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Call for Murphy to clarify home loan funding situation as scheme oversubscribed

Call for Eoghan Murphy to clarify home loan funding situation - Topcomhomes

Call for Murphy to clarify home loan funding situation as scheme oversubscribed

Minister for Housing Eoghan Murphy is being called on to clarify whether a Government-backed mortgage scheme has been put on hold because it has run out of funding.

An internal document from the Department of Housing, released to RTÉ’s Morning Ireland under Freedom of Information, details how further approvals are not currently being issued for the Rebuilding Ireland Home Loan.

The briefing note, which was provided to the press office, said the department "has been advised that no further approvals should issue for now".

The note adds that demand has far exceeded expectations and a review is under way.

The Rebuilding Ireland Home Loan allows first-time buyers to borrow up to 90% of a property's value from their local authority.

Applicants have to show they have been turned down for mortgage approval by two banks. Gross earnings cannot exceed €50,000 for a single person or €75,000 for a couple.

When the loan was launched in February last year the target was to approve 1,000 loans over three years.

The department memo, dated 31 January, said that demand for the scheme has "far exceeded expectations" and that 1,550 recommendations for loan approvals have been issued since its launch.

In response to additional questions the Department of Housing confirmed that a further tranche of funds is required.

It said that it is in discussions with the Departments of Public Expenditure and Reform and Finance with regard to an extension of the scheme.

Dave Murphy from Dublin applied for the scheme in South Dublin County Council in November. He is awaiting a decision on his application and told Morning Ireland it would be "devastating" if funding was not available.

"We are both working full time but we can't get a mortgage from any of the main lenders. We earn too much for HAP or social housing," said Mr Murphy.

"This scheme was a perfect fit on paper, but the reality is that you are left in a state of not knowing.

"We hope our application is already in the pile to be approved. But if there is no funding I don't know what we are going to do. We don't know where to go from here.

"My wife is back living in her mother's house with two kids. She is on a blow up mattress on the floor. We have no home to call our own."

Labour housing spokesperson Jan O'Sullivan called on Minister Murphy to clarify if councils are no longer approving applications for the loan scheme.

"What does this mean for those who have already begun their applications process; and when will the next stream of funding be secured?" she said.

"This process is the last resort of many desperate people and families who are trying to buy their own home."

One of the largest local authorities in the country, Kildare County Council, confirmed last month that it was not approving any further loans until additional funding was confirmed.


Source : RTE 05/03/2019

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Tuesday, 20 April 2021

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