Vol. 510 No. 3
288 Mr. Hogan asked the Minister for the Environment and Local Government if he will reduce mortgage interest rates for loans administered through Kilkenny County Council to the current market rate; and if he will make a statement on the matter. [22567/99]
The level of interest rates on local authority housing loans is determined by the Housing Finance Agency by reference to mortgage rates prevailing in the financial market.
The level of interest charged on variable rate house purchase loans which was 4.85 per cent with effect from 1 July 1999 was further reduced to 3.85 per cent with effect from the 1 November 1999. The level of interest charged on fixed rate house purchase loans is currently 6.75 per cent and is being reviewed by the Housing Finance Agency at present.
With regard to existing fixed interest rate local authority loans the Government's recently published review of An Action Programme for the Millennium, contains a commitment to target support to home owners with high fixed interest rate local authority loans. I will shortly put in place measures to implement this commitment.
