Dáil Éireann Debate, Tuesday - 17 April 2018
1576. Deputy Michael McGrath asked the Minister for Housing, Planning and Local Government the reason persons who purchased a house under the affordable housing scheme are unable in practice to switch the mortgage from one lender to another (details supplied); and if he will make a statement on the matter. [15938/18]
View answerPurchasers of dwellings under previous affordable housing schemes, including dwellings sold by way of shared ownership at less than market value, have a clawback charge placed on the property. The primary purpose of the clawback regime was to prevent short-term profit-taking on the resale of affordable homes. As such, it should, therefore, only have effect in the event of the house being sold. However, as a result of the way in which the clawback legislative arrangements are structured, they have an impact on affordable homeowners wishing to switch mortgage provider or take out an equity release “top-up” mortgage. This arises because of the time-sensitive manner in which charges on property apply.
The Housing (Miscellaneous Provisions) Act 2009 which will be commenced shortly will allow purchasers under the new Affordable Dwelling Purchase arrangements to re-mortgage or top-up their mortgage without triggering the clawback. The Act, however, does not provide this facility retrospectively for purchasers under previous affordable housing or shared ownership arrangements. I have requested my Department to arrange to have the provisions necessary to address this matter included in the first appropriate legislative vehicle that becomes available.
