House Purchase Department:

The First Five Years (continued)

 

 

 

Year Ended  March 31st	Total House Purchase Balances Outstanding (£)	Number of Advances Outstanding	Average Balance (£)
1920	39,110	148	264
1921	233,694	925	253
1922	263,454	1,122	235
1923	287,953	1,251	230
1924	402,798	1,658	243

 

 

 

 

During the year advances have been made to 300 depositors for the purchase of their houses bringing the total number of borrowers from the Bank up to 1,264. In 142 cases the borrowers have discharged their indebtedness to the Bank, leaving the number of mortgagors at the 31st March 1922 at 1,122.

 

The sum advanced during the year in respect of House Purchases was £85,365, bringing the total amount of the advances made since the opening of the Bank to £349,453.

 

As illustrative of the character of the assistance which the House Purchase Department of the Bank has rendered to the depositors, the following information is submitted:-

Number of cases where the advance -
did not exceed £100	64
exceeded £100 but did not exceed £200	487
exceeded £200 but did not exceed £300	314
exceeded £300 but did not exceed £400	204
exceeded £400 but did not exceed £500	81
exceeded £500 but did not exceed £750	104
exceeded £750 but did not exceed £1,000	9
exceeded £1,000	1
	1,264

It has been necessary to exercise the Bank's power to obtain possession of property in two cases. In one instance the property was sold by auction and the Bank recovered the full amount of the mortgage, while in the other case a Receiver has been appointed and the rents are being collected from the tenants.

 

The repayments of principal and interest by the borrowers continues to be satisfactory; although it has been found desirable to suspend or modify the repayments in certain cases where the abnormal circumstances existing justified such action.

 

 

 

 

 

 

The House Purchase Department continues to prove the need for such an institution in this City, and it is clear that had it not been for the assistance which the Bank can and does render, many persons would not be in the position of tenant-owners of houses as they are to-day. The total number of mortgages effected since the Bank was established is 1,543, and the amount so advanced represents £433,248. Of these mortgages 289 have been paid off entirely, leaving 1,251 in force at the end of the year, representing an indebtedness to the Bank of £284,996. 10. 7. This gives an average per borrower of £227. 16. 3, and is made up as follows:- 

Number of cases where the advance -
did not exceed £100	180
exceeded £100 but did not exceed £200	454
exceeded £200 but did not exceed £300	315
exceeded £300 but did not exceed £400	162
exceeded £400 but did not exceed £500	77
exceeded £500 but did not exceed £750	56
exceeded £750 but did not exceed £1,000	7
	1,251

The monthly repayments of principal and interest have been well maintained, and only in a comparatively few cases has it been necessary to exert pressure to obtain the repayments. The cases of arrears are always carefully watched, and it is a testimony to the character of the borrowers to find that only in 8 cases have the Bank had to appoint a Receiver. Of these the money owing to the Bank has been recovered in 4 cases, and at the end of the year a Receivership was in force in only 4 cases, one of which has since been cleared by full payment of the amount outstanding.

 

 

 

 

APPLICATIONS since September 1st 1919:

 

Number of applications received .... 3,064

Granted for full amount applied for .... 1,260

Granted for a lower amount .... 1,443

Refused .... 53

Withdrawn .... 178

Under Consideration .... 130

 

AMOUNTS REPAID since September 1st 1919:

 

Principal .... £220,259

Interest .... £51,185

Sundries .... £2,180

 

NUMBER OF MORTGAGES PAID OFF .... 472

 

PROGRESS OF WORK:

(a) Number of Acceptances notified to Town Clerk .... 2,194

(b) Number of Cases completed and deeds deposited with Bank .... 2,130

(c) Number of Cases in hand .... 64

 

 

Number of cases where the advance -
did not exceed £100	225
exceeded £100 but did not exceed £200	532
exceeded £200 but did not exceed £300	477
exceeded £300 but did not exceed £400	203
exceeded £400 but did not exceed £500	126
exceeded £500 but did not exceed £1,000	95
	1,658

 

The advantages which the Bank provides for depositors to buy their houses are appreciated, and during the year 925 applications have been dealt with. Of these applicants 765 were granted, and mortgages representing £189,147 were arranged.

 

Since the Bank opened in 1919 no less a sum than £622,395 has been advanced on mortgage to 2,130 depositors to enable them to purchase houses for their occupation; 472 of these borrowers have entirely paid off their mortgages.

 

At the end of the year 1,658 mortgages were in operation, representing an indebtedness of £401,970 14s. 11d., or an average of £242 8s. 10d. per borrower.

 

The year has been marked by the purchase of Corporation houses through the Bank, 154 such purchases having been completed, and arrangements made for buying in 150 additional cases as the houses are completed and ready for habitation. The policy sanctioned by the Council of assisting people to acquire Corporation houses by grants of a higher figure than the Bank are able under their Rules to make has been brought into operation by the Finance Committee, the machinery of the Bank being used for the purpose.

 

Your Committee are pleased to report that in very few cases has it been necessary to take drastic measures against borrowers in arrear with repayments. Cases of hardship have been brought to the Committee's attention, and have been dealt with sympathetically by them.

 

During the year under review, the Committee felt it necessary to take possession in four cases, and appoint a Receiver in respect of the properties. Two of these were subsequently disposed of, and the outstanding balance due to the Bank recovered. At the end of March, 1923, a Receiver was acting in four cases, one of which has, during the past year, been satisfactorily dealt with. Consequently five cases were, at the end of March, 1924, in the Receiver's hands.