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Mortgages

Volume 485: debated on Thursday 18 December 2008

To ask the Chancellor of the Exchequer what recent assessment he has made of the services to mortgage holders being offered by banks recapitalised with public funds. (240278)

On 8 October this year, the Government announced a comprehensive package of measures to support stability of the financial system, protect ordinary savers, depositors, businesses and borrowers, and to safeguard the interests of the taxpayer.

As part of their investment, the Government have agreed with the banks supported by the recapitalisation scheme a range of commitments. Details are available at:

http://www.hm-treasury.gov.uk/press_105_08.htm

These include agreements to make available affordable products during this period of global turbulence in financial markets, help individuals struggling with their mortgage payments stay in their homes and support the expansion of financial capability initiatives.

UK Financial Investments Ltd. (UKFI), an arm’s length company, will oversee the conditions attached to subscribing to the Government’s recapitalisation fund.