Dáil Éireann Debate, Thursday - 26 January 2012
72 Deputy Michael McGrath asked the Minister for Finance his view on the availability of credit in the residential mortgage market particularly for first time buyers and persons seeking to switch their mortgage; and if he will make a statement on the matter. [4658/12]
View answerThe decision on whether or not to grant a loan to a borrower or to allow a borrower to switch to another mortgage account must remain a commercial decision for the lending institution concerned. It is important that each lending institution is allowed to assess properly and independently the risks that it is considering when deciding whether or not to approve a loan or to make adjustments to an existing loan arrangement. The banking announcement on 31 March 2011 restructured the domestic banks to ensure that there is over €20 billion of new mortgage and SME lending available from the two pillar banks (AIB and Bank of Ireland) between 2011 and 2013. I understand that Bank of Ireland has already announced a special fund for new buyers and that other mortgage lending institutions are considering launching mortgage initiatives shortly.
The changes which I announced in last month's Budget means that individuals who take out qualifying loans in 2012 as first time buyers will now receive relief at a rate of 25% on ceilings of €10,000/€20,000, single/married as opposed to the previously proposed rate of 15% on ceilings of €3,000/€6,000. This will give a maximum relief in 2012 of €2,500 for single and €5,000 for married persons.
