MPs face mortgage payback nightmare in expenses crackdown

Oct 14 2009 by William Green, The Journal

MPs face a mortgage payback timebomb because of the new expenses crackdown.

Sir Thomas Legg, pictured, who has been investigating expenses scandal, has written to MPs telling those unable to provide information to support mortgage interest claims may have the repay the whole lot within three weeks.

The news comes amid rumours that one MP faces a potential £30,000 bill as a result of Sir Thomas’s conclusions, which have been seen by The Journal.

It is also understood some MPs are worried it will be difficult to find information with the Commons authorities allegedly losing documents on top of building societies, for example, disappearing or merging.

In his letter, Sir Thomas said: “If on reasonable notice an MP is unwilling or unable to produce such statements, the payments concerned should in default be determined to be invalid and the MP will be recommended to repay the whole of the allowance granted for the mortgage, etc.”

He also warned MPs using the second homes’ allowance to enter into a “conflicted transaction” also face the possibility of a large demand for cash landing on their doormats.

Sir Thomas highlighted examples such as buying or renting a second home from a close relative, a company in which the MP held shares, or a close associate such an employee.

“This will be so even if the MP can show that it was effected at arms-length or that the public purse has not suffered,” he said.

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