§ Mr. Meacher
asked the Chancellor of the Exchequer, for a house-buyer on the top rate of income tax taking out a £50,000 mortgage and paying interest at 9½ per cent., what interest will he be liable to pay over a 25-year period and what total tax relief will he receive according to different types of mortgage involving both regular and non-regular repayments.
§ Mr. Nott,
pursuant to his reply [OFFICIAL REPORT, 18th October 1973; Vol. 861, c. 268], gave the following information—
For a mortgage with regular payments the interest over a 25-year period would be about £82,000. Assuming an individual earned £50,000 per annum and he paid tax at the maximum rate for 1973–74–90 per cent.—throughout this period, the total tax liability would be £770,000 and tax relief on building society interest in the same period would be £74,000. For a mortgage with non-regular repayments, the position would depend on the facts of the case.