§ Mr. Heddleasked the Secretary of State for the Environment what is the total sum now outstanding and owed to the Greater London council under mortgage arrangements; and how many such mortgages are at rates of interest currently above the prevailing average building society rate.
§ Sir George YoungFigures taken from the draft 1985–86 GLC budget document suggest that at 31 July 1984 the council had outstanding debts totalling £306 million secured on 55,000 home loan mortgages. Of these, 29,500 were at fixed rates of interest which can be assumed to be below the rates currently being charged by building societies. 23,500 were subject to interest rates variable at the council's discretion. A further 2,000 were subject to the requirements on rates of interest in section 110 of the Housing Act 1980. Broadly, this would require the rates to be at the higher of the council's average borrowing costs plus ¼per cent. or the standard national rate of interest set by my right hon. Friend. That is currently 11⅞ per cent., in line with the average basic rate charged by building societies from 1 December 1984, but is subject to adjustment in the light of changes in building society interest rates. I regret that more recent information is not available. The GLC may be able to assist my hon. Friend if he requires more information.