§ Mr. Durantasked the Secretary of State for the Environment what will be the effect on users of the option mortgage guarantee scheme when the option mortgage scheme is wound up on 1 April 1983.
§ Sir George YoungOption mortgage guarantees relating to loans taken out before 1 April 1983 will remain valid and the Government will continue to be liable for their share of any claims arising on them. However, the option mortgage guarantee scheme in its present form will be incompatible with the new tax relief arrangements which are to apply from that date, and I have concluded, with the agreement of the British Insurance Association and the Building Societies Association, that the scheme should then be withdrawn. Similar facilities will continue to be available on commercial terms.