Written Answers - Local Authority Loans. Wednesday, 24 November 2004

Dáil Eireann Debate Vol. 593 No. 2 Page of 178

  228.  Mr. R. Bruton      asked the Minister for the Environment, Heritage and Local Government      the rate of interest which applied to a local authority loan and the added rate of charge for mortgage protection insurance; the monthly payment which will be required in respect of each on a €100,000 loan. [30646/04]

Minister of State at the Department of the Environment, Heritage and Local Government (Mr. N. Ahern):    The current local authority mortgage interest rates are 2.95% variable and 4.45% for fixed, which represent competitive rates of lending. The cost of the mortgage protection plan is met by way of an additional charge, currently 0.598%, to the rate of interest charged on individual loans. This mortgage protection charge would be about €50 in the first month on a loan of €100,000, reducing over the term of the loan, with the average charge being around €30.

The position regarding monthly payments on a €100,000 loan is set out in the table below:

Variable mortgage lending rates shown above may change over the term of the loan. The position for a fixed loan is that they are borrowed for a total of 25 years, the first five of which are fixed at 4.45%. After five years, the borrower may convert to variable or re-fix at the fixed rate prevailing at the time.

In such circumstances, the following payment schedule would apply:

Rate	25 year term
	€
Fixed for initial 5 years at 4.45%	553
If variable thereafter for remaining 20 years at 2.95%	547

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Last Updated: 04/11/2010 10:30:04

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