The next quandary to confront the efforts to sell Corporation houses arose in  October 1924 when the Bank Committee were asked to meet representatives of the Estates Committee in order to discuss methods by which those purchasers of municipal houses who find difficulty in meeting the half yearly demands for rates, water rates and ground rent may be assisted.

No meeting appears to have taken place, and a further communication from the Estates Committee was considered by the Bank Committee on November 17th 1924. The Estates Committee refer to the Assisted House Purchase Scheme as  the '1923 Scheme', updating the previously used '1922 Scheme':

Sale of houses 1923 Scheme - Purchasers' Difficulties.

From information brought before your Sub-Committee it would appear that some of the purchasers of municipal houses now find that they have difficulty in meeting their payments. Apparently they can manage to repay to the Municipal Bank the weekly instalments of capital and interest, but their difficulties arise when the half-yearly Demand Notes for water rate, rates and ground rent arrive. The totals of these would be approximately £8 half year for a Parlour type house and £7 per half year for a Non-parlour type. It would appear that the purchasers are not accustomed to saving in order to meet periodical payments such as the above, and your Sub-Committee feel that a discussion with representatives of the Bank Committee might possibly prevent the breaking up of homes which is sure to result if payments are not maintained.

Your Sub-Committee therefore recommend that the Bank Committee be asked to meet representatives of this Committee to discuss the matter with them.

Subsequently, the General Manager presented the following report, at a meeting of the House Purchase Sub-Committee on December 8th 1924, with reference to the case of A F Jenner:

re A F Jenner in respect of House No 9, Hollycroft Rd, Handsworth

The above is one of the cases which the Estates Committee have referred to as a case of hardship, and one in which there is some difficulty in the man meeting his rates, water charges and other periodical payments.

The case came to my notice some time ago, when Jenner requested that he might save a sum of 15/- each week in his Savings Bank account and authorise me to deduct therefrom the amount due each month under his Mortgage. This arrangement was put into force, and two payments have been taken off the account under that authority. The man has, however, fallen into arrear with his Savings Bank contributions, and accordingly at the present time is more than three months in arrear, an amount of £7/8/4 being owing to the Bank.

Jenner saw me on Saturday, the 22nd November, in company with Mr Cox of the Estates Department, and he produced a note showing how he made up his wages and his expenditure for twelve months. He comes from Gainsboro' and originally came to erect machinery for Harry Vincent Limited, Toffee Manufacturers, agreeing to settle in Birmingham and look after the machines. Mr Vincent was instrumental in getting the Estates Department to place No 9 Hollycroft Road at the disposal of Jenner, who then sent for his wife and family. His wife has since died, and he is now having to employ a housekeeper to look after his three young children and himself, and he states that his expenditure has consequently increased.

I learn that Jenner's employer, Mr Vincent, found him a sum of money (approx £35) to pay down in order to purchase the house in Hollycroft Road. With this assistance Jenner paid a deposit of £115, and the Bank granted a loan of £300, making a total purchase price of £415. According to the valuation the Bank could have advanced £310 as a maximum. If Jenner had paid a sum of £60 deposit instead of £115, he would have been able to obtain a higher advance from the Corporation than the £300 mentioned, and the ready money would perhaps have enabled him to meet his liabilities to Vincent and have a little more to live upon, but it would obviously not have eased the situation in regard to his paying off his repayments.

The suggestion which was made to Jenner was that he would dispose of his house, and if he could do so then it might be possible to arrange for him to have a Corporation house, non-parlour type, at a reduced cost and consequent reduction of his loan, and with a view to this it was arranged that Mr Cox should see his employer as to whether he would be prepared to take the house from Jenner or to otherwise assist him to meet his liabilities.

The Sub-Committee considered the question of whether any useful purpose would be served by appointing representatives to confer with the Estates Committee on the lines suggested by them. It appeared to the Sub-Committee that the question of the repayment of the Bank loan and other charges in respect of properties on which advances had been made, was one which could affect only the Bank and the Mortgagor, and did not appear to concern the Estates Department. The Sub-Committee intimated, however, that they were willing, in the event of the Estates Committee considering the course to be desirable, to appoint representatives to confer with that Committee on  the subject of their resolution.

The consideration of the matter was accordingly deferred pending the views of the Estates Committee being ascertained.

The matter was duly considered at the meeting of the House Purchase Sub-Committee on January 12th 1925:

On Minute No 522 (Representation by Estates Committee as to payment of rates, etc by purchasers of Corporation Houses) the General Manager stated that he had further discussed this matter with the Manager of the Estates Department. It appeared that there was only one case where it was necessary to take any action, namely, Mr Jenner, and in this case it had been arranged that this Borrower should sell his present house and purchase a smaller one, which would result in his repayments and other charges being reduced, and it was anticipated that the action taken would meet the situation. The Chief Executive Officers of the two Departments did not consider that a conference between representatives of the Bank and Estates Committees on the matter was necessary, and it was accordingly:

538    RESOLVED:- That Minute No 522 be discharged.

At the same Committee meeting, the General Manager presented a report on the subject of Progressive Mortgages:

The scheme approved by the Council for granting financial assistance to persons building houses as the work of building progresses, is now in operation, and the machinery of the Bank is being used for collecting the monthly instalments.

The procedure is for the Public Works Department to decide the application and the progressive advances which are to be made; the Finance Committee make the actual grants direct to the applicant, and notify him as to the repayments to be made; and the Bank collect the monthly repayments.

The form of mortgage in use follows closely the form used for Bank mortgages, and creates what might be termed a permanent mortgage, and not a mortgage determinable as soon as the house is completed.

When the Joint Committee of the Finances, Estates and Bank Committees had this matter under consideration, it was anticipated that these mortgages would be determined as soon as the house was completed, and that a Bank mortgage would then be created. When the first Progressive Mortgage was arranged, it was felt that the cases would be so few that it was not worth setting up the same system of bookkeeping and records as is done in the case of Bank mortgages; but as cases continue to come along, the Bank Committee should consider whether, if the present mortgage is to continue, a system similar to their owner-occupiers should be introduced, and how far they can, within their functions, continue to discharge these duties.

To enable the Committee to understand the position, it should be explained that a House Purchase pass book is used, adapted to meet the peculiar circumstances attaching to progressive advances. The pass book indicates that the Finance Department and the Bank are collaborating in the matter of repayments. The moneys thus received are banked direct to the credit of the Treasurer and do not go through the books of the Bank. Only a simple record is kept at the Bank. This is unsatisfactory, and if the mortgage in its present form is to continue, it would be more satisfactory if the same records were kept and the same procedure followed as is done with Bank mortgages. By such means a proper check and oversight can be maintained.

There may be some difficulty which prevents this being done, as these Progressive mortgages are arranged under Section 7 of the 1919 Act, and such Section is not delegated to the Bank. Whether or not it can be so delegated is a matter for legal opinion, but on the ground of expediency it is desirable that it should be done.

The Sub-Committee decided that the questions raised in the report should be referred to the Town Clerk and the City Treasurer, but the General Committee suggested that it would be very desirable to set up a joint Sub-Committee of the four Committees to whom the Council had delegated their powers with reference to housing matters. However, when the Bank's Chairman interviewed the Town Clerk, and reported that the latter was considering the question of arranging in appropriate cases for an ordinary Bank Mortgage with the purchaser to take the place of the progressive Mortgage with the builder, on completion of the work. Later in the year, the General Manager stated that the Town Clerk had now agreed to insert a clause in the Progressive Mortgage Deed so that on completion of the building the mortgage would be transferred to the Municipal Bank.

With reference to mortgages already in force it was proposed to send out a suitable letter to the mortgagors suggesting that a similar transfer should be arranged. In June, the General Manager was able to report that several of the Mortgagors under the Progressive Mortgage Scheme had intimated their willingness for their mortgages to be transferred to the Municipal Bank on completion of the building.