§ Mr. EffordTo ask the Secretary of State for Social Security if she will list(a) the building societies used in the calculation of the standard rate of interest, (b) their current rate of interest and (c) the current standard rate of interest used to calculate income support for mortgage interest; and if she will publish the rate of interest which would apply based on the interest rates of the top 20 mortgage lenders. [26957]
§ Mr. Keith BradleyThe standard rate is based on the weighted average interest rate charged by building societies. A list of the societies used in the calculation of standard rate, whose combined assets represents over 95 per cent. of the industry's assets, is below, together with the basic rate currently charged to existing borrowers.
501W
Building society Current interest rate (per cent)1 Birmingham Midshires 8.70 Bradford and Bingley 8.45 Britannia 8.60 Chelsea 8.60 Cheshire 8.55 Coventry 8.70 Cumberland 8.60 Derbyshire 8.15 Dunfirmline 8.15 Furness 8.54 Lambeth 8.55 Leeds and Holbeck 8.45 Leek United 8.60 National Counties 8.29 Nationwide 8.10 Newcastle 8.64 Norwich and Peterborough 8.10 Nottingham 8.20 Portman 8.49 Principality 8.10 Scarborough 8.69 Skipton 8.45 Staffordshire 7.99
Building society Current interest rate (per cent)1 Stroud and Swindon 8.55 West Bromwich 8.45 Yorkshire 8.25 Source:
1 Moneyfacts.
It should be noted that the standard rate is calculated using the weighted average of basic rates. The most recent 502W average figure of 8.15 per cent., published in Table 7.1L of January's "Financial Statistics", did not increase the standard rate, currently 7.97 per cent., as changes are triggered by a minimum movement of 0.25 per cent.
The rate of interest based on the top 20 mortgage lenders it not readily available and could be produced only at disproportionate cost However, a combined rate of the top building societies and banks, currently 8.53 per cent., is also published in Table 7.1L of "Financial Statistics".