asked the Minister for the Environment if his attention has been drawn to the fact that insurance companies require an applicant for a house loan to have a minimum salary of £12,000 and that this will adversely affect new house building for young people.
Written Answers. - Insurance Companies' Lending Requirement.
63.
Insurance companies, generally, do not provide mortgage finance, although they are involved in providing mortgage related endowment policies. Lending criteria are a matter for the institutions providing the finance. However, I have recently become aware that a particular mortgage finance company, which is associated with an insurance company, has revised, for the time being, its income guidelines for loan applicants. The company in question has indicated to me that this has been done in order to bring the income profile of borrowers generally into line with the industry norm and they have assured me that the guidelines will be kept under review to ensure that first time purchasers continue to be catered for.