Help For Unemployed Homebuyers

EDM number 453 in 1997-98, proposed by Steve Webb on 13/11/1997.

That this House notes that the help given to unemployed homebuyers receiving income support is based on a standard mortgage interest rate rather than the interest rate they actually pay, that the standard interest rate is based on an average of building society interest rates whereas only around 25 per cent. of mortgages are with building societies, that there is often a considerable time lag between changes in interest rates charged to borrowers and changes in the standard interest rate, that the new standard rate set to apply from the end of November 1997 will still be just below 8 per cent. whereas the rate charged by some major lenders stands at 8.7 per cent. and that this shortfall is likely to force large numbers of unemployed homebuyers into mortgage arrears; and calls on the Government to base the standard interest rate on a true average rate over all major lenders and to ensure that the standard rate is adjusted much more rapidly to reflect changes in mortgage interest rates.

This motion has been signed by a total of 58 MPs, 1 of these signatures have been withdrawn.