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Homeowner Mortgage Support Scheme

Volume 485: debated on Thursday 18 December 2008

To ask the Secretary of State for Communities and Local Government whether an impact assessment has been prepared for the Homeowner Mortgage Support Scheme. (243754)

In the current economic climate, Government needs to act quickly and responsively to help support households facing difficult circumstances. As part of a much wider package of real help for home owners, the recently announced Homeowner Mortgage Support Scheme will enable ordinary hard-working households that experience a redundancy or significant loss of income to reduce their monthly payments to a more manageable level, by deferring a proportion of the interest payments on their mortgage for up to two years. The Government will guarantee to lenders they will get the payments back in return for them participating in the scheme.

Government are currently working closely with the lenders to agree the details of the scheme. Further details, including an impact assessment, will be published early in the new year.

To ask the Secretary of State for Communities and Local Government what estimate she has made of the number of people who will be assisted by the Homeowner Mortgage Support Scheme in (a) the UK, (b) the North East, (c) Tees Valley district and (d) Middlesbrough South and East Cleveland constituency. (244902)

In the current economic climate, the Government need to act quickly and responsively to help support households facing difficult circumstances. As part of a much wider package of real help for homeowners, the recently announced Homeowner Mortgage Support Scheme will enable ordinary hard-working households that experience a redundancy or significant loss of income to reduce their monthly payments to a more manageable level, by deferring a proportion of the interest payments on their mortgage for up to two years. The Government will guarantee to lenders they will get the payments back in return for them participating in the scheme.

We are not setting a limit or a target for the number of households this scheme can help, either on a UK-wide or regional basis - this is a consumer and lender-led scheme, backed up by a Government guarantee. We want to see this scheme help as many households as possible.