Vol. 400 No. 3
112 Mr. Durkan asked the Minister for the Environment if he intends to withdraw a recent circular to local authorities indicating a 1 per cent variable interest rate increase on local authority loans; if he accepts that recent indications of a reduction in interest rates generally should benefit those affected by the increase; and if he will make a statement on the matter.
The interest rate on variable rate local authority house purchase loans is determined by reference to building society rates. The rise in the rate for local authority loans effective from 1 June 1990, referred to by the Deputy, relates to a previous increase in building society mortgage rates which generally came into effect in April 1990. The Deputy can be assured that there will be no delay in giving relevant local authority borrowers benefit from the current round of adjustments in building society rates.
