§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer what action he has taken with his colleagues to assist borrowers from building societies to avoid repossessions.
§ Mr. NelsonOn 19 December 1991, the then Chancellor announced a number of measures designed to reduce substantially the level of mortgage repossessions. The Government agreed to make mortgage payments in income support direct to lenders, and raised the stamp duty threshold from £30,000 to £250,000 for eight months, to stimulate the housing market. The lenders confirmed that they would not seek to take possession where mortgage interest payments were covered by income support; or where a borrower had suffered a sharp fall in income but was continuing to make reasonable, regular payments. They also agreed to provide counselling for borrowers in difficulties and to examine the possibility of setting up formal mortgage rescue schemes.
1216WTogether, these steps have contributed to a significant fall in repossessions. In the second half of 1991, 38,930 properties were repossessed. In the first half of 1994, the figure was down to 25,020, a reduction of 35.7 per cent.
§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer what discussions he or his colleagues have had with building societies to explore ways to help borrowers and to reduce the number of defaults on mortgage repayments.
§ Mr. NelsonTreasury Ministers meet representatives of building societies from time to time to discuss a wide range of issues.