interest rate deals” means the ability for the consumer to fix the rate of interest payable on a regulated mortgage contract for periods of 2 years and 5 years;“Standard Variable Rate” means the reversion rate which is a variable rate of interest charged under the regulated mortgage contract after the end of any initial introductory deal.(3) The general rules made under subsection (1) must set the level of the cap on the Standard Variable Rate at a level no more than 2 percentage points above the Bank of England base rate.(4) The general rules made under subsection (1) should make new fixed interest rate deals available to mortgage prisoners who meet the following criteria-(a) are up to date with payments or have aggregate arrears of no more than one monthly payment in the past 12 months,(b) have a remaining term of 2 years or more,(c) have an outstanding loan amount of at least £10,000, and(d) have not received consent to let the property.(5) When specifying the interest rates for new fixed interest rate deals required by subsection (1) the FCA should specify rates for a range of Loan-To-Valuation (LTV) ratios taking into account the average 2-year and 5-year fixed rates available to existing customers of active lenders through product transfers.(6) The FCA must ensure any rules that it is required to make as a result of subsection (1) are made not later than 31 July 2021.””Member’s explanatory statementThis new Clause would require the FCA to introduce a cap on the Standard Variable Rates charged to mortgage prisoners and, under specified circumstances, ensure their access to fixed rate interest deals.

Ayes 273, Noes 235.

Debate in Parliament |

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Party Summary

Votes by party, red entries are votes against the majority for that party.

What is Tell? '+1 tell' means that in addition one member of that party was a teller for that division lobby.

What is Turnout? This is measured against the total membership of the party at the time of the vote.

PartyMajority (Content)Minority (Not-Content)Turnout
Bishop1 03.4%
Con1 18060.9%
Crossbench28 2224.8%
DUP3 060.0%
Green2 0100.0%
Judge2 120.0%
Lab134 160.0%
LDem82 176.9%
Non-affiliated8 231.3%
PC1 050.0%
UUP0 2100.0%
Total:262 20951.3%

Rebel Voters - sorted by party

Lords for which their vote in this division differed from the majority vote of their party. You can see all votes in this division, or every eligible lord who could have voted in this division

Sort by: Name | Party | Vote

NamePartyVote
Lord Bowness Conaye
Viscount Brookeborough Crossbenchno
Lord Butler of BrockwellCrossbench (front bench)no
Lord Cameron of DillingtonCrossbench (front bench)no
Lord Carey of CliftonCrossbenchno
Lord Carlile of BerriewCrossbenchno
Lord Chartres Crossbench (front bench)no
Viscount Colville of CulrossCrossbench (front bench)no
Viscount Craigavon Crossbenchno
Lord Craig of RadleyCrossbench (front bench)no
Lord Curry of KirkharleCrossbenchno
Lord Dannatt Crossbenchno
Lord Geidt Crossbenchno
Lord Greenway Crossbenchno
Baroness Hogg Crossbenchno
Lord Laming Crossbench (front bench)no
Lord Mawson Crossbenchno
Baroness O'Loan Crossbenchno
Lord Pannick Crossbench (front bench)no
Lord Ramsbotham Crossbenchno
Lord Rana Crossbenchno
The Duke of SomersetCrossbenchno
Lord St John of BletsoCrossbenchno
Lord Brown of Eaton-under-HeywoodJudge (front bench)no
Lord Grabiner Labno
Baroness Nicholson of WinterbourneLDemno
Baroness D'Souza Non-affiliated (front bench)no
Lord Taylor of WarwickNon-affiliatedno

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