Dáil Éireann Debate, Tuesday - 15 June 2004
556 Mr. Hayes asked the Minister for the Environment, Heritage and Local Government if he will address the issue of mortgage protection insurance for persons who are taking out loans from the county council and who are not allowed the freedom to acquire their own insurance independently and are being forced to pay a much higher rate to obtain it from their local authority; and if he will make a statement on the matter. [17461/04]
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The local authorities' 1986 mortgage protection scheme has applied, subject to the terms of the scheme, to all house purchase loans approved by local authorities on or after 1 July 1986. The terms of the cover under the scheme was negotiated by a sub-committee of the County and City Managers' Association, the Housing Finance Agency and a representative of my Department. These terms are renegotiated periodically by the committee.
The cost of the scheme is met by way of an additional charge, currently 0.598%, to the rate of interest charged on individual loans. One of the conditions of the scheme, which is a group policy, is that it is obligatory for all local authority borrowers who meet the eligibility criteria to join the scheme. Altering this condition would have a negative impact on the scheme and increase the cost for all existing borrowers. Borrowers who have existing loans with local authorities have the option of redeeming these loans and refinancing in the private sector.
557 Mr. Durkan asked the Minister for the Environment, Heritage and Local Government if he will further review the first-time buyer’s grant application in the case of a person (details supplied) in County Kildare; if they have received misleading information in relation to the cut off timeframe for such applications; and if he will make a statement on the matter. [17504/04]
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The final deadline for occupation and receipt of claim for payment of the new house grant was 2 April 2004. This statutory condition, which was notified to the applicant on 21 November 2003 and 27 February 2004 and published in the main daily newspapers on the 27 March 2004, cannot be set aside in any particular case. As a claim for payment was not received in this case before the deadline, a grant cannot be allowed.
