He had been asked by Tory MPs about reintroducing a"bold Conservative idea" of mortgage interest relief at source, otherwise known as Miras, a 1980s policy that gave mortgage holders tax relief on their interest payments.
Both Mr Hunt and the economic secretary to the Treasury, Andrew Griffith, said such a policy introduction would worsen inflation.How will mortgage rises affect you? Instead, Mr Hunt said he would meet the main mortgage lenders later this week, to ask them what help and flexibility they can offer to those struggling with expensive mortgages and householders in arrears.and from Treasury sources who said the government goal of halving inflation would be derailed by financial supports for mortgage bills.
Mortgage payments have been consistently rising, particularly since May, when the consumer price index method of assessing inflationand core inflation - the rate of price rises excluding the volatile food and energy sectors - increased to a 30-year-high. As a result, it's expected interest rates will be even higher than previously thought, as the Bank of EnglandMortgage providers are already pricing in that increase in the rates they're offering and on Monday the interest rate on the average two-year deal rose to 6.01%.
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