asked the Minister for the Environment the reason building society mortgage repayments, which were reduced last November and which were to take effect from 1 February 1981 have not yet come into effect; and if he is aware that one building society (details supplied) have stated that normal payments should be made in February and that customers will be credited subsequently.
Written Answers. - Building Society Mortgage Repayments.
190.
The Irish Building Societies Association announced on 8 December 1980 that it had recommended to its members that the investors' interest rate be reduced from 9% to 8.25% standard rate tax paid and that the interest rate on home loans for owner-occupation be reduced from 14.15% to 13.15% per annum with effect from 1 January 1981.
The society in question has indicated that in accordance with the terms of individual mortgage contracts, one month's notice of the change in the mortgage interest rate was given to all mortgagors. The effective date of change in the interest rate in all cases was, therefore, 1 February 1981. The accounting system operated by the society does not permit consideration of changes in monthly loan repayments until the month in which the changes are due to take place. At the end of that month a new monthly instalment is calculated with effect from the first day of the following month. Loan repayments due to the society in March and succeeding months will, therefore, be adjusted to take account of the decrease in the mortgage interest rate and accounts will be credited with any overpayment made in respect of the month of February.