§ Mr. MorganTo ask the Secretary of State for the Environment what proposals he has to meet the Council of Mortgage Lenders regarding assistance for householders whose outstanding mortgage debt exceeds the value of their houses; and if he will make a statement.
§ Mr. BaldryMy right hon. Friends the Chancellor of the Exchequer, the Secretary of State for the Environment, the Secretary of State for Social Security and the Secretary of State for Wales met mortgage lenders on 2 June to review progress on the package of measures agreed between the Government and the Council of Mortgage Lenders in December to reduce the number of repossessions. It was agreed that lenders should continue to look at the whole range of options available for addressing this problem, including formal mortgage to rent schemes, shared equity arrangements and more generous repayment terms. These measures will help those householders who are in arrears with their mortgage repayments.
For their part, the Government have enacted legislation for the direct payment to lenders of the mortgage interest element of income support, and has suspended until 19 August this year the requirement for stamp duty on transactions up to £250,000.
The Council of Mortgage Lenders estimates that the measures taken since December will save some 55,000 repossessions this year: 40,000 as a result of new procedures for dealing with arrears cases; and 15,000 as a result of the direct payment to lenders of the mortgage interest element of income support.
The combined effect of the measures taken by the Government and lenders will be to reduce the number of repossessions in 1992 and restore confidence to the housing market. Householders whose outstanding mortgage debt exceeds the value of their house will benefit from these measures, and from a revival of the housing market.
§ Mr. MorganTo ask the Secretary of State for the Environment what statistics he has on the number of households in each region where the mortgage debt outstanding exceeds the value of the house.
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§ Mr. BaldryThe only information readily available relates to house purchases by first-time buyers. This has been published by the Council of Mortgage Lenders in the June issue of its newsletter, "Mortgage Monthly", which is held in the House of Commons Library.