asked the Minister for Local Government if, in view of the fall in the bank rate, building society mortgage rates will be reduced immediately.
Ceisteanna—Questions. Oral Answers. - Building Society Mortgage Rates.
11.
I understand that the members of the Irish Building Societies Association have this matter under active consideration. The Deputy will be aware that I have no power to compel societies to alter their interest rates.
Would the Minister agree that in view of the many increases in a variety of commodities, some of which were announced recently, many borrowers presently repaying loans to building societies are under severe financial pressure? In such circumstances would he agree that it is imperative that mortgage rates be reduced quickly once the bank rate has been decreased?
My Department and the Department of Finance have been in communication with the societies and the matter is being kept under review. I have no statutory authority to interfere.
The Minister will agree that it is some time now since the bank rate was lowered. Has the Minister any concrete information when the building societies are likely to lower their mortgage rate?
The Deputy is aware that there was quite a considerable delay before the interest rates were increased after the bank rate had been increased. The matter is being considered. I have no power to interfere.
I hope they are reduced very soon.