asked the Minister for the Environment if he is aware of recent reports regarding a threatened increase in interest rates on building society mortgages; and if he will make a statement on the matter.
Written Answers. - Mortgage Interest Rates.
616.
Following the recent announcement of increases in their interest rates by the Associated Banks, I had a meeting on 4 December with representatives of the Irish Building Societies Association to discuss the implications for the societies of these increases. At the meeting, which was held at my request, I expressed concern about the additional burden which any increase in the mortgage rate would impose on existing borrowers and at the adverse effects it would have on the housing programme, the building industry generally and potential house purchasers. As the Deputy will be aware, the societies have since announced that a decision on any change in their mortgage rates has been deferred for the present and that the matter is being kept under review by the societies.