HC Deb 20 March 1940 vol 358 cc2019-20W
Sir J. Mellor

asked the Minister of Health whether he will state the considerations upon which the Government has decided to continue during war-time the exclusion of mortgages repayable by instalments from the scope of the Rent and Mortgage Interest Restriction Acts; and whether, having regard to the Government's declared policy of keeping interest rates at a low level, he will introduce legislation to prevent building societies and other mortgagees from taking advantage of this exclusion in order to increase rates of interest payable by mortgagors except in special circumstances?

Mr. Elliot

The Rent and Mortgage Interest Restrictions Acts relate, and have always related, primarily to houses which are let, and there are no peculiar conditions at the present time which have not obtained during the long period in which these Acts have been in force which indicate that extension of the scope of the Acts in the direction suggested is desirable. With regard to the last part of the Question there is at present no evidence to suggest that special restrictions need to be applied to contracts of this kind which do not apply to contracts generally, and I see no grounds for such action as my hon. Friend suggests.

Mr. Goldie

asked the Attorney-General whether he is aware that certain building societies propose to call in existing mortgages by the giving of three months' notice unless borrowers are prepared to pay an additional ½per cent. interest; and whether, in view of the fact that the majority of such mortgages are for a period of less than 10 years, he is prepared, in view of the hardship likely to be inflicted on such borrowers by such proposed action, to introduce emergency legislation so as to amend the provisions of the Rent and Mortgage Interest Restrictions Act, 1920, as to afford adequate protection to such borrowers?

Mr. Elliot

I have been asked to reply. I would refer my hon. Friend to the answer given to-day to a Question by my hon. Friend the Member for Tamworth (Sir J. Mellor).