Richard Bruton (Dublin North Central, Fine Gael)
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Question 198: To ask the Minister for the Environment, Heritage and Local Government the number of home choice loans for those earning over €40,000 and if standard local authority home purchase loans for those earning under €50,000 which have been issued in the past 12 months and if any change in the terms and conditions are envisaged in the context of the four year budgetary strategy. [44604/10]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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Since introduction of the Home Choice Loan Scheme in Budget 2008, 6 loans have issued. Of these 6 loan applications, 2 applicants were earning over €40,000, 1 as a single applicant and 1 as part of a joint application. To date 17 approval-in-principle recommendations have been made, and of these, 5 applicants were earning over €40,000, 2 as single applicants and 3 as part of joint applications.

In the last 12 months, 89 recommendations to approve a House Purchase Loan were made to the local authorities, all of which were from applicants earning less than €50,000.

There are no plans to change any of the terms and conditions at the present time.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 199: To ask the Minister for the Environment, Heritage and Local Government the rate of interest being charged on home loans from local authorities and the charge for mortgage protection and if he will indicate the repayments on a 30 year loan. [44605/10]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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The Local Authority variable interest rate, applicable since 1 November 2010, charged to borrowers, including mortgage protection insurance, is 3.3115%. The charge for mortgage protection is currently 0.5615%. Based on this rate, the annual cost of servicing a mortgage of €150,000 would be €7,895.

The Local Authority five year fixed interest rate charged to borrowers, including mortgage protection insurance, is 4.9615%. This rate has been in place on all fixed rate loans advanced on or after 1 July 2009. The charge for mortgage protection is currently 0.5615%. Based on the current fixed rate, the annual cost of servicing a mortgage of €150,000 would be €9,621. However it should be noted that the fixed rate is only applicable to the first five years of the mortgage and the borrower will then revert to the variable rate, which of course is subject to change.

The Home Choice loan interest rate charged to borrowers is currently set at 3.7%. The local authority mortgage protection group scheme is not available to borrowers of Home Choice loans. Based on this rate, the annual cost of servicing a mortgage of €150,000 would be €8,286.