asked the Minister for Local Government if he will state the reason why a local authority which lends £1,500, which it borrowed from the Local Loans Fund, to a person at six per cent. for 30 years for the purpose of purchasing or building his house, demands a higher proportion of the debt to be paid in the first year under the instalment system of repayment.
Ceisteanna—Questions. Oral Answers. - Repayment of Housing Loans.
23.
In the case of a loan repayable on the instalment system, the amount of principal repaid is the same in each annual payment. The amount of interest payable in any year is related to the principal outstanding in that year. It follows that the first year's repayment covering principal and interest will be the largest.