LOANS ON MORTGAGES

Evening Star, Issue 19584, 16 June 1927, Page 15

LOANS ON MORTGAGES

WIDE SECURITY MARGINS DEMANDED to tee * Stab.'] CHRISTCHURCH, June 15. There is no dearth of money available for loans on mortgages, but a wide margin of security is looked for. The average rate of intoiest ebargcd is 6 per cent, in city properties. Small loans carry 6J per cent. On© building society charges 7 per cent, on scale loans. . , , There is not a great deal of money about in large amounts, tk head or a well-known firm of solicitors, who docs a good deal of tho investment work of the city, stated recently, lie did not call to mind one P l ®?® he could lav his hands on £IO,OOO at the moment Another firm stated tnat it could secure sums of £6,000 or £7,000, but lenders required very good security—at least a two-fifths margin was asked on an approved valuation. I lenders pay a good deal more attention to the calibre of the borrower ‘ban was formerly the case. One concern in tho city is reported to have put through loans in tho past six months, each dose upon the £IU,OUU figure, but the securities had been excellent in a good many cases with a one-half margin. Most of these moneys i have lieen in connection with trusts. Financiers are finding to-day an_ increasing tendency in the private individual to divert his money from the land into new channels, partly on account of the restrictions put upon the mortgagees by Acts of Parliament The mortgagee, for instance, is < liable in the case of default by tho registered proprietor of the land to clear it of rabbits and to pay arrears of land tax. the restrictions created by the moratorium have never been forgotten, and the lender cannot exclude from Ins mind the possibility of a recurrence.