§ Mr. Chris SmithTo ask the Chancellor of the Exchequer what has been the total loss or gain to the average mortgagor who is(a) a one-earner couple with two children and (b) a two-earner couple with two 529W children claiming mortgage interest relief resulting from changes since the 1988 Budget in (i) direct taxation (ii) increases in the rate of interest on mortgages and (iii) interest payments net of mortgage tax relief in all cases counting child benefit as a negative tax.
§ Mr. Lilley[holding answer 8 March 1990]: Information for a one-earner married couple with an average mortgage was given in my reply to the hon. Member for Newcastle upon Tyne, East (Mr. Brown) on 26 February, Official Report, column 13 The changes in income tax and NIC for a two-earner married couple with an average outstanding mortgage of £17,000 in 1987–88 and with average gross earnings of £22,500 are given in the table on the same basis as my previous reply. There has been no change in child benefit since the 1988 Budget.
11987–88 1989–90 £ per year change Income tax and NIC2 6,141 5,444 −697 1 After indexation. 2 Before relief due under MIRAS and assuming that the income is all earned with the husband earning £18,000 and the wife £4,500, that no allowances or reliefs are available other than the married man's allowances and the wife's earned income allowance, that they are both contracted into SERPS and that the post-October 1989 NIC rates and limits apply for 1989–90.
§ Mr. Chris SmithTo ask the Chancellor of the Exchequer what has been the total loss or gain to the average new mortgagor in 1988 claiming mortgage interest relief resulting from changes since the 1988 Budget in(a) direct taxation, (b) increases in the rate of interest on mortgages and (c) interest payments net of mortgage tax relief.
§ Mr. Lilley[holding answer 8 March 1990]: I regret that information is not available on the changes in taxation of the average new mortgagor in 1988. I refer the hon. Member to my reply to the hon. Member for Newcastle upon Tyne, East (Mr. Brown) on 26 February, Official Report, column 13, for the gain to the average mortgagor.
§ Mr. Chris SmithTo ask the Chancellor of the Exchequer what is the gain to the average family on an average mortgage from changes made in the Budgets of 1988 and 1989; and what is their estimated increase in mortgage repayments, on the basis of the same assumptions used in the answer to the hon. Member for Islington, South and Finsbury, of 13 February,Official Report, column 128.
§ Mr. Lilley[holding answer 13 March 1990]: I refer the hon. Member to the answer I gave to the hon. Member for Newcastle upon Tyne, East (Mr. Brown) on 26 February, Official Report, column 13.
§ Mr. Chris SmithTo ask the Chancellor of the Exchequer if he will list in tabular form and at constant prices the amounts which would be payable each month at 15.4 per cent. on a standard repayment mortgage repayable over 25 years of each of the regional average new mortgages listed in his answer of 19 February,Official Report, column 518 to the hon. Member for Nottingham, North (Mr. Allen).
§ Mr. Lilley[holding answer 19 March 1990]: The monthly interest payments, after deduction of basic rate tax relief, are given in the table.
530W
Region Average new mortgage1 Monthly payment2 15.4 per cent, interest rate £ £ Northern 28,400 273.35 Yorks and Humberside 29,600 284.90 East Midlands 34,700 349.07 East Anglia 44,600 476.12 Greater London 60,900 685.30 South East 53,200 586.48 South West 43,700 464.57 West Midlands 33,800 337.52 North West 31,300 305.43 Wales 30,200 291.32 Scotland 26,500 255.06 Northern Ireland 24,200 232.93 United Kingdom 38,300 395.27 1Third quarter 1989. 2 Assuming endowment mortgage.