Leo Varadkar (Dublin West, Fine Gael)
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Question 584: To ask the Minister for the Environment, Heritage and Local Government if his attention has been drawn to the fact that buyers of affordable housing can not change their mortgage provider; if he will make changes to the scheme to enable them to do so; and if he will make a statement on the matter. [24785/07]

Batt O'Keeffe (Cork North West, Fianna Fail)
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The question of facilitating arrangements for persons in affordable housing wishing to re-mortgage with private lenders has been the subject of discussions between my Department and a number of the financial institutions. The current practice requires that if a private lender agrees to provide re-mortgage finance it will be on the basis that their mortgage charge will rank below the clawback charge where such a charge exists. This is consistent with the time sensitive nature of property charges under which the priority of charges is determined by the sequence in which they were placed on the property. The private financial institutions have indicated an unwillingness to advance re-mortgage finance on this basis.

Accordingly, my Department is examining the feasibility of introducing a set of arrangements under which a local authority would agree to its clawback charge ranking in second place behind a new, or topped-up, mortgage charge, in certain circumstances. The practicalities of this will have to be considered in consultation with the local authorities and the lending institutions. It is likely that any new set of arrangements that may be introduced will require enabling legislation.