HC Deb 19 July 1966 vol 732 cc353-4
9. Mr. Boyd-Carpenter

asked the Minister of Housing and Local Government what is now the average rate of interest on mortgages charged by building societies and local authorities, respectively; when it is his intention to bring forward his proposals to give relief to those purchasers in respect of mortgage interest; and to what date he intends to make these proposals retrospective.

14. Mr. Grant

asked the Minister of Housing and Local Government what progress he has made with regard to lowering mortgage interest rates; and whether he will make a statement.

39. Mr. Hamling

asked the Minister of Housing and Local Government what steps he will now take to give relief to house purchasers with mortgages from local authorities against increased interest rates.

62. Mr. Rippon

asked the Minister of Housing and Local Government whether he will now make a statement on his discussions with representatives of the Building Societies Association regarding the mortgage option scheme.

Mr. Crossman

The rate of interest currently recommended by the Building Societies Association to its members is 7⅛ per cent. Local authority lending rates vary according to the policy of the individual authority and the powers they operate. I have made good progress in my discussions with representatives of the main mortgage institutions, but I am not yet ready to make a statement.

Mr. Boyd-Carpenter

Will the right hon. Gentleman give an assurance that his earlier promise to introduce legislation on the subject this Session will not be affected by tomorrow's statement?

Mr. Grossman

Yes, Sir.

Mr. Grant

Does the right hon. Gentleman recall that on 29th April last year he said—

Mr. Speaker

Order. The hon. Gentleman cannot quote at Question Time.

Mr. Grant

Does the right hon. Gentleman recall that he said that his reputation would be ruined if he did not lower mortgage interest rates? Will he undertake either to implement the scheme announced during the election or resign?

Mr. Crossman

I do not think that that unfortunate dichotomy of choice presents itself to me. Neither is true. We have settled on a scheme that we have worked out with the building societies completely to their satisfaction. It is a variant on ours. It will be included as part of the Housing (Subsidies) Bill which I shall introduce after the summer Recess.

Mr. Rippon

Will the right hon. Member undertake to make a statement on the position before the House rises? Can he also tell us when he expects the building societies to announce the next increase in mortgage rates? Does not he agree that, whatever he does, the average person who gets a mortgage will pay a higher interest rate than ever before?

Mr. Crossman

The second question put by the right hon. Gentleman seems different in kind from the third. If he asks me about the building societies, I can tell him that I have completed arrangements with them and am hoping to make a statement before the Recess.

Mr. Christopher Price

Is my right hon. Friend aware that no one earning less than £25 a week is now able to obtain a mortgage for even the most modest house? Does he realise that young couples caught in the spiral of rising prices are seeing their prospects of houses disappearing? Is he satisfied with the way in which resources are being distributed by building societies and local authorities?

Mr. Crossman

It is too early to judge the effect of the local authorities coming back into the field with the classifications I have given them. Nearly all the classifications by which I have invited them to give mortgages would meet my hon. Friend's request for people earning £25 a week or under, but I am a little incredulous when I am told that local authorities are giving mortgages to no one with an income of under £25 a week.