Dáil Éireann Debate, Thursday - 23 June 2022
80. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage if he will detail his engagement with the banks on the issue of mortgage provision for households purchasing local authority affordable homes; and if his attention has been drawn to pillar banks refusing mortgages to potential buyers on the grounds that the property is funded via the Affordable Housing Fund. [33086/22]
Amharc ar fhreagraThe Local Authority Affordable Purchase Scheme makes the purchase of new homes via Local Authorities more affordable through the use of an equity share model. The scheme has been designed so that eligible purchasers will only receive the equity support that they need on top of their purchasing capacity with a traditional mortgage. The provision of mortgage finance and in particular the precise qualifying criteria for loans are internal matters for mortgage providers, being entirely independent of Government.
However, on the basis that a buyer under the Local Authority scheme may require a mortgage via a commercial bank (as opposed to the Local Authority Homeloan), officials in my Department have proactively engaged with the Banking and Payments Federation of Ireland and constituent mortgage lenders in establishing the required Priorities Agreements and Customer Contracts. This has formed part of wide-ranging engagement during the policy development process with bodies such as the Property Registration Authority and the Law Society. While discreet arrangements may have been put in place on a local basis to allow projects move forward, this pro forma approach to the conveyancing of affordable homes will be used on a national basis for both First Home and the local authority affordable purchase scheme.
