§ Mr. WrayTo ask the Chancellor of the Exchequer what plans he has to compensate mortgage holders unable to meet their mortgage costs owing to rises in interest rates. [24222]
§ Mr. Nelson[holding answer 24 May 1995]: The Government have no such plans. Home ownership is very affordable in the UK: less than one third of the total increase in base rates since September 1994 has been passed through by building societies to average variable mortgage rates. Even allowing for that increase, the overall reduction in mortgage interest rates since October 713W 1990 has resulted in a net saving of £130 per month for the average mortgage holder. Fixed-rate mortgages are available for borrowers who want certainty about the level of their mortgage payments over a given period.