Dáil Éireann Debate, Thursday - 8 March 2018
620. Deputy Fergus O'Dowd asked the Minister for Housing, Planning and Local Government his plans to expand the parameters of the Rebuilding Ireland home loan scheme to allow persons who have lost a house during the recession or have entered and exited bankruptcy to apply for the loan; and if he will make a statement on the matter. [10827/18]
Amharc ar fhreagraFollowing a review of the two existing local authority home loan schemes, the House Purchase Loan and the Home Choice Loan, a new loan offering, the Rebuilding Ireland Home Loan, was introduced on 1 February 2018.
Applicants for the Rebuilding Ireland Home Loan must be of good credit standing and have a satisfactory credit record. The Housing Agency provides a central credit assessment service to local authorities and credit checks are undertaken as part of the credit assessment process. The final decision on loan approval is a matter for the relevant local authority and its credit committee on a case-by-case basis. Decisions on all housing loan applications must be made in accordance with the statutory credit policy, that underpins the scheme, in order to ensure prudence and consistency in approaches in the best interests of both borrowers and the lending local authorities.
A person who has been discharged from bankruptcy and is eligible in all other respects, including being a first-time buyer, for a Rebuilding Ireland Home Loan may apply for a loan and will be subject to the same credit assessment process that applies to all applicants.
As with the previous local authority home loan offerings, 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 mortgage finance from one of the commercial lending institutions.
