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Mortgages: Public Sector

Volume 459: debated on Monday 30 April 2007

To ask the Secretary of State for Communities and Local Government what assessment she has made of the effect of red-lining on the mortgageability of public sector property; what steps she is taking to seek an end to the practice; what assessment she has made of the effect that an extended capping regime would have on the mortgageability of properties; and if she will make a statement. (134206)

No such assessments have been made. It is for individual lenders to decide, in the light of local circumstances, whether to lend on individual properties. However, the Government will not approve a lender for Right to Buy purposes under section 156 of the Housing Act 1985 if inquiries suggest that it operates a policy of not lending on certain types of property.