To ask the Chancellor of the Exchequer what plans he has to influence the lending and borrowing decisions of (a) mortgage lenders and (b) borrowers in order to increase the proportion of mortgages with fixed rates. [121444]

The Chancellor has asked David Miles, Professor of Finance at Imperial College, to undertake a review of the UK's fixed rate mortgage market to establish why the share of fixed-rate mortgages, particularly long-term fixed rates, is so low compared to the United States and many other EU countries.Professor Miles will deliver an interim report by autumn and a comprehensive report and recommendations to the Chancellor by Budget 2004.