(House Purchase Department)
Examples of passbooks used to record transactions made on mortgage accounts
The example below shows the inside front cover of a passbook issued for a particular purpose - it relates to the bulk transfer
of 466 mortgages
from Solihull Urban District Council in 1937
The passbook for House Purchase Advance Number 41,111 was issued to joint mortgagors in 1968, and shows that four amounts were advanced
in stage payments on a total loan of £3,000:
February 22nd - £550
March 9th - £680
April 9th - £550
24th - £1,220
The four stage payments were made as building progressed on a new house. Interest was charged monthly on the increasing
balance, which was duly paid by the mortgagors. After the fourth stage payment was advanced the balance outstanding amounted
to £3,014 -14s - 4d. A repayment of £34 - 5s - 6d reduced the balance to £2,980 - 8s - 10d, which was transferred to a new passbook
in order to record the normal monthly transactions of interest and repayments of a Reducing Mortgage.
A second example below
(A/c No: 29,442) has three stage payments (50%; 25%; 25%) on an advance of £2,250. The passbook for this 1954 loan is clearly
marked "Progressive Mortgage"
Under the heading 'IMPORTANT', ten notes (spread over two pages of the passbook) provide information relating to mortgages provided
by the Bank.
Mortgage information is provided in seven 'INSTRUCTIONS' in this example of a passbook issued in 1971
The passbook for A/c No: 37,972 records the early transactions on an Equated Mortgage. The page on the left shows that this was a
loan for £1,600 repayable over 25 years at a Rate of Interest of 4½%. Monthly payments of £8 - 19s - 11d are due on the last day of
the month, at Saltley branch.
Equated Mortgages were introduced in 1934 to meet the needs of borrowers who wished to have fixed
monthly repayments that commenced at a lower amount than that applying to a Reducing Mortgage. The mortgage passbooks illustrated
above (41,111 and 29,442) relate to Reducing Mortgages - which provides for payment of a fixed monthly instalment of principal with
a reducing interest charge.
The first transaction page shows that the £1,600 advance was made on November 29th 1963. Interest to March 31st 1964 (124 days) has
been added to the loan, plus £3 - 11s - 0d Fire Insurance Premium.
The mortgagees have chosen to make monthly repayments in excess
of the minimum requirement. No benefit is obtained by doing this until the interest is capitalised at the next April 1st - unlike
a Reducing Mortgage where the interest was capitalised each month.
In the year 1965/66 the mortgagees are continuing to make monthly payments of £10 but, on January 13th 1966, a one-off payment of
£100 is made.
The Bank's agreement to make the loan was communicated to the Bank's customers on Form MB 217 (left
). This form is referenced by the
Application No: 47,094, which is noted on the inside rear cover of the passbook (above
). Applications were numbered from number 1
in September 1919.