Dáil Éireann debate -
Wednesday, 29 Sep 1999

Vol. 508 No. 1

Written Answers. - Local Authority Loans.

Deirdre Clune

Question:

548 Ms Clune asked the Minister for the Environment and Local Government the level of interest rates charged on loans from local authorities; the period over which these loans are charged; if he will reduce the rate in view of the fact that rates charged by banks and building societies are so low; and if he will make a statement on the matter. [17263/99]

Minister of State at the Department of the Environment and Local Government (Mr. Molloy):

The level of interest charged on variable rate house purchase loans from local authorities was reduced to 4.85 per cent with effect from 1 July 1999. These loans are available for a term of up to 25 years.

The interest rate on local authority housing loans is determined by the housing finance agency by reference to mortgage rates prevailing in the financial market.