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Building Society Mortgages

Volume 885: debated on Friday 31 January 1975

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asked the Secretary of State for the Environment whether he will discuss with the Building Societies' Association the possibility of granting housing loans over somewhat longer periods than customary, e.g. 30, 35 or 40 years, with an option by the borrower to increase repayments and thus shorten the life of loan after a period of years from the initial mortgage agreement.

There is no statutory limit to the repayment term for building society mortgages, and societies are generally willing to agree to a mortgagor increasing his payments in order to shorten his repayment period. In 1973 building societies advanced £256 million—7·3 per cent. of total advances—on initial repayment terms of over 25 years.