Mortgages: Government Assistance

Communities and Local Government written question – answered on 22nd October 2008.

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Photo of Dai Davies Dai Davies Independent, Blaenau Gwent

To ask the Secretary of State for Communities and Local Government if she will discuss with the Chancellor of the Exchequer options for providing support for homebuyers in negative equity as a result of the mis-selling of mortgages by banks.

Photo of Iain Wright Iain Wright Parliamentary Under-Secretary (Department for Communities and Local Government)

On 2 September, as part of a wider package of new measures designed to meet current challenges in the housing market, the Government announced a mortgage rescue scheme which will help up to 6,000 households who would otherwise be repossessed stay in their home. The Government will fund registered social landlords to buy all or part of the house, which the homeowner will then be able to rent back at a subsidised rate. This will be fully operational from January 2009.

The Government are committed to providing a wide range of support, advice and assistance to homeowners facing difficulties in the current economic circumstances. The situation will continue to be kept under active review.

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