Commons Sense

House of Commons · Written Ministerial Statement

Contingent Liability Update

20 December 2022 · Treasury

Proposed by Andrew Griffith Con Arundel and South Downs

EconomyHousingTaxation

Summarised by AI from the official record, so it can contain mistakes.

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At a glance

Key points

  • The Mortgage Guarantee Scheme is being extended until December 31, 2023.
  • HM Treasury is reducing the maximum contingent liability cap to 3.2 billion.
  • The extension aims to continue supporting homebuyers with smaller deposits.

Issue summary

The Mortgage Guarantee Scheme is being extended for an additional year.

Action requested

HM Treasury is extending the scheme to continue supporting homebuyers with smaller deposits until December 31, 2023. The maximum contingent liability cap is reduced from £3.9 billion to £3.2 billion.

Key facts

  • HM Treasury launched the Mortgage Guarantee Scheme in April 2021.
  • The scheme has supported over 24,000 households since its launch last year, with 85% being first-time buyers.
  • The original planned closing date was December 31, 2022; now extended to December 31, 2023.
  • Guarantees issued under the scheme are valid for up to seven years after the mortgage is originated.
  • Participating lenders pay HM Treasury a fee set at a level not constraining their access to the scheme.
  • The contingent liability cap is reduced from £3.9 billion to £3.2 billion.
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