Dáil Éireann Debate, Wednesday - 24 November 2004
228 Mr. R. Bruton asked the Minister for the Environment, Heritage and Local Government the rate of interest which applied to a local authority loan and the added rate of charge for mortgage protection insurance; the monthly payment which will be required in respect of each on a €100,000 loan. [30646/04]
View answer
The current local authority mortgage interest rates are 2.95% variable and 4.45% for fixed, which represent competitive rates of lending. The cost of the mortgage protection plan is met by way of an additional charge, currently 0.598%, to the rate of interest charged on individual loans. This mortgage protection charge would be about €50 in the first month on a loan of €100,000, reducing over the term of the loan, with the average charge being around €30.
The position regarding monthly payments on a €100,000 loan is set out in the table below:
|
Rate |
Over term of: |
|||
|
15 years |
20 years |
25 years |
30 years |
|
|
2.95% variable |
€688 |
€552 |
€472 |
€419 |
Variable mortgage lending rates shown above may change over the term of the loan. The position for a fixed loan is that they are borrowed for a total of 25 years, the first five of which are fixed at 4.45%. After five years, the borrower may convert to variable or re-fix at the fixed rate prevailing at the time.
In such circumstances, the following payment schedule would apply:
|
Rate |
25 year term |
|
€ |
|
|
Fixed for initial 5 years at 4.45% |
553 |
|
If variable thereafter for remaining 20 years at 2.95% |
547 |
