Income-based mortgage repayments
Burke challenged the proposed income-based repayments as costly over a 25-year mortgage. The Minister defended repayments of 17.5–20% of income as reasonable and helpful to lower-income borrowers; Burke protested that he had received only one supplementary question.
Does the Minister intend to continue with this folly of the fixed percentage of income which will result in a £20,000 mortgage costing about £140,000 over 25 years?
Comment on this
I can understand that type of question from a person with no imagination. I am trying to help people particularly in low income groups who cannot afford to meet the very high repayments that they will have to meet on a building society loan. I believe that asking for 17½ per cent to 20 per cent of their income in repayments is a very reasonable approach. It will be a big help to many people. I hope that we will attract considerable sums of money into the whole housing area.