asked the Minister for the Environment if his attention has been drawn to the increasing number of local authority mortgagees who are experiencing difficulty in meeting mortgage repayments; if he will consider amending the regulations for the purpose of allowing local authorities to restructure loans with particular reference to SDA mortgages for the purpose of bringing them into line with current favourable interest rates; and if he will make a statement on the matter.
Written Answers. - Local Authority Mortgages.
57.
Where a loan has been advanced at a fixed interest rate, that rate applies for the full period of the loan in accordance with the terms of the mortgage agreement. The question of altering the interest rate in such cases does not, therefore, arise. I would point out that the interest rate charged by the local authority on a loan is determined by the rate at which they, in turn, borrowed the money to fund that loan.