HC Deb 05 May 1970 vol 801 cc71-3W
62. Mr. Murton

asked the Minister of Housing and Local Government if he will estimate what proportion of the average industrial wage is taken up by a 90 per cent, mortgage over 20 years on a new house at the present average price.

Mr. Freeson:

The gross mortgage repayments on the basis given would be 35.5 per cent. of the average industrial wage for 1969. If the mortgagee advanced 2¾ times the mortgagor's annual income, an average industrial wage earner could take up a 20-year 90 per cent. advance on a new house costing £3,950. About 40 per cent. of new houses mortgaged to building societies in 1969 were sold at or below this figure.

66. Mr. Eldon Griffiths

asked the Minister of Housing and Local Government what is the average rate of interest paid on mortgages taken out since the interest rate was increased to 8½ per cent.

Mr. Freeson:

I do not have an average figure; but most building society mortgages are at the Building Societies Association's recommended rate of 8½ per cent. The corresponding net rate on option mortgages is 6 per cent., and for standard rate taxpayers about 5¾ per cent.

70. Mr. Allason

asked the Minister of Housing and Local Government how many local authority mortgages were given in each year since 1964; and what is his estimate for 1970.

Mr. Freeson:

Starting from the year 1964, the annual numbers for England and Wales were 77,000, 87,000, 46,000, 57,000. 39,000 and 19,000 respectively. I estimate that the number this year will be something over 50,000.

79. Mr. Roebuck

asked the Minister of Housing and Local Government whether he will initiate talks with the Building Societies Association with a view to taking steps to reduce the mortgage interest rates in the light of recent reductions in bank rate.

Mr. Freeson:

My right hon. Friend is in continual contact with the Building Societies Association and has no doubt that it is aware of the desirability of reducing the recommended mortgage interest rate as soon as this can be done without reducing the flow of investment with building societies.

Mr. Arthur Lewis

asked the Minister of Housing and Local Government whether, in view of recent reductions in Bank Rate, he will now take steps to secure a reduction of house mortgage interest rates to approximately three and a half per cent.

Mr. Freeson:

Mortgage interest rates are dependent on a number of factors of which Bank Rate is only one.