§ Mr. GodsiffTo ask the Secretary of State for Social Security what discussions he has had or proposes to have with mortgage lenders in respect of mortgage protection insurance and mortgage indemnity insurance and the need to explain fully the cover offered by these policies with particular reference to exclusion clauses; and what assessment he has made of the views of the Building Societies Ombudsman on this matter. [35379]
§ Mr. Roger EvansThis Department has had frequent meetings with the Council of Mortgage Lenders to discuss the new arrangements for income support mortgage interest. We share the view of the Building Society Ombudsman that lenders who sell mortgage protection policies should abide by the code of practice of the Association of British Insurers.
§ Ms ArmstrongTo ask the Secretary of State for Social Security how much money his Department expects to save as a result of the new regulations relating to assistance for mortgage interest payments; and what the estimate is of the average saving per claimant. [35472]
§ Mr. EvansThe projected savings are estimated to be £200 million in the long run; this equates to about £7 per claimant per week.
§ Mr. GodsiffTo ask the Secretary of State for Social Security what research his Department has conducted and what consultations he has had with mortgage lenders concerning the categories of home owners who currently do not qualify for mortgage insurance indemnity policies and if he will make a statement. [35327]
§ Mr. EvansThe Department has conducted no research on this form of insurance.
The term "mortgage insurance indemnity policies" is conventionally used to cover insurance for the risk of a mortgaged property selling for less than its valuation, and such may be a condition of granting the mortgage in some cases, as the parties may determine.
The issue is not a responsibility of this Department. However, this Department has regular consultations with the Council for Mortgage Lenders concerning mortgage matters.
1484W
§ Mr. GodsiffTo ask the Secretary of State for Social Security when he intends to introduce a standardised rate of interest payment on behalf of borrowers on income support; what estimate he has made of the number of borrowers for which its introduction will constitute a shortfall in payments; and what estimate his Department has made of the present arrears of borrowers who will receive a shortfall in payments. [35368]
§ Mr. EvansThis Department is committed to introducing a standard rate of interest at or around the average rate charged and to change the rate in response to fluctuations in this rate. The standard rate will be introduced on 2 October and will be based on the average rate published in the August edition of "Financial Statistics". Precise estimates of gainers and losers can be made only once this baseline has been established.