Vol. 500 No. 7
288 Mr. R. Bruton asked the Minister for Finance the extent to which old home loans with fixed rates at 12.5 per cent or 9 per cent issued by the local authorities are backed by State guaranteed borrowings at corresponding fixed rates or by variable rate State borrowings in which case the State would be at no loss in passing the benefits of lower interest rates to these borrowers; and if he will make a statement on the matter. [5190/99]
While the Exchequer has made funds available to local authorities through the Local Loans Fund to enable them to advance loans to individuals, it is not possible to make a direct link between the provision of these funds and loans raised by the Exchequer. There is, consequently, no direct link between the cost of Exchequer borrowing and the interest rates payable by individuals on local authority mortgages.
I would draw the Deputy's attention to the fact that individuals with local authority mortgages issued under the Small Dwellings Acts have the right to repay their mortgages early without the payment of penalties.
