Vol. 436 No. 1
109 Mr. Bell asked the Minister for the Environment the level of interest on local authority mortgages now obtaining; the level applied over the last two years; the level of reductions taking place as a result of the substantial reduction in the interest rates; the credit, if any, he proposes to give to local authority borrowers for house loans; and if he will make a statement on the matter.
The interest rate on local authority variable rate housing loans, which is generally linked to building society mortgage rates, is at present 8.25 per cent, exclusive of 0.31 per cent for mortgage protection insurance.
When private sector mortgage rates rose to around 14 per cent in late 1992 and early 1993, the local authority variable rate remained unchanged at 10.75 per cent. Following the fall in private sector mortgage interest rates earlier this year, the interest rate on these local authority housing loans was reduced from 10.75 per cent to the present level of 8.25 per cent. The various changes in the interest rate applying to such loans during the period 1 September 1991 to date are as follows:
|
Period from |
Rate |
|
% |
|
|
1-9-91 to 28-2-92 |
10.75 |
|
1-3-92 to 30-6-92 |
11.25 |
|
1-7-92 to 30-4-93 |
10.75 |
|
1-5-93 to 31-7-93 |
9.25 |
|
1-8-93 |
8.25 |
