§ 21. Ms Linda Perham (Ilford, North)What plans she has to assist home buyers on income support following the recent further rise in interest rates. [47491]
§ The Parliamentary Under-Secretary of State for Social Security (Mr. John Denham)There are no plans at present to change the way in which help with mortgage interest is calculated, using a standard rate. The standard rate is based on variable rates of mortgage interest that are charged by the main building societies and excludes discounted and fixed-rate mortgages, which are available to many borrowers.
§ Ms PerhamI welcome that answer. Actually, I do not welcome it; I am so used to saying that sort of thing.
738 Every time interest rates go up, another trickle of people come to my surgeries who are on income support and who find it very difficult to meet the payments. Will Ministers continue to liaise with the Council of Mortgage Lenders to take a sympathetic attitude on repossessions?
Mr. BradleyI am grateful to my hon. Friend. We have regular discussions with the Council of Mortgage Lenders and it assures us that it will take a sympathetic approach to ensure that people remain in their homes. I announced an increase in the standard rate to 8.34 per cent. from 31 May and the Government are committed, through their housing review, to ensuring that there is sustainable home ownership.