Mortgage Interest (Hansard, 19 June 1995)

§ 24. Mr. Campbell-Savours
To ask the Secretary of State for Social Security what modifications he will 17 introduce to his proposals for paying mortgage interest in the light of the Loughborough university and Policy Studies Institute research into the housing market, commissioned by the Department of the Environment. [27624]

§ Mr. Roger Evans
The research commissioned by the Department of the Environment was not directed specifically to the Government's income support mortgage interest proposals. The report confirmed that the majority of those who are affected by arrears and repossessions do not currently qualify for income support. Our proposals will encourage the development of comprehensive quality insurance, as I mentioned a moment ago, so that all new home owners should obtain proper protection if they suffer a loss of income.

§ Mr. Campbell-Savours
Is it true that the report showed that two thirds of mortgage protection policies issued were invalid for reasons of exclusion? If so, is it not a remarkable statistic?

§ Mr. Evans
It is a remarkable statistic, but the sample was 12. The Special Risks Services report showed that 75 per cent. of those involved in lending were surveyed not only about their intentions in respect of mortgage insurance, but also about the issue that the hon. Gentleman has raised. The Housing Finance Gazette of April 1995 stated: One of the most unexpected results of the survey was the satisfaction with the claims service. The evidence, mostly anecdotal, from newspaper articles complaining about the claims service on creditor is largely unsupported by these figures. The lender, as much as the borrower, has a vested interest in ensuring that quality insurance is in place to ensure that the borrower's obligations to the lender are met when the borrower falls into unemployment.

§ Mr. McLoughlin
Will my hon. Friend confirm that the Conservative party is the party of home ownership, that it encourages and will continue to encourage home ownership, that it has enabled millions of people throughout the country to buy their own council homes and that we shall continue to encourage people who wish to buy their own homes?

§ Mr. Evans
My hon. Friend puts four questions robustly. The answer to each is yes, and that historically is in stark contrast to the policies of the Labour party.