asked the Minister for the Environment if he is aware of the difficulties arising in the repayment of housing loans due to the reduction of the repayment period from 35 years to 30 years; and, in view of the severe hardships being experienced by borrowers in trying to meet their commitments, if he will consider reverting to the former repayment period of 35 years.
Written Answers. - Housing Loan Repayments.
498.
I am not aware that the reduction of the repayment period for housing which came into effect in respect of loans issued after 26 June 1975 has caused severe hardship. The extension of the repayment period on a loan of £9,000 at 11½ per cent from 30 to 35 years would reduce the monthly repayments by only £1.37, from £89.37 to £88.00, but would increase the total repayments over the period by £4,789. I do not feel, therefore, that an extension of the repayment period would be in the best interest of the borrower.