HC Deb 02 February 1965 vol 705 cc253-4W
41. Mr. Dean

asked the Minister of Housing and Local Government how many local authorities have found it necessary to suspend the granting of mortgages for home ownership since Bank Rate was increased to 7 per cent.

Mr. Crossman

According to the information reaching me, very few have suspended lending and some of these have now resumed. Precise statistics on this are not available, nor on how many have increased interest rates.

66. Mr. Hugh Jenkins

asked the Minister of Housing and Local Government, having regard to the expressed intention of certain local authorities to raise their mortgage interest rates to 7¼ per cent. whether he will send a circular requesting local authorities to refrain from such action.

Mr. Crossman

Local authorities have a choice of methods for operating mortgage schemes. Some charge borrowers fixed rates directly related to the rates currently paid by local authorities for long term loans. Others, who have loans pools, lend at variable rates which are related to the loans pool rate, and are thus able to even out the effect of temporary fluctuations in external borrowing rates. In my long-term review of the cost of mortgage loans for owner occupiers, I shall consider whether further arrangements are needed to avert sudden increases of the kind my hon. Friend describes.

Sir H. Butcher

asked the Minister of Housing and Local Government how many local authorities suspended the granting of home loans between 16th October, 1964, and 30th January, 1965; and which they are.

Mr. Crossman

I would refer the hon. Member to the Answer given earlier today to the hon. Member for Somerset, North (Mr. Dean).