asked the Minister for Finance if he will request the banks to remove the restriction on bridging loans for people who have qualified for local authority housing loans.
Ceisteanna—Questions. Oral Answers. - Bank Bridging Loans.
88.
I am not aware of any particular restriction by the banks on bridging loans to persons who have qualified for local authority housing loans.
The Minister says he is not aware but I am sure he must be aware of the difficulties facing young couples who have to avail of bridging loans because of (a) the high rates of interest and (b) the fact that a bridging loan is purely a temporary expedient to help people until they get their SDA loans. Would the Minister have a look at the possibility of making banking institutions and local authorities work out some scheme under which this would be a permanent matter—the banks giving so much and the local authorities giving so much at a fairly reasonable rate of interest? The time has now arrived to help young couples. The banks should be made play their part with the local authorities.
I share with the Deputy a desire to see completion of houses and completion of purchases coincide with the availability of loans from local authorities or whoever else might be the lending agency. I think part of the problem at present is due to the fact that there are a large number of completions. The provision of housing is on the increase. But our information—and the Central Bank have carried out some extensive inquiries into this matter— is that the position is no different now to what it ever was. I share the desire of the Deputy to see this difficulty overcome. But, really, it can be overcome only by coinciding completions with the availability of moneys. I share with Deputies the desire to see this difficulty overcome. It can only be overcome by coinciding the completions with the availability of money.
Could the Minister twist the bankers' arms?
The Minister for Finance is not empowered to twist the arms of the bank, even assuming they have arms. I am sure that the Central Bank will take note of the remarks.
(Dublin Central): The Minister stated that he was not aware that there were problems in obtaining bridging loans. Is the Minister aware that the banks have no interest at all in these loans? Unless a client has a friend associated with a bank he has no possibility of getting a bridging loan. Any bank manager in Dublin can tell you that they have no interest in bridging loans.
The position now is no different from what it usually is. Quite contrary to what Deputy Fitzpatrick has said, banks are interested in bridging loans. Banks do not make money unless they lend money and lending money on bridging loans is as good a way as any of making money, particularly if the banks are satisfied that the person to whom the loan is being made will shortly be in receipt of money from some other source.
(Dublin Central): The banks do not know when they will get their money back. I have had experience of this.