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Income Support: Mortgages

Volume 486: debated on Monday 12 January 2009

To ask the Secretary of State for Work and Pensions what recent discussions he has had with Treasury Ministers on income support mortgage interest. (244807)

[holding answer 18 December 2008]: We continue to work jointly with other Government Departments including HM Treasury to consider how best we can support those borrowers who may be facing difficulties.

In the pre-Budget report on 24 November, the Chancellor announced two further enhancements to the support that we provide to owner-occupiers through the income-related benefits. The standard rate of interest used in Support for Mortgage Interest will be fixed for six months at 6.08 per cent. for all customers who receive help with their mortgage repayments. And the capital limit up to which interest can be paid on eligible housing costs will increase from £100,000 to £200,000 for new, some repeat, and some existing customers from January.