THE MORTGAGEES

Nelson Evening Mail, Volume LXX, 31 March 1936, Page 2

THE MORTGAGEES

(Contributed by the New Zealand Welfare League.)

It is not generally realised what a number of small people have the whole of their savings invested on mortgage, or to what extent the possibility of compulsory adjustment of these loans will hit the possessor of moderate savings—in many cases old people who depend upon these investments for existence. In addition to those investments made by individuals there are those made by institutions which exist for the purpose of assisting small savers. The following are a few examples : Friendly societies with funds of just £4,700,000 have no less than £3l, millions invested on mortgage. The members' average'interest in these societies is about £47. Building societies, again, which is the small man’s means for securing a home have nearly £8 millions on mortgage. Life insurance companies have advanced nearly £4 million and the Government Life over 7£ millions on land mortgages. These institutions are essentially organisations for providing for the future of one’s family, and the policies which average about £4OO indicate that the bulk are small people; therefore any compulsory writing down of mortgages will destroy part of the savings of many thousands of people in New Zealand. So far as loans on mortgage are concerned it is too often forgotten that they originate with the borrower and not with the lender. The borrower has had the use of the money. These transactions differ from those in which the mortgage is the unpaid balance of purchase money and this difference should be noted.