§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether he will circulate in the Official Reporta table showing for each band in the taxation
Estimated number of tax units liable to tax Range of total income in 1979–80 Total '000 Proportion claiming mortgage interest relief Per cent. Average per mortgagor of mortgage interest qualifying for relief (£) Average per mortgagor of additional qualifying interest, net of tax relief, for 1 per cent. increase in interest rates (£) Under 2,000 … 1,600 1 460 35 2,000–10,000 … 18,000 24 730 40 10,000–12,000 … 800 60 1,050 55 12,000–16,000 … 600 62 1,250 65 16,000–20,000 … 200 58 1,580 70 Over 20,000 … 200 49 2,250 80 All ranges … 21,400 25 830 45 The average amount of mortgage to which the mortgage interest shown relates is not known precisely.
The interest rates recommended by the council of the Building Societies Association tend to be among the lowest rates charged on new mortgages. When the Government came into office the recommended rate was 11¾per cent. and the prospective rate from January 1980 is 15 per cent. In January 1976 the recommended rate was 11 per cent., and subsequent changes in the rate are given below together with the dates thereof.
per cent. April 1976 … 10½ October 1976 … 12¼ April 1977 … 11¼ June 1977 … 10½ September 1977 … 9½ January 1978 8 … 8½ June 1978 … 9¾ November 1978 … 11¾ January 1980 … 15