Dáil Éireann díospóireacht -
Thursday, 28 Jan 1999

Vol. 499 No. 2

Written Answers. - Local Authority Housing.

Bernard J. Durkan

Ceist:

118 Mr. Durkan asked the Minister for the Environment and Local Government if his attention has been drawn to the discrimination against those on lower incomes who rely on shared ownership small dwellings acquisition or other forms of local authority housing loans by way of excessive interest charges which do not compare favourably with mortgages available to those in the higher income categories who can avail of home loans from the private sector; and if he will make a statement on the matter. [2388/99]

Bernard J. Durkan

Ceist:

119 Mr. Durkan asked the Minister for the Environment and Local Government the reason local authority home mortgage applicants are discriminated against by way of much higher interest rates charged than for comparable loans in building societies; and if he will make a statement on the matter. [2389/99]

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

I propose to take Questions Nos. 118 and 119 together.

The interest rate on local authority variable rate housing loans is determined by the Housing Finance Agency by reference to mortgage rates prevailing in the financial market. The rate is linked generally to building society mortgage rates and is currently being reviewed by the Housing Finance Agency in the light of reductions in mortgage rates announced in recent weeks. A further reduced rate for local authority housing loans will be announced shortly.