MORE LENDING

Evening Post, Volume CXXIII, Issue 18, 22 January 1937, Page 10

MORE LENDING

money on mortgage

GOVERNMENT POLICY

MINISTER'S REVIEW

An increase in the amount of mortgage debt discharged and the registration of new mortgages was revealed by the Minister o£ Justice (the Hon. H. G. R. Mason) in a statement issued last night.

The Minister stated that the discharges for the year ended March 31, 1935, amounted to £13,732,353, and the total for last financial year was £17,057,223. The issue of new mortgages in the same period of two years also showe'd an increase. In the financial year ended March 31, 1935, new [mortgages aggregated £11,845,634, i while the total for the succeeding year rose to £17,310,703. Some interesting figures showing the variations in the amount of mortgages discharged from year to year during the past decade were also mentioned j by the Minister. During the period 1925 to 1930 the lowest total of mortgage principal discharged in one year was £23.988,840, for the year ended March 31, 1928, while the highest amount was £33,958,144 in 1926. For the year ended March 31, 1931, however, there was a sharp drop to £20,056,691 in the sum of mortgages discharged. The fall was deeper the following year, when the total dropped to £10,036,385, and for the two subsequent years the total was even less. RELIEF LEGISLATION.

"These variations," said Mr. Mason, , "indicate that the great majority of mortgagors were unable to refinance on convenient terms and were compelled to rely on relief legislation for their protection. The amount of new mortgages tells a similar tale," continued the Minister. "Between 1925 i and 1930 the new mortgages registered [each year showed CQnsiderable variation. The lowest figure was £33,190,519 in 1928, and the highest total was £47,093.780 in 1926. By 1932, however, the aggregate had dropped to £13,410,581. After a further drop the next year the total fell in 1934 to £7,802,853, thus further confirming the deduction that mortgagors have had to rely upon renewals or relief legislation, and have not refinanced their loan | obligations." After noting the recent revival of mortgage activity, Mr. Mason emphasised that the figures he had cited showed beyond all question that by far the great majority of mortgagors now existing have been protected by the relief legislation which expires at the end of this month. Thereupon, in the case of all mortgages for which the term has expired the mortgagee will be entitled to call up the mortgage at three months' notice unless the mortgagor immediately takes steps to bring himself under the new legislation. APPLICATIONS NECESSARY.

"The Government's policy," added the Minister, "is to have such adjustment of mortgage liability made at once as will enable the country hereafter to be free of restrictive legislation in relation to mortgages. Consequently, every mortgagor desiring a continuance of protection must take active steps to secure his position, and must make bis own application for protection prior to the end of this month. Instructions are obtainable at all post offices, and forms of application from all clerks of court. Applicants are advised to consult their solicitors. An especially moderate scale of fees has been arranged with the Law Society by the Government to enable these services to be within the reach of all mortgagors. If for any reason any mortgagor is unable to avail himself of such service then the clerk of an aijustment commission will assist the applicant to fill in his form of application for mortgage relief."