§ Mr. John Evansasked the Secretary of State for the Environment if he will make a statement on the recent talks between his office and the building societies on Government financial assistance to the societies to peg housing mortgage interest rates.
§ Mr. CroslandYes. Following these talks the Council of the Building Societies Association have decided to make no change in their recommended mortgage rate; and have taken the view that the mortgage rate is likely to be held until the autumn. The Government intend to continue their close consultation with the Association; and the situation will be kept under review. The Council also decided to accept the fourth £100 million tranche of the short-term loans of up to £500 million arranged by the Government. This will result in a further improvement in the availability of mortgages. Net new mortgage commitments rose to about £260 million last 201W month, compared with a figure of £154 million in April.