Call for Cameron to champion Tory mortgage policy reverse

Published: December 12, 2007

Conservative leader David Cameron should advocate the reversal of cuts in homeowner support first introduced by a Tory government in 1995, according to the Council of Mortgage Lenders (CML).

In the wake of Mr Cameron's comments yesterday (December 11th), calling on lenders to show understanding to homeowners nearing the end of their fixed term mortgages, the CML has asked the politician to support reversing the cut-backs to Income Support for Mortgage Interest made in 1995.

Following his meeting with Mr Cameron, CML director-general Michael Coogan sought to highlight the need for a benefits system to support homeowners whose circumstances might have changed.

"We were pleased to have an opportunity to brief the Conservative leaders in person at their request. They are rightly concerned to address the issue of how best to support home-owners who may face payment difficulties over the coming year."

"The main missing link at present is an appropriate benefits system targeted at those whose circumstances have changed, which has lagged behind what is needed to create a truly effective safety net in a market where home-ownership is the norm," he added.

Mr Coogan also called on the government to increase the availability of mortgage funds by introducing initiatives to re-open wholesale funding.