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Dáil Éireann debate -
Tuesday, 12 Jun 1979

Vol. 315 No. 1

Written Answers. - Building Society Loan.

111.

asked the Minister for the Environment if he is aware that a person (details supplied) has been refused a loan of £13,000 by his building society due to the absence of a certificate of reasonable value but offered a loan of £16,000 from the same society in respect of the same house on the basis that this was the only way out of his dilemma; if the building society can be authorised to make the lower loan in this case and if he will make a statement on the matter.

The restrictions on lending for house purchase, which the building societies were asked by the Government in August 1978 to apply, include a provision that all applicants for mortgages up to £16,000 for the purchase of new houses should furnish a certificate of reasonable value in respect of the house before their applications could be approved. At the same time the societies were asked to allocate the amount available to them for house purchase mortgage finance so that not less than 60 per cent was in loans of £13,000 or less, and another 20 per cent in loans of between £13,000 and £16,000, and so that the apportionment of loans as between new and previously-occupied houses would be maintained at levels current at that date.

It is a matter for the societies to administer the restrictions and I have no information or functions regarding individual applications.

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