HC Deb 12 July 1995 vol 263 cc619-20W
Mr. Jim Cunningham

To ask the Secretary of State for Social Security what response he has made to representations from the mortgage insurance industry about the availability of private mortgage insurance for poor families. [32834]

Mr. Roger Evans

I have had no such specific representations from the mortgage insurance industry about the availability of private mortgage insurance for poor families. However, the Association of British Insurers takes the view that if a person qualifies for a mortgage then there is no reason why they should not also qualify for insurance.

Mr. Jim Cunningham

To ask the Secretary of State for Social Security what are the implications of his proposals for cuts in mortgage interest payments for the 1991 agreement in respect of Council of Mortgage Lenders. [32835]

Mr. Roger Evans

From October this year, we expect the 1991 agreement to apply to cases where we continue to meet the full interest payments. In cases where the 1991 agreement no longer applies we would not expect to see an increase in arrears or repossessions as most borrowers will take out insurance.

We believe that it is important that lenders make clear to their borrowers their practice in relation to arrears, and that borrowers fully understand their obligations when entering into a mortgage contract. We are working closely with the council of Mortgage Lenders to develop a leaflet which sets out details of benefit entitlement and borrowers' rights and responsibilities in relation to lenders and insurers.

Mr. Jim Cunningham

To ask the Secretary of State for Social Security what representations he has received alleging that inadequacy of income support in respect of mortgage interest payments is resulting in claimants going into rented accommodation and claiming the higher rate of housing benefit. [32836]

Mr. Roger Evans

I have had no such representations.

Mr. Jim Cunningham

To ask the Secretary of State for Social Security what has been the cost in housing benefit in the last year of claimants formerly receiving income support in respect of mortgage interest payments and subsequently going into rented accommodation. [32837]

Mr. Roger Evans

The information requested is not available.