Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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415.To ask the Minister for Housing, Planning, and Local Government if he will review correspondence (details supplied); if he will outline the issue relating to interest rates as addressed in relation to the local authority loan; and if he will make a statement on the matter. [25366/24]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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The Local Authority Home Loan is a government backed fixed rate mortgage for creditworthy First Time Buyers and Fresh Start applicants to purchase a home. The Local Authority Home Loan is only available to applicants who have been refused credit from at least two commercial lenders for the equivalent finance.

The Housing Finance Agency provides financing to local authorities for the mortgages that the local authorities lend to borrowers. The Housing Finance Agency sets the lending rate they charge Local Authorities for this financing, which are based on the wholesale interest rate in the market. Local Authorities are obliged to reflect this interest rate in the interest rate charged to the borrower. Changes in interest rates, increases as well as decreases, are be passed on to new borrowers.

The current fixed interest rates applicable to new borrowing under the Local Authority Home Loan are as follows:

• For mortgages up to 25 years the interest rate to be applied is 4%
• For mortgages over 25 years and up to 30 years the interest rate to be applied is 4.05%

The interest rates continue to be monitored and any changes to interest rates by the Housing Finance Agency will be reflected in the interest rate charged to new borrowers. Any changes to interest rates will be updated on the following website localauthorityhomeloan.ie/interest-rates/