Vol. 470 No. 7
145 Mr. Gregory asked the Minister for the Environment if he will examine the plight of families who obtained fixed interest mortgages from local authorities some years ago and are now in debt due to heavy repayments which almost doubles mortgages on current interest rates. [19947/96]
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 the Exchequer and local authorities. However, borrowers of these loans may redeem them without penalty and refinance in the private sector, if they consider it advantageous to do so.
