Skip to main content

Mortgages

Volume 894: debated on Tuesday 24 June 1975

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Chancellor of the Exchequer what tax relief, at basic rate only, would be provided in each of the first 10 years in respect of a house loan of £8,000 assuming an interest rate of 11 per cent. gross and repayment of capital over 25 years, by a formula causing gross interest and capital repayment to be a constant figure each year.

The figures are as follows:

YearTax relief at basic rate (£)
1308
2305
3302
4299
5295
6291
7287
8282
9276
10270
Total2,915

For the purpose of the calculations it has been assumed that the mortgage commenced on 6th April 1975 and that the basic rate of tax proposed for 1975–76 remains in force throughout.

asked the Chancellor of the Exchequer if he will now increase the present limit of £13,000 above which loans made by building societies are treated as special advances.

An order increasing the limit to £20,000 was laid before Parliament in draft today.