§ Mr. Winnickasked the Minister of Housing and Local Government how many applicants have decided to apply for the option mortgage scheme so far; and if he will make a statement on the progress of the scheme.
§ Mr. GreenwoodA full appreciation of the effects of this scheme will not be possible until after next April when it becomes fully operative. The main object is to make mortgages available to people who would not otherwise be able to buy their homes. So far about one in ten of new advances are option mortgages, and if this trend continues some 50,000 will be taken out each year. Most existing borrowers have until 31st December to decide whether to switch to option mortgages, but borrowers from a few lending agencies had to make their choice by 30th September. About 5 per cent. of these changed to option mortgages, and if this proves typical rather more than 200,000 existing borrowers will switch. In December I shall have fuller information about progress.