Dáil Éireann Debate, Wednesday - 26 May 2021
131. Deputy Paul McAuliffe asked the Minister for Housing, Local Government and Heritage his plans to address borrowers availing of the Rebuilding Ireland home loan paying over the odds for mortgage protection insurance; and if he will make a statement on the matter. [28560/21]
View answerThe local authority mortgage protection insurance (MPI) scheme has applied to all house purchase loans approved by local authorities after 1 July 1986, including the Rebuilding Ireland Home Loan introduced on 1 February 2018.
One of the conditions of the MPI 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. A local authority housing loan applicant who is not eligible for the local authority MPI scheme must source a suitable comparable individual MPI policy from the market.
The scheme is subject to periodic review and competitive tendering in accordance with the terms of EU Directives relating to the award of public service contracts. This is to ensure that the most appropriate cover at the best value for money is secured for local authority borrowers over the entire life of their mortgages.
The most recent public procurement competition for the provision and administration of this MPI scheme was conducted by the Office of Government Procurement. The contract resulting from this open tender competition came into effect from 1 January 2017 and is due to expire on 31 December 2021.
