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Mortgage Interest

Volume 198: debated on Tuesday 5 November 1991

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To ask the Secretary of State for Social Security in what circumstances payments of income support for mortgage interest are made to the mortgagee rather than the mortgagor.

Income support for mortgage interest may be paid direct where such payments are in the interest of the mortgagor and his family. To strengthen these arrangements we shall in future be asking all claimants with mortgages to provide evidence of the state of their loan account at the outset of their claim, and annually thereafter. This will enable the Department quickly to identify people who have arrears and for whom direct payment to the lender will be appropriate. We expect to have the new administrative arrangements in operation before the new year.