Michael McGrath (Cork South Central, Fianna Fail)
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Question 627: To ask the Minister for the Environment, Heritage and Local Government if he plans to facilitate persons who purchased houses under the affordable housing scheme to re-mortgage their property. [14904/08]

Emmet Stagg (Kildare North, Labour)
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Question 645: To ask the Minister for the Environment, Heritage and Local Government the reason the claw back on affordable housing kicks in if people go to re-mortgage their affordable home; and if they are not selling their affordable home, will he change the claw back rules in relation to this. [14241/08]

Batt O'Keeffe (Cork North West, Fianna Fail)
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I propose to take Questions Nos. 627 and 645 together.

Current practice requires that if a private lender agrees to provide re-mortgage finance in respect of a house purchased under the Government's affordable housing schemes, it would be on the basis that their mortgage charge would 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.

Legislative provision to facilitate arrangements under which a local authority could agree to its clawback charge ranking in second place behind a new or topped-up mortgage charge, thereby facilitating persons in affordable housing wishing to re-mortgage with a private lender, is being considered in the context of the Housing (Miscellaneous Provisions) Bill which is currently being drafted. I expect that this Bill will be published by the end of the current parliamentary session.