The Local Authority variable interest rate, applicable since 1 November 2010, charged to borrowers, including mortgage protection insurance, is 3.3115%. The charge for mortgage protection is currently 0.5615%. Based on this rate, the annual cost of servicing a mortgage of €150,000 would be €7,895.
The Local Authority five year fixed interest rate charged to borrowers, including mortgage protection insurance, is 4.9615%. This rate has been in place on all fixed rate loans advanced on or after 1 July 2009. The charge for mortgage protection is currently 0.5615%. Based on the current fixed rate, the annual cost of servicing a mortgage of €150,000 would be €9,621. However it should be noted that the fixed rate is only applicable to the first five years of the mortgage and the borrower will then revert to the variable rate, which of course is subject to change.
The Home Choice loan interest rate charged to borrowers is currently set at 3.7%. The local authority mortgage protection group scheme is not available to borrowers of Home Choice loans. Based on this rate, the annual cost of servicing a mortgage of €150,000 would be €8,286.