Mr. Robert G. HughesTo ask the Secretary of State for the Environment whether he has received proposals from the London residuary body on the transfer of its remaining housing mortgages; and if he will make a statement.
§ Mr. WaldegraveThe Department has today published a consultation paper setting out proposals for the London residuary body (LRB) to divest itself of its remaining housing mortgages. Copies of the paper have been placed in the Library.
The LRB has already disposed of its non-domestic mortgages and housing association mortgages to the boroughs and districts in whose areas they are located. The present proposals deal with the last main group of 537W mortgages held by the LRB. They involve the transfer of the portfolio to the London borough of Richmond, which would administer it on behalf of all London boroughs. For borrowers, the transfer will mean that they make their mortgage repayments to Richmond rather than to the LRB.
The LRB will be writing to all its borrowers shortly to explain the proposals in more detail. I am pleased that the London borough of Richmond is prepared to assume responsibility for administering these mortgages. I am confident that the arrangements which we are proposing safeguard the interests of the borrowers and allow the LRB to discharge its obligations satisfactorily.