HC Deb 28 November 1979 vol 974 cc710-1W
Mrs. Renée Short

asked the Chancellor of the Exchequer what would be the present rate of tax relief per £1,000 given to mortgage borrowers at a mortgage interest rate of 15 per cent.; and how much extra will borrowers have to pay each month on a mortgage of £10,000, £12,500, £15,000, £17,500 and £20,000 if the mortgage interest rate rises to 15 per cent.

Mr. Peter Rees

For basic rate taxpayers mortgage interest relief on a new mortgage is worth £45 per £1,000 mortgage at an interest rate of 15 per cent.

The cost to the borrower of the increase in mortgage rate from 11¾ per cent. to 15 per cent. at different levels of mortgage is as follows:

Mortgage Additional monthly cost Additional monthly cost after tax relief at basic rate
£ £ £
10,000 23.30 15.20
12,500 29.10 19.00
15,000 35.00 22.80
17,500 40.80 26.60
20,000 46.60 30.40

The figures are based on a new 20-year mortgage.

Lowest denomination coin Exchange rate equivalents (September 1979)* United Kingdom ½p=100
Austria 1 groschen 7
Belgium 25 centimes 79
Canada 1 cent 78
Denmark 5 ore 87
France 5 centimes 108
Germany (Federal Republic) 1 pfennig 51
Italy 1 lire 11
Japan 1 yen 41
Netherlands 1 cent 46
Norway 1 ore 18
Portugal 5 centavos 9
Sweden 1 ore 22
Switzerland 5 centimes 283
United States of America 1 cent 91
United Kingdom Halfpenny 100
* Based on Average of daily telegraphic transfer rates in London September 1979.

The following table is based on estimated purchasing power parities:
Country Lowest denomination coin Interest purchasing power United Kingdom ½p=100
Belgium 25 centime 65
Denmark 5 ore 60
France 5 centime 95
Germany (Federal Republic) 1 pfennig 40
Italy 1 lire 15
Japan 1 yen 40
Luxembourg 25 centimes 70
Netherlands 1 cent 40
United States of America 1 cent 105
United Kingdom Halfpenny 100