asked the Minister for the Environment the arguments there are against allowing 100 per cent loans to housing applicants, under the Housing Finance Agency Scheme; if he has any plans to introduce a modified scheme, or a new scheme to allow for 100 per cent housing loans; and if he will make a statement on the matter.
Written Answers. - Housing Finance Agency Scheme.
265.
The main reasons that 100 per cent housing loans are not granted by the Housing Finance Agency are the need to ensure that there is adequate security for the amount of the loan advanced in the event of default on the part of the borrower, the inflationary effect on house prices, the reduction in the number of loans that could be financed from any given capital allocation, the diminished contribution to housing from personal savings and the lower commitment of a borrower towards the purchase of his own house.
In the circumstances, I have no proposals to amend the approved scheme of the agency on the lines suggested in the Deputy's question.