§ 49. Mr. Liptonasked the Chancellor of the Exchequer how many building societies have been granted trustee status; and within what range of interest charges to borrowers these societies at present operate.
§ Mr. BarberTwo hundred societies. The Registrar of Building Societies informs me that the current figures for the range of interest rates are not available, but the rates charged at the time of the individual applications for trustee status varied from 3 per cent. to 7¾ per cent. Those societies which have entered into an agreement under the House Purchase and Housing Act, 1959, are at present allowed to charge not more than 5½ per cent. on advances which may be financed from the Exchequer.
§ Mr. LiptonDoes the Economic Secretary not think that there is an astonishing variation in interest rates charged by building societies which have been given trustee status? Will he, therefore, continue to exercise a very watchful eye on the operations of those building societies with trustee status which are in the circumstances charging an exorbitant rate of interest, since so many borrowers from building societies consider that they are having a very tough deal?
§ Mr. BarberI am sure that the Registrar will take note of what the hon. Gentleman has said. But, of course, the rates which the societies have to offer 657 must vary from society to society and, also, societies vary their lending rates according to the type of property which is offered as security. I think it is reasonable that they should do so.