Local authority mortgages to get interest rate cut

update:- got a response from the email that they will pass on the query to the a/c department.

p.s. There may be a third cut next week...
 
Hi,

Eventually got through to DCC. They mentioned that the 2 interest rate cuts and the mortgage interest relief hasn't been passed on yet because they need a 'new system' which hasn't been implemented yet. They hope for these changes to be pushed this week in time to pass on the saving by Feb 1st.

They will be back dated to Jan.
 
Minister of State at the Department of the Environment, Community and Local Government (Deputy Willie Penrose): The interest rate on local authority housing loans is determined by the Housing Finance Agency by reference to mortgage rates prevailing in the financial market. The Board of the Agency decided today, 9 November 2011, to pass on the variable interest rate reduction of 0.25% to local authority mortgage holders. The current variable interest rate to local authority borrowers, excluding mortgage protection, is 3.0%
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Did the board agree to pass on the December cut?

Does this mean that the current variable rate is 2.75%?
 
This gets weirder and weirder

Minister O'Sullivan in the Dáil yesterday:

My Department understands that Dublin City Council will be implementing an interest rate cut of 0.25% from 1 February 2012 for all variable loans; a further rate cut of 0.25% is scheduled to be implemented on 1 April 2012.

It is understood that the Council’s Loan Accounts Section is required to contact all 3,000 borrowers regarding changes to rates and new instalments. Borrowers with Direct Debit arrangements must notify their bank of the new instalment rate and adjust their Direct Debit accordingly. All accounts will be updated on the Loan Accounts IT system. The time frame to complete all tasks associated with changes to interest rates is 8-10 weeks.
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Since when do we have to contact our bank about a rate change???
 
Anyone who pays by Direct Debit would have to inform their Bank of the new figure as will receive in the letter to be sent. That line is always on the rate change / annual change letters they send from South Dublin so the Ministers speech writer may have done a cut and past from what ever corr they received from the City Council.
 
Well I've managed to pay a mortgage to DCC by direct debit for almost five years without ever once informing my bank of any rate change.
 
You are right Brooklyn, DD payments should be fluid and changeable by Beneficiary. I can't remember which payment method mine was in the beginning but maybe it was Standing Order which I stopped and moved to payment by cheque as they were constantly changing the rate and I was actually required to inform my bank...it seemed almost every couple of months.
 
Would anyone know what the mortgage protection rate is now? In the letter from DCC I just got it says "there has been a reduction in the mortgage protection rate applied to your loan" but doesn't say what the new % is!
 
The rate is 3%. We got 1 of the 2 cuts so far. This confirms my earlier post that they drag their heels with the cuts and implement the hikes immediately.

There is no way they will back date the cut to when the ECB introduced them. If they do I'll eat my cat.
 
4 1/2 years ago I obtained a mortgage for my property from a bank rather than applying through the County Council. I took a 5 year term at 5.44% and it pains me to see what I could've been paying had I been on a local authority mortgage rate. Is it possible for me to apply to my local authority for a mortgage once my 5 year term is up?
 
Got a letter from cork cc today. Interest rate reduced from 3% to 2.75% effective from 1 feb 2012.
 
Hi JBM14,

Have not any letter from Cork CC as of yet but have seen reduction in mortgage which was taken out today. Will ring them tomorrow andcheck what the rate is.
 
Any interest rate cut will be cancelled out by a rental increase in July. Are they not going to stop this practice of upward only rents every July?
 
Recessionist said:
Any interest rate cut will be cancelled out by a rental increase in July.
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For those on shared ownership, yes, but not everyone with a local authority loan is on shared ownership.

Agree with you though, this is something else that needs to be revisited in the new legislation.
 
Brooklyn said:
For those on shared ownership, yes, but not everyone with a local authority loan is on shared ownership.

Agree with you though, this is something else that needs to be revisited in the new legislation.
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I am on shared ownership and I got a letter from CCC a week ago that they will reduce the interest from 3 to 2.75 %, but i did not receive the final letter about the reduction. Regarding the rental fee - I doubt they will do anything with this without coordinated action from shared ownership mortgage holders.

Last note, has anybody heard about negative equity mortgage being approved by the central bank in ireland. Can this be given also by County councils? This could be an option for people on shared ownership that would like to transfer to full mortgage with council. My understanding is that CCC could not offer transfering to full mortgage so far because of negative equity invoilved, but now when the central bank approces such mortgages, this may be an option. Let me know if anybody on shared ownership with CCC knows anything about transfering to full mortgage (100% ownership) with CCC by using the negative equity.

thanks
Skier
 
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