A Westport councillor has criticised the Government for increasing the rate on local authority mortgages, at a time when banks are cutting their lending rates.

The interest rate on the Government's Rebuilding Ireland Home Loan product has increased by 0.75%.

The Government-backed mortgage is for first-time buyers, and is available through local authorities for buyers who have been turned down by two mainstream lenders.

The higher rates will impact on new borrowers under the scheme, and will add up to €1,200 to repayments each year.

Westport Independent Councillor Christy Hyland is questioning why the Department of Housing is increasing the lending rate, at the same time as the Government is asking banks to cut their mortgage rates.

Councillor Hyland says it's unfair on low income earners.....


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