§ Mr. Lathamasked the Secretary of State for the Environment when he next proposes to review the valuation limit on properties that can be covered by the option mortgage guarantee scheme.
§ Mr. StanleyI have decided, following consultation with the British Insurance Association and the Building Societies Association, to increase the valuation limit under the option mortgage guarantee scheme from £14,000 to £20,000, in line with the limit that now applies to commercial guarantees.
This will enable a greater number of option borrowers who are purchasing properties with the help of high percentage advances from building societies, and who are required to take out insurance to guarantee part of the advance, to do so at low cost.