Interest rates
The Agency’s interest rates continued to be the lowest available in the market. Households benefited from an Agency-generated house purchase annuity mortgage rate that was about 1.5% below the average standard variable rates available in the market, and which averaged 3.06% during 2011.
In spite of a persistently volatile relationship between the Agency’s cost of funds and the ECB/Euribor rate the Agency managed to pass on all the decreases in ECB interest rates during the period, and the current rate to borrowers is 2.75%.
The Agency’s decisions in regard to future interest rate changes triggered by ECB/Euribor movements will, as in the past, have to have regard for its cost of funds and the necessity for it to meet its costs from its operations.
In 2011, local authorities paid an average variable rate of 2.30% on loans for non-mortgage housing and housing-related purposes.