§ 3. Mr. Grayasked the Secretary of State for Scotland what further proposals he has to strengthen the building societies in Scotland, and for making mortgages easier and cheaper to obtain.
§ Mr. YoungerThe building societies have agreed to improve their lending arrangements, and for our part we are making the option mortgage scheme more flexible. The societies and their mortgagees will also benefit from the Budget proposals of my right hon. Friend the Chancellor of the Exchequer, especially from the abolition of stamp duty on mortgages and the reductions in income tax and corporation tax. We will take further steps if these are necessary to promote home ownership in Scotland.
§ Mr. GrayThese measures will unquestionably be helpful. Can my hon. Friend confirm that there are many people in the lower income groups who would like to become home owners? What steps is it proposed to take to assist them?
§ Mr. YoungerI am very conscious of that problem, as my hon. Friend knows—and this is one of the reasons why we have removed all restrictions on mortgage lending by local authorities, so that they will more easily be able to fill the gap between those whom building societies are unable to help and those who would still wish to own their own homes.
§ Mr. DouglasIs the hon. Gentleman aware of any discussions that have taken place between the Scottish banks and the Bank of England in relation to the Bank of England's discussions document? How will that affect building society deposits in Scotland and the ability of building societies to reduce their interest rates to borrowers?
§ Mr. YoungerThis is primarily a matter for my right hon. Friend the Chancellor of the Exchequer, but I have had no representations from the building societies in Scotland that this will cause any difficulties for them.