§ Lord Layton
asked Her Majesty's Government:
Whether they intend to make mortgage payment protection insurance compulsory; and [HL2058]
Whether "old" mortgages will be required to have mortgage payment protection insurance in line with "new" mortgages; and [HL2061]
Whether "old" mortgages will be allowed to disappear over time as the mortgage periods expire or the mortgagee moves home and then has a "new" mortgage. [HL2062]50WA
§ The Parliamentary Under-Secretary of State, Department of the Environment, Transport and the Regions (Lord Whitty)
The Government have no current plans to make mortgage payment protection insurance compulsory but will monitor the impact of voluntary arrangements being adopted by mortgage lenders and insurers to provide better protection for home buyers. A new minimum specification for payment protection insurance for new and existing mortgages was announced by the Council of Mortgage Lenders and the Association of British Insurers on 23 February. The new minimum specification will take effect no later than 1 July for new insurance policies and no later than 1 July 2001 for upgrading existing policies.