asked the Minister for Local Government if he is aware of the difficulty which arises for persons who have purchased their houses by means of a loan from the Local Loans Fund and subsequently change their place of residence, as no second loan may be obtained by a purchaser until the first loan has been fully repaid; and, if so, if he has any suggestion to make which might overcome this difficulty.
Ceisteanna—Questions. Oral Answers. - House Purchase Loans.
16.
I am aware of the difficulty to which the Deputy refers. I feel, however, that it could be overcome largely by careful timing of the various transactions, given the goodwill of all the interested parties. I understand that at least one housing authority in the Dublin area have met the problem to some extent by agreeing to consider applications relating to houses on which there are outstanding mortgages on a provisional basis. It is open to other authorities to do likewise.
Is it illegal to give a mortgage to a second purchaser of a house that has already secured a mortgage from the local authority which has not been fully repaid? That is the information we are given by our law agent, that it is illegal and cannot be done. That is what I am trying to get around.
I understand one of the local authorities is doing it on a provisional basis.