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8. Mortgage advances
| Group | Group | Parent | Parent | |
| 2008 ($m) |
2007 ($m) |
2008 ($m) |
2007 ($m) | |
|
Mortgage advances |
99 | 78 | 99 | 78 |
|
Less doubtful debts provision |
(3) | (3) | (3) | (3) |
|
Total net mortgage advances |
96 | 75 | 96 | 75 |
|
Non-current mortgage advances |
96 | 75 | 96 | 75 |
|
Less doubtful debts provision |
(3) | (3) | (3) | (3) |
|
Net non-current mortgage advances |
93 | 72 | 93 | 72 |
|
Current mortgage advances |
3 | 3 | 3 | 3 |
|
Total net mortgage advances |
96 | 75 | 96 | 75 |
The maturity period of the mortgages ranges from 1 to 25 years.
The borrowers may settle loans at any time. However expected cash flows are as follows:
|
Group and Parent |
Group and Parent | |||
|
2008 |
($m) |
2007 |
($m) | |
| Up to 1 year | 8.82 | 3 | 8.50 | 3 |
| 1-5 years | 9.30 | 18 | 9.20 | 14 |
| Over 5 years | 8.09 | 78 | 7.18 | 61 |
| Total | 8.34 | 99 | 7.62 | 78 |
Interest rates on mortgages range from 0% to 10.45%, with an average rate of 7.1%.
The mortgages on land and improvement assets and deeds are held as security against these loans.
For the purposes of allocating the net mortgage balance between current and non-current, all of the doubtful debts provision is assumed to relate to the non-current mortgages.
