Catherine Murphy (Kildare North, Independent)
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Question 263: To ask the Minister for the Environment, Heritage and Local Government if the rules regarding mortgage protection for local authority loans is agreed centrally or locally; his views on amending the criteria; the criteria relating to epilepsy that apply; and if he will make a statement on the matter. [4470/07]

Noel Ahern (Dublin North West, Fianna Fail)
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The Mortgage Protection Scheme for local authority loans has applied to all house purchase loans approved by local authorities on or after 1 July 1986. Under the scheme, the cost of mortgage protection insurance is met by way of an additional charge, currently 0.598%, to the rate of interest charged on individual loans. One of the conditions of the scheme, which is a group policy, is that it is obligatory for all local authority borrowers who meet the eligibility criteria to join. Altering this condition would have a negative impact on the scheme and increase the cost for all existing borrowers.

Under the terms of the current scheme, borrowers must be between 18 and 55 years of age and in good health. The determination of eligibility in accordance with these and other criteria is a matter for the local authority concerned in consultation with the scheme administrator and underwriter, as appropriate.

While authorities must operate prudentially in relation to approving housing loans, they are not necessarily prevented from making a loan to a borrower who cannot obtain mortgage protection insurance because he or she by reason of health or age would not be acceptable to an insurer.