Vol. 515 No. 3
242 Mr. Durkan asked the Minister for the Environment and Local Government the maximum level of loan available for house purchase to a one income family on the average industrial wage; and if he will make a statement on the matter. [6212/00]
The maximum mortgage loan available for house purchase to a one income family on the average industrial wage is, in the first instance, a matter for the lending institutions.
A one income family on the industrial wage would qualify for the affordable housing and shared ownership schemes. The income threshold of a single income household is that the gross income in the previous tax year must not exceed £20,000. There is no maximum loan limit set for the affordable housing scheme. However, the maximum loan cannot exceed 95% of the sale price of the house and account has to be taken of the purchaser's ability to repay by reference to net income of the household. In the case of the shared ownership scheme, a borrower must purchase at least 40% of the value of the house and rent the remaining share, 60% or less, from the local authority.
Households with a gross income of £16,000 or less in the preceding tax year qualify for an annual subsidy towards their mortgage repayments under the affordable housing scheme and towards the rent payable under the shared ownership scheme.
In general, house prices under the affordable and shared ownership schemes currently range from £70,000 to approximately £105,000.
