Housing Act 1969

78 Power to increase subsidy for option mortgages

At the end of section 28 of the Housing Subsidies Act 1967 (aggregate amount of subsidy under Part II) there shall be added the following:—

“(3) The Minister of Housing and Local Government, the Secreary of State for Wales and the Secretary of State for Scotland acting jointly may, with the approval of the Treasury, by order made by statutory instrument provide that with respect to interest payable for any period beginning on or after such date as may be specified in the order the calculation required by subsection (1)(b) of this section shall be made as if such higher percentages as may be specified in the order were substituted respectively for the two per cent, mentioned in that subsection and the one and three-quarters per cent, mentioned in subsection (2) of this section.

(4) An order under this section—

(a) may make different provision with respect to different cases or different classes of case and, in particular, with respect to repayment contracts providing for different rates of interest;

(b) may except from its provisions repayment contracts providing for such rates of interest as may be specified in the order ; and

(c) may include provision enabling the Minister to determine a rate of interest as representative of the rate applicable at any time under repayment contracts of any description made with a qualifying lender during any period and relating to loans not subsidised under this Part of this Act and, if that rate is different from that then applicable under any repayment contract made with that lender during that period but relating to a loan so subsidised, to treat that contract for the purposes of this section as if the rate so determined were then applicable thereunder.

(5) The power to make an order under this section includes power to vary or revoke such an order by a subsequent order; but no such order shall be made unless a draft thereof has been laid before and approved by the Commons House of Parliament”.