§ 9. Mr. Fernyhoughasked the Chancellor of the Exchequer if his attention has been drawn to the fact that following the 2131 increase in the Bank rate, building societies in general throughout the country, increased their mortgage interest rates, but that when the Bank rate was reduced last September no corresponding reduction was made by the building societies to their mortgagees; and whether he will introduce legislation to compel building societies to reduce their mortgage interest rates.
§ Mr. MaudlingThe rates of interest which building societies charge on their loans are for settlement between the societies and mortgagors. The answer to the second part of the Question is "No, Sir."
§ Mr. FernyhoughDoes not the Economic Secretary realise that the interest rate was put up consequent upon the action of the Chancellor of the Exchequer in raising the Bank rate, and that the Chancellor subsequently reduced the Bank rate but that this benefit has not been passed on to mortgagors? Does not the hon. Gentleman feel that he ought to do something about this if the cherished ideal of the Conservative Party—that this is a property-owning democracy—is ever to come to fruition?
§ Mr. MaudlingThe hon. Member is reading too much into what was a purely technical adjustment of the Bank rate in September, 1953. In any case, I certainly should not interfere with the activities of the building societies, which, I consider, are a great asset to the country.