§ Mr. Welshasked the Secretary of State for Scotland if he will list the rates of interest charged by Scottish new towns on mortgages to house buyers, comparing this to commercial building society rates in each year over the past five years; and give figures to show the actual differences in payment between an average house purchase (a) made at commercial rates and (b) made through new town development corporation borrowing.
§ Mr. Gregor MacKenzieIn general, the house mortgage interest rate charged by Scottish new towns has over the years 1973 to 1977 been ¼ per cent. more than the rate recommended from time to time by the Building Societies Asssociation. In recent years, Irvine and Livingston were obliged by the rising cost of their borrowing to charge a higher rate-12 per cent. in 1976 and 13 per cent. in 1977 in the case of Irvine, and 11¾ per cent. in 1977 in the case of Livingston—but have now been authorised to revert to the BSA rate plus a per cent. The effect of this per cent. difference in interest rates is to add £19.30 to the annual payments, on an annuity basis, on a 20-year loan from a corporation of £10,000.
§ Mr. Welshasked the Secretary of State for Scotland how many mortgages were issued by Scottish new towns in each of the past five years.
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§ Mr. Gregor MacKenzieThe information is as follows:—
1973 986 1974 544 1975 377 1976 228 1977 249