asked the Minister for Industry and Commerce if he is aware that persons who have got loans for house purchase through a building society (name supplied) have been notified by the society that within the next three months the interest on mortgages will be raised to 7 per cent., thus imposing a serious hardship on a number of borrowers; whether he is satisfied that this action is justified, and, if so, if he will state the reasons.
Ceisteanna—Questions. Oral Answers. - Interest on Loans for House Purchase.
The rules of the building societies registered under the Building Societies Act permit the directors to determine the rate of interest which may be charged on mortgages from time to time. It is understood that some of the societies have embodied a provision in recent contracts for loans on house purchase which enables the societies to increase the rate of interest chargeable on advances to existing borrowers.