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Mortgages

Volume 710: debated on Monday 18 May 2009

Question

Asked by

To ask Her Majesty's Government what steps they will take to assist the development of building societies as primary sources of mortgage finance for home buyers. [HL3261]

On 19 January, the Government announced measures designed to reinforce the stability of the financial system and support lending in the economy, benefiting individuals and businesses. These build on measures announced on 8 October last year.

Although UK building societies only have a 20 per cent share of the mortgage market, the sector has traditionally had a strong role in providing mortgages and savings products. The Government are keen to support the sector and the 3 million adult members buying their homes this way.

The Government will put forward further proposals in a forthcoming paper to strengthen the mutuals sector. This will include actions relating to the development and design of capital instruments and the potential for shared services between mutuals.