Because it would increase the cost of living, the government decided against providing significant financial assistance to homeowners.
Jeremy Hunt, the chancellor, claimed that offering mortgage relief programs would "make inflation worse, not better.".
He did, however, promise to meet with mortgage lenders later this week to discuss how they might be able to assist families who are having trouble keeping up with rising expenses.
The government claimed to be "spending record amounts" to aid citizens.
According to the official spokesperson for the prime minister, the government already has "specific tools" to support those who have mortgages, citing assistance for those who receive benefits.
According to the spokesperson, households received an average of ÂŁ3,300 to help offset the effects of rising prices.
Michael Gove, a cabinet minister, stated on Sunday that assistance for homeowners having trouble paying their mortgages was "under review.".
Jake Berry, a member of the Conservative Party, urged Mr. Hunt to "reintroduce a bold Conservative idea of mortgage interest relief at source" in the House of Commons on Tuesday to prevent the occurrence of a "mortgage bomb.".
If families don't get assistance right away, he warned, "all the other money we have spent helping them will be wasted if they lose their home.".
But the chancellor claimed that such a move was not being considered by the government.
He declared that such plans, which entail pouring copious sums of money into the economy, would cause inflation. "Although we understand the challenges and will do everything we can to assist people whose mortgage costs are rising, we won't take any actions that would prolong inflation. " .
According to Mr. Hunt, he will be meeting with the major lenders to inquire about what assistance they can provide for those struggling to pay more expensive mortgages as well as "what flexibilities might be possible for families in arrears.".
Consumer prices were generally 8.7 percent higher in April than they were in April 2022 due to inflation, which is the rate at which prices rise.
The Bank of England has been raising interest rates in an effort to lower inflation, which has increased the cost of borrowing—including for a mortgage.
This week, it's anticipated that the Bank will increase interest rates once more and keep them there for longer.
Prior to the Bank's decision, the funding cost of mortgages already reflected expectations of an increase, impacting both new borrowers and those looking to refinance.
On Monday, the typical two-year fixed mortgage rate surpassed 6 percent as a result of lenders quickly pulling deals and raising rates.
Stewart Hosie, a spokesperson for the SNP's Treasury Committee, questioned Mr. Hunt about what the government was doing to "tackle the mortgage pain," and Mr. Hunt responded, "We will look at doing everything we can to help people under pressure, but. Because many of the proposed plans would worsen inflation rather than reduce it, we must exercise extreme caution. In addition, the Liberal Democrats have called for mortgage relief and a mortgage protection fund, but Treasury Minister Andrew Griffith claimed that such measures would delay the reduction of inflation.
