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Mortgages

Volume 894: debated on Monday 23 June 1975

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asked the Secretary of State for the Environment what progress he has made in his efforts to find a solution to the problem of the high interest rates obtaining for local authority mortgages; and if he will make a statement.

I have nothing to add to the points that my right hon. Friend made in answer to supplementary questions arising out of the Question by the hon. Member for Brentwood and Ongar (Mr. McCrindle) on Wednesday 11th June—[Vol. 893, cols. 405–7].

asked the Secretary of State for the Environment how much noise was given of new Government restrictions on the level of mortgage advances made by local councils; and what he intends to do about those councils which have already exceeded these limits.

A circular announcing the restriction on local authority lending for house purchase to 50 per cent. of last year's advances was issued on 9th June 1975, following consultations with the local authority associations. Those local authorities who had at that time already exceeded the new limit on their home loans will be permitted to borrow sufficient funds to enable them to meet outstanding commitments as defined in the circular.