§ 12. Mr. Tom Boardmanasked the Minister of Housing and Local Government what are the latest figures for the number of people who have taken advantage of the option mortgage scheme, expressed as a percentage of existing and new borrowers.
§ Mr. MacCollAccording to the latest information from the 10 largest building societies, over 10 per cent. of their new borrowers are choosing option mortgages; about 4 per cent. of the existing borrowers who had to make their decision by 31st December, 1967, changed to option mortgages.
§ Mr. BoardmanDo not these figures mean that 96 per cent. of all existing borrowers and 90 per cent. of all new borrowers see no advantage in the option mortgage scheme and that even those who have taken it up are, due to high prices and interest rates, paying significantly more than in October, 1964?
§ Mr. MacCollI do not share the hon. Gentleman's premise. The object of the scheme was to make available home ownership to people of moderate incomes, particularly young families, who could not otherwise take advantage of loans. The scheme has worked in this very important sector.
§ Mr. BarnettWhy will my right hon. Friend not extend the date by which mortgage payers with existing mortgages can opt for the option mortgage scheme?
§ Mr. MacCollThere are difficulties about varying the dates. For administrative reasons, it has not proved possible 201 to do this in all cases, except in those where there is hardship.
§ Mr. Graham PageBut why alter the date? This is a once-for-all decision. The Government are changing the rules in the middle of the game by Clause 14 of the Finance Bill in relation to child allowances. Does not this put those who have opted in a worse position? Is not this cheating them?
§ Mr. MacCollWhen the scheme was being prepared, we went carefully into the possibilities of giving opportunities to change and it was found that administrative difficulties—not ours but those of the lenders, who have to operate the scheme—made it very difficult to do.