§ Ms. RuddockTo ask the Secretary of State for Social Security if he will change the procedures of his Department in respect of mortgage interest payments, so that mortgage lenders receive payments by the due date, instead of one month in arrears to prevent mortgagors being threatened with repossession.
§ Mr. BurtThe Council of Mortgage Lenders gave an assurance last December that lenders would not seek possession if the mortgage interest due was paid direct from income support. The present direct payment scheme began on 25 May.
Mortgage payments are usually made at the end of each calendar monthly period. Similarly, the direct payment of the income mortgage interest allowance is made to lenders at the end of each four-weekly period. While the payment date may be changed, that of itself would not have the adverse effect suggested. Consequently, we see no reason to change the procedures.