Martin Heydon (Kildare South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

84. To ask the Minister for Environment, Community and Local Government for an update on the home choice loan scheme; if it is operational all over the country; the levels of loans which have been allocated in the past three years; his plans to review the scheme; and if he will make a statement on the matter. [15255/16]

Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Home Choice Loan (HCL) is a mortgage for first time buyers that was introduced in 2009 and is provided by local authorities.

The terms and conditions of this loan are set out in the specific regulations – the Housing (Home Choice Loan) Regulations 2009 – a copy of which is available at . The loan is available to first time buyers who can prove that they have been refused a loan from 2 financial institutions. It provides up to 92% of the market value of a property purchased up to a maximum loan amount of €285,000.  The loan is a normal capital and interest bearing mortgage. It is offered at a single, competitive variable interest rate. The rate is currently set at 3.50% . Further details in relation to the Home Choice Loan can be found at .

The loans are made and administered by four lead local authorities - Dublin City Council, Cork City Council, Kilkenny County Council and Galway County Council - that operate on behalf of all other local authorities . To support local authorities in operating the HCL in a consistent and efficient manner, the Housing Agency provides a central underwriting service to local authorities. This shared central service processes loan applications, carries out credit checks and issues a recommendation to the local authority on each loan application in accordance with the credit policy. The final decision on loan approval is a matter for the relevant local authority and its credit committee on a case-by-case basis and in accordance with the statutory Credit Policy that underpins the scheme. There may be a variety of reasons why an applicant is not successful in securing mortgage approval under the scheme, including not meeting the income requirements or a lack of a credible saving record.

Since the Home Choice Loan scheme commenced in 2009, 21 Home Choice Loans have been issued with a total value of €3,931,755. Information on loans issued over the last three years is set out in the following table.

I will continue to keep the operation of the HCL under review.