Local Authority Housing Mortgages

Dáil Éireann Debate, Thursday - 25 January 2018

Thursday, 25 January 2018

Ceisteanna (239)

Kevin O'Keeffe

Ceist:

239. Deputy Kevin O'Keeffe asked the Minister for Housing, Planning and Local Government further to Parliamentary Question No. 235 of 17 of January 2018, and in view of the announcement of the introduction of the new scheme Rebuilding Ireland home loan, his plans to amend this loan scheme to include persons that are not first time buyers but due to changed circumstances, for example, marriage, separation or ill-health had to sell their home and are unable to secure home mortgages through commercial lending institutions (details supplied). [3822/18]

Freagraí scríofa

Minister for Housing, Planning and Local Government

Following a review of the two existing local authority home loan schemes, the House Purchase Loan and the Home Choice Loan, I am introducing a new loan offering, known as the Rebuilding Ireland Home Loan, with effect from 1 February 2018.  The new loan will enable credit worthy first time buyers to access sustainable mortgage lending to purchase new or second-hand properties in a suitable price range.  The low rate of fixed interest associated with the Rebuilding Ireland Home Loan provides first time buyers with access to mortgage finance that they may not have otherwise been able to afford at a higher interest rate.

As with previous local authority house purchase loan finance, the Rebuilding Ireland Home Loan is available to first time buyers only. There is no change in this regard.  This is to ensure the effective targeting of limited resources.

The option currently available for non-first time buyers is to seek home loan facilities from one of the commercial lending institutions.