Vol. 491 No. 1
90 Mr. Browne (Wexford) asked the Minister for the Environment and Local Government the proposals, if any, he has to deal with the high interest rate of 12 per cent that local authorities charge existing loan holders; and if he will make a statement on the matter. [11522/98].
The interest rate on local authority fixed rate house purchase loans is related to the cost of long-term funds prevailing at the time the loans were advanced and is fixed for the life of the loan. It is not possible to reduce the interest rate on these loans as the cost involved would be substantial and would have to be borne by either the Exchequer, the Housing Finance Agency or local authorities.
However, borrowers of these loans may redeem them without penalty, which is a significant concession in the case of fixed interest rate loans, and refinance in the private sector, if they consider it advantageous to do so.
