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Mortgages

Volume 488: debated on Tuesday 24 February 2009

To ask the Chancellor of the Exchequer what estimate he has made of the number of households with shared appreciation mortgage products in negative equity; and if he will make a statement. (256272)

[holding answer 11 February 2009]: The Government have made no assessment of the number of households with shared appreciation mortgages which are presently in negative equity.

I refer the hon. Member to the answer given to the hon. Member for Hazel Grove (Andrew Stunell) on 4 July 2005, Official Report, column 90W. Treasury Ministers have received written representations on shared appreciation mortgages from a number of individuals and from the Shared Appreciation Mortgage Action Group.

The Government understand the concerns of people who purchased shared appreciation mortgages in the mid-1990s. However, to date no evidence of mis-selling has been found by the Financial Ombudsman Service.