Seán Ó Fearghaíl (Kildare South, Fianna Fail)
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Question 116: To ask the Minister for the Environment, Community and Local Government the number of income-related old Housing Finance Agency loans still in payment on a county basis; if his attention has been drawn to the fact that mortgage protection insurance on these loans may be inadequate; if his further attention has been drawn to the fact that some loans may not be issued at all and that some home owners may be unaware their debt is unsecured; and if he will make a statement on the matter. [10926/11]

Willie Penrose (Longford-Westmeath, Labour)
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My Department does not collect data on either the number or value of income related loans that remain outstanding. Mortgage Protection Insurance (MPI) was introduced in July 1986 as a means of protecting housing loan borrowers in the event of death or disability. It was mandatory for new borrowers but excluded existing borrowers at that date. The majority of income related loans were extended pre-1986 and would not have had mortgage protection.

However, as part of the renewal of the MPI scheme in 2003, life cover was extended to pre-1986 loan holders on a voluntary basis. If home owners who took out their loans prior to 1986 opted out of the scheme they may not have adequate life cover. Currently death cover is extended to age 75 and disability cover to age 65 for individual and joint borrowers. In the circumstances, I consider the cover provided by the scheme to be adequate.