Charlie McConalogue (Donegal North East, Fianna Fail)
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To ask the Minister for Finance if he is concerned by reports of delays to processing of mortgage applications at Allied Irish Bank in view of the upcoming end of mortgage relief for first time buyers and the significant financial cost that buyers will face if their transactions are not completed by 31 December 2012; and if he will make a statement on the matter. [50499/12]

Michael Noonan (Limerick City, Fine Gael)
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AIB has informed me that it is well aware of this impending deadline on the cessation of mortgage relief for First Time Buyers and will continue to work with customers seeking to avail of this relief to ensure that, where possible, transactions are completed in a timely manner. AIB is currently approving seven out of ten mortgage applications and is well ahead of target in terms of its aim to provide new mortgage lending of at least €1 billion sanctions in 2012. In addition, AIB’s mortgage rates for new business remain the most competitive in the market.

AIB’s share of mortgage loans drawn in quarter three 2012 is estimated at 43% compared to 25% in quarter three 2011. It has sanctioned 5,922 mortgages in the year to Sept 2012, a rise of 90% on the same period last year. AIB’s share of the broker market is now estimated to be 66%.

First Time Buyers form a significant part of AIB’s mortgage business with market share of 49% in quarter 3 2012, compared to 27% in Q3 2011. AIB’s improved turnaround time for completed applications has been central to this market performance.

As potential buyers need to complete the purchase of a property by 31st December 2012 to avail of Tax Relief for Mortgage Interest Paid, all aspects of the transaction must be finalised including Legal, conveyancing, Life Assurance and mortgage drawdown.

Any new home buyer who is concerned about any issue in relation to their mortgage application should contact their Relationship Manager or Mortgage Co-ordinator who are always available to support customers in this major financial and personal decision.