§ 36. Mr. T. WILLIAMSasked the Financial Secretary to the Treasury whether he is aware of the recent decision of several large building societies which have agreed to demand a minimum of 5 per cent. interest on all advances to house purchasers, and that. this rate of interest is excessive and is likely to militate against house building: and whether he will make representations to the leaders of the building societies to reduce the rate of interest to would-be house purchasers?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Duff Cooper)The hon. Member seems to be under a misapprehension. I have no official information on the subject of the rates of interest charged by building societies on mortgage advances, but I understand that a number of large societies have recently announced a reduction in their rates for such advances below 5 per cent.
§ Mr. WILLIAMSCan the hon. Gentleman say whether that will apply to existing contracts?
§ Mr. COOPERI cannot say. I understand that it is under consideration.
§ Mr. WILLIAMSWill the hon. Gentleman use his influence with the building societies to include existing mortgages?
§ Mr. ISAAC FOOTAre not these societies generally run by the members themselves, and is it not a question for them?