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Local Authority Mortgages

Volume 929: debated on Thursday 7 April 1977

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asked the Secretary of State for the Environment what was the total amount advanced in mortgage loans by local authorities in England in each of the last four years.

Total mortgage loans for both house purchase and improvements made in each of the calendar years 1973, 1974, 1975 and 1976 were 294·6 million, £448·2 million, £635·4 million and £165·8 million respectively.

asked the Secretary of State for the Environment if he will list in the Official Report the total amounts advanced for mortgages under the building society support scheme in each English region in 1976.

Total building society advances offered and accepted by local authority nominees in each English region since the scheme's inception in October 1975 up to the end of December 1976 are given in the following table:

RegionAdvances offered and accepted (£000's)
West Midlands4,949
Eest Midlands7,126
North-West16,242
London28,652
South-East25,796
Eest Anglia5,737
Northern16,295
Yorkshire and Humberside10,114
South-West11,498
Total126,400

asked the Secretary of State for the Environment (1) if he will circulate in the Official Report the official building society mortgage interest rates and those of local authorities, the latter on a high, medium and low basis, since January 1974;(2) of the total local authorities with power to advance house purchase mortgages, how many are currently above, at the same level and below the official building society level in terms of interest rates; by what margins; and what are the sums involved in each band of local authority lending.

Information on mortgage interest rates charged by individual local authorities is not available on a regular basis, and I am unable to add to the answer I gave to the hon. Member for Bury St. Edmunds (Mr. Griffiths) on 10th February last. The building society recommended rate of interest since the beginning of 1974 has been:

Per cent.
At January 197411
May 1976 to October 197610½
November 1976 to date12¼

asked the Secretary of State for the Environment which, if any, local authorities in Suffolk are charging interest to house purchase mortgagees in excess of the official level applied by building societies.

Authorities currently charging rates in excess of the building societies' recommended rate of 12¼ per cent. are Forest Heath, St. Edmundsbury, Suffolk Coastal and Waveney District Councils.