asked the Minister for the Environment if he is aware that applicants for loans under the Housing Finance Agency scheme are being refused bridging finance by institutions such as banks and building societies because of the high payments due under the scheme; and if he is making any progress in changing or replacing the scheme with another scheme which would be more attractive to the banks and the building societies.
Written Answers. - Housing Finance Agency.
649.
I am not aware that applicants for loans under the Housing Finance Agency's house purchase loans scheme are being refused bridging finance because of the high payments due under the scheme. I am, however, aware that due to certain misconceptions about the processing of loans under the scheme, difficulties are being experienced by some borrowers in obtaining bridging finance.
The agency are having discussions with the Incorporated Law Society, the Irish Banks Standing Committee and the Trustee Savings Banks and it is expected that the points at issue will be resolved shortly. The agency are also satisfied that, when the form of mortgage deed is finalised in the near future, applicants generally should experience no greater difficulty in obtaining bridging finance on foot of agency loan approvals than in the case of loan approvals under the local authority SDA scheme. Building societies are not empowered to provide bridging finance under any circumstances.
As I have already stated, the Government intend to review the scheme in the context of the publication of a White Paper on Housing around the end of this year.