Brian Ó Domhnaill (Fianna Fail) | Oireachtas source

Cuirim fáilte roimh an Aire Stáit. This issue relates to the home choice loan scheme. The scheme was established in late 2008 or 2009 and was funded by the Exchequer to the tune of €500 million initially. However, less than €4 million worth of loans have been approved by the home choice loan programme since its inception. As I understand it, only 21 loan approvals have been granted.

There has been much commentary in recent times about the difficulties people are experiencing in obtaining loans to build or purchase homes. Obviously, the curtailment of the Central Bank mortgage lending rules has had an impact as well. The home choice loan scheme is administered through the local authority system, however, and is not subject to the Central Bank lending rules. Under the scheme, the borrower is only required to have 8% in savings up to a maximum threshold of borrowing €285,000. The borrower must have 8% in savings for an application to be deemed eligible. There are other criteria, including having been refused by two other mortgage lending agencies prior to applying for the home choice loan scheme.

In any event, the scheme was set up to support people who want to purchase and live in their own homes. The State should do everything possible to afford people the opportunity to progress to a phase in their lives when they can actually do that. The scheme is essentially defunct - it is not working. A spokesman for Irish mortgage brokers, Mr. Karl Deeter, commented on the scheme at the end of August. He stated not only that the scheme is defunct but also that mortgage brokers do not even know how to get in contact with the home choice loan provider. We need to put our hands up and say the scheme has been a complete and utter failure. However, that does not mean it should not be resurrected. I am of the view that it should be resurrected in light of the need to provide housing and the demand that exists among individuals, especially those in rural areas who may wish to build their own homes on their own land. Those people should be allowed to do that. Often, the only show in town for these people is a mortgage through the lending agencies but they are not available at present despite what may be said to the contrary by those in the lending agencies.

The lending rate of 3.25% is competitive within the market but why is no one applying? The reason is that the scheme is not being promoted, marketed or structured properly. I am keen to hear what the Minister of State has to say. If we are not going to revamp and revitalise the scheme and make it available to everyone, then we would be as well to close the door and say that we have failed. Finally, where has the money initially allocated to the scheme gone?