asked the Minister for the Environment if he proposes to take any action to protect householders who are unable to meet repayments on housing loans to county councils because of redundancy and the recession; if he intends to take action to prevent them from losing their homes; and if he will make a statement on the matter.
Written Answers. - Housing Loans.
628.
A borrower who is experiencing genuine difficulties in meeting the repayments on a local authority housing loan is treated sympathetically by the authority. Every effort is made to come to an arrangement with the borrower which minimises hardship and avoids repossession of the house by the authority.
Repayment of loans under the Housing Finance Agency scheme is income-related, being normally 18 per cent of a borrower's income in the previous tax year. The scheme includes a provision that a borrower whose income falls during the year can, by arrangement with the local authority, have his repayments reduced and the shortfall made good later.
Repossession of houses the subject of a loan from a local authority or through the Housing Finance Agency is rare and takes place only as a last resort. In the circumstances, I do not consider that any further action on my part is necessary.
629.
asked the Minister for the Environment if he proposes to take any action to protect the householders at present under threat of losing their homes, from the five big building societies; if he is aware that the latest figures published indicate that the societies are taking one legal action for recovery for every six new loans given out, that the main reason for the legal action is inability to meet repayments because of the recession and that the end result is likely to be the selling of the family home; and if he will make a statement on the matter.
I have no information to suggest that the five main building societies are pursuing legal action for recovery of possession on the scale suggested in the Deputy's question. On the contrary my information is that, in the event of borrowers being faced with hardship in making mortgage repayments, the societies deal sympathetically with individual deserving cases and make whatever arrangements are possible to alleviate any difficulties a borrower may have. In the circumstances I do not consider that any action in the matter by me is necessary.