HC Deb 11 June 1997 vol 295 cc445-6W
Ms Keeble

To ask the Chancellor of the Exchequer if he will make a statement about Government policy on mutuality, with special reference to the Nationwide Building Society; and what assessment he has made of the possible impact on homeowners of building societies converting into banks. [2981]

Mrs. Liddell

The Government welcomes diversity and competition in the mortgage market, where both the mutual building societies and plc banks provide a range of varied and innovative products.

As only one building society has converted to a bank before this year, it is too early to say what the impact on homeowners will be.

Ms Drown

To ask the Chancellor of the Exchequer if he will make a statement on the long term impact(a) on interest rates for homeowners and savers and (b) on choice of lending and saving institutions, of mutual building societies converting into banks. [2985]

Mrs. Liddell

As all but one of the societies converting to banks are either about to do so, or have done so very recently, it is too early to say what the long term impact on interest rates for homeowners and savers will be.

The Government welcomes diversity and competition amongst lending and saving institutions, whatever their constitution.