Jim O'Keeffe (Cork South West, Fine Gael)
Link to this: Individually | In context

Question 130: To ask the Minister for the Environment, Heritage and Local Government if his attention has been drawn to the difficulties with some financial institutions in relation to the advancing of mortgage moneys on affordable sites provided by local authorities in that some institutions insist on first charge not just for the amount of the mortgage but also for future advances in priority to the local authority claw-back charge; and if he has had discussions with the banking and other institutions to resolve this issue as it is causing serious problems for some owners of such affordable sites who are anxious to build their own homes. [22214/07]

Batt O'Keeffe (Cork North West, Fianna Fail)
Link to this: Individually | In context

My Department is aware of an issue which has arisen whereby some applicants who have bought sites under the low cost sites scheme have experienced difficulties in obtaining mortgages from certain financial institutions. This arises where a financial institution objects to a local authority having the first charge on the property for clawback purposes. My Department has advised authorities where this problem has arisen that it is not a requirement of the scheme that the authority has a first charge and that it should enter into discussions with the financial institutions involved at local level with a view to seeking a resolution to the issue.