§ Sir J. Mellorasked the Minister of Health whether he is satisfied that existing statutes sufficiently carry out the policy of the Government aimed at preventing mortgagors being coerced by mortgagees into agreeing to increase the rate of interest under the threat of the mortgage being called in; if he has considered the action of the Bradford Permanent Building Society in issuing calling-in notices, subject to withdrawal if the mortgagors consent to pay a higher rate of interest; and whether he proposes to amend the law in order to prevent mortgages being called in or mortgage interest rates increased during the period of the war without reasonable justification?
§ Mr. ElliotThe provisions of the Rent and Mortgage Interest Restriction Act, 1939, which restrict rates of mortgage interest and prevent calling in of mortgages in the case of dwelling-houses are1402W similar to those in earlier Rent Restriction Acts, and I have no reason to suppose that they are not adequate for their purpose. These provisions have never applied to mortgages repayable by instalments like those of a building society. I am aware of the action taken by the society referred to which would have the effect of leaving the periodical payments unchanged but of extending the time over which those payments were to be made, and I would refer my hon. Friend to the reply given to a Question on this subject addressed to my right hon. and gallant Friend the Financial Secretary to the Treasury on 27th February last.