Barry Cowen
Ceist:241. Deputy Barry Cowen asked the Minister for Housing, Planning and Local Government the criteria for and the estimated number of applications per annum of the recently announced mortgage scheme. [3863/18]
Amharc ar fhreagraThursday, 25 January 2018
Ceisteanna (241, 243, 247)
Barry Cowen
Ceist:243. Deputy Barry Cowen asked the Minister for Housing, Planning and Local Government if non-first time buyers were considered in the recently announced mortgage scheme. [3865/18]
Amharc ar fhreagraBarry Cowen
Ceist:247. Deputy Barry Cowen asked the Minister for Housing, Planning and Local Government the number of local authority mortgages issued in each of the years 2011 to 2017 nationally and in each local authority; the amount involved; the arrears rate nationally and in each local authority; and if he will make a statement on the matter. [3869/18]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 241, 243 and 247 together.
Following a review of the two existing local authority home loan schemes, the House Purchase Loan and the Home Choice Loan, I am introducing from 1 February 2018 a new loan offering, known as the Rebuilding Ireland Home Loan. 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 otherwise have been able to afford at a higher interest rate. Full details of the loan's eligibility criteria and other information is available from the dedicated Rebuilding Ireland Home Loan website, http://rebuildingirelandhomeloan.ie/.
The Rebuilding Ireland Home Loan is targeted at first time buyers who wish to own their own home, have access to an adequate deposit and have the capacity to repay a mortgage, but who are unable to access a mortgage sufficient for them to purchase their first home. As with the previous local authority loan offerings, the Rebuilding Ireland Home Loan is available to first time buyers only. 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.
The Housing Finance Agency (HFA) has raised €200 million on a fixed rate basis for periods out to thirty years maturity. Based on the pricing achieved, local authorities can offer a first tranche of fixed rate annuity finance to eligible borrowers at rates of 2.0% and 2.25% per annum, for twenty five and thirty years respectively, up to an aggregate maximum of €200 million. The funding will be drawn down by local authorities from the HFA to match fund their lending under the Rebuilding Ireland Home Loan. It is not possible to estimate the number of fixed rate loan applications per annum under this loan.
Information on (1) the overall number and value of local authority loans, and a breakdown by local authority area, issued from 2011 to Q3 2017 and (2) the overall level of local authority loan arrears, and a breakdown by local authority area, from 2011 to end Q3 2017 is available on my Department's website at http://www.housing.gov.ie/housing/statistics/house-prices-loans-and-profile-borrowers/local-authority-loan-activity.
Question No. 242 answered with Question No. 224.
Question No. 243 answered with Question No. 241.
Question No. 244 answered with Question No. 236.