§ Mr. Frank Allaunasked the Chancellor of the Exchequer what estimates he has made of (a) the number of mortgagors likely to switch from repayment to endowment mortgages as a result of the introduction of the mortgage interest relief at source arrangements in April 1983, (b) the value of debt outstanding on the mortgages to be switched, (c) the consequent increase in projected tax relief over the life of these mortgages distinguishing between additional tax relief (i) paid on the endowment policy premiums, (ii) deriving from higher interests rates charged on endowment mortgages and (iii) deriving from the fact that the balance of outstanding debt is not reduced during the term of an endowment mortgage.
§ Mr. RidleyIt is not possible to make a precise estimate of these figures, but the cost of any switch from repayment to endowment mortgages is likely to be small in relation to the total cost of the reliefs for mortgage interest and life assurance premiums.