CONSERVATIVE
New Forest East

TREASURY – MATURITY DATE OF ENDOWMENT MORTGAGE POLICIES (2) [45947] – 12 May 2020

Dr Julian Lewis: To ask the Chancellor of the Exchequer, pursuant to the Answer of 12 May to Question 43822 on endowment mortgage policies, if he will take steps to work closely with the financial sector to ensure that the providers of such policies offer an option to people dependent upon them to discharge mortgages, to extend the policies' maturation dates until after the covid-19 outbreak.  [45947]

[Due for Answer on 18 May.]  

ANSWER

The Economic Secretary to the Treasury (John Glen): The current size of the endowment linked mortgage market is small, with no new endowment linked mortgage products and few coming to maturity.

Banks and buildings societies stand ready to support all of their customers affected by Covid-19, including those with an endowment mortgage shortfall.

Firms will consider customer circumstances with endowment mortgages on a case-by-case basis and UK Finance have instructed lenders to treat all customers sympathetically at this time. Customers are also protected under the FCA’s overarching Treating Customers Fairly principle.

Given this, we believe that existing lender forbearance and regulatory guidance is sufficient in supporting customers with endowment mortgages through Covid-19.

NOTE: An Oral Question pursuing this matter was asked on 20 May.