Owen Smith – 2015 Parliamentary Question to the Department for Work and Pensions

The below Parliamentary question was asked by Owen Smith on 2015-10-13.

To ask the Secretary of State for Work and Pensions, what estimate his Department has made of the level of administration fees and interest charges to pensioners under the Support for Mortgage Interest loan scheme.

Justin Tomlinson

The interest rate charged on the loans will be tied to the Office for Budget Responsibility’s (OBR) forecast for gilts rates, so that the interest reflects the government cost of borrowing.

The rate will be updated every 6 months and is forecast to be 2.9% in 2018/19. (OBR forecast Budget 2015).

The fees charged will reflect the forecast average cost of administering the loans scheme. Until a provider has been appointed it is not possible to state what those fees might be.