Mortgages: Government Assistance

Department for Work and Pensions written question – answered on 8th January 2018.

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Photo of Diana R. Johnson Diana R. Johnson Labour, Kingston upon Hull North

To ask the Secretary of State for Work and Pensions, what the average Annual Percentage Rate will be for the loans which will replace Support for Mortgage Interest from April 2018, and whether that rate will vary as a result on the actuarial risk of applicants.

Photo of Caroline Dinenage Caroline Dinenage The Parliamentary Under-Secretary of State for Work and Pensions

Interest will be charged on SMI loans based upon the cost of gilts as published by the Office of Budget Responsibility (OBR). This rate reflects the cost of Government borrowing. The Gilt Rate Forecast for 2018-19 is 1.5%, as specified in the latest Economic and Fiscal Outlook published on the 22nd November 2017 by the OBR. There will be no variation in the interest rate charged as a result of actuarial risk.

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