§ Mr. Michael Lathamasked the Secretary of State for the Environment (1) how many persons have so far taken out option mortgages amounting to more than £25,000; and what will be the saving to public funds of his decision to discontinue subsidy in this regard;
(2) how many persons have so far taken out option mortgages in respect of the purchase of second homes; and what will be the saving to public funds of his decision to discontinue subsidy in this regard.
§ Mr. KaufmanInformation is not available on the number of option mortgages that exceed £25,000 or are in respect of second homes.
The purpose of the proposals to restrict the availability of option mortgage subsidy which my hon. Friend the Minister for Housing and Construction announced on 26th June in reply to a question from my hon. Friend the Member for Coventry, South-West (Mrs. Wise) is to reflect in the option mortgage scheme the restrictions on the availability of tax relief for mortgage interest proposed in the Finance Bill now before Parliament, and thus to stop up a loophole through which option mortgage subsidy might have been obtained after tax relief had been withdrawn.—[Vol 875, c. 461–2.]