§ Mr. Wyattasked the Minister of Housing and Local Government how much money the Housing Corporation has borrowed; from whom and at what interest rate; what it is doing with the money it has borrowed; and at what rate it is lending money itself.
§ Mr. MellishTo date the Housing Corporation has borrowed £342,500. These loans, which have been made by my right hon. Friend under Section 9 of the Housing Act 1964, carry a rate of interest of 6 per cent. per annum for the full period of the loan.
Of this amount £288,907 has been advanced by the Coporation to housing societies in connection with approved schemes. Most of the remainder has been used to meet the Corporation's running expenses.
The rate of interest on loans to housing societies is at present 7 per cent. This rate will vary during the period of each loan according to the rate being charged by the first mortgagee; the Housing Corporation as second mortgagee charges ¼ per cent. above that rate.